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Funded Retirement and Insurance Committee Minutes February 3, 2012.
Meeting was called to order at 11:30 am in 302 USB.
Members in attendance: Nancy Davin, Katherine Dudley, Matthew Glasson, Daniel Katz, Sheldon Kurtz, Heather Schnoebelen, Bernard Sorofman, Anand Vijh, Lynn Vining, Michael Wichman, Steve Bernholtz
Members absent: Jon Garfinkel, Victoria Sharp, Katherine Tachau
Administrative Officers present: Sue Buckley, Richard Saunders
Guests present: Rick Borchard, Carla Clark, Carol Fethke, Dan Fick, Debra Hughes, Joni Troester
- Committee members, administration representatives, and guests introduced themselves.
- The minutes of meeting from November 4, 2011, were approved unanimously.
- We looked over the 2012 data. CHIP 2 continues to decrease in active employee enrollment. There are still a lot single employees in CHIP 2 and the coverage is much better under UI Choice. There is a big risk to employees who stay in CHIP 2 that if there is a large claim, there would be few employees to spreads this across, making a large hit to a small group of employees to cover the increased cost. At some point the closure of the CHIP 2 might have to happen. The idea of actually contacting employees who are staying in CHIP 2 to see what their reasoning is for staying was mentioned. The idea was actually floated twice. The need for actual communication and not another survey was stressed to get their opinion and have less of a chance of getting a non-answer. More data was requested and no action was taken on this agenda item.
- There was a series of slides and a presentation given by Anand Vijh advocating for the need to increase the rates of the CHIP 2 plan. The idea behind this thought is to protect the rest of the employees under that plan from an increase to their rates due to a possible single catastrophic incident. The idea of contacting those still in CHIP 2 was again discussed, with emphasis on actual communication and not a survey. Another item that was mentioned was to base the employer contribution for the CHIP 2 single rate on the UICHOICE single rate. This would treat that employee category like all of the other family categories. No action was taken on this agenda item.
- The last item discussed was again that the Principal Insurance has expressed some discomfort with providing coverage of supplemental life insurance without any cap as at present. In cases where an employee has a very large salary exposes the provider to excessive risk with a result of increasing the premiums for all of the employees. Notice at present the group-life insurance is capped at $400,000. The committee considered this issue, however, no decision was taken.
- The next committee meeting will be in March 2, 2012 when the existing and new topics will be taken up.
- The meeting adjourned..
Recorder: Steve Bernholtz