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Faculty/Staff Benefits Approved by the Hamline University Board of Trustees: May 9, 2000. These online versions of Hamline University handbooks and other guides are provided for informational purposes only, and do not create nor are intended to create an express or implied contract, covenant, promise or representation between Hamline and any employee. These online hanbooks and guides are subject to change at any time by the Trustees of the Hamline University of Minnesota. Current official versions of these handbooks and guides are maintained in the Office of the Provost. (Date of last update: July 2003) TABLE OF CONTENTS Overview - Faculty And Staff Benefit Plans Defined Contribution Pension Plan Supplemental Retirement Annuity (SRA) Flexible Spending Account Program Group Medical And Dental Insurance Group Long-term Disability Insurance Workers' Compensation Insurance COBRA (Consolidation Omnibus Budget Reconciliation Act of 1985) HIPAA (Health Insurance Portability and Accountability Act of 1966) OVERVIEW - FACULTY AND STAFF BENEFIT PLANS Benefit plans represent significant additional compensation to faculty and staff. Outlined below is a brief summary of the types of benefits plans currently available through the University. It is not intended to, or is it to be interpreted to create an express or implied contract between the University and its eligible faculty and staff members. These benefits plans are subject to change at the discretion of the University. It is the intent of Hamline and its Benefits Plan Representative(s) to consult with all appropriate University committees in a timely fashion when changes in benefits are being considered. In the event of any discrepancy between the benefits programs outlined below and the plan, the plan will govern. ELIGIBILITY GUIDELINES Before faculty and staff can participate in these benefit plans, there are certain eligibility and participation requirements which must be met. Eligibility requirements may vary from benefit to benefit and faculty and staff may share the cost of some of these benefits. Those requirements, as well as the requirements that must be satisfied in order to obtain a benefit under the plan, are outlined in a summary plan description which is distributed by the University to all eligible faculty and staff. The summary plan description should be reviewed carefully and any questions should be directed to Human Resources. Regular full-time faculty and staff will usually receive the University's full benefit package. Regular part-time faculty and staff will usually receive certain benefits on a pro rata basis. Insurance benefits become effective the first of the month following the date of hire, or immediately if the date of hire is the first of the month. DEFINED CONTRIBUTION PENSION PLAN (TAX DEFERRED 403 (b) PENSION PLAN) The University offers a retirement plan sponsored by the Teachers Insurance Annuity Association-College Retirement Equities Fund (TIAA-CREF) to members of the faculty and staff who work at least 1,000 hours on a calendar year basis. To begin participation, you must be at least 21 years of age and satisfy an eligibility requirement of one year of uninterrupted service from your initial appointment date. You may begin participation immediately upon hire if, immediately prior to your date of employment with Hamline University, you were a fully vested participant in your employer's qualified retirement plan or you fulfilled the one year service requirement with another 501(c)(3) organization or public educational institution. Once eligibility has been established, the University contributes an amount equal to 10% of the employee's base salary to TIAA-CREF. Normal retirement age under the plan is the first day of the month on or following your 65th birthday. SUPPLEMENTAL RETIREMENT ANNUITY (SRA) (TAX DEFERRED 403(b) ANNUITY PLAN) All employees are immediately eligible to make voluntary, tax-deferred contributions to a Supplemental Retirement Annuity account through TIAA-CREF. Employees can begin participation anytime, and change salary reduction contributions on a monthly basis. The maximum limit on contributions for calendar year 2007 is $15,500. In addition, employees age 50 and over can contribute an additional $5,000 in catch-up contributions in 2007 for a total of $20,500. FLEXIBLE SPENDING ACCOUNT PROGRAM All full-time and part-time employees working at least 20 hours per week are eligible to participate in the Flexible Spending Account Program (authorized by Sections 125 and 129 of the Internal Revenue Code). Coverage will be effective the first of the month following the date of hire (or immediately if the date of hire is the first of the month). Each calendar year you will have the option to establish a health care reimbursement account, which allows you to set aside money on a pre-tax basis from your paycheck to pay for eligible medical and dental expenses not covered by your insurance plans. Expenses may be incurred by the employee as well as the employee's spouse and dependent children. Likewise, a dependent care reimbursement account can be established to pay for your child care expenses on a pre-tax basis. In 2003, a maximum of $2,000 may be set aside for health care expenses, and a maximum of $5,000 for dependent care expenses. Effective January 1, 2004, an annual maximum of $3000 may be set aside for health expenses. The plan year for the Flexible Spending Account Program is January 1 through December 31 of each year. You must complete an election form during the open enrollment period prior to the beginning of the plan year (from mid- to late-November). If you do not complete an election form prior to the beginning of the plan year you will forfeit the opportunity to participate in the program and you will pay for medical, dental, and dependent care expenses with after-tax dollars. You are eligible to participate in the Flexible Spending Account Program in the first full month of employment following your date of hire. Elections made by participating individuals cannot be revoked unless very strict conditions are met. For specific details regarding Hamline's Flexible Spending Account Program, consult the enrollment booklet available from the Department of Human Resources. 1999 TRANSPORTATION ACT Effective calendar year 1999, a Transportation Act was passed allowing you to deduct your parking lot fee as a pre-tax expense item. Since this new law provides a cost savings to faculty and staff who chose to purchase parking passes in a Hamline lot, you are encouraged to have the Payroll Department deduct the appropriate amount from your payroll check on a monthly pre-tax basis. GROUP MEDICAL AND DENTAL INSURANCE All full-time and part-time employees working at least 20 hours per week are eligible for medical and dental insurance. Coverage will be effective the first of the month following the date of hire (or immediately if the date of hire is the first of the month). Medical and dental premium costs are shared between the employee and the University. Qualified dependents for family coverage include the employee's spouse, same-sex domestic partner, and/or unmarried children under19 years of age (under age 25 if enrolled as a full-time student). Hamline offers a choice of two medical plans through HealthPartners, with in-network benefits (services provided within the HealthPartners system) and out-of-network benefits available under each plan. Dental coverage through HealthPartners includes the option to choose between an in-network plan and out-of-network benefits. Refer to the benefit plan summaries and the Group Membership Contract for a complete description of benefits under each plan. Employee premiums for medical and dental coverage are paid on a pre-tax basis through Hamline's Flexible Benefits Program. For specific details regarding enrollment and changes to enrollment, consult the Flexible Benefits Program enrollment booklet available from the Department of Human Resources. If you are a full-time employee who elects not to participate in the University's medical insurance program due to coverage under another insurance plan, you will receive a waiver credit in the amount of $65.48/monthly or $30.22/biweekly ($785.76 annually), paid in your regular monthly or bi-weekly paycheck. This money is taxable unless contributed to a pre-tax Flexible Spending Account or Supplemental Retirement Annuity. Health Benefits for Retirees Prior to July 1, 2008: For retired employees age 55 to 64 with ten consecutive years of Hamline service in a benefits eligible status, the University will provide group medical and dental benefits to staff retirees at their expense and to faculty retirees at a shared expense, at the group rates. Prior to July 1, 2008: For employees retiring at age 65 or older, with 10 consecutive years of Hamline service in a benefits eligible status, the University will pay up to a maximum of $164 per month per retiree which represents a portion of the cost for senior medical plan insurance which is considered supplemental to Medicare, the federally subsidized health insurance program made available to retirees at age 65 or older. Effective July 1, 2008, faculty and staff who retire will not receive Hamline's retiree medical plan benefit. Faculty or staff who meet eligibility requirements and retire prior to July 1, 2008, will be eligible to receive the retiree medical plan benefit subject to changes that may be made to the retiree medical plan benefit from year to year. Employees leaving as a retiree from Hamline after June 30, 2008, will be eligible to continue their health benefits under COBRA for a period of up to 18 months. GROUP LIFE INSURANCE Hamline University provides employees working at least 30 hours per week (or a .75 full-time equivalency) with a term group life insurance policy inclusive of accidental death and dismemberment benefits (AD&D), effective the first of the month following the date of hire (or immediately if the date of hire is the first of the month). The value of the term life and AD&D policy is equal to twice the employee's gross annual base salary, not to exceed $500,000, with a declining value after age 65. Hamline University also provides a voluntary term life insurance plan to employees who work at least 20 hours per week, effective the first of the month following (or concurrent with) the date of hire. The employee pays 100% of the voluntary term life insurance premiums. Coverage is available for the employee, the employee's spouse or same-sex domestic partner, and eligible children up to age 19 (up to age 26 for full-time students). "Guarantee issue" coverage is available at the time you are first eligible to participate in this plan; coverage elected after the date of initial eligibility, and coverage over the guarantee issue amount, is subject to underwriting approval by the insurance company. Employee coverage is available in increments of $10,000, up to five times the employee's annual base salary, to a maximum of $500,000 (guarantee issue amount is $200,000). Spouse or domestic partner coverage is available in increments of $5,000, up to the employee's coverage amount (guarantee issue of $50,000). The premiums you pay for employee and spouse/partner coverage are based on age. There is a reduction in the insurance benefits starting at age 65. Child coverage applies to any number of children, and is available in increments of $2,000, up to $10,000 (with a reduced benefit from birth to six months of age). Accidental Death and Dismemberment coverage is also available separately. GROUP LONG-TERM DISABILITY INSURANCE Employees working at least 30 hours per week (or a .75 full-time equivalency) are eligible to participate in the long-term disability plan, effective the first of the month following the date of hire (or immediately if the date of hire is the first of the month. The coverage is "guarantee issue" at the time the employee is first eligible to participate in this plan; if coverage is declined at the time of initial eligibility, coverage will be subject to underwriting approval by the insurance company if elected at a later date. The long-term disability plan protects employees from loss of income due to a long-term illness or total disability. The premiums are based on the employee's rate of pay, and are shared equally between Hamline University and the employee. Disability income under this plan is equal to 66.6% of the employee's regular salary, after 90 days of disability (offset by any eligible Social Security payments). GENERAL LIABILITY INSURANCE Hamline University will indemnify and defend Hamline's Board members, faculty, staff, volunteers, and students against all claims involving acts or omissions within the scope of employment and/or duties performed for the University. The terms and conditions of the Commercial General Liability Insurance Policy set forth in the actual policy documents shall apply. TUITION SCHOLARSHIP PROGRAM Hamline Scholarship Program Tuition scholarships are available for regular full-time Hamline faculty and staff, as well as spouses, same-sex partners, and dependent children. You are eligible to receive direct tuition assistance immediately upon full-time employment. However, you must be full-time and be employed a minimum of six months to satisfy eligibility requirements for scholarship assistance for spouses, same-sex partners, and dependent children. If you were hired prior to October 16, 1976, you are eligible for 100 percent of the tuition scholarship benefits for your dependents. If you were hired after October 16, 1976, you are eligible for 90 percent of the tuition scholarship benefits for your dependents. Tuition Exchange Programs with ACTC and other Cooperating Colleges This policy has been designed to give full-time employees greater latitude in planning for the education of dependent children, same-sex partners, and spouses. The rate of tuition remission at an ACTC or other Cooperating College varies. Information regarding the tuition exchange program for dependents is available in the Department of Human Resources. Members of the Local 70 of the International Union of Operating Engineers should refer to their current contract regarding eligibility for the Hamline Scholarship Program. SERVICE AWARD PROGRAM Hamline University recognizes and appreciates committed service and longevity of employment with the institution. Regular full-time and part-time faculty and staff members completing 5, 10, 15, 20, 25, 30, 35, and 40 or more years of service with Hamline University are eligible to receive a gift of appreciation. Based on years of service, you may choose a gift from the service award catalog provided. Information regarding this program is available in the Department of Human Resources. SOCIAL SECURITY (FICA) The Social Security benefits program is financed by taxes paid by both you and Hamline University. The Federal Insurance Contributions Act (FICA) includes two taxes paid by you and the University (on your behalf) on an equal basis: (1) old-age survivors and disability benefits, and (2) hospital insurance. Under current FICA regulation, if you have sufficient credits you may retire at age 62 with actuarially reduced benefits, or retire at age 65 or eligible age as defined by the Social Security Administration for receiving full benefits to which you are entitled. Also, survivors' benefits and lump sum death benefits are available to your spouse and unmarried children under the age of 18. Further information regarding social security may be obtained by contacting your area Social Security Administration Office. The Department of Human Resources is also available to assist you in obtaining social security information. WORKERS' COMPENSATION INSURANCE Hamline University provides workers' compensation insurance to all faculty and staff. Travelers Property Casualty is Hamline's current workers' compensation carrier. They provide financial benefits if you have a work-related injury or illness, or when there is a work-related fatality. The insurance covers all medical expenses related to the injury or illness that are reasonable and necessary to cure or relieve you from the effects of the work-related injury or illness. The insurance also provides for payment of a portion of your wages. Payments for holidays, vacations, and sick pay made during the injury or illness may be included in computing a staff member's temporary partial benefit from the workers' compensation insurer. A work-related injury or illness must be reported immediately to your supervisor who is responsible for completing an "Injury Report Form" on your behalf. The completed form must be forwarded to the Department of Human Resources in a timely manner for processing. COBRA (Consolidation Omnibus Budget Reconciliation Act of 1985) If your employment with Hamline ends (or you become ineligible for benefits as a result of a reduction in hours), the University will provide you the opportunity to continue your health, dental, and life insurance coverage pursuant to the terms and conditions of applicable law. In addition, your dependents and any other qualified beneficiaries will be entitled to continue these benefits as provided by applicable law. The right to continue these benefits will be at the full group cost to you or to other qualified beneficiaries without any matching or supplemental assistance by the University. The duration of the benefits will normally continue over a period of 18 months, contingent on certain eligibility factors. More specific information about COBRA is available from the Department of Human Resources. HIPAA The Health Insurance Portability and Accountability Act of 1996 (HIPAA) requires us to inform you of your rights to special enrollment under Hamline's group medical plan. If you decline enrollment for yourself or your dependents because of other medical coverage, you may in the future be able to enroll yourself or your dependents provided that you request enrollment within 30 days after your other medical plan coverage ends. In addition, if you acquire a new dependent as a result of marriage, birth, adoption or placement for adoption, you may be able to enroll yourself and your dependents in Hamline's group medical plan provided that you request enrollment within 30 days after the marriage, birth, adoption or placement for adoption. HIPAA also limits the circumstances under which coverage may be excluded for medical conditions present before you enroll. Creditable coverage consists of most health coverage, including: coverage under a group health plan, HMO, individual health insurance policy, COBRA, Medicaid or Medicare. Creditable coverage does not include coverage consisting solely of "excepted benefits", such as non-medical, dental or vision benefits. To obtain coverage for a pre-existing condition for all illnesses and injuries, an individual must not experience a significant break in coverage of 63 days or more. In the event that your health insurance coverage has a lapse in coverage of 63 or more days, that period, predating the break in coverage, will be excluded from consideration for reduction of the pre-existing condition exclusion period. In order to demonstrate your periods of creditable coverage: you should receive a certificate from your former employer's plan when you cease coverage in the plan. You may request a certificate, free of charge, until 24 months after the time when your coverage ended. If you do not receive a certificate from your former employer's plan (or other medical coverage source), you may be subject to a pre-existing condition limitation. (Return to Table of Contents) Hamline University provides unemployment insurance coverage for you in accordance with the laws of the State of Minnesota. For more detailed information concerning coverage and benefits, contact the Department of Human Resources. |