Benefits Presentation Minneapolis Community and Technical College - - PowerPoint PPT Presentation

Benefits Presentation

Minneapolis Community and Technical College Human Resources and Legal Affairs

Benefits Enrollment

u Enrollment information mailed by Minnesota Management & Budget

(MMB) to your permanent/home address

u New Hires u Online enrollment through Employee Self Service web site u 35-day enrollment period u Change on insurance eligibility status u Enroll using personal enrollment form provided by MMB u 30-day enrollment period u Default coverage if not enrolled within enrollment period

Effective Date of Coverage

u

New hires: Insurance and flexible spending accounts take effect after 35 calendar days from the date of hire in an eligible appointment. Examples: HIRE DATE EFFECTIVE DATE October 1 November 5 January 7 February 11

u

Change in insurance status:

u Insurance coverage is effective on the date of status change u Flexible spending accounts are effective on the date enrollment form is

submitted to MMB

Open Enrollment

u Open Enrollment period each fall (usually two weeks in early

November)

u Opportunity to change insurance plans, add or cancel dependent

coverage

u Health, long term disability, and flexible spending accounts open

every year

u Dental insurance usually open every other year u Optional life and short term disability insurance occasionally open to

increase existing coverage

u Changes take effect January 1

Mid-year changes

u Change health, dental, or FSA due to “qualifying event” such as

marriage, divorce, birth of child, etc.

u Paper application required u Within 30 days of event if: u Adding dependent health or dental u Changing or enrolling in FSA u Within 60 days of event if canceling dependent health or dental

COBRA

• Employer-paid insurance ends
• End of month of employee’s last day of work, or
• End of August for faculty whose employment ends at the end of spring

semester or summer session

• Option to continue coverage at your own cost (COBRA)
• Dependents may elect to continue coverage within 60 days of loss of

eligibility

Employee Eligibility

u Employed 50-74 % time u Enrollment in basic life is mandatory- premium paid by college u Enrollment in health, dental, and other insurance is optional u Eligible for partial employer contribution u Employed 75 – 100 % time u Enrollment in employee health and basic life is mandatory u Enrollment in dental, dependent health, and other insurance is

• ptional

u Eligible for full employer contribution

Option to Waive Health Coverage

u If you are employed 75-100% time, enrollment in employee health

insurance is mandatory

u Can only waive health coverage if your spouse or parent also works for

the State of Minnesota or other organization participating in SEGIP and you are covered as a dependent of your spouse or parent

Spouse Eligibility

Spouse – eligibility for health and dental

u Must be legally married under MN law u Not eligible if she/he is employed full-time by an employer with 100

• r more employees and elects to receive cash or credits

§ In place of health insurance, or § In addition to a health plan with a deductible of $750 or greater

Children Eligibility

u Children

u Biological – to age 26 u Adopted or placed with employee for adoption – to age 26 u Step child – to age 26 § Employee must be legally married to child’s parent u Foster child – to age 26 § Employee must submit Foster Child Certification form u Dependent grandchildren – additional eligibility requirements u Disabled dependent children - additional eligibility requirements u MMB will require dependent eligibility verification for spouse and

child/children after you submit enrollment

State Employee Group Insurance Program (SEGIP)

u Health u Dental u Basic Life u Optional employee, spouse, and child life u Employee and spouse AD&D u Short term disability u Long term disability u Long term care (no online enrollment)

Minnesota Advantage Health Plan

u One health plan for all state employees u Three insurance carriers: u Blue Cross Blue Shield u HealthPartners u Preferred One u Four clinic cost levels u Guaranteed access to Level 2 clinic

2016 Health Insurance Premiums

u If employed 75% to 100% time

u $28.20/month for employee coverage u $192.44/month for family coverage

u If employed at least 50% but less than 75% time

(other than MAPE employees)

u $162.20/month for employee coverage u $559.12/month for family coverage

Your Out-of-Pocket Costs

u First-dollar deductible u Copays and coinsurances for non-preventive care u Prescription copays u Out-of-pocket maximums u Out-of-network benefits for dependents residing out of state

Service with no Out-of-Pocket Costs

u Preventive Care u Hospice and skilled nursing facility

These services are covered 100% No deductible

Out-of-Pocket Costs in 2016

Cost Level 1 2 3 4 Annual deductible Single/Family

$150/ $300 $250/ $500 $550/ $1,100 $1,250/ $2,500

Office visits And therapies/ In-network Urgent care

$25/30* $30/35* $60/65* $80/85*

*The level of the office visit copayment for the employee and his or her family is dependent upon whether the employee has completed the Health Assessment in each Open Enrollment period, and agreed to accept a health coach call. Employees hired after the close of Open Enrollment will be entitled to the lower copayment.

Cost Level 1 2 3 4

In-network Emergency

$100 $100 $100 25%

In-patient hospital

$100 $200 $500 25%

Out-patient Surgery

$60 $120 $250 25%

Medical Equipment/ Supplies

20%

No deductible

20%

No deductible

20%

No deductible

25%

After deductible

Lab/x-ray

5% 5% 20% 25%

Other

5% 5% 20% 25%

Dental Plan

u

Two dental carriers:

u

State Dental Plan – Delta Dental of MN

u

HealthPartners State of MN Dental Plan

u Links to dental plan web sites from MMB web site

www.mn.gov/mmb/segip

u Use any dentist in your plan’s network

u

If employed 75% to 100% time

u

$5.00/month for employee coverage

u

$34.06/month for family coverage

Basic Life Insurance

u College pays premium u Group term policy through Minnesota Life u Amount of coverage determined by base salary u Coverage over $50,000 is taxable

u Example: u Age 45 with

$70,000 Basic Life

u $20,000 is taxable u Taxable value is

$3.00/month (20 x $.15)

Short Term Disability

• Pays non-taxable benefits for up to six months of disability
• Benefit begins:
• first day of injury
• eight calendar day of sickness
• eight calendar day following birth of a child
• Maximum monthly benefit based on salary

Short Term Disability Enrollment

u Enroll online within 35-day deadline* - no health information required u Apply using paper application after 35- day deadline*- requires

evidence of good health

*30 days if changing from ineligible to insurance- eligible status

Long Term Disability Insurance

u Pay non-taxable benefit after 6 months of disability u Benefits payable

u up to two years if unable to do your job u Up to retirement age if unable to do any job

u Benefits offset by other income u Maximum monthly benefit based on salary

Long Term Disability Enrollment

u Enroll online within 35 days* *30 days if changing from ineligible to insurance-eligible status

OR

u Enroll during Open Enrollment u No health information required until claim is filed u 24-month exclusion of pre-existing conditions

Long Term Care Insurance

u Pays benefits for:

u Nursing home u Assisted living u Adult day care

u Helps protect your assets u Several levels of coverage offered u Cost determined by age at enrollment and level of coverage selected

LTC Enrollment

u No online enrollment – obtain paper application u Enroll within first 35 calendar days* - no health information required u Apply after 35 days*- short health questionnaire u Coverage for spouse and parents – application required health info u Coverage takes effect on date of approval if application is approved

by underwriters

*30 days if changing from ineligible to insurance-eligible status

LTC Continuation…

u Enrollment packets available at

www.mpel.org

u Use web site to calculate premiums

Flexible Spending Accounts (FSAs or Pre-tax Benefits)

u Dependent Care Expense Account (DCEA) u Medical/Dental Expense Account (MDEA) u MnSCU Health Reimbursement

Arrangement (MnSCU HRA) – Administrator only

u Health Care Savings Plan (HCSP) u Transit Expense Account (TEA) – Parking u Transit Expense Account (TEA) – Bus Pass/Van Pool

Flexible Spending Accounts

u Also called FSA’s or pre-tax benefits u Reduce taxable income u Pay for eligible expenses with untaxed dollars u “Use it or lose it” u Obtain complete plan summary at

www.eidebailly.com/services/employee_benefits

Dependent Care Expense Account

u Dependent Care Expense Account for daycare costs u $5,000 annual maximum per household u $100 minimum if enrolling u Check with tax advisor about dependent care tax credits vs. DCEA

Medical/Dental Expense Account

u Medical/Dental Expense Account for out of pocket medical and dental

expenses (e.g. copays, deductibles, glasses and contact lenses)

u May be used for eligible dependents u May be used for OTC medications only with prescription u May NOT be used for insurance premiums u $2,550 annual maximum per employee u $100 minimum if enrolling u New feature: can carryover up to $500

DCEA and MDEA

u Participation begins on insurance effective date or on date of

application, whichever is later

u Enroll for remainder of calendar year during 35-day enrollment

period* *30 days if change in eligibility status

u Enroll for next calendar year during Open Enrollment in the fall u Mid-year changes allowed only for qualifying events

Debit Card

u Issued to employee upon enrollment in either MDEA or MnSCU HRA u Use to pay for eligible out-of-pocket medical and dental expenses

directly from account

u Reduces the need to submit paper reimbursement claims u Must still retain all receipts, billing statements, or other

documentation

u Does NOT replace your insurance cards- you still need to present

insurance cards at clinic or pharmacy

Transit Expense Account

u Transit Expense Account for parking permit and/or bus pass/van pool

expenses

u Participation begins on insurance effective date or date of

application, whichever is later

u May enroll, change, or cancel throughout the year u Permits purchased or in use before TEA takes effect are NOT eligible

for reimbursement

MnSCU HRA

(Administrators only)

u Subject to change based on collective bargaining u Employer deposit in January for faculty and administrators enrolled in

MN Advantage health insurance on January 1

Mandatory Retirement Plans

u Defined Benefit Plans

u Also called pension plans u Retirement benefits defined by factors such as age, service credit, etc.

u Defined Contribution Plan

u Investment-style plans u Retirement benefits based on investment performance

MSRS General Plan

u Mandatory for most classified employees u Defined Benefit plan administrated by Minnesota State Retirement

System (MSRS)

u Contribution rates as of July, 2014: u 5.5% from employee, 5.5% from college u Vested after 5 years u Guaranteed lifetime annuity if vested upon retirement or total and

permanent disability

u Amount of annuity is based on age, years of service, high-5 salary u Receive annual statement and/or view account online

MSRS Continuation…

u Home office in St. Paul u Meet individually with and MSRS counselor u MSRS also administers the HCSP and the Deferred Compensation Plan u Get more information on the MSRS web site at www.msrs.state.mn.us

• r call 800-657-5757

Voluntary Retirement Plan

u Available to all employees at any time u Two plans offered

u Tax Sheltered Annuity Plan (TSA)/403(b) u Deferred Compensation Plan/457(b)

u Both offer tax-deferred and after-tax ROTH options u Enroll, change, stop anytime u Maximum contributions allowed in 2015

u $18,000/year under age 50 u $24,000/year age 50 and older

Tax Sheltered Annuity Plan(TSA)/ 403(b)

u Administered by TIAA-CREF u Same investment funds as IRAP u Tax-deferred and ROTH options u No employer match u 2-step enrollment process (see “How to Enroll Online” from TIAA-

CREF)

u Enroll in TSA and allocate investments at www.tiaa-cref.org/mnscu using

“MnSCUTSA” access code

u Choose amount of before- or after- tax payroll deductions on Self Service

web site

Deferred Compensation Plan/457(b)

u Administered by Minnesota State Retirement System (MSRS) u Variety of investment funds offered u Tax-deferred and ROTH options u Employer incentive contribution for classified staff u Manage account online (Self-Service)

Paid Sick Leave

u No sick leave advanced for new classified staff u Accrual rate based on full-time or part-time employment status u Unused balance carries forward to next year u Use for self or to care for family member – refer to your contract

Paid Vacation

u Some contracts require a waiting period before allowing use of

vacation*

u Accrual begins at 4 hours a pay period for full-time employees u Accrual pro-rated for part-time employees u Accrual rate increases with length of service u Unused balance carries forward u Must reduce balance to 275 hours one per fiscal year

*Except MAPE (Article 10, Section 2) – Upon entry into State service, an eligible employee shall be credited with 40 hours.

Other Paid Leaves

u Paid Holidays – see college’s Holiday Schedule u Other paid and unpaid leaves (e.g. bereavement, military, jury duty,

parental, etc.) – refer to your contract

Family / Medical Leave (FMLA)

u Federal act providing job protection and continuation of insurance

during family and medical leaves

u Up to 12 weeks per fiscal year u Expanded leave provisions for military u Eligible after 12 months of employment and at least 1,250 hours of

work time

u Contact Human Resources and Legal Affairs for FMLA leave assistance

Deadlines

u First 35* calendar days of employment

Deadline to complete online enrollment for insurance and pre-tax benefits *30 days if change in eligibility status

u New Administrators have 12 months to switch retirement plans if

desired

Any Questions?

Disclaimer

The Benefits Presentation is only intended to be a general

• summary. Refer to the printed materials you will receive in

the mail from sources such as Minnesota Management & Budget (MMB), your collective bargaining agreement or personnel plan, and online resources for additional information.