New Faculty Benefits Orientation Manager of Benefits

1
New Faculty Benefits OrientationManager of
Benefits WelfareJana BatesX81-3551jbates1_at_twu
.edu

• Human Resources Associate, Benefits
• Angela Cagle
• X81-3552
• acagle_at_mail.twu.edu

2
Agenda

• Employee Assistance Plan
• Notice of Privacy
• Payroll Information
• Benefit and Policy Information
• Insurance Plans
• Retirement Plans
• Tax Deferred Annuity Plan 403(b)
• Texaver Program

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Payroll Information

• Complete Payroll packet and return to OHR
• Paychecks are received the 1st business day of
  the month
• Direct Deposit
• Completed with your Payroll paperwork
• Check will be automatically deposited in your
  bank account the 1st day of the month
• Paper check
• Direct Deposit Declination completed with your
  payroll paperwork
• Check will be mailed to your home address

4
Holidays

• State provides 12-15 days per year
• May observe additional holidays with approval
  from supervisor and use of vacation/comp time

5
Sick Leave

• Full time staff (50 or more) are eligible
• Earn 8 hours a month (prorated by FTE)
• No max on carry over from year to year
• Can begin to use immediately
• Can be used for illness of employee or immediate
  family member

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Sick Leave Pool

• At termination of employment, balance of sick
  leave hours may be donated to the Sick Leave Pool
• May request Sick Leave Pool hours for a
  catastrophic illness (for self or immediate
  family member)
• May transfer sick leave hours to the Pool

7
Family Medical Leave Act (FMLA)

• Up to 12 weeks of leave for certain medical
  reasons (for self or immediate family member)
• Law protects job for up to 12 weeks
• Works in conjunction with paid leave
• States portion of insurance is paid (employee is
  responsible for optional coverage premiums
  including dependent coverage)
• If leave extends beyond 12 weeks, employee is
  responsible for total of ALL premiums

8
Drug Free Workplace

• Unlawful manufacture, sale, distribution,
  possession or use of a controlled substance in or
  on university property is prohibited
• Any violation is subject to appropriate
  disciplinary action up to and including
  termination of employment

9
Workers Compensation

• Notify Supervisor Immediately
• 30 days to submit paperwork
• Pays 100 of medical expenses
• 70 Salary replacement after 7 days

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INSURANCE
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Pre-existing Conditions

• The Group Benefit Plan does not have a
  pre-existing condition clause for new employees
  and newly acquired dependents.
• Evidence of Insurability will be required for
  enrolling in certain benefit plans after the
  initial enrollment period

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HealthSelect Insurance

• POS (Point of Service)
• Effective date is 1st of the month after 90 days
  of employment.
• State pays 100 of full-time (100) employees
  coverage and a portion of dependent coverage
• State pays 50 of part-time (less than 100)
  employees coverage and a portion of dependent
  coverage

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Making Changes to your Benefits

• During Summer Enrollment
• Within 30 days of Family Status Change
  (Qualifying Life Event)
• Example
• Marriage
• Divorce
• Birth
• Death
• Spouse gains or looses employment

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Changes (continued)

• Evidence of Insurability procedure
• Must complete a medical questionnaire
• Must be submitted to Fort Dearborn Life within 30
  days after FSC event date
• Must be approved for the coverage elected
• Change becomes effective the 1st of the month
  following OHRs receipt of approval letter
• No guarantee of approval

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HealthSelect (Continued)

• Network Benefits
• Office visits
• 20 PCP co-pay
• 30 Specialist co-pay
• Any other services
• 20 co-insurance
• 1000 out-of-pocket maximum (calendar year)

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HealthSelect (Continued)

• Non-network Benefits
• 500 Deductible (calendar year)
• 60/40 co-insurance
• 3,000 out-of-pocket maximum (calendar year)

17
HealthSelect (Continued)

• Out-of-Area Benefits
• An example would be if you have a dependent that
  is going to school out of state
• Can use any doctor/provider without a referral
• 200 Deductible (calendar year)
• 70/30 co-insurance

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HealthSelect (Continued)

• As long as you use your PCP or get a referral
  from your PCP to a specialist in the network, the
  office visits will be 20.
• If you ever needed to or wanted to go to a
  doctor/provider that is not on the network, you
  would pay the first 500 out of pocket, then file
  a claim to be reimbursed 60 of anything over the
  500 deductible.

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Prescription Drugs

• Non-Maintenance Prescriptions purchased at local
  Pharmacy
• 50 deductible per person per year
• 10 generic
• 25 preferred brand name
• 40 non-preferred brand name

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Prescription Drugs (Continued)

• Maintenance Prescriptions purchased at local
  Pharmacy
• 15 generic (instead of 10)
• 35 preferred brand name (instead of 25)
• 55 non-preferred brand name (instead of 40)

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Prescription Drugs (Continued)

• Mail Order for Maintenance prescriptions (up to
  90 day supply)
• 30 generic (10 x 3 mo.)
• 75 preferred brand name (25 x 3 mo)
• 120 non-preferred brand name (40 x 3 mo)

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Basic Term Life

• State pays for a 5000 Basic Term Life policy for
  employee only
• Includes ADD (coverage is doubled is death is
  due to an accident)

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OPT OUT CREDIT

• You must be eligible for the state contribution
  toward your state health insurance
• 100 percent for full-time employees.
• 50 percent for part-time employees.
• 100 percent for full-time retirees or 50 percent
  for part-time retirees.

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OPT OUT CREDIT (continued)

• Participant must certify comparable health
  coverage such as spouses or parents health plan
  or TRS Cares.
• Monthly credit to use toward Dental Choice or
  Dental DMO and Voluntary ADD premiums
• Participant Type Monthly Credit (up to)
• Full-time 60
• Part-time 30

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OPT OUT CREDIT (continued)

• Only a credit towards Dental and ADD
• Is not a cash back program
• Gives up state-provided health, prescription, and
  basic life insurance
• Required to pass evidence of insurability to
  enroll in HealthSelect in the future
• No guarantee of enrollment in state health
  insurance in the future-depending on health
  status

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WAIVER OPT OUT CREDIT STATEMENT

• You should carefully consider any decision to
  decline health insurance coverage.
• You may never be able to enroll in the state
  health plan again, depending on your health
  condition.
• Participants who waive health coverage and later
  wish to enroll in HealthSelect must prove
  insurabilityalso called proof of good health or
  evidence of insurability (EOI)and acceptance is
  not guaranteed.
• Waiving or opting out includes basic life plan,
  prescription drug benefits and health benefits.

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COBRA

• Participants who are no longer eligible for
  health coverage
• You have up to 60 days to elect coverage
• May pay full premium plus a 2 administrative fee
• You may continue coverage up to 18 months when
  terminating employment

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OTHER BENEFIT PLANS
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Dental(See Comparison Chart, Dental Choice
Brochure and DMO Aetna Info Sheet)

• Dental HMO Plan
• Lower Premium
• List of providers (only aware of 1 in Denton)
• Schedule of benefits
• Charges per service
• Insurance company not involveddentist agrees to
  give discount

• Dental Choice Plan
• Higher Premium
• Network/non-network
• Indemnity plandeductibles co-insurance
• Benefits increase over 3 year period

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Optional Term Life Insurance

• Optional Term Life
• Election I 1 x annual salary
• Election II 2 x annual salary
• Election III 3 x annual salary
• Election IV 4 x annual salary

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Optional Term Life Insurance (Continued)

• New employee can auto enroll in EI or EII without
  Evidence of Insurability
• If you want EIII or EIV coverage EOI is required
• Premium is based on
• Annual salary
• Age
• Level of coverage
• Includes ADD (coverage is doubled if death is
  due to an accident)

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Dependent Term Life

• Dependent Term Life
• 5,000 policy
• Includes ADD (doubles coverage if death due to
  an accident)
• 1.51 per month for ALL dependents (not per
  dependent)

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Disability

• Short Term Disability
• Premium is .32 per 100 of monthly salary
• Must be off work 30 days (or end of sick leave)
  before coverage begins
• Insurance pays 60 of salary (Max Payment 1,800)
  for a maximum of 5 months

• Long Term Disability
• Premium is .70 per 100 of monthly salary
• Must be off work 90 days (or end of sick leave)
  before coverage begins
• Insurance pays 60 of salary (Max Payment 6,000)
  up to age 65

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Accidental Death and Dismemberment (ADD)

• ADD
• Coverage from 10,000 to 200,000
• Employee .03 per 1,000 of coverage
• Emp/Fam .05 per 1,000 of coverage
• Pays only in the event of an accidental death or
  dismemberment

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Long Term Care

• Home health care
• Nursing home care
• Employees can automatically enroll within their
  first 31 days of employment (after that, must
  apply through EOI)
• Spouse, child, parents can apply for coverage
• Carrier is CNA Not payroll deductions

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State Kids Insurance Program (SKIP)

• Lower income families may qualify
• State pays majority of childrens premiums
• Complete application form and submit to SKIP at
  address on application
• Eligibility is based on family size, income,
  expenses, and assets
• Auto enrolled once approved

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TexFlex

• Also known as
• Flexible Spending Account
• Section 125
• Cafeteria Plan
• Contributions are Tax Sheltered
• PayFlex Card - 16 Annual Fee

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TexFlex (Continued)

• Health Care Reimbursement Account -Medical
  expenses not covered by insurance
• Co-pays and Deductibles
• Eye glasses, contacts, etc
• Dental Care
• Dependent Care Reimbursement Account expenses for
• Child Care
• Adult Day Care

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TexFlex (Continued)

• Estimate how much you will spend during the plan
  year (Sept 1 Aug 31)
• Divide by of months in plan year Monthly
  Deduction
• Must use or loose contributions
• Money must be spent by Aug 31 or you will loose
  what is left in the account
• Grace period to November 15
• You have until Dec 31 to actually file the
  claim

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TexFlex (Continued)

• Reimbursement methods KEEP ALL RECEIPTS
• Changes are limited during plan year
• Can change elections with a Qualifying Life Event
• For LWOP or Termination, you pay remainder of
  annual pledge for HCRA
• For LWOP or Termination DCRA will end

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RETIREMENT
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Retirement

• All full time employees (50 FTE or more) are
  required to participate in a retirement program
  effective on the 1st day of employment
• Teacher Retirement System (TRS) - 6.4
• Optional Retirement Program (ORP) - 6.65
• State matches 6

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Retirement Teachers Retirement System

• Vesting Benefits
• Vested after 5 years of service with TRS
• To be vested means that you are eligible to
  retire and draw a retirement annuity once you
  meet the retirement age requirements
• Death Survivor Benefits
• Lump Sum _at_ 2x annual salary (up to 80,000), or
• 2500 lump sum plus 300 per month until the
  youngest child reaches age 18

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TRS (continued)

• Service Retirement
• Normal retirement age
• 65 w/ 5 years service, or
• Any combination where age service 80, or
• Any age w/ 30 years service
• Early age retirement
• At age 55 w/ 5 years service with reduced annuity
• Insurance after Retirement
• In order to have the Retiree Insurance you MUST
  have 10 years of service and be age 65 or meet
  the Rule of 80

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TRS (continued)

• Disability Retirement
• Less than 10 years of service
• 150 per month paid for the same number of months
  employed
• State continues to pay their portion towards
  insurance during this time
• 10 years of service or more
• Standard annuity (without reduction for early
  age)
• State pays their portion towards insurance
  throughout retirement

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TRS (continued)

• If employee terminates employment before vested
• Leave money in TRS and retire with annuity at
  regular retirement age
• Money continues to earn interest for up to 5
  years
• After 5 years, balance no longer draws interest
• Roll employees contribution of TRS money into
  another retirement account (i.e., IRA)
• Draw money out
• 20 Withholding
• IRS assess an early withdrawal penalty of 10 if
  under age 59 ½

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Retirement Other Retirement Plan (ORP)

• Defined Contribution Plan
• Choice of Retirement Annuity Providers
• Responsibility (and risk) of managing own
  investments
• Automatic TRS Enrollment until ORP is selected
  then funds are transferred
• One time irrevocable choice

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Retirement Other Retirement Plan (continued)

• List of Approved Carriers for TWU Campus
• ORP Program Acknowledgement form
• Contact representative of Carrier for completion
  of contract
• Complete Notice of Election to Participate in
  Optional Retirement Program

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Retirement Other Retirement Plan (continued)

• If you want ORP contributions to start with
  October paycheck, return forms to OHR by
  September 10.
• Otherwise ORP will be effective 1st of month
  following receipt of paperwork and will have to
  refund and transfer TRS deductions that started
  with October 1 check.
• If vested in ORP from previous employment will
  need to get a new contract signed as soon as
  possible.

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Retirement Forms

• Notice of Election to Participate in ORP (TRS-28)
• ORP/TDA Purchase Agreement/Change of Carrier Form
• Application for Refund (TRS-29)
• Prior ORP Participation Acknowledgment Form

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Optional Retirement Program (ORP)

• You have 90 days to elect ORP
• Vesting at 1 year and 1 day after contributions
  commence
• Restricted to Approved Carriers for TWU
• Can change carriers at any time
• Fidelity packets available in OHR

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Retirement Comparison of Plans

• Teachers Retirement System TRS
• Vesting 5 years
• Death and Survivor Benefits
• Disability Benefits
• Contribution Rate 6.4
• Benefit based on formula

• Other Retirement Plan- ORP
• Vesting- 1 yr 1 day
• No Death Survivor Benefits
• No Disability Benefits
• Contribution Rate 6.65
• Benefit based on rate of return

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Tax Deferred Annuity 403(b)

• Tax Sheltered Annuity Program
• Savings program to help supplement retirement
• Employees can contribute up to 15,000 for 2006
• Age 50 Additional 5,000 contributions per year
• To sign up, employee can contact a representative
  from the list of Approved Carriers

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Deferred Compensation (457)

• Savings program to help supplement retirement
• Employees can contribute up to 15,000 for 2006
• Age 50 Additional 5,000 per year
• To sign up, employee can contact CitiStreet
• See 457/403(b) Comparison Chart

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Forms to be Returned Today

• Notice of Privacy
• ORP Program Acknowledgement Form
• Payroll Packet Forms if not previously completed

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Sponsors for NFO Dinner

• Annuity Company
• Nationwide Life - Mike Woods
• American Funds - Austin Adams Bill Wilson
• ING (Aetna) - G Thomas Swenson
• MetLife/CitiStreet - David Piccolo
• Quads - Thomas Anderson An Walker
• AIG Valic - Tom Conboy
• Lincoln Financial Group - Glenn Ferrell

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WELCOME TO TWU

• Thank you for your time and attention
• Please contact us if you need information
  regarding any of these topics
• Jana Bates Angela Cagle
• jbates1_at_twu.edu OR acagle_at_mail.twu.edu
• 898-3551 898-3552