Transcript Communicating with faculty & staff, the media and the

HR Liaisons Meeting
July 15,2010
Agenda
• Welcome
• Federal Work Study Job Postings
• Compensation and Position Guidelines
• Recruitment Consultative Model Review
• Other Updates
• Wrap Up
• Aon Consulting - Health Reform
Federal Work Study
Job Postings
FWS Job Postings

Federal Work Study (FWS) Job Postings will go live
on Monday, August 2, 2010.

Last year’s postings will be automatically reopened for the 2010-11 academic year
 The FWS Job Posting Request Form can be found at
http://finaid.fiu.edu/index.php?id=6 and
submitted to [email protected]

Instructions on how students apply for FWS
positions and hiring procedures may be viewed on
the FWS PowerPoint presentation found in the link
above
Compensation and
Position Guidelines
Compensation and Position Guidelines
Compensation objectives are:
 Attract and recruit a talented, diverse workforce;
 Reward and retain employees for outstanding contributions to
the University.
• Salaries are administered in accordance with Federal Wage and Hour
laws and other applicable guidelines.
• All salary actions will be effective at the beginning of a pay period
and should not be retroactive. A retroactive payment will only be
processed on an exception basis and departments are requested to
contact HR before submitting paperwork.
• Guidelines can be found at
http://hr.fiu.edu/index.php?name=guidelines1.
Salary Increases
Increase Types:
• Additional Duties
• Counter Offer
• Retention
• Salary Compression
• Internal Salary Inequity
• Across the Board
One-Time Awards
One-Time Award Types:
• Educational Incentive
• Spot Award
• Project Based
• Variable Compensation
Procedures
• How to request an increase for Added Duties
• How to request other salary increases or bonuses
• How to request a Reclassification
 Filled Position
 Unfilled Position
Salary Appointment Guidelines
• New Hires – Hired within the posted target salary
• Lateral Transfers – Usually at the current salary
• Promotions, salary increases or reclassifications
• Meets minimum qualifications – Up to a 5% increase if
the current salary is within the target salary range or
up to the minimum target salary, whichever is higher
• Exceeds minimum qualifications – Up to a 10% of the
current salary if the salary is within the target salary
range
Admin./Staff Change Form
• Form should be completed and signed before it is
sent to the Division of Human Resources
• Incomplete forms will be returned to the
requesting department
• Effective date will be assigned by DHR after all
requirements are met
Compensation and Position Guidelines
Questions?
Recruitment Consultative
Model Review
New Position Creation Process
STEP 1- Action begins with Compensation Administration to:
• Discuss departmental needs
• Establish appropriate classification and target salary range
STEP 2- Subsequent exchange with area Vice President to:
• Discuss proposed position
• Get signature approval for recruitment of candidate within target
salary established
STEP 3- Final Step:
• Assignment of position number by EABM - (E&G & Aux Positions)
• Assignment of position number by Ana Pineda (C&G Positions)
• Submission of position description to Compensation Administration
for approval and transition to Recruitment
Improvements & Expected
Efficiencies
 A re-designed front-end process which will enhance
communications and streamline the overall process
 Single signature routing process to authorize target salary
range, posting, selection and hire
 A seamless transfer of information between Compensation
and Recruitment
Recruitment Consultative Model
 A “Client-Centered” approach
 Recruiters serve as:
 Consultants
 Advisors
 Business Partners
 Model includes EEO guidance and advisement
Recruitment Consultative Model
Step 1
•Discuss EEO/AA Hiring Goals
•Review Position Attributes
•Select appropriate Recruitment option
•Provide Policy & Procedural Overview
•Set Recruitment Timeline
Step 3
Step 2
• Interview and Select Finalists
• Solidify recruitment plan
• Background & Reference Checks
• Advertise positions
• Set salary & Extend Offers
• Pre-screening applicants
• Start On-boarding Process
Recruitment Consultative Model
THREE RECRUITMENT OPTIONS:
 External Posting
 Interdepartmental Posting
 Intradepartmental Posting
External Process
STEP 1- Recruitment Consultation initiated
STEP 2- Seven- to ten-day (average) Posting
STEP 3- Recruitment Team pre-screens qualified candidates
STEP 4- Hiring Department interviews qualified candidates
STEP 5- Hiring Department selects candidate and proceeds
with pre-employment processes
STEP 6- Discuss salary administration & get HR approval
STEP 7- Offer position to finalist
STEP 8- Begin on-boarding process
Interdepartmental Process
STEP 1- Recruitment Consultation initiated
STEP 2- Five-day posting to University community
STEP 3- Interview qualified candidates
STEP 4- Select candidate and proceed with pre-employment
process (if required)
STEP 5- Discuss proposed salary with HR & get approval
STEP 6- Hiring Department has transitional conversation with
current supervisor
STEP 7- Offer position to finalist
Intradepartmental Process
(Vacancy)
STEP 1- Recruitment Consultation initiated
STEP 2- Three-day posting
STEP 3- Interview qualified candidates
STEP 4- Select candidate and offer position
STEP 5- Discuss proposed salary with HR & get approval
Intradepartmental Process
(No Vacancy)
STEP 1- New description evaluated by Compensation
STEP 2- Three-day posting
STEP 3- Interview qualified candidates
STEP 4- Select candidate and proceed with reclassification
* Underutilization in positions at Coordinator level and above
Pre-Employment Requirements
Effective March 31, 2009: Policy # 1710.257
New Employees
Faculty
Administrative
Staff
Temporary
Students & Volunteers (specific roles & responsibilities)
Current Employees
* Administrative
* Staff
* Employees who are transferring or being promoted into another position
that by law or audit recommendation, require background investigation
Pre-Employment Requirements
Types of Pre-Employment Checks
Criminal Background (Misdemeanor & Felony)
Social Security Tracing
Educational Credentialing
Employment Verification
Driver’s License Checks
Credit Checks
Fingerprinting
Professional Referencing
Language Proficiency
*Drug Testing
*Professional Licensure Certification
*Healthcare Sanctions
Pre-Employment Requirements
• When finalist is selected for a career opportunity, the Recruitment
Consultant should be notified to initiate the pre-employment process.
• All Pre-Employment Background Investigations will be conducted by the
Division of Human Resources-Recruitment Services (with exception of
specific checks).
• Recruitment Consultant will notify hiring official or HR Liaison that checks
have been completed. If results are satisfactory, authorization to proceed
with preparation of action forms will be given.
• Any background investigation results that are non-satisfactory will be
discussed with the Director of Recruitment Services. A recommendation for
hire or non-hire will be made based on those results.
Under NO circumstances should a verbal or formal offer of employment be
extended prior to the review of all background investigations
Pre-Employment Requirements
PROSPECTIVE EMPLOYEES
CURRENT EMPLOYEES
Adverse Action Process
Non-hire recommendation
Adverse Action Process
Termination recommendation
• Recruitment Director notifies
Hiring Official of hiring decision
• Recruitment Director notifies
finalist of hiring decision and
provides the following:
• ELR Director will notify supervisor
• Issue letter proposing termination
• Administrative Leave for 3 days
• Provide hearing or respond in writing
• Final determination is based on the
following:
 Memorandum
 Name & contact information of
vendor that provided report
 Copy of report
 Summary of rights under FCRA
(Fair Credit Reporting Act)
 Nature and gravity of the offense(s)
 The time lapsed since conviction
and/or completion of sentence
 Nature of the position
 Application disclosure
Pre-Employment Requirements
HR LIAISON/DEPT ROLE
Notify Recruitment Services of intent
to hire candidate (prior to verbal or
formal extension of employment offer)
Wait for notification of clearance of
background investigation from HRRecruitment Services (prior to verbal
or formal extension of offer)
HR ROLE
Attain required information for the
facilitation of background investigation
Submit information to third-party vendor
for purposes of background investigation
Notify Hiring Official/HR Liaison of hiring
decision
Conduct Adverse Action Process
(if required)
Maintain appropriate records
Pre-Employment Requirements
Remember…
The pre-employment requirement policy applies to all Faculty,
Administrative, Staff & Temporary employees of FIU
All pre-employment requirements must be met prior to extending
a verbal or formal offer of employment to a new or transfer employee
at FIU
All hiring decisions & recommendations will be made by the Division
of Human Resources
Effective dates of employment should be assigned after pre-employment
process has been completed and hiring decision has been made
Salary Actions
What constitutes a complete packet?
REQUIREMENT
ACCEPTABLE DOCUMENTATION
RESPONSIBLE PARTY
Action Form
Admin/Staff New Hire Form
Admin/Staff Change Form
HR Liaison
HR Liaison
Signed Application
Completed & Signed FIU Application
Applicant/HR Liaison
Training & Education Summary
T&E
Recruiter
Proof of Education/Licensure
Unofficial Transcript (conferred)
Official Transcript
Copy of Diploma/Degree
HR Liaison/Recruiter
Documentation of References
Reference Check Form (2-3)
HR Liaison/Recruiter
Nepotism Request (if applicable)
Request to Hire Related Individual
HR Liaison/Hiring Official
Nepotism Disclosure Form
On-Boarding Process
Once all salary action paperwork has been received and
approved:
New employee should be contacted to complete Sign-on
Packet and attain additional information as well as
resources from Recruitment Services:
 Panther ID Authorization Card
 Temporary Parking Permit
 NEE Information & Registration
Other Updates
PEP Forms
• HR Liaisons should ensure Performance
Excellence Process (PEP) forms are signed and
submitted to the Division of Human Resources by
Tuesday, August 30, 2010
• Next week, Liaisons will receive a list of
employees in their area who are required to
complete a PEP form to assist with the process
Wrap Up
Questions or Comments?
Aon Consulting Health Reform
Florida International University
July 15, 2010
34
Health Reform Overview
• Health reform is a journey; not an event.
• Legislation spans 2010 – 2018
• The legislation is complex and lacks clarity.
• Employers will need professional advice and services to achieve
compliance, assess cost implications, redesign benefit structure
and establish long term strategy
• Legislation drives coverage expansion and insurance
market reform.
• Focus is not on bending the cost curve or on improving quality
36
Today’s Discussion
1
Latest Regulatory Guidance
2
Plan Design Changes/Benefit Mandates
3
Employer Provisions
4
Administrative Requirements
5
Tax Provisions
6
Insurance Exchanges
7
Employer Case Study – Florida International University
8
Health Reform Self-Service Tools
37
What do these have in common?
Grandfathering
Grandfathered Plans
 Generally, individual and group plans in effect on date of enacted are
grandfathered
 New guidelines were issued two weeks ago (121 pages)
 Changes that will void grandfathering include:
 Change in carriers
 Significant change in benefits
 Increase in copayments greater of medical inflation (4%) + 15% or $5
 Changes in cost sharing (deductibles, out-of-pocket maximums) greater
than medical inflation (4%) + 15%
 Changes in coinsurance
 Decrease in employer contribution greater than 5%
Grandfathering
Provisions Applicable to All Plans
 Provisions applicable to all plans
regardless of grandfathered status:
– Coverage of adult dependents up
to age 26 (prior to 2014, only if no
other employer coverage
available)
– Lifetime limits
– “Restricted” annual limits
Non-Grandfathered Plan Provisions
 Grandfathered plans apparently are
exempt from the following provisions:
– Coverage of preventive services
without cost sharing
– Cost sharing limits
– Nondiscrimination rules
– Appeals and review process
– Prohibition on rescissions
– Selection of doctors and referral
requirements
– Preexisting condition exclusion
(prior to 2014, children under 19)
– Coverage of clinical trials
– Waiting periods
– Uniform summary of benefits
– No discrimination against providers
– Essential health benefits
Adult Child Dependent Coverage to Age 26
Interim Final Regulations issued May 10 – addresses coverage extension
• Effective for plan years beginning on or after September 23, 2010 regardless
of plan’s grandfathered status
• Requires plans that provide dependent coverage to children to make coverage
available to all “children” under the age of 26
o
Student status, marital status, residency, financial support,
dependent status for tax purposes, or other criteria not applicable
• Mandates special enrollment opportunity for certain adult children
o
o
Timing: no later than 1st day of plan year; must last 30 days
Must provide written notice to eligible adult children
IRS Notice 2010-38 issued April 27 – addresses taxation of coverage
• Health coverage or reimbursement of medical expenses for a child who has not
attained age 27 by the end of the taxable year will not be taxable to the
employee
o
o
Tax exclusion applies even if the child is not a tax dependent
Effective on or after March 30, 2010
Latest Legislative Updates
Patient Protection
 Requires group health plan or group health insurance coverage that offers a
network of providers to permit any practitioner in the network to be designated
as an individual’s primary care provider, pediatrician, or gynecologist
 Requires that notice be provided informing each participant of his/her right to
make such a designation
 Requires that emergency services be covered without the need for preauthorization and without regard to whether the provider is in its network
 Requires group help plan or group health insurance coverage that offers a
network of providers, covers emergency services, and subjects such services to
a copayment or to co-insurance to ensure that the rate imposed for out-ofnetwork emergency providers does not exceed the cost-sharing requirements
that would be imposed if the services were rendered by a network provider
 Effective 1/1/2011 for FIU if not grandfathered
Latest Legislative Updates (cont’d)
Rescissions
 Prohibits the rescission of health coverage except in the case of fraud or
intentional misrepresentation of a material fact
 Applies to insured plans in the group and individual markets, as well as selfinsured plans
 Does not prohibit coverage from being cancelled on a prospective basis
 Does not prohibit coverage from being cancelled retroactively if the cancellation
is attributable to a failure to pay required premiums or contributions
 Requires 30 days notice of a rescission, when still permitted
 Effective 1/1/2011 for FIU
Plan Design Changes/Benefit Mandates
Dependent Coverage
 Coverage of adult children up to
age 26, regardless of marital or
student status
– If not eligible for other group plan
– Applies even if the child is not a
tax dependent
Annual and Lifetime Maximums
 No lifetime maximums permitted
for overall benefits
(annual/lifetime limits on specific
benefits permitted)
– Effective 1st plan year 6 months
after enactment (1/1/2011 for FIU)
– Special enrollment period required
to allow those without coverage
 Complete elimination of annual
limits beginning January 1, 2014
– Grandfathered plans are allowed
to exclude if coverage elsewhere
 Restrictions on annual limits prior
to 2014 TBD by regulation
 Effective 1st plan year 6 months
after enactment (1/1/2011 for FIU)
– Effective 1st plan year 6 months
after enactment (1/1/2011 for FIU)
Plan Design Changes/Benefit Mandates
Pre-existing Conditions Exclusions
 Not permitted for children under
19
– Effective 1st plan year 6 months
after enactment (1/1/2011 for FIU)
 Not permitted for all plan enrollees
– Effective 1/1/2014
(cont’d)
Preventive Benefits
 Must provide first dollar coverage
for evidence based preventative
care (not for grandfathered plans)
 Effective 1st plan year 6 months
after enactment (1/1/2011 for FIU
if not grandfathered)
Waiting Periods
 Waiting periods greater than 90
days are not permitted
 Effective 1/1/2014
Plan Design Changes/Benefit Mandates
Health Accounts
 OTC drugs no longer
reimbursable under health FSA,
HRA or HSA, unless prescribed by
physician
– Effective 1/1/2011
 Penalty on withdrawal of HSA
funds for non-medical expenses
increased to 20%
– Effective 1/1/2011
 Annual contributions to health
FSAs limited to $2,500 annually
– Effective 1/1/2013
– Indexed to CPI as of 1/1/2014
(cont’d)
Cost Sharing Limitations
 Out of pocket expense will not
exceed HSA related coverage
 Deductibles cannot exceed $2,000
single & $4,000 family as indexed
 Effective 1/1/2014
Wellness Incentives
 Employers permitted to increase
employee reward for participation
in wellness programs to 30% of
total plan cost
 HHS may increase to 50%
 Effective 1/1/2014
Employer Provisions
Free Rider Provision
Employee Voucher
 Applies to employees working 30+
hours/week
 Applies to employees working 30+
hours per week
 Employer pays $3,000 for each
EE with coverage <60% of
allowed costs or if EE pays >9.5%
of their household income for
health coverage
 Employers would convert health
coverage subsidy to cash for any
employees who:
 Employers not offering health
coverage pay $2,000 per EE
 First 30 employees not included in
calculation of assessment
 Effective 1/1/2014
–
pay between 8% and 9.8% of their
household income for health coverage
–
whose household income is less than
400% of poverty line
–
opt out of employer sponsored
coverage for coverage in an Exchange
based plan
 Effective 1/1/2014
Administrative Requirements
Auto Enrollment
 Applies to new hires
 Employees can opt-out
 Employer can choose plan for
auto enrollment
 Effective date unclear; may be
upon enactment or until guidance
issued
Appeals Process
 Employer plans must have HHS
approved external review process
 Effective 1st plan year 6 months
after enactment (1/1/2011 for FIU
if not grandfathered)
W-2 Reporting
 Employers required to report the
“value” of health benefits provided
to each employee
– Value defined as COBRA cost less
2% administration fee
 Effective 1/1/2011
Administrative Requirements (cont’d)
Uniform Explanation of Coverage
Exchange Notification
 Annual distribution of summary of
benefits and coverage
 Employers must notify employees
at time of hire of the availability of
Exchanges and their potential
eligibility for a subsidy
– Not to exceed 4 pages; 12 point
font
– Culturally and linguistically
appropriate
 Uniform Explanation is in addition
to the SPD required by ERISA
 HHS to issue standards
 Effective 2012 (first summary due
within 24 months of enactment)
 No requirement to offer same
coverage as Exchange based
plans
 Effective 1/1/2013
Transparency Requirements
 Same transparency requirements
as Exchange based plans
 Claims payment policies and data
 Information on rating policies, cost
sharing and payment for OON
Administrative Requirements
CLASS Act
 Voluntary federal LTC insurance program
 No underwriting restrictions
 5-year waiting period
 Eligible for benefit if at least 2 ADLs for 90 days
 Lifetime benefit payments
 ERs may auto-enroll EEs and offer access via
payroll deductions
– EEs may opt-out
– Must be actively employed to enroll
 Effective 1/1/2011
(cont’d)
Tax Provisions
Medicare Surtax
 Adjusted gross income >$200K
for individuals and >$250K for
couples
 Additional surtax on wages of
0.9%
 Additional surtax on investment
income of 3.8%
 Additional taxes on higher income
individuals replaces lost revenue
from delayed enactment of high
cost excise tax (estimated $210
billion)
 Effective 1/1/2013
High Cost Plan Excise Tax
 40% excise tax on health plans
whose annual cost exceeds:
– $10,200 single/$27,500 family
 Cost includes all health plans,
including FSAs or HRAs, ER HSA
contributions
 Higher thresholds for retirees and
high risk professions; age/gender
differences
 Indexed to CPI-U (+1% in 2019)
 Effective 2018; no delayed
effective date for collectively
bargained plans
Insurance Exchanges
 Exchange health plans options will vary from state to state and carriers will
selectively participate state by state.
• May increase administrative burden on employers with multi state locations
 Carriers must develop new health products (replacing traditional plans) to be
successful in demanding Exchange environment
• Premium trends may increase above current levels
 Some employers will consider dropping their group coverage in 2014
• Negative implications for recruitment and retention of employees
• Employees using the Exchange who earn <$88,000 for a family of 4 will see
higher premiums offset by federal subsidies resulting lower EE contributions.
• Employees using the Exchange who earn >$88,000 for a family of 4 will see
higher premiums given the absence of federal subsidies
 Modest $2,000 penalty in 2014 for ERs not sponsoring group health coveragepenalty likely to increase before 2014
Employer Case Study – Florida International University
Employer Profile
Health Reform Issues
 Grandfathered plan

# EEs: 3,800 FT; 4,600 PT as well as
adjunct professors

Not collectively bargained

Avg EE Contribution: $50 employee,
$180 family

Participation: 90+%

 Overall lifetime limit
Dependents allowed until 25 if
unmarried, in school, or dependent
upon parents
 Overall annual limit

Plan Design:
– Calendar year plan
– Waiting period for new hires: 1st
of month following date of hire
– Plan offerings: 3 HMOs, PPO,
high deductible plan HSA
– PPO/HSA Pre-existing condition
– No auto enrollment
– $2 million lifetime maximum in
PPO
– Long Term Care currently
offered
– Mammograms not covered as
preventive in PPO
– PPO ER benefits in and out
 Offer benefits for employees
who work at least 30
hours/week based 120
calendar days per year
Potential Impact
Potential voiding of
grandfathering
At risk for free rider
penalty(2014)
Remove lifetime and annual
limits, which will increase
claims (2011)
 Auto-enrollment
Auto-enroll new hires and
continue current enrollees
 New CLASS program
Potential mandate for voluntary
enrollment into CLASS (2011)
 New dependent age 26
 Removal of pre-existing
conditions for dependents
 Preventive care covered at
100% if not grandfathered
 Patient Protection
Adding additional dependents
will impact claims (2011)
Potential impact on claims
(2011)
Potential impact on claims
(2011)
Potential impact on claims
(2011)
Actuarial Cost Modeler
2011 Impact Item Guidelines
Lifetime Maximum
Dependent up to 26
Current
Impact
Current
Impact
$ 1,000,000
0.5 - 1.0%
Through 19
1.0 - 4.0%
$ 2,000,000
0.3 - 0.5%
Through 22
0.5 - 2.0%
$ 5,000,000
0.0 - 0.2%
Through 24
0.0 - 0.5%
• Elimination of pre-existing condition exclusions for children to
age 19 = generally < 0.5%
• Overall Cost Impact to Employers in 2011 to meet minimum
requirements = 0.5% - 2.0% increase
CAVEAT: Unique employer characteristics may result in “Cost Impact” outside of above ranges
• Wide array of tier and plan structures
• Employer specific demographics, industry, and plan design may impact cost estimate
Where Can I Find Out More?
 Aon’s Health Care Reform
Microsite is a great resource:
www.aon.com/healthcarereform
– Weekly briefings
– Webinar recordings
– Regularly updated FAQs
– Side-by-side comparison
of the Senate and
Reconciliation Bills
– Survey findings
Wrap Up
Questions?