David D. Reed Vice President for Research 1 Midwest Region - - PowerPoint PPT Presentation

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David D. Reed

Vice President for Research

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University Strategic Plan

Goal 1: “Attract and support a world-class and diverse faculty, staff, and student population.”

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A Compensation Strategy Task Force (Task Force) was created to: Make philosophical and tactical recommendations on the structure of total compensation. Benchmark with organizations that the University competes with for talented faculty and staff.

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Changes to compensation structure should be cost-neutral to the institution and maintain total compensation for employees.

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Task Force membership consisted of faculty, staff and academic administrators. Report found at:

http://www.mtu.edu/mtuonly/reports/CompStrategy.pdf

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Compensation Strategy Task Force Members

• Brent Burns, Alumni Relations
• David Chard, Educational Technology Services
• Jim Pickens, School of Forest Resources and

Environmental Science

• David Reed, Vice President for Research (Chair)
• Tim Schulz, College of Engineering
• Bruce Seely, College of Sciences and Arts
• Shari Stockero, Cognitive and Learning Sciences

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Michigan Tech’s fringe rate in FY07 was 42.4% , approximately 7% above that of peer and competitor institutions. Michigan Tech’s average faculty salary, across all ranks and disciplines, according to the Oklahoma State Salary Survey, was 6.7% below average.

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The Task Force had a number of major findings following review of benchmarking information. Some of these are:

• A. The University is offering faculty starting

salaries that are in line with those at comparable peer institutions.

• B. It is very apparent that the University is

failing to keep up with the salaries for associate and full professors.

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• C. Professional staff salaries may also be failing

to keep up with national peers, particularly for more senior positions.

• D. The fringe benefit package offered by

Michigan Tech is better and more expensive than all peer and competitor universities that we examined.

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In their recommendation for benefits, the Task Force recommended: The BLG focus on increasing employee flexibility and choice in order to allow individuals of different ages, family status, and life stages the ability to customize salary and benefit packages to maximize their ability to meet personal needs and goals.

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The BLG to develop one or more scenarios for reducing Michigan Tech’s fringe rate for regular employees to 34-36% while being cost-neutral to the University and without impacting total compensation to employees. This will require shifting compensation from benefits to salary. The Task Force strongly suggested that employees should be educated regarding the consequences of their choice of contribution amount.

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Renee Hiller

Manager of Benefit Services

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In May 2000, a Benefits Liaison Group (BLG) was created at Michigan Tech as an advisory group. Their mission was to advise the University leadership on providing the best possible fringe benefit program within the available resources. Membership consisted of key professional staff and University Senate representatives.

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BLG Members



Donald Beck – Professor, Physics



Jane Berner, Retiree



David Chard - Manager, Instructional Resources



Mike Hendricks - Institutional System & Analysis Director



Amy Hughes - Internal Auditor



Deb Lassila - Budget Director



Tony Rogers - Associate Professor, Chemical Engineering



Rudy Luck - Associate Professor, Chemistry



Renee Hiller - Manager of Benefit Services



Dana Johnson - Associate Professor, School of Business



Joe Herbig - Controller



Anita Quinn - HR Director

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Philosophy of the BLG has been and continues to be “a shared responsibility on the cost containment/ reduction with University employees and communities.”

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Starting in February of 2001, one of the BLG’s goals was to “shift employees from unaccountable consumers into the role of informed consumers with the tools to plan and manage their own health care.”

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In other words . . .

 Emphasize prevention and effective health management  Move from paternalism to individual accountability  Assure the flexibility to meet the needs of a diverse

workforce

– Varying ages and lifestyles

 Provide comprehensive protection to the seriously ill

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Benefits Liaison Group (BLG) Charge

 Charge from the Administration

– “To review and assess Michigan Tech’s health insurance program and provide a recommendation to the administration for cost containment for plan year 2010”

 Compensation Strategy Task Force

– “To review and assess Michigan Tech’s benefit package without impacting total compensation to employees” – “To reduce Michigan Tech’s fringe rate by shifting compensation from benefits to salary”

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Last Year

 Offer Two Employee Health Plans

– HuskyCare PPO – HuskyCare HSA

 Implement a 10% Employee Premium Share on PPO plan  University HSA Contribution

– $750 single/$1500 family

 HuskyCare Dental/Vision Remained the Same  Changed Health Plan Administrator from BCBSM to Aetna  Projected 2009 Health Plan Savings Redirected into Salary

Results – fringe rate lowered to 42.6% (FY09)

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BLG Recommendations for 2010 HealthCare Plans

 Continue Two Employee Health Plans

– HuskyCare PPO – HuskyCare HSA

 Increase premium cost share on the PPO from 10% to 15%  Continue the University HSA Contribution

– $750 single/$1500 family

 Increase out-of-pocket maximum on HSA to $3000 single/$6000 family  HuskyCare Dental/Vision Coverage remains the same

– Implement a 10% premium cost share on HuskyCare Dental/Vision 2 – Implement a Core Buy-up plan on HuskyCare Dental/Vsion 1

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Other HealthCare Changes

 S-Rider eligibility and monthly premium change  Eliminate $65 F-rider charge on the HSA plan  Mental Health Benefit Changes

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BLG Recommendations for 2010 Retirement Plans

 Choice of 2 new retirement plans (replaces current Defined

Contribution Program) – 5% University Contribution with an optional matching program (up to an additional 5% for both University and employee) linked to a 2% salary adjustment Or – Optional matching program up to a 7.5% matching for both University and employee (no base) linked to a 4.5% salary adjustment

 New plans apply to those in the Defined Contribution Program

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DATE TIME PLACE Wednesday, October 14 5:30pm Special Meeting of the University Senate Monday, October 19 2:00 - 4:00pm MUB - Ballroom A2 Thursday, October 22 9:00am – 11:00am MUB – Alumni Lounge Tuesday, October 27 10:00 - Noon MUB - Ballroom A-1 Wednesday, October 28 2:00 – 4:00 pm MUB – Ballroom A2 Monday, November 2 2:00 – 4:00pm MUB- Alumni Lounge Thursday, November 5 10:00am - Noon MUB – Ballroom A1 Wednesday, November 11th TBD MTRI - Ann Arbor MI Thursday, November 12th 5:30pm - 7pm MUB – Ballroom A2 Friday, November 13th 10am - Noon MUB - Ballroom A2 Monday, November 16 10:00 am - Noon MUB Ballroom B Thursday, November 19 2:00 – 4:00 pm MUB – Ballroom A2 Tuesday, November 24th 10:00am – Noon MUB – Ballroom A2

Open Enrollment Forum Schedule