HR Update; November 9, 2007
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In this Edition
- 2008 Maximum Annual Contribution (MAC)
- UC Retirement Readiness Education Programs
- Benefits: Open Enrollment 2008
- Peace of Mind for UC Business Travelers
- UC Living Well
- Selecting the Best Health Benefits for You and Your Family
2008 Maximum Annual Contribution (MAC)
Limits Remain Unchanged
- 403(b) Tax-deferred Savings Plan:
- 2007 Final (current year) Contributions: 403(b) changes/enrollments are subject to payroll deadlines. There’s still time to make changes for the one remaining paydate this year-November earnings paid November 30, 2007. If you submit changes before the payroll cutoff for the November 30 paydate, your final 2007 contribution should show up on your November earnings paid on November 30, 2007.
- 2008 MAC: $15,500 (or $20,500 if age 50 (or older) during plan year 2008)
- 2008 Contributions: To submit an action to begin/change 403(b) contributions on your January 1, 2008 paycheck, do so after receiving your November 30, 2007 paycheck-but before the payroll cutoff for the January 1, 2008 paydate-and your revised contribution amount should be reflected on your December earnings paid on January 1, 2008.
- 403(b) Summary Plan Description (click here)
- 457(b) Deferred Compensation Plan:
- 2007 Final (current year) Contributions: 457(b) changes/enrollments must be submitted during the month prior to the month in which they are to become effective-see “2008 Contributions” below.
- 2008 MAC: $15,500 (or $20,500 if age 50 (or older) during plan year 2008)
- 2008 Contributions: If you submit your enrollment/changes for the 457(b) plan during the month of November 2007, your new contribution amount should be reflected on your December earnings paid on January 1, 2008.
- 457(b) Summary Plan Description (click here)
- UC Retirement Savings Programs: FITSCo (Fidelity Investments Tax-exempt Services Company) provides record keeping services, account access, and educational workshops/materials. Login online (24/7) at (http://netbenefits.fidelity.com) or call them at 1.866.682.7787 to enroll/submit your changes. Online you will also find some powerful retirement planning tools.
- You need not worry about over-contributing-the UCSF Payroll System monitors your contributions and automatically stops them when you’ve reached your MAC, and then automatically re-starts them again the following tax-year. For the Flat-dollar method-be sure to enter the monthly contribution amount.
- Review your 457(b) and/or 403(b) monthly contribution amounts. Plan rules and Payroll deadlines/dates apply. You are able to enroll/submit changes to these plans at any time-UC Retirement Savings Programs are never included as an Open Enrollment option.
- Find FITSCo’s schedule for local presentations (click here) at our local UCSF HR/Benefits website-Workshops & Presentations menu.
2008 FICA Tax Rates
- Social Security/Medicare tax rates for 2008:
- OASDI*: 6.2% on wages up to $102,000-OASDI wage base
- *Old Age, Survivor & Disability Insurance
- Medicare: 1.45% on all wages
- OASDI/Medicare taxes are required payroll taxes that are paid by both the employee as well as the employer for those UCRP Members Coordinated with Social Security
UC Retirement Readiness Education Programs
Are your ducks all in a row? Start to plan now-it’s never too early.
- UC Retirement Plan-UCRP
- UC Retirement Savings Plans-403(B), 457(B), and DC Plans
Please pass this on to your colleagues, circulate invitations, post the actual schedules, or otherwise re-broadcast these weekly reminders about our valuable (FREE) education programs for faculty and staff. Bring your lunch; your questions; your spouse/partner. . .
- UC Retirement Plan (UCRP)-UC’s Defined Benefit Plan
- “The Features of UCRP”
- November 15, Mission Center, MCB - 126, 12:00 p.m. - 1:00 p.m.
- Refer to these schedules for details and future workshops
- The Future of UCRP
- UC Retirement Savings Plans-the 403(b), 457(b) and DC Plans
- “Enrolling in Your UC Savings Program”
- November 7, Mission Center, MCB - 126, 8:00 a.m. - 9:00 a.m.
- November 14, Mission Bay, Gen Aud, 8:00 a.m. - 9:00 a.m.
- November 19, Mount Zion, C - 126, 8:00 a.m. - 9:00 a.m.
- “Determining Your Right Investment Strategy”
- Coming Again Soon
- “Achieving a Sound Retirement”
- November 7, Mission Center, MCB - 126, 10:00 a.m. - 11:00 a.m.
- November 14, Mission Bay, Gen Aud, 10:00 a.m. - 11:00 a.m.
- November 19, Mount Zion, C - 126, 9:30 a.m. - 10:30 a.m.
- “Understand the How-to’s of FITSCo’s NetBenefits Website”
- November 7, Mission Center, MCB - 126, 1:00 p.m. - 2:00 p.m.
- November 14, Mission Bay, Gen Aud, 12:00 p.m. - 1:00 p.m.
- November 19, Mount Zion, C - 126, 11:00 a.m. - 12:00 p.m.
- Refer to these schedules for details and future workshops
- Schedule one of these meetings for your department
- Focus on Your Future!
Usually there can be at least one (or more) workshop(s) per week scheduled at various UCSF locations around town. For more details and listings for upcoming scheduled presentations, please refer to our Workshops and Presentations Schedules menus found at our local UCSF HR/Benefits website.
Benefits: Open Enrollment 2008
For Faculty and Staff: November 1st-27th
“Make Informed Choices”
Faculty and staff have until Tuesday, November 27, to visit the Open Enrollment website to consider UC health and welfare benefit plan changes they may want to make for 2008.
It’s particularly important for those currently enrolled in the Definity Health and PacifiCare, medical plans to take enrollment actions during Open Enrollment because their plans will not be available next year. Detailed information about the discontinuation of these plans and options for next year is at the Open Enrollment website.
In addition, details about the following major changes for 2008 are available on the website:
New UC Wellness Program (UC Living Well, administered by StayWell Health Management)
New Behavioral Health Benefits Provider (United Behavioral Health)
New HRA/PPO Medical Plan - CIGNA Choice Fund
Health Care Reimbursement Account (HCRA) - Spending Account Card Merchant Expansion
You need to go to the Open Enrollment website to make any plan enrollment or coverage changes for next year. Actions you may take during Open Enrollment are the following:
- Change to a different medical plan.
- Change to a different dental plan (California residents only).
- Enroll eligible family members in your health plans.
- Enroll or re-enroll in the Health Care Reimbursement Account (HCRA) and/or Dependent Care Reimbursement Account (DepCare). Even if you are currently enrolled in these plans, you must re-enroll to participate in 2008.
- Enroll in the ARAG Legal Plan, or if already enrolled, add family members.
- Opt out of your medical, dental, or vision (employees only) plan, or enroll in a new plan if you previously opted out.
- Change participation in the Tax Savings on Insurance Premiums (TIP) program (enrollment is automatic unless you opt out).
- Taking into account plan changes for 2008, if you are satisfied with your current coverage and do not need to make any changes for next year, you need not take any Open Enrollment action (except for HCRA and DepCare enrollment).
Open Enrollment actions will be effective as of January 1, 2008.
Peace of Mind For UC Business Travelers
The University recently purchased new, more generous business travel accident insurance. As a UC business traveler, you will have coverage worldwide, 24 hours a day, for a wide variety of accidents and services when traveling on official University business. The new carrier, ACE USA, provides insurance products and services throughout the U.S. and around the world.
Some of the benefits this new coverage provides include:
- Emergency medical evacuation - if you become ill or are injured while away from your home campus, ACE will arrange emergency transportation
- Out-of-country medical expenses - if you are overseas and become ill, ACE will cover emergency medical expenses (subject to a $50 deductible)
- Security extraction - if you are in a dangerous situation, ACE will arrange to get you out
- Travel assistance services - if you need to find a hospital, lose your passport, or need financial assistance, call ACE; they can help
This new coverage is provided at no cost to you, but you must register any trip outside of California to ensure coverage for each business trip. To register, go to www.uctravel.org. and click on “UC Traveler Insurance.” Just fill out a short on-line form and you can print your insurance certificate immediately which includes the policy number and 24-hour phone contacts for ACE.
Students are also covered under a new Student Off-Campus Travel Accident Insurance policy with many of the same benefits.
Check the UCSF Risk Management and Insurance Services website for more information or call the office at 476-3460 with your questions. Or contact the Office of the President Risk Services at (510) 987-9832.
UC Living Well
The University is launching a new program in 2008 titled, ‘UC Living Well’. This is a voluntary health management program for employees, retirees, and their family members age 18 and older enrolled in all medical plans except Kaiser. Kaiser currently provides fully integrated wellness resources to its members. StayWell Health Management, a leading provider of health promotion programs and services, will administer the program. For more information about this new UC Wellness Program go to:
http://atyourservice.ucop.edu/open_enrollment/employees/e_wellness.html
You may also want to take advantage of the ’Weight Watchers At Work‘ program at Mount Zion before the New Year begins!
Selecting the Best Health Benefits for You and Your Family
“Make Informed Choices”
Open Enrollment provides the opportunity for eligible UC faculty and staff to consider health benefit plan changes for 2008. It’s the time to review your current benefits and determine whether selecting a different plan may better meet your needs. This can be confusing. Here are some tips to help you through the process.
Assess your current situation.
Are you satisfied with your current health coverage? If not, what aspects of the coverage would you like to change? Do you feel you have access to the providers you would like to see? Which health plan provides the best coverage for your specific health concerns?
If cost is a factor in your health plan selection, determine how much you spent on your health care last year. This includes the costs of monthly premiums as well as co-pays for medical care and prescriptions, co-insurance and deductibles. Project your anticipated costs for 2008; do you think you will have additional costs or might your costs decrease.
Understand your choices. Familiarize yourself with the differences between the plans. Key phrases include:
- Premium: The amount you pay for your medical plan each month. This is deducted from your paycheck.
- Co-payment: Flat fees charged each time you see a medical provider or receive medical care, regardless of the cost of the care. These fees apply if you are part of an HMO (Kaiser, Health Net, Blue Cross Plus in-network, WHA).
- Deductible: The amount you pay out of pocket before your insurance begins to pay. This applies if you are in Blue Cross PPO, Core, CIGNA or Blue Cross Plus out-of-network.
- Coinsurance: Your share of the total cost of your medical care, after you have met your deductible. This applies to the same plans indicated above under deductible.
- Maximum out-of-pocket expense: The most you will have to spend before all of your medical care is fully covered. Check each specific plan to determine what applies to the maximum out-of-pocket expense.
Compare your health plan options. No single plan is the best plan for everybody. The medical plan comparison chart provides comparative information on the five types of medical plans offered by UC. Additionally, you can use the planning tools on the AYSO Open Enrollment website to help you select the best plan for you and your family.
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