Flexible Compensation Benefits Committee

Wednesday, October 15, 2003

3:00 pm

103B Seretean Wellness Center

 

Members Present:  Blackburn, Cooper, Fox, Hare, Harrison, Hunt, Lehenbauer, Raff, Reed, Shull, and Stromberg

Members Absent:  Morris and Poole     

Ex Officio, Ad Hoc Members and Guest:  Oehrtman, Payne, and Dalton

 

 

Terry Lehenbauer called the meeting to order.

 

1.         The agenda was approved.

 

2.         A draft of the September minutes was distributed.  A motion to approve the minutes was made and seconded.  Motion was approved.

 

3.         Update from HR  -  Life Insurance RFP Process  -  The best bids were from ING and Hartford, both had guaranteed rates for 3 years.  This eliminates some risk for OSU.  The rate recommendation for OSU was 0.29 and ING’s recommendation is 0.27, with a possibility of a 2 year extension.  OSU accepted a rate of 0.28 which includes active and retired employee benefits, with retiree coverage being increased to $6,000.  ING’s bid was the best one.  The new plan is broken down between spouse/or children, not altogether.  Living Benefit is part of the package (less than 12 months to live the covered person can take ½ of the face value up to $150K).  In regards to portability, one could continue optional coverage upon termination with OSU at the group rate.  Lehenbauer commended the committee on their intensive work schedule over the short period of time they had to make the selection.  Notification to employees will be done by News You Can Use and meetings with the vendor.  Hare asked if the premium is pre-tax on family coverage, Dalton said he would check to be sure.

What can we do to increase retiree coverage?  The recommendation/justification for this is that the last time the coverage was increased was in 1979.  A revised document on this recommendation has just been completed and will be forwarded to Dr. Bosserman. 

            The cash conversion (health insurance) question was raised again - - asking when we would have the Big 12 Comparative Data.  Dalton said that we should have it within the next month or two.

            Additional options for Dental Plans  -  Dalton said he didn’t know if this question had been answered by OSEEGIB but we would find out for next months meeting.

            Holiday Schedule  -  The University will remain open on December 22, 23 and January 2, with as many people as possible being on Annual Leave if they wish, as long as departmental coverage is maintained.  In the future, a committee made up of Dr. Bosserman, two faculty, and two staff will determine the University’s total Holiday Schedule three years in advance.  This will include a total of 12 paid holidays.  Lehenbauer made mention that we need this information to be available as soon as possible for people to make holiday plans.

            FLEX & LTD Option period should start soon.  The Health Choice option period ends tomorrow.  Cooper asked if we could have information on the number of people that dropped health insurance for the 50% conversion rate.  Dalton said that we may not have final numbers but we could have preliminary information.  Payne asked how we would be notified of the option period for Flex and LTD.  Dalton said that we would be sent a letter to our department.  He also said that we would have the option of enrolling on Web for Employees.

 

4.         Retirement Task Force  -  Still working on the Final Report.

 

5.         Cafeteria Plan Task Force  -  Oehrtman reported that the Task Force’s initial charge was presented at the November, 2001 meeting and accepted by the full committee.  But we have not been able to locate the charge in hard copy. 

            Raff met with the Faculty Council’s Retirement & Fringe Benefits Comm., as requested, and asked them to send forward a recommendation to pass all the items that would net a savings or be cost neutral.  After he left the meeting, they voted and passed a recommendation to bring forward all recommendations.  At the Faculty Council meeting yesterday, the recommendation was tabled.

Lehenbauer asked if it would be advantageous for us to do an RFP for Work Site Benefits (a package of our present benefits but from one vendor to see if we could achieve a savings).  This idea was supported by several at the table.  Fox said that perhaps the Cafeteria Plan Task Force could recommend that we roll all that they are working on into one RFP.  Oehrtman said that some items may lend themselves to this but not all, too many apples and oranges.  For example, Long Term Care is far too different with far too many options. 

Lehenbauer asked if we could have cost estimates on recommendations from the Cafeteria Plan Task Force by the end of the year or early next year.  Oehrtman said he didn’t know if this was possible or not, but perhaps with some help we could have some numbers.

 

6.         Old Business  -

 

TIAA/CREF  -  Lehenbauer asked about progress in the area of electronic transfer of funds.  The TIAA-CREF imposed requirement for electronic transfer of funds to utilize additional retirement investment options was an interpretation of SEC regulations by TIAA/CREF executives.  To solve this problem, OSU can work with SNB and make some procedural changes in accounting to do a wire transfer to TIAA/CREF to make it quicker.  Now we need to choose which funds we would like to be added to OSU’s choices.

            Since we can now expand offerings with TIAA/CREF, do we now want to expand Investment Solutions offerings with TIAA/CREF?  No one was opposed.  An interest in offering options beyond TIAA/CREF was also expressed.  Lehenbauer said that we should establish a Task Force to determine what these options should be.  Raff suggested that we ask Prof. Westhaus since he has shown interest in this area.  Hunt moved that we establish a new Task Force as Lehenbauer suggested and Hare seconded.  The motion passed.  Others that suggested or volunteered to be members were as follows:  Hunt, Payne, Shull, Simpson, Westhaus, Fox, and Kletke.  Lehenbauer will work with Dr. Bosserman to get this established.

 

7.         New Business  -

           

Investment Fairs  -  Shull relayed from the Retirement Fringe Benefits Committee of Faculty Council that we currently don’t have enough opportunity to obtain information.  Perhaps retirees could assist.  Oehrtman said he would be leery of recommending - -  perhaps provide objective information, what different topics or services mean.  Lehenbauer said that perhaps we could use Wellness programs as a model for financial seminars.  Lehenbauer will visit with administration and we will have this item back on the agenda next month. 

 

8.            Announcements/additional items -

 

Raff said a survey is being developed to poll faculty/staff about priorities for new monies, budget, and just general questions.

 

Removal of the 1600 hour cap on sick leave was not accepted.  HR will continue to track for OTRS purposes. 

 

            Maternity/Family Leave Recommendation  (Use of up to 5 days sick leave for adoption and for new fathers.)  -  Still pending, a written response is being developed.

Meeting adjourned.     

 

Future meeting dates -

            November 19th

            December 17th