2012 Southern Employee Benefits Conference 2012... · 2013 Cost (Savings) 2022 Cost (Savings) Total...

2012 Southern Employee Benefits Conference

Clint DemetriouClint DemetriouVP, Total Rewards

© 2012 Graphic Packaging International, Inc.

October 2, 2012

1

Graphic Packaging Graphic Packaging InternationalInternational-- Business OverviewBusiness Overview

Packaging Solutions That Improve the World inPackaging Solutions That Improve the World in Which We Live

© 2012 Graphic Packaging International, Inc. 2

Key ProductsKey Products

FoodFoodBeverageBeverage Household and Household and

FoodFood Personal CarePersonal Care

MicrowaveMicrowaveMultiwallMultiwall Specialty PlasticsSpecialty Plastics


Club StoreClub StoreLabelsLabelsMachineryMachinery

3

Graphic Packaging Cartons for Consumer Graphic Packaging Cartons for Consumer PProducts roducts

Food

Household and P l CPersonal Care

BeverageLabelsLabels

Microwave


Microwave

Paperboard Packaging BusinessPaperboard Packaging BusinessOverviewOverview

Largest U.S. producer of folding cartons

Focused on food & beverage end marketsHealth & Beauty

Soap/Laundry2%

Other

Industry End MarketsKey Facts

Focused on food & beverage end markets

Vertically integrated network of 55 converting facilities and 7 mills (80+% integrated)

3 virgin (CUK) mills produce approximately ~1.5 mm tons per year

Frozen Foods21%

Food Services

5%

2%Other

8%

BeverageCarriers

33%

Centralized Managed Integrated Global Supply Chain to Our Customers

p y

5 recycled (CRB & URB) mills produce approximately ~0.9 mm tons per year

Dry Foods29%

21%

Centralized Managed Integrated Global Supply Chain to Our Customers

Wood

OCC


FiberSupply

PackagingMachinery

CartonConverting

Global Innovation &Carton Development

PaperboardProduction

5

Our Customers Are Global Food, BeverageOur Customers Are Global Food, Beverageand Consumer Products Companiesand Consumer Products Companies

U.S. and Canada Central & South America Europe Pac Rim

Major Customers Major Customers Major Customers Major Customers


We Grow Globally with Our Customers

Graphic Packaging at a GlanceGraphic Packaging at a Glance

Headquarters- Marietta, GA (Sandy Springs)

$4.2B revenue

3 Major M & A events since 1998

Manufacturing Sectorg

12,000 employees; some representation


, p y ; p

7

Graphic Packaging at a GlanceGraphic Packaging at a Glance

Comprehensive package of compensation and benefits.Includes retirement plans, medical plans, disability and life insurance, market competitive salary and wages

Invest over $1 billion per year in compensation and Invest over $1 billion per year in compensation and benefits for employees and their dependents

15 000 ti tl i ill i ti t 15,000 retirees currently receive or will receive retirement benefits

12,000 dependents are covered by our medical plans

© 2012 Graphic Packaging International, Inc.8

Macro Economic Factors have Impacted Macro Economic Factors have Impacted Consumer Purchasing Trends Consumer Purchasing Trends ……

High UnemploymentDeclining GDP per Household

Blue Collar: 14%

White Collar: 4.5%

“I am looking closely at every spending category to see where I can save”

84%Customers are

spending cautiously d e fo ed o

“I am eating at home more often”65%and are focused on

savings

“I expect to continue spending cautiously 93%

Customers are gravitating toward 84% “I am more open to trying private store brands

p od cts that I as t o ea s ago”

even when the economy improves”93%


private label products in order to save

products that I was two years ago”

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Benefits- Design Principles

“Aggressive” on health, leave, systems/processes

1. Sustainability- for the company, for the employee

2 P d i i b i i b k d 2. Productivity- bringing my best to work and to home

3. Accountability- “skin in the game”, incentive to take action

4. Engagement- supporting supervisory engagement


Graphic PackagingGraphic Packaging-- Our EmployeesOur Employees

“Who’s Your Reason?”

• Age 48, male, married with children

• Earns $40,000

• Lives in small town America, family and community are important, takes pride in their work for GPI

• Limited Internet access at work; not likely to read GPI communications

• Dealing with one or more potentially serious health issues


Benefit Priorities

1. Simplify Plans Too Many

2 Labor contracts “Same As Salary”2. Labor contracts Same As Salary

3. Administration Leverage external partnerships, LEAN process, improve systems

4. Reduce Liability Accelerate to DC (minimize the unknown), one culture, data consolidation

5. Medical Introduce HRA and incentives, actuarial/dependent pricing, spousal surcharge, Position for Reform

6. Manage Leave Day one reporting and location metrics

7. Behavior change GPIFIT- narrow focus, tobacco-free, weight,


Who’s Your Reason?, Remember audience

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Health Care Plan 2013Health Care Plan 2013

HRA Plan, Spousal Mandate, and Dependent Subsidy Reduction

$275 2009 Status Quo

$175

$200

$225

$250

$275 2009 Status Quo

2012 Status Quo

HRA Plan

ions

$100

$125

$150

$175

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

HRA Plan withSpousal Mandate

HRA Plan withSpousal Mandateand Dependent

In M

ill

pSubsidy Differential

2013 Cost (Savings) 2022 Cost (Savings)Total Cost

2013 through 2022 (Savings)

2012 Status Quo

HRA Plan

HRA Plan with Spousal MandateHRA Plan with Spousal Mandate

HRA Plan with Spousal Mandate and Increased Dependent Cost Share

Total Net Savings

Assumes enrollment of all 9,791 enrolled employees (Union and non-Union) in the New "SAS" HRA plans


How do you bend the curve in today’s environment?

Health Care Plan 2013 Health Care Plan 2013 Know, Act, ImproveKnow, Act, Improve

2013 2014

2015$1, 000 HRA

Information—Gating MechanismHealth $1, 000 HRA

Information—$250√ Biometric Screening√ HRQ

$1, 000 HRA

Action—$300√ Preventive Care Exam√ Engagement with Health Coach

and Development of Health

g√ Biometric Screening and HRQ Health

Improvement

Information—$500√ Biometric Screening√ HRQ

√ Q

Action—$500√ Preventive Care Exam√

pAction Plan

√ 6-month Check-In with Health Coach

Action—$500√ Preventive Care Exam

√ Engagement with Health Coach and Development of Health Action Plan


Outcomes—$700Examples Include:√ Reduce BMI by 5%√ Reduce cholesterol by 10%√ Reduce blood pressure by√ Preventive Care Exam

√ Engagement with Health Coach and Development of Health Action Plan


Outcomes—$250Examples Include:√ Reduce BMI by 5%√ R d h l t l b 10%

√ Reduce blood pressure by 10 points

√ Reduce blood sugar by 5%√ Stop smoking√ Reduce health risk factor by 5%


√ Reduce cholesterol by 10%√ Reduce blood pressure by 10 pts

Health Care Plan 2013 Health Care Plan 2013 Health Plus Incentive Plan

Actions and IncentivesPPO Plus Health Reimbursement Account

90%/70%PPO

80%/60%PPO

70%/50%PPO

80%/60%PPO

90%/70%PPO

70%/50%PPO

Single Single SingleFamily Family Family

HRQ and Biometric Screening ($500)

Preventive Care Exam ($150)

PPOPPOPPO PPO PPOPPO

Engagement with Health Coach and Development of Health Action Plan ($150)

urre

d

Plan Coinsurance

Six-month Progress Report with Health Coach ($200)

aim

Exp

ense

s In

cuM

edic

al C

la

Plan Deductible

Earn HRA Accumulation

$1,200

$3,400

$600

$2,200

$200

$1,400

$1 000 $1 000 $1 000


(First Dollar) $1,000 $1,000 $1,000

Employee

EE Request

s

Employee Makes Call

Or

Old Leave Management Notification, Time System Workflow

Request for Approval or PEmployee s

Leave

Superviso

Or . Submits Leave

Form

OutsourceOutsource

Info, Follow Up to Provider, etc.

Denial Received

Superv. Updated on

Paper Claim

Supervisor(May Vary)

Superv.

Covers

Shift

Supervisor or HR

Asks EE to Report Leave to

Met

Updated on Leave

- Cover Shifts

- Plan- Perf.

Mgmt.

Time Collection Devices

WorkbrainLisa Roche

ADP E-LbrM. Noland

K

Supervisor Confirms Time

Collection Device Updated Correctly:Daily, Weekly, or

Monthly.(Local HR

e 1

1

GPILocal

PayrollPayroll

KronosJ.L. Barnard

(Local HR Monitors/Manages)7

Local HR Total

Absence Sheets

TotalAbsence Sheets

HR May Help/Be Notified

Call orP

HR Monitoring


Leave Admin MetLife

Paper or Telephonic Intake

of Leave

Call or PaperPaper

MetLife Claim Review and

Determination

MetLinkReportingMetLink

Reporting

16

EmployeeEE

Request

New Notification Workflow – Leave Management, Time Systems

Request for Approval or Employees

Leave

Supervisor

Info, Follow Up to Provider, etc.

Denial Received

Supervisor(May Vary)

Superv.

Covers

Shift

Complements Other Absence Data with Time

Collection Device (Local HR

Monitors/Manages)2

Time Collection Devices

Uniform Time Management

System(Automated

Input)

3

GPILocal

SAPPayrollSAP

Payroll

Input)

HR MonitoringLocal

HRPayrollPayroll

ACTEC (Live)

Monitoring & Mgmt.

Leave“Day 1” Real Time

Leave Mgmt. (Cigna)

E notification

Leave Mgmt. (Cigna)

E notification1


Leave Mgmt.

Partner

ACTEC (Live)24 / 7 / 365

Telephonic Intake of Day 1 Absence

Leave Management

Claim Review and Determination

Day 1 Real Time E-notification

and/orEmail Bank

E-notificationand/or

Reporting Bank

E-notificationand/or

Reporting Bank

WC – Gallagher Bassett

WC – Gallagher Bassett

1

17

3000

GPIWorks Referrals to Leave PartnerYes NO

2539 2619 2580

2000

2500

als

1237

989 9621000

1500

# of

Ref

erra

0

500

June 2012 July 2012 Aug 2012

% of Leaves Managed by: June July August

Leave Partner 33% 27% 27%L ti Att d


Location Attendance Policy 67% 73% 73%

Graphic Packaging International

h kThank You


2012 Southern Employee Benefits Conference 2012... · 2013 Cost (Savings) 2022 Cost (Savings) Total...

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Transcript of 2012 Southern Employee Benefits Conference 2012... · 2013 Cost (Savings) 2022 Cost (Savings) Total...