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Office of the President
FRIC meeting notes
Minutes from May 3, 2013
Members in attendance: Steve Bernholtz, Jon Garfinkel, Mary Greer, Sheldon Kurtz, Heather Schnoebelen, Bernard Sorofman, Anand Vijh, Katherine Dudley.
Members absent: Nancy Davin, Matthew Glasson, Daniel Katz, Victoria Sharp, Katherine Tachau, Michael Wichman.
Administrative Officers present: Sue Buckley, Richard Saunders
Guests present: Emily Algood, Rick Borchard, Mike Brownlee, Gary Gussin, Terri Hein, Suzanne Hilleman, Lisa Mascardo, Christine Miller, Julie Sexton, Joni Troester, Mike Schueller, Julie Sexton.
Meeting was called to order at 11:34 am in 302 USB. There was not sufficient attendance to represent a quorum. It was noted that this was the first time this has happened in anyone’s memory that was present.
Introductions were done.
Informational session – Accountable Care Organization at UIHC. Christine Miller, UI HC & Emily Algood, UI HC. Ms. Miller provided a brief review of the Accountable Care Organization (ACO) concept and general information on the UI HC ACO structure and plan. She proposed that we begin to consider connecting UIChoice to the UI HC ACO system. Several benefits were presented; costs and disadvantages were not available. Further discussion will continue on this subject.
A quorum was declared at 12:17 pm.
Minutes from the April meeting were approved.
TIAA-CREF Annuity Service Credit discussion. The committee discussed how to use the $1.4M service credit. Several options were given to the committee. These were the same options as from last year. A motion (Greer) died for a lack of a second – The University would retain approximately $160,000 to help cover the operating costs of the Benefits Office related to the pension plan AND distribute the full/remaining balance to the participants, current and past employees, who have deposits in an active annuity account, not annuitized, in equal amounts so long as they participated in the related funds that earn the credits. A second motion (Sorofman; Garfinkel) stating the following passed (7 yes, 1 no) -- The University would retain approximately $160,000 to help cover the operating costs of the Benefits Office related to the pension plan AND distribute the full/remaining balance to the participants, current and past employees, who have deposits in an active annuity account, not annuitized and in proportional amounts based on their account balance.
There was brief discussion that the FRIC committee would consider forming a committee early in the next academic year, to consider options for retaining and using the service credit to develop programs and/or services as defined and specified by the distribution rules.
Informational session – Specialty drugs. Mike Brownlee, Chief Pharmacy Officer at UIHC with acknowledgement of the help of Professor Julie Urmie, College of Pharmacy, presented an overview of the concept and rapid increase in the costs of ‘specialty drugs’. It was clear that specialty drug costs were increasing at a rate that will challenge the UI health care insurance plan. Two questions will be visited by the FRIC committee in the fall – 1. Should there be different system of co-pay / co-insurance for specialty drugs and 2. Should specialty drugs be moved (where possible) from the medical to the pharmacy side of the insurance plan?
The committee lost the quorum at 12:47 pm.
Discussion continued about specialty drugs. The results were that UIHC and UI Benefits will have further discussions about specialty drugs in the months to come.
The meeting was adjourned at 12:59 pm
Recorder: Bernard Sorofman