Northern Arizona University New Faculty Orientation – Benefits August 23, 2005 The Benefits Team – Susan Rain, Alicia Howard, BJ Pisano, Anna Fallis, Rosemary Hodges – contact us at 3-2223 We will cover: Your paycheck Contents of the benefits packet Deadlines How to enroll Required forms and supporting documentation Benefits: Retirement plans / Long Term Disability Insurance Insurances - Medical Dental Vision Supplemental and Dependent Life Short-term Disability Flexible Spending accounts Additional NAU benefits Open Enrollment and Qualified Life Events Where to get help Your paycheck: All new employees are required to complete the new hire payroll packet immediately. NAU faculty and staff are paid biweekly. New faculty are paid over the academic year (9 months), but may elect 12-month pay at the end of their first academic year. First payday for most new faculty is Friday, September 2, (1 week of pay for contracts beginning on August 22). Enroll in direct deposit online – we can help you today. Paperless pay - view pay statements and sick leave balance online. Paper paychecks (not recommended) are mailed to HOME address Address update is self-service, online Benefits Packet Contents Welcome Letter Stapled packet of required forms Retirement Plan Information Insurance Information Important Deadlines You have 30 days (from the first day of your contract) to enroll in your benefits and submit required documents to HR. Your insurance becomes effective on Sept. 1 if you enroll in August. If you wait until September to enroll, your insurances become effective on Oct. 1. Enroll in Benefits On-line Enrolling in benefits plans and designation of dependents and beneficiaries is done online in the LOUIE system (www.peoplesoft.nau.edu). ID and password are needed to log onto Louie - the same ones used to access your NAU email account. For help with id/password issues, call 3-1511 (ITS Solution Center). Instructions for navigating the LOUIE system and a New Hire Worksheet are included in your new hire packet. Enrollment within the first 30 days of your employment is required to prevent loss of benefits options. In addition to online enrollment, these forms (w/signatures) are required: 30-Day Benefits Notice & Personnel Policy Acknowledgement Form (required) Retirement Election Form (required) ASRS Enrollment and Beneficiary Designation Form (required if electing ASRS) Optional Retirement Program Election Form – AIG VALIC, Fidelity, TIAA-CREF, or Vanguard (required if electing an ORP) Note – as of Jan. 1, 2006, Vanguard will no longer be available in the ORP, and all funds will be transferred to other vendors Blue Cross Blue Shield COB Form (required if electing NAU BCBS PPO) All required forms and supporting documentation must be submitted to the Human Resources Department within 30 days of your date of hire. Supporting Documentation needed: To enroll dependent(s) in insurance plans, you may need to submit supporting documentation: Marriage Certificate (Required if spouse has different last name) Birth Certificate (Required if a dependent child(ren) has different last name) Court Order Documents (Required for proof of legal guardianship, adoption, etc.) Verification of Full-time Student Status (Required for dependent child(ren) between ages 19-24) All required forms and supporting documentation are due in the Human Resources Department within 30 days of your date of hire. When do my benefits begin? Mandatory benefits begin on your date of hire (the first day of your contract): Retirement Long-term Disability Insurance Basic Life Insurance - $15,000 coverage provided by NAU Optional benefits begin on the 1st of the month following your enrollment. Medical Dental Vision Supplemental and Dependent Life Insurance Short-term Disability Flexible Spending accounts Overview of Benefit Plans Retirement & Long-term Disability Insurance Health Insurance Dental Insurance Vision Insurance Supplemental/Dependent Life Insurance Short-term Disability Insurance Flexible Spending Accounts Other – Sick Leave, Tuition Waiver, etc. Retirement Plans - You have a choice Arizona law requires state employees (including NAU) to participate in a retirement plan. Faculty and Academic Professionals have a choice between two plans: Arizona State Optional Retirement System Retirement Plan (ASRS) (ORP) Defined Benefit Plan Defined Contribution Plan Important! The election of your retirement plan is an irrevocable decision. Once you choose, you CANNOT change. New employees who do not elect a retirement plan within 30 days of their hire date will default into the Arizona State Retirement System (ASRS). Arizona State Retirement System (ASRS) A defined benefit plan: Provides retirement benefits based on a formula that uses age, years of service, and salary to determine a pension benefit. Pension benefit is based on: Your highest 36 consecutive months of salary in the last 10 years of employment. Arizona State Retirement System (ASRS) Contributions are deducted on a pretax basis: 6.9 % of Employee’s Salary 6.9 % NAU matching (on 7/1/06 the contribution rate changes to 8.6% for employee and NAU) Benefits: Guarantees a monthly benefit at retirement for your lifetime. ASRS provides a health insurance premium subsidy during retirement. Retirees are eligible for insurance plans from the AZ Dept. of Administration (ADOA) or from ASRS. Arizona State Retirement System (ASRS) Rate of Return Currently, monies earn 4% interest on an annual basis. The plan is evaluated biannually with potential changes in the contribution amounts and interest rate. Vesting Occurs after 5 years of service, with partial ownership of employer contributions between 5 – 10 years. Full vesting at 10 years. Access to Monies Upon separation, you have access to 100% of employee contributions and interest. Access to employer contributions is based on vesting status. Monies may be withdrawn or rolled-over to other retirement saving plans. Withdrawing funds will disqualify the participant from receiving benefits from the plan and earned years of service will be relinquished. Cash withdrawals may be subject to income tax and IRS fees and penalties. Loans No loans. Portability Please contact ASRS. Optional Retirement Plan (ORP) Sponsored by the Arizona Board of Regents A defined contribution plan is: A self directed plan in which you determine your investment strategy with selected financial institutions. Retirement benefit based on: Total accumulation of contributions and earnings of the plan. Optional Retirement Plan (ORP) Current Contributions, deducted on a pre-tax basis: 7.0 % of Employee’s Salary 7.0 % NAU matching Benefits: Employee has control over monies and investment plan. Retirees are eligible for insurance plans from the AZ Dept. of Administration (ADOA) or from ASRS. Not eligible for ASRS health insurance premium subsidy. Optional Retirement Plan (ORP) Rate of Return Rate of return is based on your investment strategy. Vesting 100% vesting of employer contributions occurs after 5 years of continuous service. All vested monies plus interest earned are deposited into the employee’s account in a lump sum and then per pay period thereafter. Immediate vesting is available if you have an active membership (money on deposit) in a qualified retirement plan from a college, university or higher ed institution in a state other than Arizona, or in a similar retirement plan in another country. Be sure to indicate this on your retirement election form! Access to Monies - Upon separation you have access to 100% of the value of your contributions. Access to employer contributions is based on vesting status. Cash withdrawals may be subject to income tax and IRS fees and penalties. Loans - No loans. Portability - Portable anywhere. Changing Investment Firms - You may change investment firms once per fiscal year. (July 1 – June 30) Optional Retirement Plan (ORP) AIG VALIC Fidelity TIAA-CREF Vanguard – not available after 1-1-06 On-line information about these companies, including plan information and a list of approved representatives can be accessed at: http://hr.nau.edu – go to Benefits/Contact Info/Mandatory Retirement Visit with AIG VALIC, Fidelity, and TIAA-CREF representatives on campus, September 8 at the Benefits and Wellness Expo for more information. (see flyer – Are you covered?) Vendor applications are included in your new hire packet. If you choose the ORP, a vendor application MUST accompany the Retirement Election form. Long-term Disability Insurance (LTD) Long-Term Disability Insurance (LTD) Long-term disability insurance (LTD) is a mandatory benefit, and is tied to your retirement benefit. Selection of your Retirement Plan determines which LTD carrier you have. Arizona State Retirement System Coverage provided by VPA $0.50 per $100 of salary paid by employee, after tax $0.50 per $100 of salary paid by NAU Optional Retirement Plan (ORP) Coverage provided by Standard No cost to the employee Long-Term Disability Insurance (LTD) Provides protection against loss of income due to illness or injury. Benefit begins after a 6 month waiting period from date of disability. Monthly Benefit = 2/3 of Base Monthly Salary VPA Employee premiums are paid on an after-tax basis. Benefits received are 50% taxable income and 50% non-taxable income. Standard No employee premium. Benefits received are taxable income. LTD coordinates with other disability income including: Social Security Workers’ Compensation Health Insurances Who is eligible? Medical, dental and vision coverage is available for you and your eligible dependents. Eligible dependents are defined as: Legal Spouse Children under age 19 (Natural, adopted, foster, step-children who live with you, legal guardianship) Children age 19 - 24 who are full-time students Health Insurance NAU currently offers employees in northern Arizona the choice of two Preferred Provider Organization (PPO) plans and one EPO plan (similar to an HMO): Blue Cross Blue Shield PPO Arizona Foundation PPO RAN+AMN (HMA) EPO 10-1-05, Schaller Anderson Healthcare EPO will be available (to enroll, you will need to participate in Open Enrollment – check with a benefits team member) If you are working at an NAU location that is not in northern Arizona, and live outside of Coconino County, you may have other plan options. Blue Cross Blue Shield (BCBS) Blue Preferred PPO Plan • Open to NAU employees and retirees only • PPO - Self refer to physician of choice • Multi-state and world-wide coverage (contact BCBS for details) • Three level provider network (in-network, out-of-network contracted provider, and out-of-network) • Pre-existing condition limitations may apply in some circumstances Blue Cross Blue Shield (BCBS) Blue Preferred PPO Plan Summary of Coverage: $15 copay for in-network physician services, except at Fronske (on 10-1-05 copay for specialists increases to $25) $75 Emergency room services (waived if admitted) 100% In-network hospitalization coverage No deductible Vision Benefit - 50% up to $250 max every 24 months NAU Fronske Health Center ($10 co-pay) Out-of-Network Employee Share is 40% Additional plan information can be found on the Human Resource’s website: http://hr.nau.edu Blue Cross Blue Shield Blue Preferred PPO Plan 4-Level Prescription Drug Benefit Standard 30-day prescriptions $7 co-pay for generic $20 co-pay for “Preferred” brand name $40 co-pay for Non-preferred A $80 co-pay for Non-preferred B Mail order provision Single co-pay for 90-day supply Available through Walgreens mail order service For further information or for an up-to-date prescription drug list please go to www.whphi.com Arizona Foundation PPO PPO - Self refer to physician of choice In-network and out-of network providers Pre-existing condition clause may apply in some circumstances Out-of-Network Employee Share is 30% RAN+AMN (HMA) EPO Schaller Anderson EPO Similar to HMO, with in-network insurance coverage only Arizona Foundation PPO RAN+AMN (HMA) EPO Schaller Anderson Healthcare EPO (available 10-1-05) Summary of Coverage: $10 co-pay for In-network physician services $75 Emergency room services (waived if admitted) 100% In-network hospitalization No deductible No Vision Benefit Not contracted with NAU Fronske Health Center Additional plan benefit information is published on the Human Resources website. http://hr.nau.edu Arizona Foundation PPO RAN/AMN EPO Schaller Anderson Healthcare EPO (10-1-05) 3-Level Formulary Prescription Benefit Standard 30-day prescriptions $10 co-pay for generic $20 co-pay for “Preferred” brand name $40 co-pay for Non-preferred brand name Mail order provision Two co-pay for 90-day supply No separate deductible Health Insurance Rates, per month •BCBS offers a single premium rate for all regions of AZ. •Schaller Anderson EPO will offer a single premium rate for all regions beginning 10-1-05. •Other health insurance plans have regional rates. BCBS PPO Single $15/month Family $115/month Beginning 10-1-05: Single $20/month Family $120/month ($10 per pay period) ($60 per pay period) Az Foundation PPO Single $140/month Family $390/month Ran+AMN (HMA) EPO (and Schaller Anderson at 10-1-05) Single $25/month Family $125/month Dental Insurance Dental Insurance Plans Employees may choose from: Prepaid Plans Fortis Dental Employers Dental Service (EDS) Indemnity/PPO Plans Delta Dental MetLife Prepaid Dental Plans Prepaid plans are like HMO plans. MUST use participating providers No deductibles No claim forms to file Co-payment for services Limited providers in Flagstaff Coverage good ONLY in Arizona Fortis Dental www.fortisbenefitsdental.com Employers Dental Services (EDS) www.mydentalplan.net Indemnity Dental Plans Indemnity plans are like PPO plans. You choose the dentist you want Routine Services at 100% coverage – deductible waived (Cleaning, x-rays twice a year, 6 months in between) $50/$150 Deductible Restorative - Basic 80% Major 50% $2,000 Yearly Maximum (Regular Services) $1,500 Lifetime Maximum for Orthodontia Worldwide coverage Delta Dental www.deltadental.com MetLife Dental www.metlife.com Dental Insurance Plans Premium rates per month Carriers – Indemnity Plans Single Family Delta Dental $ 12.10 $45.90 Beginning 10-1-05 14.56 54.14 MetLife Dental $12.10 $42.46 Beginning 10-1-05 12.90 45.00 Carriers – Prepaid Plans EDS $ 3.54 $16.72 Beginning 10-1-05 $ 4.02 $18.16 Fortis Dental $ 4.68 $18.02 no change at 10-1-05 Vision Insurance Avesis Vision Care Covers eye exams and corrective eyewear Limited benefit for Lasik surgery Supplemental to BCBS coverage $10 co-pay for eye exam Covers lenses or contacts Frame allowance $100-$150 Contact allowance $130 Avesis Vision Care Premium rates per month Single Family $6.34 $17.18 No change at 10-1-05 The Avesis information in your packet includes plan details www.avesis.com Life Insurance BASIC Life Insurance NAU provides a BASIC Life Insurance policy through Standard Insurance Company. There is no cost to employees for this benefit. Coverage $15,000 Term Policy $15,000 AD&D Benefit $15,000 Seat Belt Coverage Supplemental and Dependent Life Insurance Optional for employees who want to purchase coverage in addition to the Basic Life policy provided by NAU. Dependent life insurance for your spouse or dependent(s) may be purchased in addition to supplemental life insurance. Policies are available through: Aetna Life Standard Life Aetna Supplemental and Dependent Life Supplemental Purchase in increments of your salary (Initial enrollment at any amount, one step per year thereafter) Maximum is the lesser of 3X Annual Salary or $100,000 (increases to $150,000 maximum on 10-1-05) Includes AD&D Benefit Dependent Life $5,000 spouse/$2,500 Child(ren) or $10,000 spouse/$5,000 Child(ren) (MUST purchase individual supplemental coverage to be eligible to purchase dependent coverage.) Standard Supplemental and Dependent Life Supplemental Purchase in $5,000 increments Maximum is lesser of 3X annual salary or $300,000 Includes AD&D Benefit Dependent Life Dependent Life (per dependent): $2,000 $4,000 $6,000 $12,000 $15,000 Short-term Disability Insurance Short-Term Disability Insurance Short-term Disability (STD) provides protection against loss of income due to illness or injury. STD covers the first 6 months of a disability. NAU offers two STD plans: Unum-Provident Pays 70% of weekly salary for 26 weeks. Pre-existing conditions covered after 6 months of participation in the plan. Includes a $30,000 AD&D policy Standard Insurance Pays 2/3 of base monthly salary for 6 months. Pre-existing conditions covered immediately. Short-term Disability Rates Short-term Disability premiums are deducted after- tax. As a result, the benefits are non-taxable income. Standard $.89 per $100 of base monthly salary Unum-Provident $.84 per $100 of base monthly salary Flexible Spending Accounts Flexible Spending Accounts (FSA) A Flexible Spending Account allows you to pay for certain medical or dependent care expenses with pre- tax dollars from your paycheck. You save: Federal Taxes State Taxes Social Security Taxes How it works • Two accounts are available – Medical and Dependent Care. • Monies are pledged annually and deducted on a pre-tax basis. • Eligible medical or dependent care expenses are reimbursed to you by the plan administrator, from your contributions. Participants have until March 31st of the following year to submit claims for reimbursement. • Contributions are evenly divided over the number of paychecks received during the calendar year. NAU has 26 pay periods, but only 24 have benefit deductions taken. • Contributions for mid-year enrollments are deducted over the pay periods remaining in the plan year (the calendar year). There are 8 pay periods from Sept. to Dec. • Contributions begin the first of the month following enrollment. • The NAU plan is administered by ASI. Claim forms and eligible expense information can be found at: www.asiflex.com Flexible Spending Accounts – administered by ASI Health Care FSA You may fund this account up to a maximum of $5,000 per year. You may be reimbursed up to the total amount of the pledge for the year at any time. Dependent Care FSA You may fund this account up to a maximum of $5,000 per year. You may be reimbursed only up to the amount you have actually funded the account through payroll contributions. Flexible Spending Accounts Enrollment into FSA can be done: Within 30 days of date of hire Effective the first of the month AFTER ENROLLMENT During FSA open enrollment November 2005 for the 2006 plan year Must re-enroll each year Within 30 days of certain qualified life events Changes to your pledge can be made: At FSA open enrollment Within 30 days of certain qualified life events Reimbursement is very fast when you select direct deposit for FSA. Pledge conservatively, amounts not claimed for reimbursement will be lost! Additional Benefits Supplemental Retirement Savings Employees may contribute to supplemental retirement plans, using pre-tax deductions. NAU offers two plans: Tax Deferred Annuity - 403(b) plan Deferred Compensation - 457 plan These are voluntary plans. NAU does not match funds for these plans. Tuition Assistance An Arizona Board of Regents benefit Available for: Employee Legal spouse Children who are eligible to be claimed as dependents on the employee’s tax returns. Tuition Assistance Benefit eligible employees pay $25 + fees for 1-9 hours Dependent children pay 25% of resident tuition + fees Spouses pay $25 + fees for 1-9 hours, plus 25% of resident tuition + fees for 10+ hours To apply, use the Education Aid Registration Permit (EARP) form available on the NAU Financial Aid web page Can be used at three state universities (NAU, ASU, UA). Does not include fees, labs or textbook purchases. Workers’ Compensation Insurance Workers’ Compensation Insurance is provided to all employees. It protects employees from injuries or illness which occur while working. • If you are injured, report it immediately to your supervisor or Dean. • Seek medical attention if necessary. • If you supervise someone who becomes injured, you must complete a “Supervisors Report of Injury” (SRI) form, available on the HR web page and call to report the injury to State of Arizona Risk Management. Open Enrollment Open Enrollment Open enrollment is the time each year when employees are able to enroll or make changes to their benefit plans. Insurance open enrollment is August 29 – Sept. 16 this year. Flexible spending open enrollment is in November with new pledges effective Jan 1st. Employees hired for the new academic year should be aware their new hire benefits will be effective for one month – September – before the new insurance plan year begins (and rates change). Where to get information: The Human Resources web page, http://hr.nau.edu Open Enrollment Information Session on Sept. 1 Benefits and Wellness Expo – September 8, 9am-4pm, du Bois Ballroom 2005 Open Enrollment Open enrollment dates: August 29 through September 16, 2005. Changes become effective October 1, 2005 – one month after new faculty benefits begin. This year, you will not need to do anything for open enrollment if you are satisfied with the benefit elections you made as a new hire. However, if you change your mind, Open Enrollment will allow you to make a change. What to do first? New hire enrollment MUST be completed prior to completing the open enrollment process. Qualified Life Event Qualified Life Events A life event that allows an employee the opportunity to make a change to their benefit plan(s). The type of life event the employee experiences will dictate the change(s) available to then. Examples of qualified life events include: Change in Marital Status Marriage, divorce, legal separation, annulment Change in Dependent(s) Birth, adoption or legal guardianship Change in dependent eligibility Over age 19 or 25 Change in full-time student status (age 19-24) Dependent’s marriage Loss/gain coverage – Spouse Removal of legal custody – dependent Death of spouse/dependent Qualified Life Events Employees have 31 days from the date of the qualified life event to notify the Human Resources Department, make changes to their benefit plan in the LOUIE system, and submit all supporting documentation. Failure to meet the 31-day deadline may have the following results: • Jeopardize your eligibility to make changes to your benefit plan (possibly resulting in no coverage for dependents); • Loss of coverage for dependents; • Loss of COBRA rights for your dependents; or • Other negative impacts to you and/or your dependents Northern Arizona University Personnel Policy Manual To save printing costs the University has put the Personnel Manual on-line. It can be accessed as follows: http://hr.nau.edu Click on “Policy Manual” Questions? If you have questions about the benefits plans available to you or if you have difficulty accessing or navigating the online system, please contact the Human Resources Department at Hr.Contact@nau.edu or call (928) 523-2223. Need Help? Benefits staff will be here to help you today during lunch and breaks. Pick up our cards and call or email us if you have questions that don’t get answered today. The Benefit and Wellness Expo on Sept. 8 is a great time to learn more about retirement vendors and plans, get insurance questions answered by the company representatives, and learn about NAU wellness resources. Enrollment assistance will also be available.