Rensselaer’ ’s s Rensselaer 2007 2007 Benefits and Retirement Programs Benefits and Retirement Programs Rensselaer’s Faculty Senate November 2006 Presented by: Curtis Powell Vice President for Human Resources Louis Padula Manager of Benefits and Retirement
Agenda Agenda Faculty Senate Motion – – 2/8/06 2/8/06 Faculty Senate Motion � � Rensselaer Benefits Program Rensselaer Benefits Program � � Peer Benchmarks Peer Benchmarks � � 2007 Benefits Program Changes 2007 Benefits Program Changes � � Cost Impact Cost Impact � � Policy Changes Policy Changes � � Pension Plan Outlook Pension Plan Outlook � � 2
Faculty Senate Motion – – 2/8/06 2/8/06 Faculty Senate Motion Whereas The Rensselaer Health Plan is of high quality and Whereas The Rensselaer Health Plan is of high quality and � � provides good benefits to employees and continuation of this pla provides good benefits to employees and continuation of this plan is n is extremely expensive for retirees (e.g. ~$12,000 per year for a extremely expensive for retirees (e.g. ~$12,000 per year for a couple over 65), to the point that it becomes an inappropriate couple over 65), to the point that it becomes an inappropriate disincentive to retirement and a burden to those who have retire disincentive to retirement and a burden to those who have retired. d. The Faculty Senate requests the Administration to investigate to investigate The Faculty Senate requests the Administration � � alternative plans that provide a similar level of benefits, including that provide a similar level of benefits, including alternative plans drug and dental coverage, but that takes economic advantage of drug and dental coverage, but that takes economic advantage of Medicare benefits, Parts A and B, that are mandatory for retirees s Medicare benefits, Parts A and B, that are mandatory for retiree over 65. The Faculty Senate has no inherent objection to this being eing over 65. The Faculty Senate has no inherent objection to this b applied to employees who are 65 or older as well as to retirees applied to employees who are 65 or older as well as to retirees should be legally possible. should be legally possible.
New Medicare Advantage Plan - - Retirees Retirees New Medicare Advantage Plan Partnered with CDPHP to create new medical plan Partnered with CDPHP to create new medical plan � � for retirees for retirees Created Integrated Group Medicare Advantage Plan Created Integrated Group Medicare Advantage Plan � � – Comprehensive medical, Rx- -with no gap, vision with no gap, vision – Comprehensive medical, Rx – No Medicare card required – No Medicare card required less Rensselaer subsidy $199/mo less – Affordable - - $199/mo Rensselaer subsidy – Affordable • Effective January 2007 $196/mo • Effective January 2007 $196/mo • $600 hearing aid/3 yrs & $80 vision hardware/1 yr • $600 hearing aid/3 yrs & $80 vision hardware/1 yr – Total savings: – Total savings: • $2,100 per individual • $2,100 per individual • $7,400 per couple • $7,400 per couple
Rensselaer Rensselaer Benefits Program Benefits Program For For Active Employees Active Employees
Rensselaer Benefits Program Rensselaer Benefits Program � Mandatory Benefits Mandatory Benefits � – Social Security Social Security – – Workers Workers’ ’ Compensation Compensation – – Unemployment Insurance Unemployment Insurance – – New York State Disability New York State Disability –
Rensselaer Benefits Program Rensselaer Benefits Program – Medical – Rensselaer pays 80% • Rensselaer Health Plan POS (CDPHP) • Rensselaer HMO (CDPHP) • Mohawk Valley HMO (MVP) – Dental – Rensselaer pays 75% • MetLife Dental Plan – Retirement Programs • Defined Contribution Plan – 1% with 8% match • Defined Benefit Plan – 1% with employer funding • 403(b) Supplemental Retirement Program – Tax Deferred Savings • 457(b) Plan – Tax deferred savings for top hat group – Tuition Reimbursement – Basic Life Insurance – 2.25 x pay – Sick Leave or Salary Continuation – Short Term Disability – Long Term Disability – Holidays (10) – Vacation
Rensselaer Benefits Program Rensselaer Benefits Program � Additional Benefit Programs Additional Benefit Programs � – Travel Accident Insurance – Adoption Assistance – Employee Assistance Program – Pre-tax payroll deductions – Pre-tax parking – Credit Union – Supplemental Life – Dependent Life Insurance – Accidental Death & Dismemberment – Supplemental Long Term Disability – Health and Dependent Care Flexible Spending Accounts – GMAC Discount – International Travel Insurance
Rensselaer Benefits Program Rensselaer Benefits Program � Additional Benefit Programs cont Additional Benefit Programs cont’ ’d d � – Wellness Programs • Free Flu Shots • Corporate Challenge • Weight Watchers Discount • Free Prostate Screening • CPR Training Discount • Defensive Driving Training Discount • Mueller Center Fitness Facility • Walking/Running Signature Program
Overall Program Benefits Costs Overall Program Benefits Costs FY07 Employee Aggregate Total Compensation Dental Premiums 0.74% DCP Employer Contributions 4.60% Leave Pay 4.69% Basic Life Premiums 0.46% LTD/ADD Premiums 0.28% Wellness 0.06% Mandatory 7.14% Medical Premiums 8.80% Tuition Reimbursement 2.87% Wages Benefits = Additional 33% of employee’s base pay
Industry Benchmarks Industry Benchmarks
Benchmarks Benchmarks Peer & Aspirant Institutions Segal/Sibson/WageWatch Brown University Cornell University Boston University Duke University California Institute of Technology Georgia Institute of Technology Carnegie Mellon University Johns Hopkins University Case Western University Northwestern University Clarkson University Princeton University Cornell University Rice University Georgia Institute of Technology Union College Lehigh University University of Albany System Massachusetts Institute of Technology University of Chicago Northeastern University University of Illinois Northwestern University University of Maryland, College Park Princeton University University of Michigan - Ann Arbor Rice University University of Notre Dame Rochester Institute of Technology University of Pennsylvania Stanford University University of Texas - Austin University of Pennsylvania Vanderbilt University University of Rochester Worcester Polytechnic Institute National Surveys CUPA Watson Wyatt World Wide Mercer Aon 1,800 Colleges and Universities
2007 Benefits Program Changes 2007 Benefits Program Changes
Annual Process Annual Process Primary Strategy for Managing Health Plan Costs Primary Strategy for Managing Health Plan Costs 20% 44% 9% 19% 8% Plan Design Changes Plan Design Changes Other Other – – Wellness and Education and Training Wellness and Education and Training Employee Consumerism/Employee Accountability Employee Consumerism/Employee Accountability Contract Negotiations with Vendors Contract Negotiations with Vendors Raising Employee Contributions Raising Employee Contributions
Rensselaer Strategy Rensselaer Strategy Conducted Benchmark Survey Conducted Benchmark Survey � � Consulted with Benefits Consultant (RMS) Consulted with Benefits Consultant (RMS) � � Reviewed and analyzed proposed 2007 renewal Reviewed and analyzed proposed 2007 renewal � � costs from vendors costs from vendors Negotiated plan design and costs Negotiated plan design and costs � � Evaluated need for RFP’ ’s s Evaluated need for RFP � � Finalized 2007 plan design, administrative and Finalized 2007 plan design, administrative and � � plan costs with vendors plan costs with vendors
2007 Benefits Program Changes 2007 Benefits Program Changes Rensselaer Rensselaer Rensselaer Rensselaer Current Current Benchmark New Benchmark New Provision Provision Provision Provision Office Co- -Pay Pay $10 $15 – – $20 $20 $15 Office Co $10 $15 $15 RHP Urgent Care Urgent Care $10 $10 $25 – $25 – $40 $40 $25 $25 RHP MVP Emergency Emergency $35 $50 – – $100 $100 $50 MVP $35 $50 $50 Room Room Inpatient Hospital $0 $0 $250 – $250 – $425 $425 $100 $100 Inpatient Hospital RHP Out of Pocket Out of Pocket $1,200 $1,500 – – $2,000 $2,000 $2,000 RHP $1,200 $1,500 $2,000 Max (Rx+Med Rx+Med) ) Max ( Rx Two Tier Two Tier Three Tier Three Tier Three Tier Three Tier Rx Generic Generic Preferred Brand Preferred Brand Non Preferred Brand Non Preferred Brand
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