The University Senate of Michigan Technological University

Minutes of Special Meeting:
Fringe Benefits Presentation

3 April 2013

Summary: Presentation on Benefits Update for CY2012 and Benefit Plans for CY2013 and Beyond by Ellen Horsch (Administration) and Renee Hiller (Benefits Office)

Since this was a presentation sponsored by the university Senate but not an official Senate meeting, roll call was not taken, the agenda not approved, not previous minutes approved.

President Bulleit started the meeting at 5:30pm and announced the speakers.

1. Presentation: Benefit Update for CY2012 and Benefit Plans for CY2013 and Beyond by Ellen Horsch and Renee Hiller, Benefits Office. slides

Main topics included were a CY12 health care update, a legislative update, and the 3-year health and wellness roadmap overview.

It was pointed out that health care expenses are rising over the years. The differences between the PPO and HDMP were explained. Cost drivers include our high number of dependents, our remote location, and lower employee premiums than other institutions. Cost-controlling factors are good purchasing, good health status, and good behaviors.

Regarding Legislation, various aspects of the Affordable Health Care Act will be enacted in stages. Various aspects were talked about as follows: MTU can’t pay more than 80% of total health care cost. We had to report the value of health care plan. We had to reduce flex spending to half of what it was. We will have to offer health care for more employees who work over 30 hours per week and offered to at least 95% of FTEs. We also must give a minimal value of health care and make it affordable and employer must pay at least 60% of health care costs. It is difficult to plan since the Federal health care guidelines keep changing.

Regarding a Roadmap for the future, it was pointed out that the administration will keep monitoring eye and dental with these other insurers, the PPO option will be eliminated in 2014, review the opt-out amount for health care, the stop-loss and retiree health care strategy. The target for health care expenditures will be $15.5M for 2014. A new benefit that has been added is the Employer Assistance Program for counseling. Other issues discussed are smoking cessation programs, how the W-2 health care amount was calculated, and employees with other coverage.

Next, the Senate Fringe Benefits Committee presented regarding the recent benefits survey. slides The committee will send out a summary and maybe post on the senate website. It was pointed out that there was a 64% response rate consisting primarily of staff with about half of the respondents having worked at MTU for less than 10 years. 75% are covered by health care. 34% earn less than $60,000. Respondents like using sick time to take care of family, valued MSPERS and want it re-established. 66% value salary and benefits equally. 56% thought that benefits are very important, while 48% said salary was important. 54% have delayed health care due to rising costs. 76% have had a physical. Most want lower deductible and co-pays, HSA and free access to the SDC. Many don’t like the loss of sick time, paying for parking, and the lack of raises. Many requested free tuition for employees and increasing the opt-out amount. Not many wanted any benefits removed. Ideas on how to improve included keeping the PPO, exercise incentives, and lower deductibles. The committee recommended that the administration use these results, survey and educate employees.

8. Adjournment.

President Bulleit adjourned the meeting at 7:30pm.

Respectfully submitted

by Brian Barkdoll

Secretary of the University Senate