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					             Mary DiGiacinto, Benefits & Work Life Strategies
                                                      Director
                           Michelle Mahan, Benefits Manager
                             Sandra Jones, Benefits Specialist
          Lisbet Escobar, Benefits & Compensation Specialist
                                Vernell Cooper, HR Specialist
                                 Aja Riley, Benefits Associate
             Peggy Vest, Benefits & Compensation Associate




www.hr.umaryland.edu/benefits/
                                                                 1
Reviews & Reminders
Fair & Open Enrollment
Healthcare Documentation

Pension Reform
Contingent II Assistance
July Paychecks



                           2
3
4
   Compare/Contrast Chart
   Added in Exempt packet earlier this year
   Employees must initial several boxes on
    charts
   Very important to review the differences
    between the two plans, significant differences
    in retiree healthcare subsidies
   Remind employees of yearly Pension vs. ORP
    lunch and learns held in HRS.


                                                     5
   Spouse must be listed on the mandatory retirement plan as a
    beneficiary & meet other requirements to be eligible for retiree
    healthcare benefits. Supplemental Retirement Account
    beneficiaries ere not relevant to retiree healthcare.

    ◦ Separate beneficiary forms for ORP, 401k, 403b and 457b
      plans.
    ◦ ORP must have spouse listed beneficiary for retiree healthcare
      purposes.

   New hires enrolling in State of MD term life or accidental death &
    dismemberment coverage must complete a beneficiary form. It‟s
    not part of enrollment form.

   Form on file with vendor is official document

   UMB Beneficiary checklist:
    http://hr.umaryland.edu/benefits/documents/updating_beneficiaries.pdf




                                                                            6
No increase in 2011- remain at 2010 limits

$16,500 if under age 50
Additional $5,500 if age 50+
Total of $22,000 if 50+

Reminder: Employees can contribute these maximums
 to a 457b AND a 401k or 403b

An employee 50+ can contribute a total of $44,000
 into SRAs.

An employee under 50 can contribute a total of
 $33,000 into SRAs.

                                                    7
   Payroll deducted savings bonds ended on
    12/31/10 per Central Payroll

   Employees received a memo from CPB last
    year

   Employees can go to e-treasury to sign up for
    electronic deductions

   Less than 100 employees impacted

                                                    8
   Participants can and are being audited after
    using their Visa payment card. They should
    keep documentation on file in case
    ConnectYourCare contacts them.

   Audits often required if the amount paid
    doesn‟t match a regular co-pay. IE:
    participant has a credit with a doctor‟s office
    and is charged less than the regular co-pay.

   IRS guidelines.

                                                      9
10
Federal Healthcare Reform 3/23/10 & Patient
   Protection & Affordable Care Act (PPACA)

◦ State of MD Plan was a grandfathered plan for last
  year‟s open enrollment. Grandfathered plans are
  those in existence on 3/23/10

◦ Any of the following changes to a plan would force
  it to lose “grandfathered status”




                                                       11
Any one of the following changes:
 Obtaining a new policy, certificate or contract of insurance
  solder after 3/23/10
 Significantly cutting or reducing benefits
 Raising coinsurance charges
 Significantly raising co-pay charges for any service
 Significantly raising deductibles or of pocket expenses
 Significantly lowering employer contributions by more
  than 5%
 Adding or tightening an annual limit on what the insurer
  pays
 Eliminating benefits for a particular condition
 Restructuring the company
 Moving employees to a plan with lesser benefits




                                                                 12
This year is a new plan, not a
     “grandfathered plan”




                                 13
   Blue Ribbon Commission enacted several
    years ago

   State Budget Issues
    ◦ Over 24 pension bills
    ◦ Governor‟s Pension bill

   Dept. of Budget & Management- premiums
    must be approved by Dept. of Public Works
                 Premiums not available yet


                                                14
          Tuesday, April 19th
            10 am – 2 pm
       SMCCC, 2nd Floor Ballrooms
           Free Screenings

Department of Budget & Management‟s
   Healthcare Reform Presentations:
               11:00 – 11:15
               11:30 – 11:45
            3rd Floor, Room 351
        First come, first serve basis
                                        15
   List of all State of MD Benefits Fair online
   Employees can attend any of the 150
    scheduled fairs
   Multiple fairs/day

Note: Not all fairs have wellness screenings or
 DBM healthcare reform presentations




                                                   16
        Tues. April 26th – Thurs. May 26th
               4 continuous weeks
        (a healthcare reform requirement)

NO CORRECTION PERIOD- IVR will not re-open
Last year 35 % called during correction period!

Default/Passive Enrollment. Only employees who
  want a Flexible Spending Account need to re-
  enroll. All other benefits will carry over to the
               new 7/1/11 plan year.



                                                      17
IVR Users:
 Telephonic Integrated Voice Response System for
  regular employees currently enrolled.
Paper:
 Paper applications for all CIIs, retirees, plus
  regular employees not currently enrolled in at-
  least 1 DBM benefit

C-II Reminder: A mid year contract renewal is not a
 change in family status event. C-IIs must make
 changes during open enrollment.

                                                      18
   Dependents can stay on the plan up through
    the end of the month they turn age 26!
    (no longer need to meet IRS‟s dependent
    definition – just needs to be a child or step
    child, can be married, not living with you, or
    employed….)
   Imputed income for grandchildren and legal
    ward dependents from age 25 to 26 as they
    are not covered under federal healthcare
    reform. Imputed income is the value of the
    benefit (subsidy) is added to the employee‟s
    salary for taxation.
                                                     19
   No lifetime maximums on PPO & POS plans
    (EPO plans have not had lifetime maximums)
   Zero co-pays on preventative care services:
    ◦ Flu Shots now covered!
    ◦ Adult physicals allowed 1/plan year (now 1 every
      3yrs)
    ◦ Well-baby/Well-child
      newborn – 30 months (12 visits)
      Ages 3-21, 1 annual exam/plan year




                                                         20
    Prescription Drug Plan Administrator may
                       change
Actives:
 Same co-pays for retail pharmacies or
  through voluntary mail order program
Retirees:
 Increase in retiree prescription co-pays
 By 2014 mirror state‟s plan to Medicare Part
  D.
 Prescription plan may end by 2020 for
  retirees.

                                                 21
 Regular employee packets will be on campus for
  departments to pick up for employees who were
  in DBM‟s system as of March 4th (3/1 effective
  date)*

 Open Enrollment Packet Sealed DBM Envelope
  Includes:

    Yellow Summary Statement of Benefits & IVR
     Instructions
    Benefits Guide
    Change of Personal Information/Address Form
     (NEW- not done previously)
*DBM had 200+ addresses that did not match for UMB
employees. It is critical to always change your address in all
databases: eUMB, Payroll , and DBM.                              22
Separate Materials:
 UMB Open Enrollment Packet Receipt Form
 FAQs
 DBM Supplemental Sheet- with rates may not
  be available at time packets will be picked up
  and will be emailed to departments

Contingent II employee packets & retiree
 packets will be mailed to homes

                                                   23
Currently Not    New Hire          New Hires From
Enrolled in at   Enrolled (after   May 1 – July 1st
least 1 State    March 4th) No     (not enrolled in
DBM Benefit      OE Packet         a benefit during
                                   open
                                   enrollment)
Must complete a Can call IVR       Must complete a
paper           Pin #: Four        FY „12 paper
application     Digit Month &      application for
                Date of Birth      7/1 Benefits if
                                   making changes
                 IE: January 3 =   to any benefits
                 0103              they elect within
                                   60 days of hire




                                                       24
Summary Statement in OE Packet

Department can review EUMB Screen: Maintain
 Payroll Data, Inquire, Paycheck Data, Paycheck
 Deduction Tab
    Coverage Amounts will not be listed for
    group life insurance, AD&D, & names of
    dependents will not be listed

Employee can review online Paycheck

Call Benefits Office


                                                  25
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   Encourage employees to enroll within the first two weeks
    of open enrollment.

   Employees can call the IVR multiple times, however; it‟s
    the last call that will determine their 7/1 benefits.

   Remind employees summary/confirmation statements are
    sent to their homes not to offices.

   Remind employees adding dependents to check the top
    and bottom of summary statement to make sure the same
    coverage is marked in the box and in the columns below
    with dependent‟s names and date of birth. If they do not
    match, they did not correctly add the dependent when in
    the IVR & they must re-call IVR.



                                                               27
   All paper applications must have all supporting
    documentation with the enrollment form sent to
    the HRS Benefits Office by Thursday, May 26th.

   IVR callers due date for submitting supporting
    documentation to HRS Benefits Office is: Friday,
    June 10th

      Benefits office will mail letters stating what
    documentation is needed when mailing summary
        statement or after paper application is
                       submitted.

                                                       28
Affidavits for Spousal Eligibility & Tax Status
Affidavits of Domestic Partnership
 ◦ Common Residence Documentation
 ◦ Financial Interdependence Documentation
Dependent birth certificates
Marriage certificates

Dependent Affidavit will be updated and should
   be available by April 26th, first day of OE.


                                                  29
   An official marriage certificate:
    • Has a court seal
    • States it has been recorded & filed
      by the court
    • Is NOT signed by a religious order
    • Is NOT a marriage license




                                            30
   Foreign Documentation:

    • Original language certificate needed
      AND
    • Translated & notarized copy needed
       cannot be translated and
        notarized by a family member



                                             31
   Vision is included in the healthcare plans. Employees
    must be enrolled in a medical plan to have vision
    coverage.

   Flexible Spending Account/FSA deductions occur
    24/year, NOT 26, when employees are doing
    calculations.
       C-II not eligible for FSAs as it is a pre-taxed benefit

   Term Life insurance: medical underwriting applies if
    enrolling in coverage over 50k for employees over
    25k for dependents. ~ will be on summary statement.

   Employees can enroll in Long Term Care at anytime in
    the year, by contacting Prudential or going online. It‟s
    the one and only DBM benefit n/a to open enrollment

                                                                  32
DBM sent postcards to all current participants
            at the end of March




                                                 33
DBM post card mailer- end of March
The Voice
Portal Page
Flyers in garage bulletin cases
Home HRS & Home Benefits Pages
Lobby poster boards with inserts
Electronic TV Screens
Email blasts



                                     34
Any new hires or change of family status
events employees enrolling after Thursday,
   June 9th should use a new Fiscal Year
                application.




                                             35
   Vendors will only send out cards to newly
    enrolled employees and dependents.

   Encourage employees to view their first
    paycheck in July to make sure correct
    deductions are taken. Call the UMB Benefits
    Office immediately if there is a problem. The
    longer the employee waits to contact us, the
    less likely the problem can be corrected.



                                                    36
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   NOT FOR DISTRIBUTION
   Governor must sign
   Effective 7/1/11
   Also impacts ORP retiree healthcare eligibility
   HR will have employee seminars in May




                                                      38
                                                                                                       Proposed New Law (July 1, 2011-not yet
Pension                                  Current Law                                                   signed by Gov.)


Average Final Compensation               3 consecutive years with highest average                      New :5 consecutive years with highest average

                                                                                                       Current members: 7% contribution and 1.8% multiplier.
Employee Contribution                    5%                                                            New Employees: 7% contribution and 1.5% multiplier



Vesting for Pension                      5 years                                                       New Employees (only): 10 years

                                                                                                       Current members: No Change. New employees: Age 60
                                         55 with 15 years of service -- reduced .5% for every          with at least 15 years of service -- reduced .5% for every
Early Retirement                         month before age 62                                           month before age 65

                                                                                                       Current Members: No Change. New Employees: "Rule
                                         30 years of service regardless of age, or 62 with at least    of 90" (Age + years of service must add up to 90), or 65
Retirement Eligibility                   5 years of service                                            years old and 10 years of service.

                                                                                                       All employees: Capped at 2.5% when pension fund
                                                                                                       achieves projected earned rate of return and capped at 1
Cost-of-living adjustments               Capped at 3%                                                  % when fund does not meet its projected rate of return.

                                         Eligible at 5 years with full benefit achieved at 16 years.   New Employees only: 1) 10 years to qualify 2) full
                                         Premium subsidy prorated for service between 5-16             premium at 25 years 3) premium subsidy prorated for
Retiree healthcare eligibility PENSION   years.                                                        service between 10-25 years

                                         Eligible at 5 years with full benefit achieved at 16 years.   New Employees only: 1) 10 years to qualify 2) full
                                         Premium subsidy prorated for service between 5-16             premium at 25 years 3) premium subsidy prorated for
Retiree healthcare eligibility ORP       years Spouse eligible at 25 years                             service between 10-25 years. Spouse eligible at 25 years.

                                                                                                                                                                    39
40
For equity purposes a department must offer
 the same dollar amount or same percentage
 of same salary for benefits assistance to C-
 IIs.

Since employees have 60 days to enroll in
  healthcare, departments need to apply
  assistance under retirement and complete a
  second EAF to re-allocate the funds once C-II
  has chosen healthcare plans.


                                                  41
   Contingent II‟s cannot receive greater
    assistance than the regular employee subsidy
    per the same benefit.
   All CIIs receiving assistance must request
    retroactive healthcare when form is submitted
   Retroactive coverage is back to the
    processing cycle (1st or 16th), not date of hire.
    ◦ DBM does not pro-rate benefits (same for actives &
      change in family status events)




                                                           42
43
Very important to encourage employees to review
paychecks online for planning purposes – no
Temporary Salary Reductions/TSR (for all except
one pay issued in FY ‟12), but several other
increases & differences.
 • Pension increase of 2% (n/a to defined
   contribution Optional Retirement Plan/ORP)
 • Healthcare premium increases likely
 • Leap Year calculations
 • 7/8 check will have TSR for 6/19 – 7/2
 • 7/22 check will be first check without TSR

                                                  44
Encourage employees to go online Wed. prior to payday
  to review their July checks to:

   see the differences between their two July paychecks

   confirm correct benefit deductions taken as a result
    of open enrollment (heath, dental, prescription, FSAs,
    etc…) . If any errors call the Benefits Office
    immediately.

1st pay of July- issued during a holiday week (possibly
  reduced staff in depts. to answer employee paycheck
  questions)


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