APPENDIX D New York University Reengineering II Benefits
APPENDIX D New York University Re-engineering II Benefits Taskforce July 2009 0
Re-engineering 2 – Benefits Committee • Initial scope defined as: – Reduce future benefits costs for new employees (retirement, retiree health, tuition remission, etc. ) • Scope expanded to look at benefits for all employees, not just new hires – Creation of new rules for incoming employees only will create second class/tier of employees – Implementing rules for all employees is more equitable way of sharing impact of budget shortfall – Retention of grandfathered benefits for current employees and creation of new plans for new hires will make benefits administration more complex • RE 2 Committee reviewed recommendations from HRPAT and UBAT as well as new options and concentrated only on those with significant budget savings – Other HRPAT and UBAT recommendations not discussed by RE 2 should proceed as recommended by those committees 1
Recommended Benefits Changes - 1 of 2 Benefits changes with significant savings and low negative impact expected. Area Opportunity Annual Savings Estimate Comments Earliest Implementation Date HRPAT / UBAT / RE 2 23 retirees (current volume) Retiring on or after 05/01/2010 Y/N/Y ($ thousands) Tuition Remission Eliminate Retiree TR 600 – 1, 000 Tuition Remission Eliminate Spouse/Domestic Partner TR for Graduate and Undergraduate Degrees 1, 000 Estimated savings based on current 50% TR level reduced to zero. Spouses and DPs who commence matriculation on or after 05/01/2010; decision needed by 01/01/2010 N/N/Y Tuition Remission Reduce Employee Graduate TR to 75% 1, 400 Affects Code 100, 102, 103 01/01/2011 Y/N/Y Tuition Remission Increase Employee TR waiting period from 3 to 6 months New hires only for Code 100, 102, 103; eligibility simultaneous to completion of probation. 01/01/2010; decision needed by 11/01/2009 Y/N/Y Retirement 403(b) Implement two-year waiting period (with waiver) Affects code 100, 102, 103 All new hires for 01/01/2010 and forward; decision needed by 11/01/2009 N/N/Y Medical / Rx Consolidate Health Plans by eliminating Oxford HMO Affects all codes 01/01/2011 N/N/Y 250 2, 400 215 2
Recommended Benefits Changes - 2 of 2 Benefits changes with significant savings and low negative impact expected. Area Opportunity Annual Savings Estimate Comments Earliest Implementation Date HRPAT / UBAT / RE 2 ($ thousands) Leaves Eliminate Bonding Leave 350 48 Code 100 (current volume); will not affect Faculty 01/01/2011 Y/N/Y Tuition Reimbursement Eliminate Employee Fee Reimbursement 550 Affects Code 100, 102, 103 01/01/2010 Y/N/Y TOTAL 6, 515 – 6, 915 Benefits changes with minimal savings but considered good policy or best practice. Data for estimating savings not currently available. Area Opportunity Annual Savings Estimate Comments Earliest Implementation Date HRPAT / UBAT / RE 2 ($ thousands) Tuition Remission Implement 1 year waiting period for dependent children TBD New hires only for Code 100, 102, 103 01/01/2010; decision needed by 11/01/2009 N/N/Y Tuition Remission Implement limitation that all dependent children must be matriculated and enrolled by the end of calendar year where age 25 is attained TBD Affects Code 100, 102, 103 Dependent children who commence matriculation on or after 05/01/2010; decision needed by 01/01/2010 Y/N/Y 3
Other Options Considered Not Recommended Benefits changes with significant savings but highly negative impact expected. Area Opportunity Annual Savings Estimate Comments Earliest Implementation Date HRPAT / UBAT / RE 2 Affects Code 100, 102, 103 01/01/2010 N/N/N ($ thousands) Retirement 403(b) Implement variable Nonmatching NYU contribution in Safe Harbor Plan Retirement Implement uniform 2 -year waiting period (no waiver) 5, 400 Code 100, 102, 103; could affect recruitment 01/01/2011 N/N/N Retirement 403(b) Uniform 1 -year wait (no waiver) 1, 500 Affects Code 100, 102, 103 01/01/2011 N/N/N Tuition Reimbursement Reduce Employee Undergrad TR to 75% 400 Affects Code 100, 102, 103 01/01/2011 Y/N/N Medical/Rx Implement 3 -month waiting period 750 New hires in codes 100, 102, 103; Other codes already have 3 -month wait 01/01/2011 N/N/N Medical/Rx Implement higher Rx co-pay 652 Affects Codes 100, 102, 103 01/01/2011 N/N/N Increase deductibles 500 Increase office visit co-pays 450 Increase out-of-pocket max 300 Eliminate Child Care Scholarships 475 Code 100, 102, 103; will affect employees in low grade levels 01/01/2011 Y/N/N 403(b) Childcare TOTAL 4, 000 (for every 1% reduction) 14, 427
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