BENEFITS OPEN ENROLLMENT UPDATES

1
BENEFITS OPEN ENROLLMENT UPDATES

• 2005

2
OPEN ENROLLMENT

• November 1st through November 30th
• Changes to your medical, dental, life insurance
• Participation in the FSA program for 2005
• If you are not making changes, no forms need to
  be completed during open enrollment
• Changes effective January 1, 2005
• DEADLINE November 30, 2004

3
LIFE INSURANCE

• All employees receive basic life insurance equal
  to 1X base salary up to 150,000.
• Effective January 1, 2005
• Total basic and supplemental insurance is
  increasing from 450,000 to 750,000
• Elect 1X, 2X or 3X your basic
• Evidence of insurability is required if
  increasing more than one level
• Rates are guaranteed through June 30, 2005

4
DEPENDENT LIFE INSURANCE

• New voluntary benefit offering
• Effective January 1, 2005
• Coverage
• Spouse/domestic partner - 10,000
• Children from 1 to age 19 (23 if full time
  student) - 5,000
• Children from 14 days to 1 year - 500
• Cost 1.62/paycheck
• Rate is the same if covering a spouse or a spouse
  with children
• Evidence of insurability is not required during
  this initial enrollment

5
FLEX CONVENIENCE CARD

• Enhancement to FSAs and Commuter Reimbursement
  Programs effective January 1, 2005
• FSAs - 8,000 for Health Care 5,000 for
  dependent care
• Reimburse yourself with tax-free dollars for
  health and dental care expenses for you and your
  spouse not reimbursed under the medical or dental
  plan (e.g., co-payments, deductibles)
• MasterCard debit card saves you time and money
• Utilize at authorized merchants to pay for
  eligible health care and dependent care expenses
• FSA is debited by the amount of the expense and
  the provider is paid directly from your FSA
  funds
• You no longer have to complete a claim and wait
  for a reimbursement check
• STILL MUST KEEP YOUR RECEIPTS SINCE THIS IS STILL
  GOVERNED BY THE IRS.

6
FLEX CONVENIENCE CARD

• Reimburse yourself with tax-free dollars for
  commuting and parking expenses for yourself only
  to commute and/or park for employment purposes
• 100/month for commuting 195/month for parking
• MasterCard debit card saves you time and money
• Utilize at authorized merchants to pay for
  eligible commuting and parking expenses
• Account is debited by the amount of the expense
  and the provider is paid directly from your
  available funds
• You no longer have to complete a claim and wait
  for a reimbursement check
• STILL MUST KEEP YOUR RECEIPTS SINCE THIS IS STILL
  GOVERNED BY THE IRS.
• If you utilize the debit card, can also set aside
  money on an after-tax basis (this feature is
  not available if you reimburse yourself through
  the claims process

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SUPPLEMENTAL RETIREMENT CONTRIBUTIONS

• For 2005 can contribute up to 14,000
• Additional catch up contributions
• 4,000 if age 50 or over
• 3,000 if employed full time 15 or more years
• Must verify with TIAA-CREF to determine
  eligibility
• Separate package being sent interoffice
• If you are changing your contribution for 2005,
  must submit forms by November 30, 2004
• Changes are effective January 1, 2005
• If you wish to continue your current
  contribution, no additional paperwork is needed

8
DENTAL PLAN

• Delta Care NY and NJ premiums are not
  increasing in 2005 rates have remained status
  quo since implementing with Delta Dental in 2002.
• Delta Dental POS
• Premiums increasing 9 from negotiated 25
• Individual coverage - 10.42/paycheck pre-tax
  savings

9
Review of Medical Plan Changes Effective January
1, 2004

• Increased co-payments from 10 to 15 with
  subsequent 5 increases every 4 years
• Implemented a three tier Rx program at
  10/20/30 with subsequent 5 increases every 5
  years
• Implemented a premium cost sharing for individual
  coverage based upon an inflation-indexed formula
  for employees hired prior to January 1, 2004
• Implemented a 15 premium cost sharing for
  individual coverage for employees hired after
  December 31, 2003

10
Medical Plan Premiums

• Effective January 1, 2004, participants in the
  following HMOs were contributing towards
  individual coverage
• HealthNet HMO - Aetna NY HMO
• Blue Cross/ - HIP of NY HMO
• Blue Shield HMO
• Contributions for individual coverage ranged from
  1.22/paycheck to 4.89/paycheck
• Only applicable to employees hired prior to
  January 1,2004
• Employees participating in Oxford HMO and
  HealthNet POS were not contributing to individual
  coverage since the premium decreased due to the
  changes made to medical service co-payments and
  the implementation of a three tier Rx structure

11
Medical Plan Premiums

• Inflation-indexed formula is
• Current monthly University premium contribution
  for individual coverage Consumer Price Index
  (CPI-U) 50 of the medical plan increase over
  CPI.
• The CPI-U for September 2004 for NY/NJ/CT was
  3.2.

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Medical Plan Premiums

• 2004 HealthNet POS Premium 456.82
• HealthNet POS Premium 500.82
• Premium Increase 9.5
• Increase over CPI 9.5 - 3.2 6.3
• 50 of Increase over CPI 6.3 50 3.15
• University Increase Share 3.2 3.15 6.35
• Employee Share 9.5 - 6.35 3.15
• 2005 University Monthly Contribution 456.82
  6.35 485.83 per month
• 2005 Employee Monthly Contribution 500.22 -
  485.83 14.39 per month or 7.19/paycheck

13
Medical Plan Premiums

• Employee Pre-tax Deduction Per Pay Period for
  Individual Medical Coverage
• Aetna New York HMO 10.93
• Blue Cross Blue Shield HMO 10.81
• HealthNet HMO 9.62
• HIP of New York HMO 9.06
• Oxford HMO 4.18
• HealthNet POS 7.19
• Contributions are withheld before taxes Can save
  up to 43 in federal taxes
• University is continuing its commitment towards
  65 contribution for family coverage
• HealthNet POS Employee 1 161.32 Family
  Coverage 218.84

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Open Enrollment

• November 1st through November 30th
• Last paper election
• Will receive an email acknowledgement when forms
  are received and an additional confirmation when
  forms are processed
• Drop off enrollment boxes are at each campus
• November 30, 2004
• Contact University Benefits at X22763 or e-mail,
  benefits_at_pace.edu

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QUESTIONS