University of Maryland, College Park

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Welcome!

• University of Maryland, College Park
• Benefits Orientation

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Topics to Be Covered

• Eligibility
• Enrollment Procedures
• State Sponsored Benefits
• University Sponsored Benefits
• State Pension System
• Optional Retirement Plan
• Supplemental Retirement Plans
• More Information and Contact Points
• Please Feel Free to Ask Questions at Anytime

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Eligibility for Coverage

• All exempt and non exempt employees working at
  least 50 time are eligible to receive benefits
  at the full State subsidized rate
• Contingent II employees are eligible to enroll on
  a self pay basis
• All eligible employees must sign up within 60
  days of their date of hire

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Dependent Coverage

• Spouse and any unmarried child under the age of
  19. If your dependent child turns 19 during
  calendar year 2005 (on or before December 31,
  2005) the student status requirement must be
  satisfied for all calendar year 2005 in order for
  your dependent to be eligible.
• Any child between the age of 19 and 23 if they
  are a full time student

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Enrollment Procedures

• Employee responsible for filing Enrollment
  Worksheet within 60 days of hire date
• When adding dependents, must provide copy of
  marriage certificate and/or birth certificate
  with form
• Forms are available either in your department or
  in Benefit Office located in the Chesapeake
  Building
• Coverage begins when you see deductions come out
  of paycheck
• Can take coverage back to original start date by
  doing a retro adjustment. To do a retro contact
  Benefit Office at extension 55654

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Open Enrollment

• Once enrolled, employees can change coverage,
  cancel coverage, add/delete dependents, or enroll
  in a Flexible Spending Account Plan during the
  Open Enrollment Period
• This year the Open Enrollment Period runs from
  May 25, 2005 through June 15, 2005.
• Changes made during Open Enrollment become
  effective on July 1, 2005

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State Sponsored Benefits

• Health Insurance/Vision Care
• Prescription Drug Card
• Dental Plans
• Mental Health and Substance Abuse
• Personal Accident and Dismemberment
• Flexible Spending Accounts
• Long Term Care
• Term Life Insurance

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Health Insurance Plans

• PPO Preferred Provider Organization
• POS Point-of-Service
• HMO Health Maintenance Organization
• State Pays 80 percent of the premium cost for
  regular employees
• Contractual employees pay full group rate

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PPO Freedom of Choice

• Allows most freedom of choice Can elect to use
  network doctor or out of network doctor every
  time service is required
• No referrals needed for specialists
• More Choice Higher Premium
• In Network co-pays are 15 per visit to your
  Primary Care Physician and 25 for Specialist
• Out-of-Network services subject to annual
  deductible of 250 Individual/500 Family and
  reimbursed at 80 coinsurance
• Plan Options Carefirst Blue Cross/Blue Shield of
  Maryland and MLH Eagle

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Point-of-Service Plan A Middle Ground

• Can elect to use network or out of network
  provider for every service
• Less Choice Lower Premiums
• Must choose Primary Care Physician for In Network
  services
• Referral required to access specialists services
• In-network co-pays for Primary Care Physician is
  15 and 25 for Specialist
• Out-of-network services subject to 250 annual
  deductible and then reimbursed at 80 coinsurance
• POS Options AETNA, Carefirst Blue Cross/Blue
  Shield, M.D. IPA Preferred Choice

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Health Maintenance Organization - HMOs

• No coverage for out of network services unless
  for a medical emergency
• Must choose a Primary Care Physician and this
  doctor must authorize all care
• Need referrals to get to a specialist
• 15 co-payment for visit to PCP, 25 co-pay for
  visit to Specialist
• HMO vendors Kaiser, Optimum Choice, Blue Choice
  HMO

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Choosing a Health Insurance Plan

• Ask Co-Workers about their plan
• Call your doctors office and ask them which
  plan(s) they participate with and which one they
  prefer to do business with
• Check our website and Link to State Commission
  that evaluates medical plans
• Web site is www.uhr.umd.edu - click on Benefits

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Vision Care

• Available to all individuals and their dependents
  enrolled in a medical plan through the State of
  Maryland
• Covers an annual eye exam
• Pays partial cost for contact lenses and glasses
  every twelve months
• Contact your medical plan for instructions in
  accessing coverage

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Prescription Drug Card

• Plan Administered by Caremark
• Card is good at all major pharmacies nationwide
• Co-payments based upon formularies
• Co-payments are normally either 5, 15, or 25
  up to 45 days prescription, dependent upon the
  drug being purchased
• State pays 80 of premium costs for regular
  employees. Contractual employees pay full group
  rate

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Dental Plans

• Three plans offered United Concordia DHMO,
  United Concordia DPPO, and Dental Benefits
  Providers DHMO
• State Pays 50 of premium costs
• No claim forms, no deductible
• No Charge for Preventative and Diagnostic
  Services
• Other charges reimbursed on fee schedule basis
• Must select Primary Care Dentist

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Mental Health/Substance Abuse Plan

• Available to all individuals and their dependents
  who carry medical coverage through the State of
  Maryland
• No additional premium required
• For individuals enrolled in a PPO or a POS plan,
  the coverage is administered by APS Healthcare,
  Inc.
• HMO plans administer their own mental
  health/substance abuse programs

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Personal Accident and Dismemberment Coverage

• Provides benefits if individual is killed or
  dismembered in an accident
• Accident can be either on or off the job
• Benefits options are 100,000, 200,000, or
  300,000
• Can purchase coverage for family members
• Premiums are inexpensive
• Carrier is MetLife

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Flexible Spending Accounts

• Two Types of Accounts Health Care Account and
  Child Care Account
• Health Care Account pays for medical services not
  paid for by your medical plan
• Child Care Account pays for day care service for
  any child under the age of 13 and Elder Care

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Flexible Spending Accounts
Health Care
Dependent Care

• Employee contributes money out of their bi-weekly
  salary on a pre-tax basis
• Can contribute up to 3,000 annually
• Must re-enroll each year
• Use it or Lose it rule
• Plan carefully!

• Employee can contribute up to 5,000 annually
  from their pay on a pre-tax basis
• Must re-enroll each year
• Use it or lose it rule
• Contributions can also be used to pay for elder
  day care

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Long Term Care

• Provides benefits for an individual who needs
  assistance with daily activities
• Services can be provided in either the home or a
  facility
• Coverage provided by UNUM
• Can choose level of coverage to fit your need or
  budget
• Can cover spouses, in-laws, parents, and
  grandparents under plan as well

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Term Life Insurance
State Plan
University Plan

• Coverage provided by Standard Life Insurance
• First 50,000 is guaranteed issue
• Can sign up for as much as 300,000 in 10,000
  increments with medical underwriting
• Spouse and dependent children can purchase 50
  percent of employees coverage
• Rates are age based

• Coverage provided by UNUM
• First 50,000 is guaranteed issue
• Maximum amount is 6x salary up to 750,000
• Spouse eligible for benefits equal to lesser of
  100 of employee amount or up to 150,000
• Children can be covered for 10,000
• Coverage is portable

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University Sponsored Benefits

• Group Life Insurance
• Long Term Disability
• Tuition Remission

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Long Term Disability

• Pays 60 percent of monthly salary after
  individual has been unable to work for 90 days
• Benefits are provided tax free
• Coverage provided by UNUM the industry leader
• Rates are age based
• Greater chance of becoming disabled while
  employed than of dying
• University has no short term disability coverage

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Tuition Remission
Employees

• Eligible immediately for graduate or
  undergraduate level courses (employee must be
  hired within 5 days from the start of the
  semester)
• Can go to any institution participating in
  University System of Maryland program
• Can take up to 8 credit hours during Fall and
  Spring semesters, pro-rated to the employees FTE
• Eligible for 6 credit hours for the whole Summer
  sessions, pro-rated to the employees FTE
• Winter session is not covered by tuition
  remission
• Undergraduate tuition remission is non-taxable.
  Tuition remission for graduate courses in excess
  of 5,250 annually is taxable

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Tuition Remission

• Spouse/Dependent
• Once the employee has completed 2 full years of
  employment at the University, their
  spouse/dependents are eligible for tuition
  remission for the first undergraduate degree only
• Must attend Institution where employee works
• Must meet entry requirements
• Eligible for full tuition remission for Fall and
  Spring, pro-rated to the employees FTE
• Eligible for 4 credit hours for the whole Summer
  sessions, pro-rated to the employees FTE
• The winter session is not covered by tuition
  remission

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Applying for Tuition Remission

• For tuition remission requests for classes taken
  at the College Park Campus, the employee must
  complete the online TR-Elf form. Employees may
  contact their departmental benefits
  representative for assistance with the form.
• For tuition remission requests for another USM
  institution, the employee must complete the USM
  Tuition Remission Request Form, available at
  http//www.uhr.umd.edu

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Pension Options

• Non-exempt Employees
• Must sign up for the State Pension System
• Should sign up as soon as possible
• Forms available in Department or Benefit Office
  in Chesapeake Building
• If you need to talk to someone, please call
  Benefit Office

• Exempt Employees/Faculty
• Have choice of retirement plans
• Can elect to join either State Pension System or
  enroll in an Optional Retirement Plan (ORP)
• Forms available in Department or Benefits Office
• If you need to talk to someone, please feel free
  to call Benefit Office

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Pension Option for Non-Exempt Employees

• Mandatory enrollment in State Pension System
• Defined Benefit Plan Retirement based upon
  formula Longer you work, higher your salary, the
  better your pension will be
• 2 percent mandatory pre-tax contribution
• Vesting in 5 years
• Normal retirement age is 62 with five years of
  service or any age with 30 years of service
• Offers disability retirement provision
• Death benefit equal to 1 year of salary in event
  of death while actively employed
• Provides fully subsidized health insurance to
  retiree and their dependents once individual has
  reached 16 years of service. For less than 16
  years, subsidy is pro-rated.

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Pension Options for Exempt Employees and Faculty
- ORPs
State Pension System or
Optional Retirement Plans

• Can choose between the State Pension System just
  discussed or Defined Contribution Plan

• Employer contributes 7.25 percent of salary into
  plan for you
• Money vests immediately
• Employee selects company to deposit money with
  and how money is invested
• Pension based upon how investments perform
• Health insurance is subsidized for Retiree and
  Dependents upon retirement. Full subsidy for
  retiree after 16 years, full subsidy for
  dependent after 25 years.
• Three companies to choose from Fidelity,
  TIAA/CREF, VALIC

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Supplemental Retirement Annuities (SRAs)

• Available to everyone having FICA taxes taken
  from paycheck
• Allows employees to contribute up to 14,000 for
  2005 from their paycheck on a pre-tax basis
• If over 50, can put in an additional 4,000
• Can deposit as little as 10 per pay period
• Can open account at anytime and can change amount
  being deposited as often as you like
• Can open a 403(b) or 401(k) plan in addition to a
  457 plan and same maximums apply to both
• Four companies to choose from Fidelity,
  TIAA/CREF, VALIC, and the Maryland Supplemental
  Retirement Plan (PEBSCO)
• Forms available in your department or Benefits
  Office
• Employees enrolled in the Employees Pension
  System will receive up to a 400 match from the
  State of Maryland in their Supplemental
  Retirement.

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Why Should I open a SRA?

• Experts say that you need to replace 70 to 80
  percent of salary at retirement in order to
  maintain standard of living
• Social Security will replace about 25 percent
• At best State Pension System will replace 45
  percent
• ORPs Retirement income is uncertain because it
  is based upon investment performance
• In order to meet minimum income requirements,
  additional retirement resources must come from
  personal savings
• SRAs are easy way to do this done through
  payroll deduction
• Deductions are pre-tax so you are saving on tax
  payments as well as saving for retirement
• If you are enrolled in the Employees Pension
  System, the state will match up to 400 in your
  SRA Account

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Additional Information and Contact Points

• Benefits Office Phone Number is extension 55654.
• Our Web Site is www.uhr.umd.edu - Click on
  Benefits

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Questions?