FRINGE BENEFITS

Transcription

1 FRINGE BENEFITS Traditional State of Texas fringe benefits are provided for eligible employees. All non-student employees, working at least half time for a full semester or a period of four and a half months or more are eligible for fringe benefits, which include Social Security, insurance, retirement, and sick leave. Classified and unclassified (non-faculty) employees are also eligible for annual leave and longevity pay. Graduate Teaching and Research Assistants are eligible for insurance benefits. The Human Resources Office coordinates benefit programs. The following is a brief summary based on local interpretation of benefits. All employees should familiarize themselves with supporting documents (e.g., group insurance policies) and/or consult the applicable agency or organization (e.g., the United States Social Security Administration) for a full statement and/or explanation of their benefits. Social Security All, non-student employees participate in the Social Security program as a condition of employment. The tax rates set by federal law are 6.2% for Social Security and 1.45% for Medicare for the employer and 6.2% for Social Security and 1.45% for Medicare for the employee. Teacher Retirement The Teacher Retirement System of Texas serves higher education and public education. Members of TRS contribute 6.7% of salary before taxes and the State contributes 6.8%. Contribution rates are subject to change by the Legislature. An employee, who leaves service, other than through retirement, may withdraw only the employee's contributions plus interest in the TRS account. The State's contributions always remain with TRS, with the exception of retirement. A TRS account is vested for retirement after five years of service. If an employee becomes a member of TRS prior to September 1, 2007 and maintains their membership until retirement, the employee will meet the age and service requirements for normal-age service retirement when the employee is age 65 with five years of service credit or the employee s age and years of service credit total 80 and have at least five years of service credit. If the employee first becomes a member of TRS or returned to membership on or after September 1, 2007, the employee will meet the age and service requirements of normal-age service retirement when the employee is age 65 with five or more years of service credit or the employee is at least age 60 and the employee s age and years of service credit total 80 and the employee has at least five years of service credit. Members who are not vested as of August 31, 2014 and new members on or after September 1, 2014 normal age retirement age is 62 with the Rule of 80 and at least five years of service credit. The service credit must be currently credited with TRS as of August 31, Withdrawn service credit and unreported service credit that has not been reinstated or purchased in full by August 31, 2014 will not be used to determine a member s vested status. See Retiree Insurance for insurance vesting rules

2 The retirement formula provides 2.3% for each year of total service on the average of the highest five years of salary. An individual who was a member of TRS for 30 years would receive 69% of the average of their best five years of salary as an annual retirement income. Retiring employees select from a number of retirement pay out options which may include a single standard annuity, 100% joint life, 75% joint life, 50% joint life, 5 years certain, or 10 years certain annuity. Retiree survivor benefits under TRS include the choice of a lump sum payment of $10,000 to the beneficiary or a lump sum payment of $2,500 to the beneficiary plus $250 per month if the beneficiary is a spouse or dependent parent age 65 or older. Other monthly payments to the beneficiary are based on the pay out plan selected by the retiree. Information concerning TRS benefits is available in the Human Resources Office and the TRS website at Optional Retirement An Optional Retirement Program is available to full-time faculty and administrators. The ORP plan is governed by federal 403(b) retirement plan regulations. Participation in ORP involves the purchase of a tax-sheltered annuity. The State contributes 6.60% and 6.65% is withheld from the employee's salary before taxes. Employees participating in ORP as of fiscal year 1995 are grandfathered at a 6.60% State contribution rate and 1.90% institutional contribution rate. Contribution rates are subject to change by the Legislature. The State's contribution to ORP is vested after the employee enters the second year of employment. After this point an individual who leaves employment with the State may withdraw the full account subject to federal regulations. Vesting in the ORP Plan shall be governed by the Texas ORP Law, Section and the ORP Rules, Rules 25.5(a) through (c) and 25.5 (e). New employees have 90 days from their first active duty date to make an irrevocable choice between ORP and TRS. Employees who do not make an election before 90 days of their first active duty date are required by State regulations to participate in TRS. New employees are automatically enrolled in TRS on their first active duty date until an ORP election is made. The employee's contribution to TRS will be refunded upon enrollment in ORP; however, the State's contribution will remain with TRS. There are a number of ORP companies from which to choose. The companies offer a wide variety of features to consider. All carriers will charge some type of fees, which may include administration, purchase (load), or surrender charges. The annuity account will earn a fixed or variable income based on the type of investment. Choices may include fixed interest, money market, stock market, bond, mutual funds, or managed accounts. Retirement benefits are dependent upon the value of the account at the time of retirement based on individual investment decisions. The University accepts no fiduciary responsibility for ORP accounts. A list of companies and further information is available in the Human Resources Office. See Retiree Insurance for insurance vesting rules. 1

3 Supplemental Tax-Sheltered Annuity All employees may purchase a supplemental tax-sheltered annuity in addition to retirement and a Texasaver plan. This program offers the same type of investment found in the ORP plan. The program is also governed by federal 403(b) retirement plan regulations. Deposits to supplemental tax-sheltered annuities are based only on employee payroll deductions. The employee selects the monthly contribution level in a salary reduction agreement, which is limited by federal regulations. The maximum contributions and catch-up allowances per calendar year are as follows: Texasaver Year Maximum contribution Over Age 50 Catch-up ,500 5, ,500 5,500 All employees may participate in the Texasaver plan in addition to retirement and a tax-sheltered annuity. This tax-deferred program is administered by Great-West Retirement Services and governed by federal 457 plan regulations. Deposits to Texasaver are based only on employee payroll deductions. The employee selects the monthly contribution level in a salary reduction agreement, which is limited by federal regulations. The maximum contributions and catch-up allowances per calendar year are as follows: Year Maximum contribution Over Age 50 Catch-up ,500 5, ,500 5,500 Group Insurance The Employees Retirement System of Texas handles state employee insurance. Group insurance is provided for employees. Employees may select coverage for themselves and eligible dependents from medical, dental, life, and accidental death and dismemberment (AD&D) insurance. A dependent may be a spouse or a child in a normal parent/child relationship. A child must be under the age of 26. Long term disability (LTD) and short-term disability (STD) are also available for employees. The State pays the full cost of medical insurance and $5,000 term life and AD&D for full-time and three quarter time employees. The State also contributes 50% toward medical insurance premiums for the full-time and three quarter time employee's family. The State will pay 50% of the cost of medical insurance and $5,000 term life and AD&D for part-time employees working less than 30 hours per week and 25% of the medical insurance premiums for their dependents. The State's contribution will be available only for medical insurance for the employee or dependent. The monthly premiums in excess of the State's contribution will be deducted from salary. New employees will have a 60-day waiting period after their first active duty date before medical 2

4 insurance and $5,000 term life and AD&D will be effective. The effective date of coverage will be the first of the month following the 61 st day of employment for the new employee and their dependents. Optional insurance coverage must be elected during open enrollment within the first month of employment. Coverage applied for after the open enrollment period will normally require evidence of insurability and may be denied. New dependents acquired through marriage, birth, or adoption may be added within 30 days of the date of acquisition. Beneficiaries may be changed at any time. The plan year for coverage and rates is September 1 to August 31. The deductible year is January 1 to December 31. Information on insurance coverage and claim forms is available in the Human Resources Office. Insurance information is also available from the Employees Retirement System on the ERS website at Health Insurance Health and other insurance benefits for members are subject to change based on available State funding. The Texas Legislature determines the level of funding for such benefits and has no continuing obligation to provide those benefits beyond each fiscal year. Health coverage is available through the State of Texas HealthSelect plan administered by United Health Care. There is no Health Maintenance Organization (HMO) available. Employees are required to self report tobacco use by themselves and dependents and will be charged an additional $30 per person up to a maximum of $90 per month for each tobacco user covered on the health insurance. Employees with HealthSelect have "in-area" benefits. Employees must select a Primary Care Physician (PCP) in the HealthSelect In-Area Network of providers to receive full benefits. Inarea network participants pay $25 per visit to the PCP and the plan pays 80% of most other services and participants pay 20% coinsurance. There is no deductible and after $2,000 coinsurance, the plan pays 100%, the maximum inpatient copayment annually for an individual will be $2, with a total out of pocket maximum for copayments and coinsurance for the year of 6,350.00, maximum for copayments and coinsurance for family is $12, For nonnetwork services, the plan pays 60% and participants pay 40% coinsurance. There is a $500 per person per year deductible and coinsurance is $7,000 for non-network services, the maximum inpatient copayment for an individual annually will be $2, with a total out of pocket maximum for copayments and coinsurance for the year of per individual and family is unlimited. All referrals to specialists must be made by the PCP to obtain network benefits. The co-pay for specialists is $40 for HealthSelect In-Area if a referral is obtained. Covered employees receive insurance booklets describing coverage and billfold cards are given to each covered employee. Generic drugs will be mandatory under the Caremark Prescription drug program. Prescription drug co-payments for up to a 30-day supply of non-maintenance, short-term medications are $10 3

5 for generic drugs, $35 for preferred brand name drugs, and $60 for non-preferred brand name drugs. For up to a 30 day supply of maintenance, long-term medication, you will be charged a retail maintenance co-payment of $10 for generic drugs, $45 for preferred brand name drugs, and $75 for non-preferred brand name drugs. A 90-day supply of maintenance medications may be obtained through mail order for co-payments of $30 for generic drugs, $105 for preferred brand name drugs, and $180 for non-preferred brand name drugs. Each participant must pay a $50 deductible before co-payments are charged. The deductible year for the prescription drug card is September 1 through August 31. If, for any reason, the employee purchases a brand name drug when a generic alternative is available, the employee will pay more. A list of maintenance medications is identified by Caremark on the ERS website at Continued group insurance with the State contribution is available upon retirement from TRS or ORP with at least ten years state service in an institution or agency participating in the Uniform Group Insurance Program through the Employees Retirement System. See Retiree s Insurance for Insurance vesting rules. Health Insurance Opt-Out Credit Opt-Out Credit enables employees and retirees to give up their state-provided health insurance and get money toward optional coverage including HumanaDental DHMO or State of Texas Dental Choice Plan and/or voluntary Accidental Death and Dismemberment (AD&D) that do not require evidence of insurability (EOI) to enroll. The State of Texas Dental Discount Plan does not apply to the Opt-Out Credit. To use the Opt-Out Credit, you must be eligible for the state contribution toward your GBP health insurance and able to certify that you have comparable health insurance coverage. Fulltime employees can use a credit of up to $60 and part-time employees can use up to $30. You cannot participate in the Opt-Out Credit if you are not eligible for the state contribution toward your health insurance premium. You should carefully consider any decision to decline health insurance coverage. You may never be able to enroll in the state plan again, depending on your health condition. Participants who waive health coverage and later wish to enroll in HealthSelect must prove insurability, also called proof of good health or evidence of insurability (EOI), and acceptance is not guaranteed. Dental Insurance Dental coverage is available through Humana Dental for the DHMO plan and for the State of Texas Dental Choice plan. The Dental Choice plan allows claims from any dentist, and offers a higher level of benefits by using their network of dentists. The DHMO plan requires services by a participating network dentist. Under the DHMO plan, rates are set by contract with the participating dentist and no claims are filed. The State of Texas Dental Discount Plan is managed by Careington. The State of Texas Dental Discount Plan is not a dental insurance, but a discount program for dental services. Under this plan, participating dentist have agreed to accept a discounted free from participants as payment-in-full for dental services performed. Life Insurance 4

6 Employees may take up to four times their annual salary in term life and AD&D insurance. Spouses and dependent children may be covered for $5,000 term life and AD&D insurance. Employees may elect one or two times their annual salary during the initial enrollment period. Evidence of insurability is required for insurance three or four times the annual salary. Accidental Death and Dismemberment Employees may take from $10,000 to $200,000 in additional accidental death and dismemberment insurance. AD&D pays only in event of accidental death or pays a proportional amount in case of an accident resulting in loss of sight or limb. Employees may cover their dependents for 50% of the employee's coverage on the spouse and 5% of the employee's coverage on children. If there is no spouse, children have 10% coverage. Long Term and Short Term Disability Long term disability (LTD) or income protection insurance is available. The LTD insurance provides 24-hour coverage for accidents or illness. A monthly income benefit is paid for lost work time due to a disability after a 180-day elimination period and all sick leave is exhausted. The benefit is 60% of insured monthly salary. Benefits coordinate with Social Security, Workers' Compensation, Teacher Retirement, and other sources of disability income benefits. Short-term disability (STD) or income protection insurance is available. The STD insurance provides 24-hour coverage for accidents or illness. A monthly benefit is paid for lost work time due to a disability after a 30-day elimination period and all sick leave is exhausted. The benefit is 66% of insured monthly salary. The maximum benefit period is five months. Benefits coordinate with Social Security, Workers' Compensation, Teacher Retirement, and other sources of disability income benefits. Retirees' Insurance Health and other insurance benefits for members and retirees are subject to change based on available State funding. The Texas Legislature determines the level of funding for such benefits and has no continuing obligation to provide those benefits beyond each fiscal year. You are eligible to enroll in the State's insurance program as a retiree if you fulfill all five of the following requirements: 1. Service Credit - General Requirement You have at least 10 years of service credit in ERS, TRS, the Optional Retirement Program (ORP), or any entity that participates in the state retirement program. You may also apply service credit from the Texas Municipal Retirement System (TMRS), the Texas County and District Retirement System (TCDRS), Judicial Retirement System Plans I & II, City of Austin Retirement System, El Paso Fireman & Policeman's Pension Fund or the 5

7 El Paso City Employees' Pension Fund as part of your 10 years, if you are eligible for a proportionate retirement with these systems and ERS or TRS. 2. Service Credit - Group Benefits Program Participation Requirement Of the required 10 years service credit in #1 above, employees hired after 8/31/01 must have 10 years of actual service in a GBP-participating agency or institution to qualify for retiree health insurance. Employees hired prior to 9/1/01 are grandfathered under the old rule, which required 10 years of service, but only three years of actual service with a GBPparticipating agency. There are two exceptions: (1) If you started work for the State before September 2001, you may qualify for insurance benefits if for at least three of your 10 years you were an employee at a state agency or institution of higher education participating in the GBP. (The University of Texas and Texas A&M University Systems and all public independent school districts do not participate in the program.) (2) If your service with the State began after September 2001, you must have 10 years of service credit with an agency or higher education institution participating in the GBP to receive retiree group health, dental and optional insurance benefits. In addition, once a member has at least five years of ERS service credit, he or she can use the military service credit to: o satisfy requirements for retirement, including retirement under the Rule of 80, o satisfy requirements for GBP insurance as a retiree. 3. Age or Rule of 80 Requirement You are at least age 65 or retire under the Rule of 80. If you do not retire under the Rule of 80 and are less than age 65 with at least 10 years service credit at the time of retirement, you will not be eligible for GBP health insurance until you reach age 65. For details, see our webpage on How Insurance Works for Retirees Less Than Age 65. If you retire under the CPO/CO program, you must meet the age and service requirements for retirement in the program from which you are eligible to receive a retirement annuity. 4. Employment Status I You have terminated employment from all state agencies and institutions that participate in the state insurance program or are no longer eligible for the program as an employee. 5. Employment Status II Your last place of public employment prior to retirement was with an agency or institution participating in the State's insurance program. This is not required if you are eligible to receive an ERS retirement annuity. For full time and three quarter time members with less than five years of GBP insurance participation as of August 31, 2014, the contribution for retiree health insurance will be 100% after 20 years of service, 75% after 15 years of service and 50% after 10 years of service. Flexible Benefits Plan 6

8 TexFlex, the flexible benefits plan for the State of Texas, is a tax saving plan under Section 125 and Section 129 of the Internal Revenue Code. This benefit, sometimes called a cafeteria plan, allows employees to increase their spendable income by decreasing what they pay for taxes and Social Security. The salary money used to pay for flexible benefits is tax-free. The flexible benefits plan has three parts: (1) premium conversion of insurance premiums deducted from payroll checks; (2) health care expenses not paid for through insurance; (3) expenses for qualified dependent day care. All insurance premiums except dependent life, short term and long-term disability insurance will be paid through premium conversion on TexFlex. Insurance coverage in TexFlex may be added, dropped, increased, or decreased only on September 1 each year. Some changes in coverage, which are consistent with a change in family or employment status, may be permitted during the year. Changes must be made within 30 days of the qualifying life event. The employee determines the amount to be withheld from his/her paycheck for each of the reimbursement accounts on an annual basis. The annual minimum for the dependent care account is $180 and the maximum is $5,000. The annual minimum for the health care account is and the maximum of 2, The amount selected will be divided by and deducted from the number of payroll checks received annually. Faculty members may elect to be paid their contract salary over 9 to 12 months. The employee's own untaxed money is set aside in the account to be paid back to the employee when expenses occur. Unspent money up to $ left in the account on August 31 will be carried over for use into the next plan year; thus it is important to plan the use of these accounts carefully. Expenses paid for through the flexible benefits plan are items, which could otherwise be deducted from an income tax return. If the flexible benefits plan is used, the same deductions cannot be duplicated on the income tax return. Tax and Social Security savings can be great for the employee by using the flexible benefits plan. Longevity Pay Non-academic full-time employees of the University receive longevity pay in addition to their base salaries in accordance with State statutes. A full-time employee is defined as one who is employed to work forty hours per week for a period of at least four and one-half months, excluding students employed in positions that require student status as a condition of employment. Full-time non-academic is defined as an employee who is paid 100% from nonfaculty salaries. Longevity pay starts at the end of the second year of service and increases at the end of each two years up to and including 42 years of service. The rate is based on $20 per month for each two years of service as follows: Years of Service Longevity Pay Per Month 2 but less than 4 $ 20 4 but less than but less than but less than

9 10 but less than but less than but less than but less than but less than but less than but less than but less than but less than but less than but less than but less than but less than but less than but less than but less than and above 420 The rate is determined by the employee's status on the first day of the month. Should an employee change status or terminate during the month, longevity is not prorated. The new status will be effective the following month. All service to the State including part-time, faculty, or legislative service can be counted. Time need not be continuous. Creditable service does not include employment in public schools or in junior colleges. An employee, who becomes eligible to receive longevity pay by changing status; i.e., a faculty member who becomes a full-time administrator, will be entitled to count all previous creditable service. Law enforcement personnel are eligible for hazardous duty pay of $10 per month for each year of service in a hazardous duty position after completion of the initial year. Hazardous duty pay ceases upon transfer to a non-hazardous position. Employees are responsible for notifying the Human Resources Office of any creditable prior State service. The Human Resources Office will obtain documentation of prior service through use of an inter-agency employment verification form. Sick Leave All regular non-student employees are eligible for sick leave with pay. Full time employees accrue 8 hours of sick leave per month and part-time employees accrue proportionate to the percent of employment. An unlimited amount of sick leave may be accrued. For additional information see the Administrative Policy Manual Section 5.04 Employee Leave and Overtime, Subsection C. Sick Leave. Vacation Leave 8

10 All regular non-student and non-faculty employees are eligible for vacation leave with pay. New state employees have a waiting period of six months before using vacation leave. Full-time staff employees accrue vacation based on years of service and part-time employees accrue proportionate to the percent of employment. A limited amount of vacation leave may be carried over to the next fiscal year. Excess vacation converts to sick leave. Years of Service Hours Accrued Days Earned Maximum Monthly Annually Hours Carried 0 but less than but less than but less than but less than but less than but less than but less than but less than years and over For additional information see the Administrative Policy Manual Section 5.04 Employee Leave and Overtime, Subsection B. Annual Leave. Holidays National and state holidays observed by the state agencies are specified by the Texas Legislature. Institutions of higher education may establish their own holidays in accordance with academic schedules. However, the number of observed holidays may not exceed the number of holidays allowed for state agencies. The University holiday schedule must be approved each year by the Board of Regents. Non-student employees who work 20 hours per week or more and are employed for a period of at least four and one-half months are eligible for paid holidays proportional to scheduled work hours. An employee who is on Leave Without Pay for an entire workday immediately before or after a holiday is not eligible for holiday pay. If a holiday falls in mid-month, the employee must be in a paid status on the day before and the day after the holiday to be paid for the holiday. If the holiday falls on the first workday of a month, the employee must be in a paid status on the day immediately after the holiday to be paid for the holiday. If the holiday falls on the last workday of the month, the employee must be in a paid status on the day immediately before the holiday to be paid for the holiday. An employee is eligible to receive the holiday if the holiday does not fall on a weekend. An employee who is a commissioned peace officer is entitled to earn holiday compensatory time when the employee is required to work on a national or state holiday that falls on a Saturday or Sunday. 9

11 Workers' Compensation Workers' Compensation Insurance is provided for all State employees at no cost to the employee. An accident or illness, which occurs as a direct result of employment, should be reported immediately to the employee's supervisor. The supervisor is responsible for completing and submitting an "Accident/Injury Report" form to the Human Resources Office. The Workers' Compensation Division of the State Office of Risk Management administers benefits, which may include medical expenses and/or compensation for lost wages. Unemployment Insurance Unemployment insurance is available for State employees without cost to the employee. Claims for unemployment benefits should be filed with a Texas Workforce Commission office. If an employee leaves employment, he/she may be eligible for unemployment benefits dependent upon the circumstances. Faculty members are not eligible for unemployment benefits between academic sessions or during the summer sessions. Activity Cards The Sul Ross State University faculty/staff identification card is the employee s activity card. Employees may obtain complimentary activity cards for their dependent family members in the Controller's Office. A dependent must be living in the same household as the employee. Activity cards allow admission to University events such as athletic games, programs, plays, and concerts at a reduced rate or free of charge. 10