U-M Benefits Orientation Introduction to U-M Benefits Health Plans Prescription Drug Plan Dental...

U-M Benefits OrientationIntroduction to U-M Benefits

Health PlansPrescription Drug Plan

Dental PlanVision Plan

Flexible Spending Accounts

Life InsuranceExpanded Long-Term Disability

Group Legal Services PlanMiscellaneous BenefitsRetirement Savings PlanQuestions and Answers

U-M BenefitsIntroduction to U-M Benefits

Eligibility Benefits Enrollment EnrollmentChange in StatusOpen EnrollmentPaying for Your BenefitsYour Rights and Responsibilities

U-M BenefitsEligibility

EmployeeBenefit-eligible graduate studentsSpouse Other qualified adultDependent children

Review the eligibility information on the Benefits Eligibility section on the Benefits Office website:

benefits.umich.edu/eligibility

U-M BenefitsBenefits Enrollment Self Service > BenefitsBenefits Office website

Plan Information Eligibility InformationForms Vendor Contact Information

U-M BenefitsEnrollmentFour times when you may be able to enroll in benefits:

When you are a new hireWhen you are newly eligibleAs a result of a qualifying change in statusDuring Open Enrollment – If your job information is not on the system by October 17th your elections will continue through December 31, 2015, except for Flexible Spending Accounts (FSA). You must enroll in an FSA for 2014 and 2015 to participate.

U-M BenefitsChange in Status

Legal Marital StatusNumber of dependentsEmployment Status Residence or work site change (out of network area)Domestic relations court order

U-M BenefitsPaying for Your Benefits

Convenient payroll deductionsWhen Deductions are taken:

Bi-weeklyHealth Plan, Dental, Vision, Legal, Flexible Spending Accounts (first two paychecks

of each month; 24 equal installments)Retirement Savings Plan (all pay periods)

Monthly (all)

U-M BenefitsPaying for Your Benefits

Always Pre-TaxHealth Plan Retirement Savings PlanDental Flexible Spending AccountsVision

Always After-TaxDependent LifeOptional Life InsuranceLong-Term DisabilityLegal Services

U-M BenefitsYour Rights and Responsibilities

HIPAACOBRACheck your deductionsKeep your address current. Make updates

online at: wolverineaccess.umich.eduWatch for communications from the university

Health PlansIntroductionSix Coverage LevelsRange of Coverage OptionsTraditional Fee-for-Service PlanHealth Maintenance Organization (HMO)Managed Care PlanPreferred Provider Organization (PPO) Plan

Value = Quality + CostCost informationBenefits comparisons

Make Your ChoiceNo pre-existing clauses30 days to choose30 days to report a mid-year change in status

Health Plans

Health PlansSix Coverage Levels

You onlyYou + your Spouse or other qualified adultYou + your Spouse or other qualified adult & Child

or ChildrenYou + One ChildYou + ChildrenNo Coverage

Health PlansTraditional Fee-for-Service Plan

Blue Cross Blue Shield Comprehensive Major Medical (CMM)

Health PlansTraditional Fee-for-Service Plan

Coverage for diagnostic and treatment servicesAnnual DeductibleCo-insuranceAnnual Out-of-Pocket Limit

Health Plans

Managed Care Plans and Health Maintenance Organization (HMO)

U-M Premier Care (UMPC)GradCare – Benefit Eligible Students onlyHealth Alliance Plan HMO (HAP)

Health PlansManaged Care Plans and Health Maintenance

Organization (HMO)

100% coverage for eligible expensesLower out-of-pocket costs for certain servicesNo annual deductible or claim formsCo-pay may be required for some services

Health PlansPreferred Provider Organization (PPO)

Blue Cross Blue Shield of Michigan Community Blue PPO (BCBSM PPO)

Ability to choose any provider, in or out-of-networkLower out-of-pocket costs when you choose an in-network provider

Health PlansWhich Plan Is Best For You?

Use the information on the Benefits Office website at benefits.umich.edu/plans/medical/ to determine the best health plan for you and your family. • Health Plan Comparison Chart• Health Plan Navigator• Summary of Benefits and Coverage (SBC) Charts

Choose a plan that best meets your and your family’s needs

Health PlansImportant MaterialsProvider Directory

On the Benefits Office website at:benefits.umich.edu/plans/medical/providers.html

Plan Books and FormsOn the Benefits Office website at:

benefits.umich.edu/booksbenefits.umich.edu/forms

Prescription Drug PlanAll participants who enroll in university health plans are automatically enrolled in the U-M Prescription Drug plan, which is administered by MedImpact Healthcare Systems, Inc.

You will receive a separate MedImpact prescription drug ID card.

Prescription Drug PlanThree-tier co-pay plan:

Tier 1/generic, $10Tier 2/preferred, $20 Tier 3/brand-name non-preferred, $45

Prescription Drug Plan

Up to 90-day supply available by mail order through NoviXus mail service at a significant savings over retail pharmacies.

More information is available on the Benefits Office website at:

benefits.umich.edu/plans/drugs

Dental PlanAdministered by Delta Dental of MichiganOption 1Option 2Option 3Orthodontic ServicesCompare Options and RatesUniversity Contribution

Dental Plan

Option 1

• Provides coverage in full for preventative services• Covers orthodontia for dependents under age 19• Available at no cost to you and your eligible

dependents

Dental Plan

Option 2

• Provides coverage in full for preventative services• Covers orthodontia for dependents under age 19• Requires an employee contribution

Dental Plan

Option 3

• Provides coverage in full for preventative services• Covers orthodontia for dependents under age 19• Highest benefits level• Requires greatest employee contribution

Dental Plan

Orthodontic ServicesCovers services for eligible dependent children up to age 19

Adult orthodontics are not covered

If newly enrolling for first time, Delta will pro-rate amount payable for children already in an orthodontic treatment plan

Delta Dental Network

• You can choose any dentist you want• You will receive the greatest savings if you see

a Delta PPO provider• You will still receive a savings if you see a Delta

Premier provider• Delta PPO and Premier participating dentists

agree not to bill the patient more than Delta’s approved amount

Dental Plan

Compare Options and Rates

Rates and a comparison chart are available on the Benefits Office website at: benefits.umich.edu/plans/dental

Vision PlanFeatures

Administered by Davis Vision

One eye exam and pair of eyeglasses per yearStandard, soft, daily-wear, disposable contacts in lieu of eyeglasses

Kellogg Eye Center is a participating provider

Vision Plan

No card for Vision Plan

Provider list available on the Davis Vision website at: www.davisvision.com Click Members, enter 2032 in the Control Code field, and then click Submit.

Benefits Rates

• You can view benefits plan rates on Wolverine Access, or the Benefits Office website at

benefits.umich.edu/neo/rates.html


Administered by PayFlex/HealthHubIf your job is on the system after October 17th, you can enroll for the remainder of 2014 and for 2015 by completing separate 2014 FSA and 2015 FSA forms.

• Two account types• Contribution Limits• Advantages• Savings example

Health Care FSA

• Use to set aside pre-tax dollars for out-of-pocket health care expenses for you and your eligible dependents

• Possible expenses can include Rx co-pays, contacts, doctor’s office co-pays, dental out-of-pocket expense, Lasik surgery

Dependent Care FSA

• Use to set aside pre-tax dollars for out-of-pocket dependent day care expenses for your eligible dependents.

• Possible expenses can include your child’s day care costs, after school latch-key programs, adult day care expenses, and summer day camps.

• See the Benefits Office website for list of eligible dependents and expenses: benefits.umich.edu/plans/reimburse/dc2.html


Contribution LimitsHealth Care Account

$2,500 annual maximum$120 annual minimum

Dependent Care Account$5,000 annual maximum; may be limited

based on several factors$120 annual minimum


Advantages

Serves as budgeting toolProvides immediate tax savingsHelps you get more for your money


* Potential tax savings shown for demonstration only. Actual savings will vary based on your individual tax situation. Please consult a tax professional for more information.

Annual Savings Example* With an FSA Without an FSA

If your annual taxable income is: $28,000 $28,000

And you deposit this annual amount into an FSA: $1,500 $0

Your taxable income is now: $26,500 $28,000

Subtract federal and Social Security taxes: $9,447 $9,982

If you spend after-tax dollars for eligible expenses $0 $1,500

Your real spendable income is: $17,053 $16,518

Your annual tax savings with an FSA is: $535 $0


Keep In Mind• Estimate your annual expenses carefully• No mid-year contribution changes without a change in status• “Use it or lose it” feature• Through December 31 of the current calendar year• FSA enrollments do not carry over from year to year• A separate election must be made each year you wish to

participate

benefits.umich.edu/plans/reimburse

Life Insurance

Administered by MetLifeUniversity Life

$30,000 plan for eligible faculty and staffCovers you only and is paid by the university at no cost to youAutomatically enrolledMust name beneficiaries

Life Insurance

Optional LifeNine Coverage Options

No coverage – unless you enroll$5,000 (minimal or no cost to you)$50,000 1 time salary to 6 times salary30 days to enroll without a health statementTerm InsuranceCovers simple will preparation

Optional Life Insurance Plan

Important ConsiderationsNo cash value or loan provision

You need to enroll in Optional Life

Coverage amounts and costs may increase when your salary increases (if tied to salary) or when you move to a higher age bracket


Designate Your BeneficiaryAny person you wishMay add or change at any timeMake or change Life Insurance beneficiary designations on MetLife’s MyBenefits website:

www.metlife.com/mybenefits


How to Calculate Your Life Insurance Cost

Your monthly cost depends on the coverage you select, your age, your smoking status, and your salary.

If you choose coverage based on your salary, the cost will increase when your salary increases.

Your cost will increase when you move into the next higher age bracket.

See the Benefits Office website to calculate your rate:benefits.umich.edu/plans/life/orates.html

Dependent Life Insurance

For Spouse/OQA/ChildLegally married spouse or other qualified adult ChildrenEmployee is always the beneficiary

Dependent Life InsuranceCoverage Levels

Spouse or other qualified adult

$10,000 (short form health statement)$25,000 (short form health statement)$50,000 (long form health statement)

Children

$2,000 per child$5,000 per child

One rate covers all eligible children

Dependent Life Insurance

ConsiderationsTerm Life CoverageYou are always the only beneficiary

Cost of Coverage After-tax deductions

Expanded Long-Term Disability

Administered by U-M

• Coverage levels• Employee cost


CoveragePays up to 65% of pre-disability base salaryPays the cost to continue your other benefits,

including Health Plan, Dental Plan, Life Insurance, and Retirement Savings Plan contributions

Coordinates with other programs such as Social Security disability income


CostYou pay full cost for first two yearsAfter two years, the university pays the cost for

coverage up to $59,000 salaryYou can elect to pay for coverage on salary above

$59,000

Legal Services Plan

Administered by Hyatt Legal PlansRange of Legal ServicesImportant ConsiderationsCost

Legal Services Plan

Range of Legal ServicesWills and estate planningReal estate mattersFamily law matters Debt defenseDefense of civil lawsuitsPreparation of deeds, demand letters, promissory notes, mortgages and other legal documents

Legal Services Plan

Important ConsiderationsNo divorcesNo job-related/business lawIf both you and your spouse are involved in a

transaction, both of you must be enrolled in the plan to be covered

No litigation against University of Michigan

Legal Services Plan

Cost

You pay the full cost through after-tax payroll deductions Monthly rates are available on the Benefits Office website at: benefits.umich.edu/plans/legal/costs.html

Miscellaneous Benefits

Travel Accident Insurance

MHealthy – U-M Health & Well-being Servicesmhealthy.umich.edu

Travel Accident InsuranceFeatures

The university pays the full costCoverage begins on the first day of work and ends the last day of work at the university

If you die while traveling on university business, the plan provides a minimum benefit of $50,000 or 10 times your annual salary, whichever is more, with a ceiling of $500,000. The plan also pays benefits for dismemberment and disability.

Retirement Savings Plans

Basic Retirement Plan

Supplemental Retirement Account (SRA)

457(b) Deferred Compensation Plan

There is no university pension plan; the only way to have enough money for retirement is to save.

benefits.umich.edu/plans/retire

Retirement Savings PlansContributions and earnings are tax-deferred

– You don’t pay taxes until you cash out the money

SRA and 457(b) also offer an after-tax Roth– Contributions are taxed now but qualified withdrawals are tax-free

Invest with TIAA-CREF and/or Fidelity

Enroll or make changes anytime

You keep the U-M contribution when you leave– Restrictions apply to cash withdrawals & rollovers

Options when you leave U-M– Lifetime annuity– Cash withdrawal or rollover (restrictions apply)

Retirement Savings PlansInvesting with TIAA-CREF and/or FidelityThe default investment is:• Lifecycle Index fund if you choose TIAA-CREF• Freedom Index Fund Class W if you choose Fidelity

Lifecycle Index and Freedom Index funds automatically select the mix of stock, bond, and money market funds appropriate for a target retirement date (ex. 2020, 2025, 2030) of approximately age 65.

Each fund periodically adjusts its holdings of stocks, bonds, and money market funds to become more conservative over time as its target retirement date approaches.


TIAA-CREF and Fidelity Fund Choices

• Contributions may be made to funds in either or both investment companies

• Contributions may be allocated among the offered funds

• A wide selection of funds are available


TIAA-CREF

Telephone Counseling Center800-842-2776

Local consulting appointments800-732-8353

www.tiaa-cref.org

Fidelity Investments

Telephone Counseling Center800-343-0860

Local consulting appointments800-642-7131

www.mysavingsatwork.com

Retirement Savings PlansBasic Retirement PlanIndividuals must complete 12 months of eligible service in order to become eligible to receive the U-M contribution once enrolled.

Defined Contribution Plan• You contribute 5%• U-M contributes 10%

Changes Effective 1/1/15 • Contributions will be provided on base salary but not on additional forms of pay such as

overtime, differential pay and lump sum payments.• The employee contribution for U-M Hospitals and Health Centers will be 4.5% with a 9% U-M

matching contribution.These changes do not apply to employees subject to a collective bargaining agreement.


Basic Plan Waiting Period• You may enroll at any time.

• Enrollment and university contributions do not begin automatically; you must enroll to receive plan benefits.

• If you enroll during the first 12 months of service there is no U-M contribution.

• Former eligible employees rehired within 12 months of termination do not need to complete the waiting period.


Contribution Rate Once EnrolledDuring first 12 months of service• You contribute 5%• U-M does not contribute

After 12 months of eligible service• You contribute 5%• U-M contributes 10%


Enroll or change your contribution amount at any time online using Self Service > Benefits.

– Go to http://wolverineaccess.umich.edu


Investing with TIAA-CREF and Fidelity• U-M will send an enrollment notice to your chosen

company to create your investment account after your enrollment is complete.

• You may change your fund choice if you do not want a Lifecycle Index or Freedom Index fund.

• You will receive a welcome packet from your investment company about 30 days after your first deduction.

• Contact TIAA-CREF and/or Fidelity Investments to designate your beneficiary (it’s not the same as your life insurance).


Compulsory Participation

Participation becomes compulsory when:1. You are age 35 or older, and2. You have completed 2 years of eligible service, and3. You have a 100% appointment effort.

If you meet all 3 criteria but are not enrolled:• You will be enrolled in the Reduced Benefit Option (RBO)

and U-M will contribute 5%; you do not contribute.• You may elect to contribute 5%; U-M will contribute 10%


Basic Plan Withdrawals & Rollovers

Current Employees - not available

Former Employees• Your contributions and earnings at any age.• U-M contributions and earnings at age 55 or older.• IRS penalty for withdrawals prior to 59½ may apply.

Loans - not available


Supplemental Retirement Account (SRA)

• You contribute a tax-deferred, fixed-dollar amount.

• Save more for retirement and reduce your taxable income.

• An after-tax Roth option is available, fixed-dollar amount.

• There is no U-M contribution.

• Enroll or change your contribution amount at any time online using Self Service > Benefits.

– Go to http://wolverineaccess.umich.edu


SRA Features

Cash withdrawals while employed– Hardship (as defined by IRS)– Disability (as defined by IRS)– At age 59½

Former employee may cash out at any age

IRS penalty for withdrawals prior to 59½ may apply

SRA loans (some restrictions apply)

Annual contribution limit– $17,500 if under age 50– $23,000 if age 50 and older– Limit includes the 5% you make to the Basic Plan– Does not reduce your limit to contribute to 457(b) plan


457(b) Deferred Compensation Plan• Another option to invest and reduce your taxable income.

• You contribute a tax-deferred, fixed-dollar amount.

• An after-tax Roth option is available, fixed-dollar amount.

• There is no U-M contribution.

• IRS penalty for withdrawals prior to 59½ does not apply.

• Enroll or change your contribution amount at any time online using Self Service > Benefits.– Go to http://wolverineaccess.umich.edu


457(b) FeaturesCash withdrawals• While employed: at age 70½• Former employee: at any age

Loans available (some restrictions apply)

Annual contribution limit• $17,500 if under age 50• $23,000 if age 50 and older• 457(b) contributions do not reduce your SRA limit


Next Steps• Review your pay stubs– Confirm deductions are being taken

• Review or update your beneficiary• Review your quarterly statements• Meet with TIAA-CREF and/or Fidelity– Review your fund choices– Rebalance portfolio if necessary– Review your retirement savings goals

• Save more with an SRA and/or 457(b)

How to Enroll in Benefits

You will need a uniqname and UMICH password to log in to Wolverine Access.

Go to:http://wolverineaccess.umich.edu

Wolverine Access

Employee Self-Service

Wolverine Access Log In

Self Service > Benefits Enrollment

Wolverine Access “New Hire Event”

Other University Resources

Faculty and Staff Assistance Program (FASAP)• Counseling services on personal, emotional, family and

workplace issues• www.umich.edu/~fasap

U-M Health System Employee Assistance Program• Counseling services for U-M Health System employees• www.med.umich.edu/mworks/eap


Mediation Services• Confidential, voluntary mediation for faculty and staff

(non-union) to resolve workplace disputes collaboratively• www.umich.edu/~mediate

WorkConnections• Provides assistance and support to faculty and staff when

they experience an illness or injury• Coordinates access to university services through

recovery and return to work• Kids Kare at Home – emergency back-up child care service• www.umich.edu/~connect


Emergency Hardship Program

• For those facing temporary and severe hardships from unexpected emergencies

• Resource information and possible one-time funds for assistance in certain cases (for funds eligibility must be U-M employee for six months)

• To learn more or to donate, go to: emergencyhardship.umich.edu

Closing/Reminders

1. Review information on the website 2. Call the Shared Service Center

Contact Center if you have questions3. Check your benefits summary on self-service4. Complete Flexible Spending Account form and

return to the address on the form5. Read all U-M communications6. Maintain your current address on Wolverine

Access

Congratulations!

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