Employees enrolled in OSU’s TIAA-CREF group retirement plan should watch campus mail for a packet from TIAA-CREF announcing new investment opportunities. This packet should arrive later this month. These new investment opportunities will also be available to employees who contribute voluntarily into TIAA-CREF’s 403(b) Supplemental Tax Deferred Annuity plan and/or their 457(b) Deferred Compensation plan. Once the packet is received, changes can be made according to the instructions and literature in the packet.

OSU’s Flexible Compensation Benefits Committee recommended adding the nine new mutual funds after a diligent study of TIAA-CREF’s investment opportunities. The new funds will broaden possibilities for OSU employees who participate in the OSU retirement plan. The committee recommendation and a list of the new nine accounts, together with the current ten accounts, can be found on the web at www.okstate.edu/osu_per/benefits/hccminutes/comreports.htm. TIAA-CREF currently limits institutions to a total of nineteen accounts; however, they anticipate that more investment choices will be possible toward the end of this year. As usual, employees will have the option of moving existing contributions, or allocating future contributions to any or all of the nineteen funds.

The Flexible Compensation Benefits Committee continues to review additional investment possibilities to ensure OSU employees have flexibility in investing funds for retirement.

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OSU, in a cooperative effort with OU, is continuing to pursue legislative changes in OTRS. HB2226, introduced by Representive Ingmire, and endorsed by Senator Morgan, is available for review on OSU’s website at www.okstate.edu/osu_per/retadd.htm.

While many changes may occur as the bill progresses through the legislature, the primary objectives of this legislation are:

• Make OTRS optional for current OSU/ OU OTRS members and cease
participation for new hires from the com- prehensive universities.

• Change the benefit formula to achieve a more equitable outcome upon retirement for employees of OSU/OU who became members of OTRS before the gradual uncapping began in 1995.

OSU, OU, and OTRS are committed to ensuring that OTRS is financially sound, so an actuarial study has been commissioned to determine the financial impact of these requested legislative changes. OSU and OU recognize that our institutions must bear our fair share of the cost of the unfunded liability if this legislation were to become enacted. The comprehensive universities have current retirees enjoying OTRS benefits and will have future retirees. The financial security in retirement for these and other members of OTRS is a priority for any changes.

You may recall that the retirement subcommittee of the Flexible Compensation Benefits Committee gave presentations last spring about retirement issues and shared information about the committee’s study and recommendations. A copy of these presentations can be found on the website mentioned above. This work is the foundation for the legislative effort.

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OSU offers two voluntary programs that give all employees, including students and temporary employees, the opportunity to set aside money toward retirement. You decide how much money to contribute within the guidelines for each program. These contributions will be deducted from your paycheck and remitted to eligible investment sponsors of your choice. Your contributions and earnings grow on a tax-deferred basis until withdrawn. The chart below shows the maximum annual contributions for each program.

The limits increased for calendar year 2004. If you are an employee who likes to contribute at the maximum level and have not yet increased your contributions, you can still increase to the maximum level by increasing the monthly amount for the remainder of 2004. Forms received before the first of March will be processed in the March payroll.

Please check your January 2004 payroll advice to ensure that the appropriate amount was withheld. If you were hired in 2003 or had an end date on your salary reduction agreement in 2003, you may want to complete a new agreement.

Additional information about the 457(b) Deferred Compensation Plan can be found at www.okstate.edu/osu_per/benefits/by457b.htm and information about the 403(b) Supplemental Tax Deferred Annuity program can be found at www.okstate.edu/osu_per/benefits/bysuptda.htm. The list of eligible investment sponsors is included as well as a link to each Salary Reduction Agreement within the website.

You are welcome to call Employee Services, (405) 744-5449, if you still have unanswered questions.

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The OTRS retirement benefits formula varies depending upon when OTRS membership began and the contributory compensation base upon which contributions were made. If you are interested in understanding more about the benefits formula, you may want to read again the July 2003 News You Can Use article explaining the OTRS formula. In addition, the October 2003 OTRS Trends Newsletter explains the differences in the benefit calculations for K-12 and Career Tech, and OU/OSU. Links to these publications can be found on Human Resources retirement website at www.okstate.edu/osu_per/retadd.htm.

OTRS welcomes questions and comments and they can be reached at 1-877-738-6365. As employees approach retirement age, it is advisable to contact OTRS for counseling and request a personalized calculation projecting retirement income based on your anticipated retirement date.

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Watch for the 2003 Total Compensation Statement in your campus mail this month. This statement illustrates all pay for calendar year 2003 as well OSU-paid benefits information. In addition, it confirms your current amount of life insurance coverage and the 2004 benefits enrollment elections effective as of January 31, 2004.

All continuous regular employees working .75 FTE or more who received pay in 2003, except those with federal benefits, should receive this statement.

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Cunningham Lindsey, OSU’s third party workers’ compensation claims payor, has changed names. RSKCo Services is the new name for the same great service as provided in the past. The telephone number to check on the status of a claim is also the same, 800-890-8975.

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Three companies responded to OSU’s Request for Proposal for a voluntary long-term care insurance policy for employees. Segal Company, a nationally known benefits consultant, is working with a committee of faculty and staff to review the proposals to determine which one is most desirable for OSU employees and their families.

OSU plans to make voluntary long-term care insurance available this July 1 and hopes to announce the selected plan prior to the Benefits Fair on April 6 and 7. Information will be available in ample time for employees to enroll prior to the end of the spring semester.

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All death claims should continue to be reported to OSU Employee Services, (405) 744-5449, even though OSU’s life coverage is now with ING Employee Benefits. Employee Services will assist the family during this time of grief by making the claims process as easy as possible.

Although American Fidelity no longer provides OSU’s group coverage, employees on long-term disability who had life waivers in effect as of December 31, 2003, will continue to be covered by American Fidelity. Life waivers that become effective during 2004 will be with ING Employee Benefits.

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Do you have an HRStar Performer in your department? Because every department on campus uses HRS (Human Resources System database), it is important to have at least one individual in each department who is trained to understand the functions of the system. The HRStar Performer program provides that training. It consists of four classes that are between 2-3 hours each. By attending all classes, participants receive a certificate indicating their achievement in becoming an HRStar Performer. There is no cost for these classes.

For enrollment information, you may download an enrollment form from the web www.okstate.edu/osu_per/, or call Training Services at (405) 744-5374.

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Have you had a change in marital status? Did you have enough federal and state taxes withheld? You can download a W-4 form from the Human Resources website at www.okstate.edu/osu_per/docfiles/w4.pdf.

Remember: W-4 forms claiming "exempt" expire every December 31.

Please note that changing your marital status on your W-4 does not change your marital status on the Human Resource System at OSU. Use Web for Employees, http://prodhosu.okstate.edu/, or download a Personal Information Form, www.okstate.edu/osu_per/docfiles/docfiles.htm. Call Employee Services, (405) 744-5449, for assistance.

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We need your employee identification number when you register for training classes to ensure that we maintain current contact information and bill the correct department.

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TIAA-CREF will make an additional visit to the Stillwater campus on March 9 and 10 for employees interested in discussing personal financial situations. They will also return on April 6 and 7 during the Benefits Fair. If you would like to schedule a one-one-one appointment, please call Antoinette with TIAA-CREF at 1-800-842-2006.