An Updated Model for Benefits Planning

1
An Up-dated Model for Benefits Planning
2
USU Benefits Vision

• Utah State University will offer employee
  benefits that encourage the best possible
  opportunities for health, personal,
• and financial well-being.

3
USU Planning Model Principles

• Redefine and create new ways in which a
  shareholder's health and well-being is improved.
• Understand stakeholder perspectives and
  incorporate them into benefits plan design.
• Re-shape the role of employee-shareholders with a
  greater sense of ownership and involvement in the
  planning process.
• Garner stakeholder perspectives and incorporate
  into benefits plan design

4
Why benefits planning is critical

• United Airlines dumped its 10 billion pension
  liability on the Pension Benefit Guaranty Corp.
• Health-insurance costs have jumped an astounding
  59 percent since 2001-five times the rate of
  inflation and five times the growth in wages.
• General Motors, will eliminate 25,000 jobs by
  2008 in part because of the cost of its
  healthcare commitments-about 1,500 per car.
• GM is now spending more on healthcare than it
  does on steel.
• Economists blame spiraling costs for dragging
  down the economic recovery and putting a damper
  on hiring in firms of all sizes.

5
Why USU needs to build upon the benefits planning
model

• The stakes are higher than ever and
• the stakeholders must
• be involved in the solution.

6
Benefits Shareholder Principle

• The Utah State University benefits plan is joint
  venture between the Utah State University and USU
  employees, who as shareholders retain certain
  inherent ownership and responsibilities in
  underwriting its success.

7
Why Augmenting Federated Model Will Work

• Re-shapes the end-user-only role of employees
  to include a greater sense of ownership and
  involvement.
• Redefines and create new ways in which employee
  health and wellbeing is increased.
• Increases meaningful involvement of employees in
  the decision making process.
• Acknowledges that employees know what works for
  them.

8
Building Upon the Federated Model
9
Building Upon the Federated Model

• Goal 1 Make the benefit plans and the planning
  process transparent and accountable.
• Goal 2 Elected employee representatives will be
  responsive to and accountable for the benefits
  needs of the workforce.
• Goal 3 USU benefit plan design will reflect the
  synthesis of stakeholder inputs and professional
  expertise.

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Building Upon the Federated Model

• Employee Representative Roles Responsibilities
• Gather and forward employee input on plans
• Vet plan ideas with employees
• Disseminate plan dashboards to employees
• Vote responsively responsibly

• Expert Committees Roles Responsibilities
• Convert employee inputs into activities
• Prepare responsive plan design outputs
• Composed of trained professionals with expertise
  in
• Actuarial Analysis
• Benefits Plan Design
• Medical/Clinical Care
• Financial Planning
• Supplemental Insurance

• HR Roles Responsibilities
• Offer leadership in planning implementation
• Provide customer service in plan execution
• Supply expertise experts
• Make available tools educational materials for
  employees
• Provide on-going plan assessment

11

Building Upon the Federated Model Anticipated
Outcomes

• Benefits programs will support new employee
  recruitment efforts and encourage long-term
  relationships with employees.
• Benefits programs will promote and reward
  personal and financial health.
• Employees will be provided with the highest
  quality healthcare possible.