DATE: April 25, 2011 TO: ALL UNIVERSITY FACULTY AND STAFF INCLUDING CUPE LOCAL 793 EMPLOYEES FROM: HUMAN RESOURCES RE: GROUP INSURANCE PREMIUM INCREASES UW’s Health, Dental, Life Insurance and Long Term Disability (LTD) contracts are renewed May 1st of each year. Our claim experience over the past year has resulted in unchanged premium rates for our health and dental plans. Our life insurance and LTD premium rates are changing. Health Health premiums remain unchanged; resulting in monthly single/family rates of $57.28/$182.80. These premiums are paid entirely by the University for full-time employees with part-time employees paying a pro-rated amount. The Health plan is a non-taxable benefit. Dental Dental premiums remain unchanged; resulting in monthly single/family rates of $30.76/$92.56. These premiums are paid entirely by the University for full time employees with part-time employees paying a pro-rated amount. The Dental plan is also a non-taxable benefit. Life Group life premiums will reduce by 10%; resulting in monthly basic group life premiums of $0.28 per month per thousand dollars of group insurance held effective May 1, 2011. The University pays 100% of the group premium on 1X salary in life insurance. If an employee has 2X or 3X salary in group life insurance, UW pays two thirds of the amount with the employee paying the balance. Any premium paid by UW is a taxable benefit to the employee. Premiums for optional employee insurance held beyond 3X salary and spousal life insurance are based on gender, age and smoking rates and are paid entirely by the employee. Rates for optional insurance remain unchanged. Long-Term Disability Long-term disability premiums charged by Great-West Life (contract rate) will increase by 18% to 1.35% of base pay effective May 1, 2011. The employee paid rate will also increase by 18% May 1, 2011, resulting in a new employee paid rate of 1.25% of base salary to a maximum insured salary of $156,680. The difference between the employee paid rate and contract rate is funded from a surplus reserve within the LTD plan. This surplus is expected to be depleted in the next couple years, resulting in employees paying the full LTD premium. Employees pay the entire premium for the LTD benefit in order to provide a tax free LTD benefit. Should you have questions about our premium rates, please contact your Payroll Benefits Assistant in Human Resources.