MEMORANDUM
DATE:
June 24, 2002
TO:
David Peters, Chair, Flexible Compensation Benefits Committee
FROM:
Harry Birdwell
SUBJECT:
Retiree Life Insurance Recommendation
Thank you for
the recommendation from the Flexible Compensation Benefits Committee of May 24,
2002, regarding an increase in life insurance (to $10,000) for employees who
retire after July 1, 2002.
The insurance
program is an OSU/ A&M plan that covers all employees and retirees within
the OSU/A&M system. The recommendation has been discussed with the
OSU/A&M fiscal officers of the institutions that would be affected by the
change. The decision was made to table any recommendations at this time and
review again in the fall. While several fiscal officers were supportive of the
recommendation, the status of the budget for fiscal year 2003 is still
uncertain. Several thought that any increase in benefits during a time of
decreasing budgets would be misleading to employees and the public. In addition,
the fiscal officers asked for additional cost information. This included the
cost of an increase to $6000 and $8000 in addition to the previous estimate for
$10,000 life insurance and cost for individual institutions to make a change
versus the entire system.
I anticipate discussion will continue this fall. If you have any questions,
please let me know.
HB:gv
cc: Anne Matoy
Office of
VICE PRESIDENT FOR BUSINESS EXTERNAL RELATIONS
206 Whitehurst
405-744-5982
FAX 405-744-6423