Transcript U-M Benefits Orientation

U-M Benefits Orientation
Introduction to U-M Benefits
Health Plans
Prescription Drug Plan
Dental Plan
Vision Plan
Flexible Spending Accounts
Life Insurance
Expanded Long-Term Disability
Group Legal Services Plan
Miscellaneous Benefits
Retirement Savings Plan
Questions and Answers
U-M Benefits
Introduction to U-M Benefits
Eligibility
Benefits Enrollment
Enrollment
Change in Status
Open Enrollment
Paying for Your Benefits
Your Rights and Responsibilities
U-M Benefits
Eligibility
Employee
Benefit-eligible graduate students
Spouse
Other qualified adult
Dependent children
Review the eligibility information on the Benefits
Eligibility section on the Benefits Office website:
benefits.umich.edu/eligibility
U-M Benefits
Benefits Enrollment
Self Service > Benefits
Benefits Office website
Plan Information
Eligibility Information
Forms
Vendor Contact Information
U-M Benefits
Enrollment
Four times when you may be able to enroll in benefits:
When you are a new hire
When you are newly eligible
As a result of a qualifying change in status
During Open Enrollment – If your job information is not
on the system by October 17th your elections will continue
through December 31, 2015, except for Flexible Spending
Accounts (FSA). You must enroll in an FSA for 2014 and 2015
to participate.
U-M Benefits
Change in Status
Legal Marital Status
Number of dependents
Employment Status
Residence or work site change (out of network area)
Domestic relations court order
U-M Benefits
Paying for Your Benefits
Convenient payroll deductions
When Deductions are taken:
Bi-weekly
Health Plan, Dental, Vision, Legal,
Flexible Spending Accounts (first two paychecks of
each month; 24 equal installments)
Retirement Savings Plan (all pay periods)
Monthly (all)
U-M Benefits
Paying for Your Benefits
Always Pre-Tax
Health Plan
Retirement Savings Plan
Dental
Flexible Spending Accounts
Vision
Always After-Tax
Dependent Life
Optional Life Insurance
Long-Term Disability
Legal Services
U-M Benefits
Your Rights and Responsibilities
HIPAA
COBRA
Check your deductions
Keep your address current. Make updates
online at: wolverineaccess.umich.edu
Watch for communications from the university
Health Plans
Introduction
Six Coverage Levels
Range of Coverage Options
Traditional Fee-for-Service Plan
Health Maintenance Organization (HMO)
Managed Care Plan
Preferred Provider Organization (PPO) Plan
Health Plans
Value = Quality + Cost
Cost information
Benefits comparisons
Make Your Choice
No pre-existing clauses
30 days to choose
30 days to report a mid-year change in status
Health Plans
Six Coverage Levels
You only
You + your Spouse or other qualified adult
You + your Spouse or other qualified adult & Child
or Children
You + One Child
You + Children
No Coverage
Health Plans
Traditional Fee-for-Service Plan
Blue Cross Blue Shield Comprehensive Major
Medical (CMM)
Health Plans
Traditional Fee-for-Service Plan
Coverage for diagnostic and treatment services
Annual Deductible
Co-insurance
Annual Out-of-Pocket Limit
Health Plans
Managed Care Plans and Health Maintenance
Organization (HMO)
U-M Premier Care (UMPC)
GradCare – Benefit Eligible Students only
Health Alliance Plan HMO (HAP)
Health Plans
Managed Care Plans and Health Maintenance
Organization (HMO)
100% coverage for eligible expenses
Lower out-of-pocket costs for certain services
No annual deductible or claim forms
Co-pay may be required for some services
Health Plans
Preferred Provider Organization (PPO)
Blue Cross Blue Shield of Michigan Community
Blue PPO (BCBSM PPO)
Ability to choose any provider, in or out-ofnetwork
Lower out-of-pocket costs when you choose an innetwork provider
Health Plans
Which Plan Is Best For You?
Use the information on the Benefits Office website
at benefits.umich.edu/plans/medical/ to
determine the best health plan for you and your
family.
• Health Plan Comparison Chart
• Health Plan Navigator
• Summary of Benefits and Coverage (SBC) Charts
Choose a plan that best meets your and your
family’s needs
Health Plans
Important Materials
Provider Directory
On the Benefits Office website at:
benefits.umich.edu/plans/medical/providers.html
Plan Books and Forms
On the Benefits Office website at:
benefits.umich.edu/books
benefits.umich.edu/forms
Prescription Drug Plan
All participants who enroll in university health plans
are automatically enrolled in the U-M Prescription
Drug plan, which is administered by MedImpact
Healthcare Systems, Inc.
You will receive a separate MedImpact prescription
drug ID card.
Prescription Drug Plan
Three-tier co-pay plan:
Tier 1/generic, $10
Tier 2/preferred, $20
Tier 3/brand-name non-preferred, $45
Prescription Drug Plan
Up to 90-day supply available by mail order through
NoviXus mail service at a significant savings over
retail pharmacies.
More information is available on the Benefits Office
website at:
benefits.umich.edu/plans/drugs
Dental Plan
Administered by Delta Dental of Michigan
Option 1
Option 2
Option 3
Orthodontic Services
Compare Options and Rates
University Contribution
Dental Plan
Option 1
• Provides coverage in full for preventative services
• Covers orthodontia for dependents under age 19
• Available at no cost to you and your eligible
dependents
Dental Plan
Option 2
• Provides coverage in full for preventative services
• Covers orthodontia for dependents under age 19
• Requires an employee contribution
Dental Plan
Option 3
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Provides coverage in full for preventative services
Covers orthodontia for dependents under age 19
Highest benefits level
Requires greatest employee contribution
Dental Plan
Orthodontic Services
Covers services for eligible dependent children up
to age 19
Adult orthodontics are not covered
If newly enrolling for first time, Delta will pro-rate
amount payable for children already in an
orthodontic treatment plan
Delta Dental Network
• You can choose any dentist you want
• You will receive the greatest savings if you see
a Delta PPO provider
• You will still receive a savings if you see a Delta
Premier provider
• Delta PPO and Premier participating dentists
agree not to bill the patient more than Delta’s
approved amount
Dental Plan
Compare Options and Rates
Rates and a comparison chart are available on the
Benefits Office website at:
benefits.umich.edu/plans/dental
Vision Plan
Features
Administered by Davis Vision
One eye exam and pair of eyeglasses per year
Standard, soft, daily-wear, disposable contacts in
lieu of eyeglasses
Kellogg Eye Center is a participating provider
Vision Plan
No card for Vision Plan
Provider list available on the Davis Vision
website at: www.davisvision.com
Click Members, enter 2032 in the Control
Code field, and then click Submit.
Benefits Rates
• You can view benefits plan rates on Wolverine
Access, or the Benefits Office website at
benefits.umich.edu/neo/rates.html
Flexible Spending Accounts
Administered by PayFlex/HealthHub
If your job is on the system after October 17th, you can enroll
for the remainder of 2014 and for 2015 by completing
separate 2014 FSA and 2015 FSA forms.
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Two account types
Contribution Limits
Advantages
Savings example
Health Care FSA
• Use to set aside pre-tax dollars for out-ofpocket health care expenses for you and your
eligible dependents
• Possible expenses can include Rx co-pays,
contacts, doctor’s office co-pays, dental outof-pocket expense, Lasik surgery
Dependent Care FSA
• Use to set aside pre-tax dollars for out-of-pocket
dependent day care expenses for your eligible
dependents.
• Possible expenses can include your child’s day care
costs, after school latch-key programs, adult day care
expenses, and summer day camps.
• See the Benefits Office website for list of eligible
dependents and expenses:
benefits.umich.edu/plans/reimburse/dc2.html
Flexible Spending Accounts
Contribution Limits
Health Care Account
$2,500 annual maximum
$120 annual minimum
Dependent Care Account
$5,000 annual maximum; may be limited
based on several factors
$120 annual minimum
Flexible Spending Accounts
Advantages
Serves as budgeting tool
Provides immediate tax savings
Helps you get more for your money
Flexible Spending Accounts
Annual Savings Example*
If your annual taxable income is:
And you deposit this annual amount into an FSA:
Your taxable income is now:
Subtract federal and Social Security taxes:
If you spend after-tax dollars for eligible expenses
Your real spendable income is:
Your annual tax savings with an FSA is:
With an FSA Without an FSA
$28,000
$28,000
$1,500
$0
$26,500
$28,000
$9,447
$9,982
$0
$1,500
$17,053
$16,518
$535
$0
* Potential tax savings shown for demonstration only. Actual savings will vary based on your individual tax
situation. Please consult a tax professional for more information.
Flexible Spending Accounts
Keep In Mind
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Estimate your annual expenses carefully
No mid-year contribution changes without a change in status
“Use it or lose it” feature
Through December 31 of the current calendar year
FSA enrollments do not carry over from year to year
A separate election must be made each year you wish to
participate
benefits.umich.edu/plans/reimburse
Life Insurance
Administered by MetLife
University Life
$30,000 plan for eligible faculty and staff
Covers you only and is paid by the university at no
cost to you
Automatically enrolled
Must name beneficiaries
Life Insurance
Optional Life
Nine Coverage Options
No coverage – unless you enroll
$5,000 (minimal or no cost to you)
$50,000
1 time salary to 6 times salary
30 days to enroll without a health statement
Term Insurance
Covers simple will preparation
Optional Life Insurance Plan
Important Considerations
No cash value or loan provision
You need to enroll in Optional Life
Coverage amounts and costs may increase when
your salary increases (if tied to salary) or when
you move to a higher age bracket
Optional Life Insurance Plan
Designate Your Beneficiary
Any person you wish
May add or change at any time
Make or change Life Insurance beneficiary
designations on MetLife’s MyBenefits website:
www.metlife.com/mybenefits
Optional Life Insurance Plan
How to Calculate Your Life Insurance Cost
Your monthly cost depends on the coverage you select,
your age, your smoking status, and your salary.
If you choose coverage based on your salary, the cost will
increase when your salary increases.
Your cost will increase when you move into the next higher
age bracket.
See the Benefits Office website to calculate your rate:
benefits.umich.edu/plans/life/orates.html
Dependent Life Insurance
For Spouse/OQA/Child
Legally married spouse or other qualified adult
Children
Employee is always the beneficiary
Dependent Life Insurance
Coverage Levels
Spouse or other qualified adult
$10,000 (short form health statement)
$25,000 (short form health statement)
$50,000 (long form health statement)
Children
$2,000 per child
$5,000 per child
One rate covers all eligible children
Dependent Life Insurance
Considerations
Term Life Coverage
You are always the only beneficiary
Cost of Coverage
After-tax deductions
Expanded Long-Term Disability
Administered by U-M
• Coverage levels
• Employee cost
Expanded Long-Term Disability
Coverage
Pays up to 65% of pre-disability base salary
Pays the cost to continue your other benefits,
including Health Plan, Dental Plan, Life
Insurance, and Retirement Savings Plan
contributions
Coordinates with other programs such as Social
Security disability income
Expanded Long-Term Disability
Cost
You pay full cost for first two years
After two years, the university pays the cost for
coverage up to $59,000 salary
You can elect to pay for coverage on salary above
$59,000
Legal Services Plan
Administered by Hyatt Legal Plans
Range of Legal Services
Important Considerations
Cost
Legal Services Plan
Range of Legal Services
Wills and estate planning
Real estate matters
Family law matters
Debt defense
Defense of civil lawsuits
Preparation of deeds, demand letters, promissory
notes, mortgages and other legal documents
Legal Services Plan
Important Considerations
No divorces
No job-related/business law
If both you and your spouse are involved in a
transaction, both of you must be enrolled in the
plan to be covered
No litigation against University of Michigan
Legal Services Plan
Cost
You pay the full cost through after-tax payroll
deductions
Monthly rates are available on the Benefits
Office website at:
benefits.umich.edu/plans/legal/costs.html
Miscellaneous Benefits
Travel Accident Insurance
MHealthy – U-M Health & Well-being Services
mhealthy.umich.edu
Travel Accident Insurance
Features
The university pays the full cost
Coverage begins on the first day of work and ends
the last day of work at the university
If you die while traveling on university business,
the plan provides a minimum benefit of $50,000
or 10 times your annual salary, whichever is more,
with a ceiling of $500,000. The plan also pays
benefits for dismemberment and disability.
Retirement Savings Plans
Basic Retirement Plan
Supplemental Retirement Account (SRA)
457(b) Deferred Compensation Plan
There is no university pension plan; the only way to have
enough money for retirement is to save.
benefits.umich.edu/plans/retire
Retirement Savings Plans
Contributions and earnings are tax-deferred
– You don’t pay taxes until you cash out the money
SRA and 457(b) also offer an after-tax Roth
– Contributions are taxed now but qualified withdrawals are tax-free
Invest with TIAA-CREF and/or Fidelity
Enroll or make changes anytime
You keep the U-M contribution when you leave
– Restrictions apply to cash withdrawals & rollovers
Options when you leave U-M
– Lifetime annuity
– Cash withdrawal or rollover (restrictions apply)
Retirement Savings Plans
Investing with TIAA-CREF and/or Fidelity
The default investment is:
• Lifecycle Index fund if you choose TIAA-CREF
• Freedom Index Fund Class W if you choose Fidelity
Lifecycle Index and Freedom Index funds automatically select
the mix of stock, bond, and money market funds appropriate for
a target retirement date (ex. 2020, 2025, 2030) of
approximately age 65.
Each fund periodically adjusts its holdings of stocks, bonds, and
money market funds to become more conservative over time as
its target retirement date approaches.
Retirement Savings Plans
TIAA-CREF and Fidelity Fund Choices
• Contributions may be made to funds in
either or both investment companies
• Contributions may be allocated among the
offered funds
• A wide selection of funds are available
Retirement Savings Plans
TIAA-CREF
Fidelity Investments
Telephone Counseling Center
800-842-2776
Telephone Counseling Center
800-343-0860
Local consulting appointments
800-732-8353
Local consulting appointments
800-642-7131
www.tiaa-cref.org
www.mysavingsatwork.com
Retirement Savings Plans
Basic Retirement Plan
Individuals must complete 12 months of eligible service in order to become
eligible to receive the U-M contribution once enrolled.
Defined Contribution Plan
• You contribute 5%
• U-M contributes 10%
Changes Effective 1/1/15
• Contributions will be provided on base salary but not on additional forms
of pay such as overtime, differential pay and lump sum payments.
• The employee contribution for U-M Hospitals and Health Centers will be
4.5% with a 9% U-M matching contribution.
These changes do not apply to employees subject to a collective bargaining
agreement.
Retirement Savings Plans
Basic Plan Waiting Period
• You may enroll at any time.
• Enrollment and university contributions do not begin
automatically; you must enroll to receive plan benefits.
• If you enroll during the first 12 months of service there is
no U-M contribution.
• Former eligible employees rehired within 12 months of
termination do not need to complete the waiting period.
Retirement Savings Plans
Contribution Rate Once Enrolled
During first 12 months of service
• You contribute 5%
• U-M does not contribute
After 12 months of eligible service
• You contribute 5%
• U-M contributes 10%
Retirement Savings Plans
Enroll or change your contribution amount at any
time online using Self Service > Benefits.
– Go to http://wolverineaccess.umich.edu
Retirement Savings Plans
Investing with TIAA-CREF and Fidelity
• U-M will send an enrollment notice to your chosen
company to create your investment account after your
enrollment is complete.
• You may change your fund choice if you do not want a
Lifecycle Index or Freedom Index fund.
• You will receive a welcome packet from your investment
company about 30 days after your first deduction.
• Contact TIAA-CREF and/or Fidelity Investments to designate
your beneficiary (it’s not the same as your life insurance).
Retirement Savings Plans
Compulsory Participation
Participation becomes compulsory when:
1. You are age 35 or older, and
2. You have completed 2 years of eligible service, and
3. You have a 100% appointment effort.
If you meet all 3 criteria but are not enrolled:
• You will be enrolled in the Reduced Benefit Option (RBO)
and U-M will contribute 5%; you do not contribute.
• You may elect to contribute 5%; U-M will contribute 10%
Retirement Savings Plans
Basic Plan Withdrawals & Rollovers
Current Employees - not available
Former Employees
• Your contributions and earnings at any age.
• U-M contributions and earnings at age 55 or older.
• IRS penalty for withdrawals prior to 59½ may apply.
Loans - not available
Retirement Savings Plans
Supplemental Retirement Account (SRA)
• You contribute a tax-deferred, fixed-dollar amount.
• Save more for retirement and reduce your taxable income.
• An after-tax Roth option is available, fixed-dollar amount.
• There is no U-M contribution.
• Enroll or change your contribution amount at any time
online using Self Service > Benefits.
– Go to http://wolverineaccess.umich.edu
Retirement Savings Plans
SRA Features
Cash withdrawals while employed
– Hardship (as defined by IRS)
– Disability (as defined by IRS)
– At age 59½
Former employee may cash out at any age
IRS penalty for withdrawals prior to 59½ may apply
SRA loans (some restrictions apply)
Annual contribution limit
– $17,500 if under age 50
– $23,000 if age 50 and older
– Limit includes the 5% you make to the Basic Plan
– Does not reduce your limit to contribute to 457(b) plan
Retirement Savings Plans
457(b) Deferred Compensation Plan
• Another option to invest and reduce your taxable income.
• You contribute a tax-deferred, fixed-dollar amount.
• An after-tax Roth option is available, fixed-dollar amount.
• There is no U-M contribution.
• IRS penalty for withdrawals prior to 59½ does not apply.
• Enroll or change your contribution amount at any time
online using Self Service > Benefits.
– Go to http://wolverineaccess.umich.edu
Retirement Savings Plans
457(b) Features
Cash withdrawals
• While employed: at age 70½
• Former employee: at any age
Loans available (some restrictions apply)
Annual contribution limit
• $17,500 if under age 50
• $23,000 if age 50 and older
• 457(b) contributions do not reduce your SRA limit
Retirement Savings Plans
Next Steps
• Review your pay stubs
– Confirm deductions are being taken
• Review or update your beneficiary
• Review your quarterly statements
• Meet with TIAA-CREF and/or Fidelity
– Review your fund choices
– Rebalance portfolio if necessary
– Review your retirement savings goals
• Save more with an SRA and/or 457(b)
How to Enroll in Benefits
You will need a uniqname and UMICH
password to log in to Wolverine Access.
Go to:
http://wolverineaccess.umich.edu
Wolverine Access
Employee Self-Service
Wolverine Access Log In
Self Service > Benefits Enrollment
Wolverine Access “New Hire Event”
Other University Resources
Faculty and Staff Assistance Program (FASAP)
• Counseling services on personal, emotional, family and
workplace issues
• www.umich.edu/~fasap
U-M Health System Employee Assistance Program
• Counseling services for U-M Health System employees
• www.med.umich.edu/mworks/eap
Other University Resources
Mediation Services
• Confidential, voluntary mediation for faculty and staff (nonunion) to resolve workplace disputes collaboratively
• www.umich.edu/~mediate
WorkConnections
• Provides assistance and support to faculty and staff when
they experience an illness or injury
• Coordinates access to university services through recovery
and return to work
• Kids Kare at Home – emergency back-up child care service
• www.umich.edu/~connect
Other University Resources
Emergency Hardship Program
• For those facing temporary and severe hardships from
unexpected emergencies
• Resource information and possible one-time funds for
assistance in certain cases (for funds eligibility must be
U-M employee for six months)
• To learn more or to donate, go to:
emergencyhardship.umich.edu
Closing/Reminders
1. Review information on the website
2. Call the Shared Service Center
Contact Center if you have questions
3. Check your benefits summary on self-service
4. Complete Flexible Spending Account form and
return to the address on the form
5. Read all U-M communications
6. Maintain your current address on Wolverine
Access
Congratulations!