Dartmouth retiree health plan changes to original cbc proposal based on employee comments
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Dartmouth Retiree Health Plan: Changes to Original CBC Proposal Based on Employee Comments. March 2008. Original Charge from Trustees. Curb the growth in the accrued pension benefit obligation on the College balance sheet.

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Dartmouth retiree health plan changes to original cbc proposal based on employee comments

Dartmouth Retiree Health Plan: Changes to Original CBC Proposal Based on Employee Comments

March 2008


Original charge from trustees
Original Charge from Trustees

  • Curb the growth in the accrued pension benefit obligation on the College balance sheet.

  • Assure that the accrued pension benefit obligation does not have a negative impact on the financial health of the College.


Original cbc objectives and guidelines
Original CBC Objectives and Guidelines

  • Control health plan costs.

  • Manage long-term institutional financial obligation.

  • Create a viable and sustainable benefit.

  • Protect current retirees from undue financial burden.

  • Sustain access to a retiree health plan for current and future employees.

  • Help employees plan for their medical care during retirement.

  • Avoid placing Dartmouth at a competitive disadvantage with its peers.


Original cbc proposal presented to employees for comment fall 2007
Original CBC Proposal (Presented to Employees for Comment - Fall 2007)

  • Plan Design: Out-of pocket expenses mirror current employee plan

  • Eligibility: Employees age 55+ and 10 years of continuous benefits-eligible service

  • College Contribution: Based on age plus years of service on June 30, 2009

    • Minimum 40% and maximum 85% for existing employees

    • Access only to the plan for future employees


Commonly heard employee comments
Commonly Heard Employee Comments Fall 2007)

  • Reconsider making any changes to the plan.

  • Grandfather in existing employees.

  • Provide 100% subsidy for employees who qualify now for the “Rule of 75”.

  • Weight years of service more heavily than age.

  • Extend the implementation date into the future.

  • Remove the 85% maximum subsidy.

  • Make the proposal more affordable – particularly for lower-income employees.


Reordered priorities based on employee comments
Reordered Priorities Based on Employee Comments Fall 2007)

  • Provide full subsidy for employees who meet the “Rule of 75” on July 1, 2009 (reduce feelings of urgency to retire).

  • Weight years of service more than age in the formula used to calculate the College subsidy.

  • Reduce proposed out-of-pocket expenses for current retirees.

  • Increase minimum College subsidy above the proposed 40%.


The new retiree health plan for pre july 1 2009 employees
The New Retiree Health Plan for Pre-July 1, 2009 Employees Fall 2007)

  • In consultation with actuaries, a mathematical formula was devised that:

    • raises the lowest premium subsidy from 40% to 50%;

    • raises the maximum premium subsidy from 85% to 100%;

    • weights years of service twice as heavily as age; and

    • provides an additional subsidy to any employee who earns less than $60,000.

    • The formula drives the calculator that figures each employee’s retiree health premium subsidy <www.dartmouth.edu/~hrs/benefits/retirement/calc.php>


The new retiree health plan for post july 1 2009 employees
The New Retiree Health Plan for Post-July 1, 2009 Employees Fall 2007)

  • Employees hired on or after July 1, 2009, will have access only to Dartmouth’s health plan at retirement.

  • A savings vehicle (type yet to be determined) will be created to allow for new employees to receive up to a $3,000 match toward retiree health care savings.


The new health insurance plan design for retirees
The New Health Insurance Plan Design for Retirees Fall 2007)

  • Effective January 1, 2009

  • Deductible: Retiree pays $250 per calendar year. (Deductible is for medical only.)

  • Co-insurance on Medical: Insurance pays 80% of Medical Expenses.

  • Co-insurance for Prescriptions (Rx): Insurance pays 70% of Prescription Costs.

  • Annual Out-of-Pocket Maximum: $900 (Medical $450, Rx $450)

  • No change in services available or covered


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