Retirement Program Changes (Affect ORP and Optional Tax-Sheltered Accounts Offered through UT) - PowerPoint PPT Presentation

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Retirement Program Changes (Affect ORP and Optional Tax-Sheltered Accounts Offered through UT). Brett L. Morris Assistant VP for Human Resources June 29, 2006. Definitions. ORP : Optional Retirement Plan. Alternative to TRS offered mostly to faculty members.

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Retirement Program Changes (Affect ORP and Optional Tax-Sheltered Accounts Offered through UT)

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Retirement Program Changes(Affect ORP and Optional Tax-Sheltered Accounts Offered through UT)

Brett L. Morris

Assistant VP for Human Resources

June 29, 2006


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Definitions

  • ORP: Optional Retirement Plan. Alternative to TRS offered mostly to faculty members.

  • Tax-Sheltered Accounts: Optional retirement plans offered to both faculty and staff. They take pre-tax money from your paycheck. There are no matching funds from the UT System.

  • Include UT Saver Tax-Sheltered Annuities and UT Saver Deferred Compensation Plans.


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Overview of Changes

  • Competitive bid process

  • New enrollees must select an approved vendor

  • Vendor list updated

  • More products available


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Competitive Bid Process

  • First time ever done by UT System

  • Common set of vendors for all programs

  • Goal to select superior products and wide variety of investment options

  • Improve vendor accountability

  • Brand as UT System program


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About Approved Vendors

  • Effective September 1, all new enrollees must choose from list of approved vendors

  • Also effective 9/1, all non-approved vendors must meet minimum standards

    • Vendors who meet standards and choose to participate in UT program can continue to receive contributions (are grandfathered).

    • All others may not receive new contributions.

    • Employees will not be required to transfer accumulated balances.


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Approved Vendor List

  • AIG VALIC

  • Fidelity Investments

  • ING

  • Lincoln Financial Group

  • MetLife Resources

  • TIAA-CREF


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Not on the List

  • GreatWest did not respond to UT System communications.

  • CitiStreet was acquired by MetLife Resources


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Grandfathered Vendors

  • Must be approved by January 1, 2007, to continue participation.

  • Grandfathered vendors to be contacted by UT System Benefits on November 1.


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Products Available

  • Mutual Funds

    • Single Decision Options

    • Core Menu

    • Expanded Menu

  • Annuities

  • Fixed Accounts

  • Brokerage Accounts


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What Questions Do You Have?


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Group Insurance

Annual Enrollment July 1-31, 2006


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The Good News


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Most insurance rates have not gone up.

  • Fort Dearborn Group Term Life Insurance same

  • Fort Dearborn Accidental Death and Dismemberment the same

  • Hartford Long and Short Term Disability the same

  • CNA Long-Term Care the same

  • UT Dental Select (Delta Dental) the same

  • Superior Vision the same (and increased discounts for glasses and contact lenses)

  • Some change in rate for the basic standard term life insurance ($10,000)


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Assurant Dental Plan

  • Premiums changed slightly.

    • Less cost for employee/retiree only and employee/children

    • Small increases in other coverages

    • Small changes to copays


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Evidence of Insurability

  • Most forms can now be filled in online during Annual Enrollment. Form will be part of UT TOUCH.

  • One exception: EOI for Long Term Care insurance

  • Must print the form and mail to the vendor (insurer)

  • Please handle EOI early in annual enrollment.

  • Processing is done by insurance companies, and that takes time.


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Medco Savings Advisor for UT SELECT Members

  • Tool designed to help you save money on your prescriptions.

  • Available at medco.com

  • Can identify cost-saving alternatives for prescriptions

  • Can print information to discuss with doctor

  • Can print a fax form for doctor to request new prescription


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Other Changes

  • Three options when you need a specialty dentist with Assurant Dental

  • Personal Health Manager available for HMO Blue members

  • Special Beginnings prenatal program for participants in both UT SELECT and HMO Blue.

    • Blue Cross/Blue Shield gives mothers-to-be who enroll during first trimester a $50 gift card from Target.


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The Not-So-Good News


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Medical Insurance

  • Choices

    • HMO Blue to be offered FY 06-07 for the last time.

    • FY 07-08 will offer UT SELECT alone.

  • Price

    • Costs higher for both plans. UT absorbs part of higher cost.

    • Cost for HMO higher than for UT Select.

    • First time ever, a cost for full-time employee-only coverage for HMO Blue (not UT SELECT).


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Out of Pocket Costsper Month


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Employees Who Cover a Grandchild on HMO Blue

  • Please check with our Benefits office about eligibility criteria for UT SELECT before making your final choice.

    • Phone: 567.0123

    • Email: Benefits@uthscsa.edu


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Positive Enrollment

  • UT System didn’t want anyone surprised by the increased cost for the HMO.

  • The default UT TOUCH choice will be UT SELECT.

  • Even if employees now have HMO Blue, they must still select HMO Blue during open enrollment.

  • This process is called a positive enrollment for HMO.


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How to Help the Situation: UT FLEX Accounts


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How Does UT FLEX Work?

  • UT FLEX Accounts

    • Lower taxes

    • Reduce medical expenses

    • Can also be used for day care expenses

  • How UT FLEX Works

    • Must re-enroll every year at annual enrollment.

    • Set aside pre-tax money to pay for expenses.


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UT FLEX

  • Medical Care

    • Medically necessary health care expenses

    • Some over-the-counter items

    • Optional FLEX Convenience Card (debit card)

    • $15 - $416/month

  • Dependent Day Care

    • Children under 13

    • Qualified disabled dependents of any age

    • $15 - $416/month

  • “Use it or lose it.” (Grace period till about mid-November of following plan year)


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For More Information about UT FLEX

  • Call our Benefits office at 210.567.2610

  • Email Benefits@uthscsa.edu

  • Call PayFlex Systems, Inc., at 866.887.3539

  • On the Web, go to:

    • http://www.utsystem.edu/benefits/utflex and

    • http://www.payflex.com/utflex/

    • http://www.uthscsa.edu/hr/ut_flex.ppt


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Transitional BenefitsWhen You Change Medical Plans

  • If you and are being treated for a chronic or ongoing medical condition, you may be eligible for Transitional Benefits.

  • Transitional Benefits give you up to 3 months to find a new Network provider while continuing to see your current doctor.

  • Claims will be paid at new plan’s Network benefit level.

  • Happens when the doctor under your current plan is not a contracting provider with next year’s plan.


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Transitional Benefits

  • Some medical conditions that might be eligible for Transitional Benefits consideration include:

    • Pregnancy

    • Cancer

    • Heart Failure

    • Diabetes

    • Physical Therapy

    • Allergy Treatments

    • Organ Transplant

    • Behavioral Health Care


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What Questions Do You Have?


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New Hiring Procedures

When Hiring Employees from Other UT Components

(Recruiting between Components)


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New Directive from Executive Vice Chancellors of UT System

  • This process is called “recruiting between components.”

  • We must notify the other institution in advance that we’re making a job offer.

  • In San Antonio, we must be especially careful about UTSA since that component is in the same city.


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