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HumanResourcesOffice of
Job Changes and Your Benefits
IT Job Family Study
Employee Information SessionMay 2013
HumanResourcesOffice of
Agenda
• Welcome• Health Benefits• Disability and Sick Leave• Life Insurance• Vacation• Retirement Programs• Q&A
HumanResourcesOffice of
Impacts on Employee BenefitsBenefit Impact? Notes
Health insurance (medical and dental)
No All employees have the same medical and dental insurance options regardless of employee group.
Disability coverage and sick leave
Yes Benefits differ for Academic Professional and Administrative (P&A) employees versus Civil Service and labor-represented employees.
Life insurance Yes The University provides life insurance based on salary for all employees; some P&A employees are eligible for an additional amount.
Vacation Yes Vacation accrues differently for P&A employees versus Civil Service and labor-represented employees; Civil Service employees moving to P&A will transfer up to 80 hours of vacation with remaining hours to be paid at their Civil Service pay rate.
Retirement benefits Yes Retirement plans differ for Academic Professional and Administrative (P&A) employees versus Civil Service and labor-represented employees:
Employees who are already participating in a retirement plan, and who move between P&A and Civil Service employee groups, are entitled to a one-time, irrevocable election, which will permit them to remain in their current retirement plan.
P&A employees who are in the waiting period are not permitted to remain in the Faculty Retirement Plan, but must move to MSRS.
Employees who move to labor-represented positions that participate in MSRS must move to MSRS.
HumanResourcesOffice of
Health Insurance
• All employees have the same medical and dental insurance options, regardless of Employee Group
• Health insurance options will not be affected and will not change due to this project
HumanResourcesOffice of
Disability and Sick Leave Programs
• Civil Service & Labor Represented employees are covered by the optional employee-paid, short- and long-term disability program through Cigna Insurance Company – Sick Leave is accumulated at rate of 3 minutes per basic
straight time hours worked
• Academic Professional and Administrative (P&A) employees are covered by the Academic Disability Program – Paid medical leave is combined with Disability coverage for
employees who are not able to work following three months of medical leave
HumanResourcesOffice of
Life Insurance• The University provides one times your base salary,
rounded up to the next $5,000, if not already a multiple thereof, with no maximum
• P&A employees with salaries of $95,000 or less have an additional life benefit under the basic employee life insurance:– If salary is $75,000 or less, employees receive $25,000
additional life insurance. – The amount is prorated from $75,000 to $95,000, so the
total amount of insurance does not exceed $100,00
HumanResourcesOffice of
Vacation• Civil Service and Labor Represented employees earn a
varying number of minutes for each straight-time paid work hour based on designated percentage of appointment and years of service.
• Civil Service employees moving to a P&A classification will have 80 hours of vacation transferred to the academic vacation balance. The remaining hours will be paid out at the Civil Service staff position pay rate.
• P&A employees earn 22 days annually, prorated for appointments of 67-99%. Maximum accrual permitted at any time is 22 days.
HumanResourcesOffice of
Retirement Plan Choices
• Remain in Civil Service Classification and retain Minnesota State Retirement (MSRS) as retirement plan.
• Move to P&A Classification and elect the Faculty Retirement Plan as retirement plan.
• Move to P&A Classification and elect to remain in MSRS.
This is your one-time irrevocable election.
HumanResourcesOffice of
Minnesota State Retirement System (MSRS)
• MSRS is a defined benefit plan, which means that a participant’s benefit at retirement is “defined” and based on a formula.
• The monthly benefit is calculated using the participant’s High-5 average salary, years of service, and age at retirement.
• Years of service, or service credit, is earned for each month that retirement deductions are withheld from your salary.
• Retirement benefits are based on the total number of years and months of service.
HumanResourcesOffice of
Minnesota State Retirement System (MSRS)
• Civil Service and Labor Represented employees are covered by the Minnesota State Retirement System (MSRS)
• Contributions:– University: 5%– Employee: 5%
• Vesting: You are vested after three years of service with MSRS if you were hired prior to July 1, 2010. You are vested after five years of service with MSRS if you were hired after June 30, 2010. – Vesting entitles you to a lifetime annuity as early as age 55 or at
retirement.
HumanResourcesOffice of
Faculty Retirement Plan• P&A employees participate in the Faculty Retirement Plan:
– The Faculty Retirement Plan (FRP) is a 401(a) retirement plan in which you accumulate tax-deferred contributions.
– Employees contribute 5.5% of covered salary and the University contributes 10%.
– These are required contributions and participation in the Plan is mandatory.
• If you are a new participant in the University's Retirement Savings Plan:– Your current contributions will be directed 100% to Securian Retirement
Services – Securian also offers the Vanguard and Fidelity investment alternatives, as
well as a broad range of investment options that permit appropriate diversification.
HumanResourcesOffice of
Faculty Retirement Plan
• FRP Waiting Period: Service in a Civil Service position will count toward the waiting period.
• Vesting: All accumulated values in the Plan are fully vested. This means that University contributions, your contributions, and any investment earnings belong to you. You have full ownership and the values cannot be taken away; however, you may not assign the benefits or borrow against them.
HumanResourcesOffice of
Additional Benefits Resources• Employee Benefits: www.umn.edu/ohr/benefits
• Academic Disability Program: www.umn.edu/ohr/benefits/disability/academic/index.html
• Vacation and Leave: www.umn.edu/ohr/benefits/leaves/vacation/index.html
• Minnesota State Retirement Plan: www.msrs.state.mn.us or www.umn.edu/ohr/benefits/events/index.html#msrs
• Faculty Retirement Plan (P&A): www.umn.edu/ohr/benefits/retiresave/frp/index.html
Questions? Contact Employee Benefits at 4-UOHR (612-624-8647) or [email protected]
