Grundy Reporter

University of Illinois Urbana-Champaign Senate Committee on Faculty and Academics Staff Benefits met Feb. 10.

Here is the minutes provided by the committee:

Present: Chair David Lange, Jennifer Bergmark, Piper Martin Ex officio: John Kindt, Mark McGiles, Katie Ross, Deb Stone, Brent West, H.F. Williamson, Karie Wolfson

Absent: Justin Kern, John Prussing, Francis Thomas Ex officio: Larry Curtis

Guest:Wendy Doebel (Senior Coordinator, Human Resources Administration), Kim Nystrom (benefits eligible employee)

A regular meeting of the Senate Committee on Faculty and Academic Staff Benefits (FB) was called to order at 10:00 am with Chair Lange presiding.

I.APPROVAL OFMINUTES

The minutes of the December 9, 2019 meeting were approved as distributed.

II.PUBLIC COMMENT

Kim Nystrom, benefits eligible employee, shared her concerns with the self-managed retirement plan (SMP). She noted that the plan vendor for the self-managed plan is changing to Voya; however, no information has been sent to those employees who will be impacted by this change. Ross noted that information regarding the specifics of the change to the new vendor has not been received from SURS, but it will be shared with employees as soon as it is available.

Nystrom also noted that although she will have worked for 30 years, her SMP benefit will be in the neighborhood of 40% (rather than the 60%+ that she believes participants in the Tier 1 Traditional plan would receive). Nystrom is concerned there might be a disparity between SMP and Tier 1 Traditional SURS benefits. Ross commented that there are inherent differences between the Tier 1 Traditional (defined benefit, based on a formula) and SMP (defined contribution, with benefit based on investment performance), and the SMP is dependent on performance of the investments selected by the employee and market conditions.

Ross noted that a much greater variance exists between an annuitant in Tier 1 versus Tier 2. At higher salary levels, all things being equal, a Tier 2 Traditional plan annuitant could receive around 30% of the benefit that a similarly situated Tier 1 Traditional plan annuitant would have received. However, at lower salary levels, not as great of variance would exist. This is one reason why it is extremely important for new hires to examine the SURS options available to them and make the best decision for their own circumstances (considering age, salary, length of time to retirement, expected length of time with a SURS employer, risk tolerance, level of investment knowledge, etc). A helpful chart is at https://humanresources.illinois.edu/assets/docs/SURS-choice-CHART-FY20.pdf

FB questioned the percentage of employees in each of the retirement plans. Ross shared the following estimates:

Tier I – 60% traditional, 25% portable, 15% SMP

Tier II – 50% traditional, 30% portable, 20% SMP

Chair Lange noted the retirement plan decision is irrevocable and must be made during the first six months of employment at the University. Ross commented that the irrevocability is per State of Illinois law.

Chair Lange noted Angela Lyons, Associate Professor of the Department of Agricultural and Consumer Economics, will attend the next meeting to discuss how individuals approach retirement decisions and how institutions should communicate the complex considerations to its employees.

III.CHAIR’S REMARKSNo remarks.

IV.OLD BUSINESS

FB.20.01, Review Bylaws, Part D.11 – Committee on Faculty and Academic Staff Benefits

Chair Lange noted that a draft proposal will be prepared for discussion at the next meeting.

V.NEWBUSINESS

FB.20.02, Behavioral Economics of Retirement Planning

Angela Lyons, Associate Professor of the Department of Agricultural and Consumer Economics, will attend the March meeting to discuss this issue.

VI.UPDATE FROM SURSMAC REPRESENTATIVES

Copies of the written report from Williamson were distributed. Williamson reported that the report on the fall SURSMAC meeting is included on today’s Senate agenda.

VII.UPDATE FROM UNIVERSITY PAYROLL AND BENEFITS

No update.

VIII.UPDATE FROM STATE UNIVERSITIES RETIREMENT SYSTEM

Copies of the report that Williamson obtained from Larry Curtis were distributed. It was also shared that Curtis has commented that he will attend FB later this semester to discuss the upcoming implementation of the redesigned Self-Managed Plan.

IX.UPDATE FROM THE OFFICE OF THE PROVOST

Stone reported that the Office of the Provost has begun to research benefits offered at other institutions, such as drop-in care for sick children or older parents.

X.UPDATE FROM FACULTY STAFF ASSISTANCE SERVICES(FSAS)

Wolfson updated FB on the following:

•FSAS continues to work to increase visibility of the services that are offered.

•A recent email from the Office of the Chancellor concerning the coronavirus included FSAS as an information source. A link from C-U Public Health will be added to the FSAS website to provide the most up-to-date information regarding the coronavirus.

XI.UPDATE FROM ASSOCIATE VICE PRESIDENT FORHUMAN RESOURCES

Ross distributed copies of the HR/Benefits: Current Topics & Events document and gave an overview:

•The dates for the dependent eligibility audit have changed to March 3-April 25, 2020. The audit is intended to identify non-eligible dependents who are still receiving benefits. Employees must respond with the required documentation of their dependents will be dropped from insurance coverage.

•Open enrollment for the supplemental long term disability plan (LTD) will be February 24-March 13. A 15% rate decrease will be effective April 1, 2020 for current employees enrolled in the plan.

State Claim Payment Delays as of February 5, 2020

QCHP – Aetna11/18/20193 months

HealthLink OAP11/18/20193 months

Aetna OAP11/18/20193 months

QCDP PPO/Premier10/27/20194 months

QCDP Non-network07/14/20197 months

Ross distributed copies of the Benefits Watch List document and gave an overview:

•HB4526 – Would remove the seven year waiting requirement for children of employees to be eligible for a 50% tuition waiver for undergraduate education.

•SB471 – Would provide sick leave for those employees who are not currently eligible for sick leave (e.g., extra help employees).

•HB4091 – Would shift the entire employer retirement cost from the State to the University.

•SB2795 – Would allow required minimum retirement distributions to be pushed out to age 72 and would address some SURS provisions due to the new federal law (Secure Act).

•HB4594 – Would allow employees to opt-out of SURS.

XII.UPDATE FROM THE UIUCCHAPTER OF THE STATE UNIVERSITIES ANNUITANTS ASSOCIATION

Copies of the written update from Williamson were distributed. Williamson reported that the spring Chapter meeting will be held on the afternoon of Sunday, April 19 at the I Hotel.

XIII.UPDATE FROM THE COUNCIL OF ACADEMIC PROFESSIONALS

West updated FB on the following:

•The residential MBA program has been suspended and the online iMBA program is exempt from the tuition waiver for employees which has resulted in a loss of that benefit for employees wanting to pursue a MBA. It was noted that any cost recovery and self-supporting programs are not included in the tuition waivers.

XIV.ADJOURNMENT

The meeting was adjourned at 11:40 am.

https://uofi.app.box.com/v/FacultyAcademicStaffBenefits/file/631532331212