EMPLOYEE BENEFITS REFRESHER

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EMPLOYEE BENEFITS REFRESHER
Ministry Days June 12, 2007
Presented by Krissa Hilger Employee Benefits
Coordinator Diocese of Winona
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Benefit Eligibility

• Benefits should to be offered to any lay employee
  scheduled to work 20 or more hours per week or
  who carries a minimum of one-half load during the
  academic year.
• Benefits begin on the date of hire, with the
  exception of health/dental insurance.
  Health/dental insurance is effective the 1st of
  the month following commencement of employment.
• Employees must be a minimum of 21 years of age to
  participate in the 403(b) pension plan and the
  flexible benefits plan. No age limits exist for
  other benefits.

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Timing of Benefit Enrollment

• Upon hire, eligible employees need to either
  enroll in or waive coverage, for all diocesan
  benefits they are eligible for, within 30 days of
  beginning employment.
• Flex Plan The plan year is July 1 to June 30.
  Re-enrollment occurs every July 1st. Employees
  cannot make changes to their flex plan election
  during the plan year, unless there is a change in
  family status.
• Lay Pension 403(b) The amount of employee
  contribution can be changed at the beginning of
  any given month.
• Health Insurance Employees may drop or add
  coverage at the beginning of any month during the
  year, however, they cannot change the associated
  flex plan deduction unless there is a change in
  family status.
• Health Insurance Employees wishing to change
  deductible plans may only due so on September 1st
  annually.

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BENEFIT BILLINGS

• Flex and 403(b) pension are billed one month in
  arrears.
• Insurance - health/dental, life, ADD, and
  disability are billed one month in advance.
• EXAMPLE
• Billings you receive on or about July 1
• June 403(b) pension contribution
• June flex deductions
• July insurance

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BENEFIT BILLINGS

• Changes that you want to occur on the next
  billing must be received by the 20th of the
  month.
• Billings are mailed prior to the 1st of the
  month.
• Payments must arrive at the Pastoral Center by
  the 10th of the month.
• 403(b) pension payments received after the
  deadline force your employees to lose one month
  on their investment.
• Please send copies of the billings along with
  your payment.

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403(b) PENSION

• Contributions
• Employer Employee Employer Match
• 3 0 0
• 3 1 1
• 3 2 2
• 3 3 or more 3

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403(b) PENSION

• Employees may contribute a maximum of 15,500 in
  2007.
• If the employees annual salary is less than
  15,500 then the maximum contribution for that
  employee in 2007 is their annual salary.
• If the employees age is 50 yrs or greater and
  their annual salary is more than 15,500, the
  employee may contribute up to an additional
  5,000 in 2007 under the catch-up provision,
  for a total maximum contribution of 20,500.

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403(b) PENSION/Termination

• Refund/Distribution of account
• Rollover to another carrier/account
• Paid-up status

• Employee is always 100 vested in their own
  contributions.
• Employees entitlement to Employer contribution
  and Employer Match is based on years of service
• 1 yr 20
• 2 yrs 40
• 3 yrs 60
• 4 yrs 80
• 5 or more yrs 100
• Any unvested balance is returned to the employer.

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Flexible Benefits Plan

• July 1, 2007 - Third Party Administrator will
  handle claims processing
• Corporate Health Systems Twin Cities based
• Plan benefits and limits to remain the same
• Checks issued weekly on Wednesdays claims
  deadline is the previous Wednesday
• Direct Deposit is available
• Fax claims confidentially
• On-line account access for participants
• Flex billing will remain the same monthly
• Administrative fee to employer 1

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Health Insurance Renewal 9/1/07

• Rates will increase approximately 6
• Second year of only single digit increase 8
  last year
• Medical trend in SE MN is 11-12 this year
• Finalized rates will be announced in July
• Employees can change deductible plans at renewal
  9/1/07

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Health Insurance Changes 9/1/07

• Fitness Center Discount
• Participants must have 12 visits per month to
  receive the monthly 20 discount
• Previously was 8 visits

• Dependent Definition
• Unmarried child to the age of 25
• Full-time student status is no longer required

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Health Insurance Changes 9/1/07

• Preventative care benefit will be enhanced
• Currently at 350 per calendar year
• Changing from an annual dollar limit to a
  frequency model of preventative care
• Eligible preventative care services are paid at
  100, no deductible applies
• Includes preventative medical exams, cancer
  screenings, immunizations, and certain lab tests

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Retirees

• Early retiree Retiring employee, with at least
  five years of service, who is age 62-65
• Early retiree can stay on regular insurance plan
  through age 65, paying full monthly premium
• Retiree Supplemental Health Insurance for
  retired or retiring employees age 65 and older

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Retiree Supplemental Health Ins.

• Two parts to the supplemental policy
• BCBS Senior Gold is a supplement to Medicare
  Parts A and B no deductible and usually pays
  100 of the bill after Medicare pays its portion
• BCBS Medicare BlueRX is a Medicare Part D
  plan prescription drug 3-tiered co-pay plan -
  5, 15, or 35 for a 31 day supply
• Retiree must be enrolled in Medicare Parts A B
  to be on this supplemental health plan

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Retiree Supplemental Health Ins.

• Retiree supplemental plan also includes the
  current Delta Dental coverage
• Calendar year 2007 310 monthly premium
  includes
• BCBS Senior Gold
• BCBS Medicare BlueRX
• Delta Dental
• Premiums billed to local parish/school
  parish/school collects from retiree

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Handouts

• Employee Benefits Guide
• Health Insurance Books
• Retiree Health Information
• FLSA Exempt Status Requirements

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Questions . . . .