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(UI Benefits Office)
Office of the President
FRIC meeting notes from 9/14/12
Attendees: Committee: Steve Bernholtz, Nancy Davin, Matthew Glasson, Mary Greer, Daniel Katz, Sheldon Kurtz, Heather Schnoebelen, Bernard Sorofman.
Administration: Richard Saunders.
Guests: Dan Fick, Debra Hughes, Susan Klatt, Julie Sexton, Joni Troester, Lynn Vining, Rick Borchard, Carla Clark.
There were no meeting minutes from the previous meeting.
Health/Dental Insurance Rates for 2013: There will be no increase in the health insurance plans under the UI Choice plan. Costs to the overall plans did not warrant an increase. CHIP II rates will be increasing for the Single and Employee Child groups. There is only 1 Dental plan for 2013 and the rates are generally lower than the previous Dental II plan. A discussion was started about what to do with CHIP II. The people still in that plan are steadily decreasing and it’s only a matter of time before it falls below the allowable level of employees that must keep the plan viable. It was decided that 2012 would be the last year for CHIP II. It was also stated that since the 70’s there has been a deficit from costs and that deficit is slowly being reduced.
Disease Management: There are roughly 4000 employees of the 49000 that are in this plan. It ends 12/31/12. In was discussed that in general Disease Management is a good idea, but the UI could not get good enough information if the new plan that could be offered would provide any beneficial use.
Retiree Paid Up Life Insurance: The current plan gives retirees a $2000 or $4000(based on years of service) life insurance policy that was paid in full. It was previously voted to end this plan. Principal would than allow retirees to purchase whole life insurance up to the amount of the group insurance they had at the time of retirement, without a physical evaluation. The committee made no motion to change this recommendation reaffirming their position to stop this program for active employees which allows those individuals a conversion option with Principal up to the value of their Group Life Insurance coverage at the date of termination.
2013 Benefit changes due to ACA: The UI will be required to notify employees of a summary of the differences of each health care plan available to them. Spending accounts will be reduced to a total of $2500. This was decreased so that the IRS would be able to collect tax on that addition income. There is an expansion on women’s health services. Women will be able to get any breast pump they want at no cost to them, one per pregnancy. All generic or name brand contraceptives without a generic will now be free. Condoms will also be free when purchase through a pharmacist.
Long Term Care Insurance: The plan will switch to Genworth in 2013. This is the last insurance company that offers this type of group insurance. Current employees can stay with John Hancock, but future employees will have to choose Genworth if they wish this type of insurance.
TIAA/CREF Service Credit: TIAA is refunding $1.4 million to the University as a reduction in fees. This refund will occur every six months, but the amount will vary. A decision has to be made as to what to do with this refund. FRIC voted to allow the UI Benefits Office to receive $160,000 for expenses incurred by managing the pension program and the remainder would be divided proportionally based on how much a participant had in their accounts. If possible, only those participants who participated in the TIAA and CREF funds would be reimbursed, instead of across the board, but it is not known if this would be allowed. The refund to the participants will appear on their accounts as a Service Credit. Additional discussions will occur concerning looking at the using more of the funds by the Benefits Office for financial educational programs.
Minutes by Steve Bernholtz.