Transcript Slide 1

2010 Employee
Benefits
Orientation
Presented by the Staff of HRS – Benefit Services
Human Resource Services
French Administration Building
Room 139
(509) 335-4521
www.hrs.wsu.edu
[email protected]
Topic Overview
 Retirement



PERS (Classified Staff/Civil Service/Bargaining Unit)
TIAA-CREF (Administrative Professionals/Faculty)
Voluntary Investment Plans (VIP)
 Medical/Dental Insurance
 Life Insurance
 Long Term Disability (LTD) Insurance
 Optional Benefits



Flexible Spending Account (FSA)
Dependant Care Assistance Program (DCAP)
Liberty Mutual/Long Term Care/Parking Permits/UREC
Classified Staff Retirement Plan
 Public Employees Retirement System (PERS).
 Administered by the Department of Retirement
Systems (DRS).
 Participation is mandatory.
 Plan Choices: PERS 2 or PERS 3
PERS Overview
PERS 2
 Employee contribution rate is currently 3.90%.
 Employer contribution rate is currently 5.31%.
 Contribution rates are subject to change.
 Contributions are tax deferred.
 Amount contributed does not change your benefit.
Retirement Under PERS 2
Defined Benefit Plan
2% x Years of Service x Average Final Compensation
(ex: 2% x 15 years of Service x $2,500 = $750 per month)
Full retirement at age 65 with 5 service credit years.
Fully vested after 5 years of service
PERS 3
• Employee contribution choice is between 5% - 15%
• Employer contribution rate is currently 5.31%
Plan has:
(a) Defined Benefit Component
-1% x SCY x AFC
(b) Defined Contribution Component
- benefit is based on employee contributions and
investment earnings.
Contribution Rate Options
Six Rate Options
Contribution Rate
 Option A: 5%
Fixed rate for all ages
 Option B:
5%
up to age 35
6%
ages 35 - 44
7.5%
age 45 and older
 Option C: 6%
up to age 35
7.5%
ages 35 – 44
8.5%
age 45 and older
 Option D: 7%
Fixed rate for all ages
 Option E:
10%
Fixed rate for all ages
 Option F:
15%
Fixed rate for all ages
Investment Choices
The Washington State Investment Board (WSIB)
Contributions invested in the Total Allocation
Portfolio (TAP). A monthly valued fund, the TAP is a
diversified portfolio of U.S. and International stocks,
bonds, private equity and real estate investments.
The Self-Directed Investment Program
You choose from any or all funds and/or from pre-set
portfolios.
Retirement Under PERS 3
• Defined Benefit (DB) Component
 Age
65 with 10 service credit years.
• Defined Contribution (DC) Component
 Several
payment options are available when
you separate from service.
Evaluating Your Decision
• Placed in PERS 2 initially.
• 90 days to choose between PERS 2 or PERS 3.
• Plan choice is irrevocable.
• If you or your spouse is a full time student at WSU, you can
choose to waive participation in PERS.
• If choice is not received within 90 days, you will be
irrevocably defaulted to PERS 3 with a 5% contribution rate
and investments with the WSIB.
WSU Retirement Plan (WSURP)
 Retirement Investments through TIAA-CREF
 Teachers Insurance & Annuity Association College
Retirement Equities Fund
 Defined Contribution Plan
 Retirement benefit based on contributions &
earnings on investments.
 Numerous Investment Options.
 Varying degrees of risk and reward.
Contribution Rates
• Tax Deferred
• Matched 100%
• Immediately Vested
AGE
PERCENTAGE
Under 35
5%
35 and Over
7.5%
50 and Over
10% Optional
Choosing Your Investments
 The Right Investing Strategy
 Lifecycle Funds
 Build Your Own Portfolio Strategy
 Your Investment Choices
Online Enrollment
Step 1: www.tiaa-cref.org/wsu
Step 2: Enroll Now!
Step 3: Insert access code: WA0537
Step 4: Follow prompts
Other Features
 TIAA-CREF consultants available
 Portable
 Online Access at www.tiaa-cref.org
Supplemental Retirement Savings Options
Department of Retirement Systems
• Deferred Compensation Program
• 1-888-327-5596
• www.drs.wa.gov
TIAA-CREF
• Voluntary Investment Plan (VIP)
• 1-800-842-2888
• www.tiaa-cref.org/wsu
Deferred Compensation Program (DCP)
 Offered through Department of Retirement
Systems (DRS)
 Contributions taken on a pre-tax basis.
 Maximum limit is $16,500 in 2010
 $22,000 for employees over 50
 Minimum contribution is $15 a pay period.
 Enroll, cancel or increase/decrease contribution
amounts at anytime.
 Change allocation of investments and transfer
funds.
Voluntary Investment Plan (VIP)
• Offered through TIAA-CREF
• Contributions taken on a pre-tax or after-tax basis.
• Maximum limit is $16,500 in 2010
• $22,000 for employees over 50
• Minimum contribution is $15 a pay period.
• Enroll, cancel or increase/decrease contribution amounts at
anytime.
• Change allocation of investments and transfer funds.
Health Care Authority (HCA)
 Eligibility
questions and changes
(Medicare, student status, etc.)
 Claim Problems
 Eligibility Complaints
 Vendor Complaints
 Appeals
1-800-200-1004
www.pebb.hca.wa.gov
Medical Coverage
Types of Plans
Preferred Provider Organization (Uniform)
– Deductible
– Coinsurance
– Freedom of choice
Managed Care Plans (Classic and Value)
– Deductible
– CoPays
– Primary Care Physician
– Work within Network of Providers
Hybrid Type of Plan (Aetna)
– Deductible
– CoPays
– Work within Network of Providers
Medical Coverage
Selecting a Plan for You and Your Family
• Geography - Available by County
• Special Medical Needs
• Coinsurance vs. Co-pays
• Deductible
• Out-of-Pocket Maximums
• Referral Procedures
• Doctor Participation
• Coordination with Your Other Benefits
• Cost
All Plans Provide
• No life time maximum
• No pre-exiting condition restrictions or
waiting periods
• No dual WSU coverage
Medical Plans
Whitman/Latah Counties
Aetna Public Employees Plan
Group Health Classic
Group Health Value
Uniform Medical Plan
Aetna Public Employees Plan
 Annual deductible ($250/person $750/family)
 Nationwide provider network
 Member pays a $25 co-pay for most services
 Must seek all services from a contracted provider
 No referral needed
 Worldwide emergency coverage available
 Preventative care covered in full
 Annual out-of-pocket maximums
– $2,000 per person
– $6,000 per family
Aetna Prescription Drug Benefit
Retail: 30-day supply
– Tier 1 (Generic) - $20 co-pay
– Tier 2 (Preferred Brand Name) - $40 co-pay
– Tier 3* (Non-preferred Brand Name) - $60 co-pay
Mail Order: 90-day supply
– Tier 1 - $40 co-pay
– Tier 2 - $80 co-pay
– Tier 3* - $120 co-pay
*Enrollees pay more for Tier 3 drugs that have a generic
equivalent. The plan pays as if the enrollee purchased
the generic; the enrollee pays the rest.
Aetna Vision Benefit
Examination
$25 co-pay per exam
 One exam annually

Hardware

$150 maximum payment every 24 calendar months
(frames, lenses, contacts, and fitting fees combined)
Group Health Classic
 Annual deductible ($250/person $750/family)
 Member pays a $25 co-pay for most services
 Must select a Primary Care Provider (PCP)
 Must seek services from a contracted provider
 Referral is needed for specialty services
 Emergency coverage available
 Preventative care covered in full
 Annual out-of-pocket maximums
– $2,000 per person
– $6,000 per family
Group Health Classic
Prescription Drug Benefit
Retail: 30-day supply
Tier 1 (Generic) - $20 co-pay
 Tier 2 (Preferred Brand Name) - $40 co-pay
 Tier 3 (Non-Preferred Brand Name) - $60

Mail Order: 90-day supply
Tier 1 - $40 co-pay
 Tier 2 - $80 co-pay
 Tier 3 - $120 co-pay

Group Health Classic
Vision Benefit
Examination
$25 co-pay per exam
 One exam every 12 consecutive months

Hardware

$150 maximum payment once every two calendar
years (frames, lenses, contacts, and fitting fees
combined)
Group Health Value
 Annual deductible ($350/person $1,050/family)
 Member pays a $30 co-pay for most services once the
annual deductible is met
 Must select a Primary Care Provider (PCP)
 Must seek services from a contracted provider
 Referral is needed for specialty services
 Emergency coverage available
 Preventative care covered in full
 Annual out-of-pocket maximums
– $2,000 per person
– $6,000per family
Group Health Value
Prescription Drug Benefit
Retail: 30-day supply
Tier 1 (Generic) - $20 co-pay
 Tier 2 (Preferred Brand Name) - $40 co-pay
 Tier 3 (Non-Preferred Brand Name) - $60 co-pay

Mail Order: 90-day supply
Tier 1 - $40 co-pay
 Tier 2 - $80 co-pay
 Tier 3 - $120 co-pay

Group Health Value
Vision Benefit
Examination
$30 co-pay per exam
 One exam every 12 consecutive months

Hardware

$150 maximum payment every two calendar years
(frames, lenses, contacts, and fitting fees combined)
Uniform Medical Plan
 Annual deductible ($250/person $750/family)
 Member pays a co-insurance for most services once the
annual deductible is met
 Co-insurance ranges from 15%-40% depending on network
 In-Network services provide higher reimbursement
 Worldwide coverage
 Nationwide provider network
 No referral needed
 Annual out-of-pocket maximums
– $2,000 per person
– $4,000 per family
Uniform Medical Plan
Prescription Drug Benefit
Annual Deductible (applies to Tier 2 and Tier 3 drugs only)
 $100 per person
 $300 per family
Retail: 90-day supply
 Tier 1 (Generic) – Enrollee pays 15% coinsurance
 Tier 2 (Preferred Brand Name) – Enrollee pays 30% coinsurance
 Tier 3* (Non-preferred Brand Name) – Enrollee pays 50%
coinsurance
Mail Order: 90-day supply
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
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Tier 1 - $10 co-pay
Tier 2 - $50 co-pay
Tier 3* - $100 co-pay
Enrollees pay more for Tier 3 drugs that have a generic equivalent.
The plan pays as if the enrollee purchased the generic; the enrollee
pays the rest.
Uniform Medical Plan
Vision Benefit
Examination
15% coinsurance per exam (not subject to the
annual medical deductible)
 One exam annually

Hardware

$150 maximum payment every two calendar years
(frames, lenses, contacts, and fitting fees
combined)
Important Information!
 Contact the Plans
 How the Medical Plans Work
 Medical Benefits Cost Comparison
2010 Monthly Premiums
PEBB Medical
Plans
Employee &
Employee
Spouse*
Employee &
Child(ren)
Employee,
Spouse* &
Child(ren)
Aetna Public
Employees Plan
$132
$274
$231
$373
Group Health
Classic
$71
$152
$124
$205
Group Health Value
$22
$54
$39
$71
Uniform Medical
Plan
$41
$92
$72
$132
* or qualified domestic partner
Dental Plans
 Uniform Dental Plan
 Willamette Dental Plan
 DeltaCare
Uniform Dental Plan
 Annual deductible (except for diagnostic and
preventative)
 $50 per person
 $150 per family
 Member pays a co-insurance for most services once the
annual deductible is met
 Co-insurance percentages depend on the type of service
and provider network
 In-Network services provide higher reimbursement
 No referral needed
 Annual plan maximum
 $1750 per person
Uniform Dental Plan
Preventative/Diagnostic benefits (Not subject to
annual deductable)
– Covered at 100% for in-network
– Covered at 90% for in-network out of state
– Covered at 80% for non-network
Filling/Crown benefits
– Covered at 80% for in-network
– Covered at 70% for non-network
Orthodontia benefits
– Covered at 50% - Lifetime maximum $1,750
Willamette Dental Plan
 No annual deductible
 Member pays a co-pay for most services
 Must seek service from a Willamette Dental Group
dentist
 Currently, one WDG clinic in Pullman
– Located in the Wheatland Shopping Center
 No general annual out-of-pocket maximum
Willamette Dental Plan
Preventative/Diagnostic Benefits
 Covered
at 100%
Filling/Crown Benefits
 Enrollee
pays between $10 and $50 co-pay
Orthodontia Benefits
 Maximum
enrollee pays is $1,500 per case
DeltaCare
Must receive services from a DeltaCare dentist
The nearest DeltaCare dentist is located in Spokane, WA
Note: Not all DeltaCare dentist’s in Spokane, WA
are treating new patients.
Important Information!
 Contact the Plans
 How the Dental Plans Work
 Dental Benefits Comparison
2010 Employee Enrollment/Change Form
Who is eligible for Coverage?
 You
 Your lawful spouse / eligible domestic partner
 Your dependent children through age 19 unless enrolled as a fulltime student, then through age 23
 Your adult dependents (enrolled under a separate account).
 Dependents include– Biological children
– Step-children
– Legally adopted children
– Children for whom you have assumed a legal obligation for
total or partial support in anticipation of adoption of the child
* See page 5 for complete eligibility details.
When Does Coverage Begin?
Coverage begins on the first of the month following
your date of hire…
Exception: If your date of hire began on the first
working day of the month, so does your coverage
ENROLLMENT DEADLINE: 31 days from date of hire.
Adding Dependents
 Marriage/Establishment of a qualified domestic
partnership
 Newborn Child(ren)
 Adopted Child(ren)
 Dependant Students
 Dependant who previously waived coverage
DEADLINE: 60-days from the event.
Default Plans
Employees that do not submit the enrollment
form with 31 days of hire, the employee ONLY
is defaulted to Uniform Medical Plan and
Uniform Dental Plan.
Insurance Cards
 Takes up to 2-4 weeks
 Multi-agency processing
Life Insurance
 What is life insurance?
 Why is life insurance important?
 Who can get life insurance?
 What types of life insurance are available?
 What is the cost?
What is Life Insurance?
Life Insurance is a designated amount that
you choose that is paid to your selected
beneficiary in the event of your death.
WSU offers employees term life insurance
which means the policy is contingent upon an
employer/employee relationship.*
*Employee can convert term insurance to whole
at the time of employment separation.
Why is Life Insurance Important?
 Pay outstanding bills
 Medical costs
 Provide for surviving family members
Who Can Get the Life Insurance?
You
Your lawful Spouse / Eligible Domestic Partner
Your unmarried children that are at least 14
days old through age 19, unless enrolled as a
full-time student, then through age 23
Types of Life Insurance
WSU provides all eligible employees with a Basic Plan at
no cost to the employee (Part A)
$25,000 Basic Policy for death due to any cause
 $5,000 Accidental Death & Dismemberment (AD&D) Policy

However, you can purchase additional coverage…
Optional Dependant Amounts
Basic Dependant Life Insurance (Part B Basic)
– $2,500 spouse / eligible domestic partner
– $2,500 each unmarried child under age 19 or 24
– Cost $0.50 per month
Supplemental Spouse Life Insurance (Part B
Supplemental)
– Must enroll spouse/partner in Basic Dependant Life
– Spouse can have half the amount you obtain for yourself in
Part C and Part D combined.
– Within 60-days: spouse can enroll in $25,000 of coverage
without providing Evidence of Insurability
– If after 60-days or desired coverage exceeds $25,000,
Evidence of Insurability Form must be completed
Optional Employee Amounts
Optional Life Insurance (Part C)
– From half of your annual salary up to the amount of
your annual salary, in $1000 increments
Supplemental Life Insurance (Part D)
– Up to $350,000
– Within 60-days: employee can enroll in $50,000 of
coverage without providing Evidence of Insurability
– If after 60-days or desired coverage exceeds
$50,000, Evidence of Insurability Form must be
completed
Optional AD&D Amounts
Voluntary Accidental Death & Dismemberment
Insurance (Part E)
– You can enroll yourself only in this coverage OR you
can enroll you and your eligible family members
– Coverage is in multiples of $25,000 up to $250,000
– Can enroll at anytime without Evidence of Insurability
2010 Monthly Premiums
Part B Supplemental, Part C Optional, and Part D Supplemental Insurance
Cost Per $1000 Per Month
Employee’s Age
Non-Smoker
Smoker
Less than 25
$0.028
$0.036
25-29
$0.030
$0.044
30-34
$0.034
$0.058
35-39
$0.042
$0.066
40-44
$0.064
$0.074
45-49
$0.092
$0.112
50-54
$0.144
$0.170
55-59
$0.268
$0.318
60-64
$0.412
$0.484
65-69
$0.760
$0.932
70+
$1.134
$1.514
2010 Monthly Premiums
Part E – AD&D Insurance
Coverage
Your
Children
Would have
Coverage
Your Spouse
Would have
Employee
AD&D Benefit
Cost to Cover
Only Yourself
Cost to Cover
You & Your
Dependants
With No
Children
With Children
If You Have a
Spouse
If Your have
No Spouse
$25,000
$0.20
$0.30
$12,500
$10,000
$1,250
$2,500
$50,000
$0.40
$0.60
$25,000
$20,000
$2,500
$5,000
$75,000
$0.60
$0.90
$37,500
$30,000
$3,750
$7,500
$100,000
$0.80
$1.20
$50,000
$40,000
$5,000
$10,000
$125,000
$1.00
$1.50
$62,500
$50,000
$6,250
$12,500
$150,000
$1.20
$1.80
$75,000
$60,000
$7,500
$15,000
$175,000
$1.40
$2.10
$87,500
$70,000
$8,750
$17,500
$200,000
$1.60
$2.40
$100,000
$80,000
$10,000
$20,000
$225,000
$1.80
$2.70
$112,500
$90,000
$11,250
$22,500
$250,000
$2.00
$3.00
$125,000
$100,000
$12,500
$25,000
Example
 Employee earns 30,000 per year
 Non-Smoker
 Age 37
Part A
$25,000 +$5,000
No Cost
Part B Basic
$2,500
$0.50
Part B Supp
$25,000
25 x $0.042 = $1.05
Part C Optional $30,000
30 x $0.042 = $1.26
Part D Supp
$350,000
350 x $0.042 = $14.70
Part E w Dep
$250,000
$3.00
Total monthly cost for $688,000 worth of coverage = $20.51 per month!
(About $10.25 per pay period)
Important Information!
Certificate of Coverage
Program Summary
Summary of Provisions
Questions and Answers Section
ENROLLMENT DEADLINE: 60-days from date of hire.
Life Insurance Enrollment Form
Evidence of Insurability Form
Long Term Disability (LTD) Insurance
 What is LTD insurance?
 Why is LTD insurance important?
 What types of LTD insurance are available?
 What is the cost?
What is Long Term Disability?
LTD is insurance that provides wage replacement
for you should you become medically unable to
work.
Example: We buy car insurance for our car in case
we get into a car accident, the insurance would
provide us funds to purchase a new car. LTD does
the same thing, except we are insuring our monthly
pay check.
Why is LTD Important?
 Every 1.3 seconds a disabling injury occurs on
and off the job – that’s over 23 million every year
 3 in 10 workers entering the work force today
will become disabled before they retire
 Over 6.8 million workers are receiving SSDI
benefits and almost half are under age 50
Types of LTD
WSU provides all eligible employees with a Basic
LTD Plan at no cost to the employee

90-day waiting period
 Benefit
payable $50 - $240 per month that’s taxable
However, you can purchase Optional LTD Coverage…
Optional LTD Coverage
Employee’s can purchase Optional LTD coverage
 Select benefits waiting period (Between 30-360
calendar days)
 Employee pays the monthly premium
 Benefit payable is about 60% of the gross monthly
salary, reduced by deductible income
 Optional LTD in non-taxable earnings
 Possible retirement premium replacement (TIAACREF)
2010 LTD Monthly Premiums
Benefit Waiting
Period
TIAA-CREF
PERS
30 days
2.48%
1.96%
60 Days
1.26%
1.04%
90 Days
0.69%
0.57%
120 Days
0.40%
0.34%
180 Days
0.30%
0.27%
240 Days
0.29%
0.26%
300 Days
0.27%
0.24%
360 Days
0.26%
0.23%
Examples
 TIAA-CREF Employee
 Monthly earnings $1000
30 Day waiting period
2.48% x $1000 = $24.80 per month
60 Day waiting period
1.26% x $1000 = $12.60 per month
Examples
 PERS Employee
 Monthly earnings $1000
30 Day waiting period
1.96% x $1000 = $19.60 per month
60 Day waiting period
1.01% x $1000 = $10.40 per month
Important Information!
 Earnings are based on the first $10,000 per month
 Certificate of Coverage
 Schedule of Benefits
 Questions and Answers Section
ENROLLMENT DEADLINE: 31-days from date of hire!
LTD Enrollment Form
LTD Evidence of Insurability Form
Optional Benefits
Flexible Spending Account (FSA)
A tax-free account that allows you to reduce your
taxable income while saving money to pay for your outof-pocket medical, dental, vision, hearing, and
prescription drug costs.
Money is deducted from your paycheck pre-tax (before
federal income tax and FICA taxes are deducted)
Flexible Spending Account Information
Plan Year, January – December 2010
Must enroll every open enrollment to continue your
FSA for the next plan year.
Annual Minimum $240
Annual Maximum $3,600
If spending at least $240/yr on out-of-pocket
expenses, you may reduce your health care
expenses by at least 20% or more depending on
your personal tax rate.
Flexible Spending Account Information
Contribute via payroll deductions
Your FSA reduces your taxable income
Claim reimbursement or use debit card
Next-day claims processing
Direct deposit of reimbursements
Email notice of reimbursements
Website and customer service specific to Washington
Flex
On-line account access
FSA Claims Process
Complete
Claim
Form
Fax
TOLL-FREE
1-866-3819682
Incur
Expense
ASI
Claim
Received
$$ Received
Claim
Processed
FSA Additional Information
Plan Administrator- ASI (Application Software Inc.)
 www.pebb.asiflex.com
 1-800-659-3035
 5 AM – 5 PM, Monday – Friday, PST
 7 AM – 11 AM, Saturday
 Utilize the Tax Savings Calculator at
www.pebb.asiflex.com
Dependant Care Assistance
Program (DCAP)
Pre-tax dollars for eligible dependent care expenses
Annual maximum contribution is $5,000 per household ($2,500
if married and filing a separate tax return)
Commonly claimed expenses include:
Before and after school care
Daycare
Babysitter expenses
DCAP Overview
Qualifying Persons
 Your dependent who is under age 13 and who lives with you at least eight
hours each day;
 Your dependent or spouse, regardless of age, who is mentally or physically
incapable of self-care; or
 Your child under age 13 even if you are divorced or separated, if you have
more than 50% custody of the child, even if you have released an
exemption under IRC Section 152(e)(2).
Eligible expenses include charges for care of a qualifying person inside or
outside your home. The main purpose must be the person's well-being and
protection.
* For a complete list of eligible expenses, please visit www.pebb.asiflex.com
DCAP Additional Information
 www.pebb.asiflex.com
 Customer Service 1-800-659-3035
 5 AM – 5 PM, Monday – Friday, PST
 7 AM – 11 AM, Saturday
 Must enroll within 31 days of hire
www.hrs.wsu.edu/openenrollment
Other Optional Benefits
 Liberty Mutual - Car, renters, home owners
insurance
 Group Long Term Care Insurance
 Payroll deductions for parking passes and UREC
memberships
*DEADLINES*
 Medical/Dental Enrollment Form: 31 Days
 Life Insurance Enrollment Form: 60 Days
 LTD Enrollment Form: 31 Days
 Flex Spending/DCAP Enrollment Form: 31 Days
**Deadlines are from date of hire!
Questions?
Human Resource Services
French Administration Building 139
509-335-4521
[email protected]
Thank You!