City University of New York Benefits Orientation -Instructional

City University of New York Benefits Orientation -Instructional Staff. Mr. Leslie Williams, University Director of Employee Benefits Ms. Yvonne Rodriguez, University Deputy Director of Employee Benefits Office of Human Resources Management 1

OUR BENEFITS INCLUDE: Pension Plans Alternative Funding Vehicles (AFV’s) Tax Deferred Annuity (TDA)-Voluntary Savings NYS Deferred Compensation Plan NYC Health Benefits Program PSC-CUNY Welfare Fund Benefits Leaves Retirement Other Benefits Updated 1/15/08 by The University Benefits Office 2

CHOOSING A PENSION PLAN! Our Choices are… NYC Teachers’ Retirement System (TRS) TIAA-CREF - (Optional Retirement Program) NYC Employees’ Retirement System (ERS) (only as a Transferred Contributor) Board of Education Retirement System (BOERS) (only as a Transferred Contributor) Please note: New employees have 30 days from appointment to choose. After 30 days, New York State Education Law Section 6253 mandates assignment to TRS Prepared 6/30/05 by The University Benefits Office 3

CHOOSING A PENSION PLAN! Review at a Glance! TRS TIAA-CREF (ORP) Defined benefit plan Vesting after 5 years Employee contributes 3% pre-tax of base salary to Qualified Pension Plan (QPP) for first 10 years of public employment Employer contributes lumpsum to pension fund, not individual accounts Benefits based on age, final average salary (FAS) and years of service credit Prepared 6/30/05 by Defined contribution plan Vesting after 366 days Employee contributes 3% of base salary, pre-tax Employer contributes 8% of salary for first seven years and 10% thereafter Employer/employee contributions held in suspense for 366 days Benefits based on amounts contributed by employer, employee, investment experience The University Benefits Office 4

TRS Who can Participate? Full-time or part-time Instructional staff Credit for Multiple Employment – Multiple Employment Membership status may increase funds in your various TRS accounts and may positively affect your FAS when your retirement allowance is calculated. To enroll, obtain from Human Resources/Personnel Department and complete: Ø Tier III/IV Enrollment Application and Beneficiary Form • must be notarized • necessary proof of birth documentation must be submitted Ø Retirement Program Election Form Membership begins on day TRS receives Tier III/IV Enrollment Application or 30 days after CUNY appointment, whichever comes first. Prepared 6/30/05 by The University Benefits Office 5

TRS Important Facts Benefits are based on age, final average salary and years of service credit (service prorated for part-time members) Vesting occurs after completing 5 years of membership service as an Instructional staff member In-service members who are at least age 55 and have completed at least five years of membership service, are eligible to receive immediate payment of a reduced retirement allowance Membership may be transferred to TRS from other City and State defined benefit systems Prepared 6/30/05 by The University Benefits Office 6

TIAA-CREF Who can Participate? Full-time Instructional staff members Earnings in an adjunct/hourly Instructional staff position held by a full-time staff member are pensionable To enroll, employees obtain and complete the following from the Human Resources/Personnel Department: Ø TIAA-CREF Retirement Annuity Application Ø Retirement Program Election Form • beneficiaries must be listed Prepared 6/30/05 by The University Benefits Office 7

TIAA-CREF Important Facts Vesting Cycle - If no previous vested CUNY Retirement Annuity contract or open Retirement Annuity contract from another employer, employee & employer contributions are held in suspense account for 366 days (the vesting cycle). Ø Senior Colleges: Upon completion of vesting cycle, employer and employee contributions are sent from Office of State Comptroller (OSC) and applied to annuity contracts with 2% interest. Ø Community Colleges: Upon completion of vesting cycle, employee contributions held in deposit fund at TIAACREF are applied with 2% interest to contracts. CUNY applies employer contributions plus 2% interest to contracts. Prepared 6/30/05 by The University Benefits Office 8

TIAA-CREF Important Facts Cont… Retirement benefits based on amounts contributed by employer, employee and investment experience. To allow for diversification, after 366 day vesting period, can move funds to Alternate Funding Vehicles: Met. Life or Guardian. There is no minimum retirement age required to collect a retirement allowance. However, there is a tax penalty for early withdrawal. Prepared 6/30/05 by The University Benefits Office 9

TIAA-CREF Important Facts Cont… Changes to Employer and Employee Contribution Rates Tier V If you have more than ten (10) years of ORP membership You are required to contribute 2% of your GROSS pay to your TIAA-CREF ORP Account. CUNY contributes an amount equal to 9% of your yearly salary. Once you reach seven (7) years of employment as an Instructional Staff Member, CUNY will contribute an amount equal to 11% of your yearly salary thereafter. Effective April 1, 2009: Employees who contribute 2% will have their employee contribution reduced to 1%, and 2% of their employee contribution made by the State or the City. Effective April 1, 2010: Employees who have ten or more years of CUNY membership, will have the total 3% employee contribution made by the State or the City. Updated 03/05/09 The University Benefits Office 10

How does an employee add to Personal Investments for Retirement? Employees have the option of participating in a tax-deferred annuity 403(b) or a deferred compensation plan 457(b) The tax-deferred annuity 403(b) and the deferred compensation plan 457(b) allows employees to set aside pre-tax dollars subject to IRS limits As a result, the employee may voluntarily reduce their taxable income Tax-deferred annuity options: New York City Teachers’ Retirement System TIAA-CREF Lincoln Life (represented by HRC) Deferred Compensation Plan options: New York State Deferred Compensation Plan Updated 1/15/08 by The University Benefits Office 11

HEALTH BENEFITS Who can Participate? Employees who work on a regular schedule at least 20 hours per week and Employees whose appointments are expected to, last for more than six months and Who are being paid from tax-levy funds How to Enroll? Complete the Health Benefits Application (Form ERB) To enroll eligible dependents acceptable documentation to support their eligibility status must be submitted and Returned along with the Health Benefits Application to the Human Resources/Personnel Department within 30 days of appointment Prepared 6/30/05 by The University Benefits Office 12

HEALTH BENEFITS Who can be Covered? A legally married husband or wife, but never an exspouse Domestic Partner Unmarried children under age 19 Unmarried children between 19 & 23 who are fulltime students in an accredited educational institution Unmarried children who cannot support themselves due to disability that occurred while the dependent was covered by the City Prepared 6/30/05 by The University Benefits Office 13

FLEXIBLE SPENDING ACCOUNTS Types of Flexible Spending Accounts Health Care Flexible Spending Account: helps to pay for out-ofpocket medical expenses while reducing taxable income. Dependent Care Assistance Program (De. Cap): helps to pay for expenses to care for children or other eligible dependents while reducing taxable income. Medical Spending Conversion (MSC) Premium Conversion Program (automatic): pays for health premium deduction on a before tax basis, thereby reducing gross income tax. Medical Spending Conversion (MSC) - Health Benefits Buy-out Waiver program: enables eligible employees who have non-city group health benefits to waive City health benefits in return for an annual cash incentive ($500 for individual and $1, 000 for family coverage) post-tax payment. Proof of coverage under another group health plan required. Prepared 6/30/05 by The University Benefits Office 14

FLEXIBLE SPENDING ACCOUNTS Qualifying Events (QE) Mid-year changes due to change in family status, marriage, birth of child Change in employment status Attainment of the maximum age for coverage of a dependent child Significant change in spouse’s coverage which is outside of spouse’s control 30 days to submit documentation to go retroactive to date of the event Prepared 6/30/05 by The University Benefits Office 15

HEALTH BENEFITS Transfer Period The Transfer Period is when changes can be made to the health plan without having a qualifying event The NYC Health Benefits Program determines the exact dates; usually it is during the Fall All changes become effective the first day of the first full pay period in January of the next year Prepared 6/30/05 by The University Benefits Office 16

WHAT IS PICA? PICA is a prescription drug program that covers all employees, non-medicare retirees and their dependents enrolled in a health plan offered by the City Health Benefits Program. Covered prescriptions are: Ø Injectable - most medications normally administered by injections (not in the doctor’s office) Ø Chemotherapy - medications used to treat cancer Revised 8/17/06 by The University Benefits Office 17

LONG TERM CARE INSURANCE PROGRAMS Provides benefits when one is unable to care for themselves because of chronic illness, severe physical impairment, or disease that lasts a long time. Full-time members or retiree are eligible. Dependents can also be covered. Available plans: Ø Met. Life – offered by the City of New York (payroll deduction) Ø John Hancock Mutual Life Insurance - offered by the PSC -CUNY Welfare Fund (payroll deduction) Ø New York State United Teachers’ Long Term Care Program - offered by the PSC-CUNY Welfare Fund (payroll deduction) Updated 1/15/08 by The University Benefits Office 18

PSC-CUNY WELFARE FUND What are the benefits? § Catastrophe Major Medical (voluntary plan) § Extended Medical Benefit for members in GHICBP/Empire Blue Cross Blue Shield § Death Benefit § Dental Plan § Group Long Term Disability § Life Insurance (voluntary plan provided through NYSUT) § Optical & Hearing Aid Benefits § Prescription Drug Plan Updated 03/05/09 by The University Benefits Office 19

PSC-CUNY WELFARE FUND Who is eligible for benefits? Those eligible for health coverage under NYC Health Benefits Program Full-time members with a six month or more appointment Paid from tax-levy funds Working at least 20 hours per week How to enroll? Complete PSC-CUNY Welfare Fund Enrollment Form obtained from Human Resources/Personnel Department. Enroll eligible dependents by submitting acceptable documentation to support their eligibility status. Effective Date PSC-CUNY Welfare Fund benefits begins 1 st day of next month following appointment (or on 1 st day of month if you start 1 st day of month), if enrollment form (enrollment form and supporting documentation) received within 31 days. Human Resources/Personnel Department must receive enrollment form within 31 days of appointment date or benefits may be delayed or lost. Updated 1/15/08 by The University Benefits Office 20

PSC-CUNY WELFARE FUND Cont… CATASTROPHE MAJOR MEDICAL (must purchase) Supplements basic health policy. Provided through Marsh Affinity § $10, 000 deductible § Premium based upon age at time of enrollment § Pays up to $2 million for up to ten years for covered services (medical, surgical & convalescent expenses) Extended Medical Benefit GHI-CBP Members Only Pays for covered medical expenses not completely reimbursed under GHI-CBP plan, § $1, 000 deductible for individual and $2, 000 for a family plan for those who purchase the optional rider through GHI; § $4, 000 for an individual plan and $8, 000 for a family plan for those who do not purchase the Optional Rider Updated 03/05/09 by The University Benefits Office 21

PSC-CUNY WELFARE FUND Cont… DEATH BENEFIT $2, 500 to designated beneficiary of employee who dies in active service Delta Dental USA Program-HMO Plan §No premiums, claim forms, deductibles or annual lifetime limits §Out-of-pocket expenses vary depending on services §Orthodontia coverage for children and adult §Flexibility in switching and selecting dentists within HMO network GUARDIAN Dental Guard Preferred l. No premiums, deductibles, or annual lifetime limits l. Out-of-pocket expenses vary depending on services §Orthodontia coverage for children §Freedom to use participating or non-participating dentists Updated 01/15/08 by The University Benefits Office 22

PSC-CUNY WELFARE FUND Cont… GROUP LONG TERM DISABILITY Coverage through Standard Insurance after one year of service Basic Disability coverage pays 50% of pre-disability salary with a minimum of $1, 250 monthly and a maximum, of $2, 500 monthly before offsets Begins 1 st of month after six consecutive months of total disability Benefits continue to earlier of five years or age 70, which ever comes first GROUP LONG TERM DISABILITY Optional Coverage (must purchase) Coverage through Standard Insurance after one year of service Disability coverage pays 60% of pre-disability salary with a minimum of $1, 500 monthly and a maximum, of $6, 000 monthly before offsets Begins 1 st of month after six consecutive months of total disability Benefits continue to age 65 If disability occurs after age 60, the 5 -year/age 70 provision of the basic plan applies. Contributions to TIAA pension equal to 10% of pre-disability salary (Minimum of $100 monthly) Updated 03/05/09 by The University Benefits Office 23

PSC-CUNY WELFARE FUND Cont… GROUP LIFE INSURANCE (must purchase) Provided through the New York State United Teachers Trust (NYSUT) term life insurance plan New Full-time employees receive free for one year a $25, 000 term life insurance policy with option to renew after one year Spouses or domestic partners and dependent children can be covered Employees under age 65 may apply for additional coverage up to $1, 000. Physical exam may be required Policy is portable Prepared 6/30/05 by The University Benefits Office 24

PSC-CUNY WELFARE FUND Cont… § § OPTICAL BENEFITS Benefits available once every 24 months General Vision Ø Plan includes eye exam and prescription Ø Other options at employees expense Ø "Off Year" benefit for dependent children who have a prescription change in year following year of use of benefit. MUST notify GVS if using this benefit at time of service. Davis Vision Ø Plan includes eye exam and prescription Ø Co-pay of $25 for contact lenses Ø offers a percentage discount on "Offer Year" for contacts or frames and lenses. Direct Reimbursement Plan Ø Maximum reimbursement of $100 for prescription glasses purchased through a non-participating provider Prepared 6/30/05 by The University Benefits Office 25

PSC-CUNY WELFARE FUND Cont… HEARING AID BENEFIT § Benefits available once every 36 months § Direct reimbursement of $500 maximum § Brooklyn College is a participating outlet PRESCRIPTION DRUG BENEFIT - Medco Health § Ability to get prescriptions through a network of participating retail pharmacies or through the Medco Health Home Delivery Pharmacy Prepared 6/30/05 by The University Benefits Office 26

FAMILY AND MEDICAL LEAVE ACT (FMLA) Family and Medical Leave Act (FMLA) entitles eligible employees to take up to 12 weeks of unpaid, job protected leave for qualifying reasons during the designated leave year, September 1 st through August 31 st. Must have worked for at least 12 months and 1250 hours. Employees pay their share of premiums through direct pay. Employer share paid by CUNY. Updated 1/15/08 by The University Benefits Office 27

LEAVES HOLIDAYS –(non-teaching staff) Independence Day New Year’s Holiday (2 days) Labor Day Martin Luther King JR’s Birthday Columbus Day Lincoln’s Birthday Thanksgiving Holiday (2 days) Presidents’ Day Christmas Holiday (2 days) Memorial day JURY DUTY - Employees who are required to serve on a jury receive their regular salary during any absences provided they remit to CUNY an amount equal to compensation received by them, if any, for jury duty. LEAVES FOR CHILD CARE - Special leaves without pay for purpose of caring for a newborn child are granted upon notification to the President (or Chancellor) provided that employee has legal responsibility for care and/or support of child. Prepared 6/30/05 by The University Benefits Office 28

LEAVES CONT… SLOAC - Special Leave of Absence Coverage provides up to four months of additional health coverage, for an employees own illness, if all accumulated leave balances have been exhausted including sick leave, annual leave and compensatory time. Ø Employees pay their share of the premiums through direct pay. Ø The employer share is paid by CUNY. TEMPORARY DISABILITY (Sick Leave) Ø Each year 20 calendar days of temporary disability leave is earned. Ø The unused portions of temporary disability leave can be accumulated to a maximum of one hundred and sixty (160) calendar days. Prepared 6/30/05 by The University Benefits Office 29

ANNUAL LEAVE (VACATION) Full-timers in College Laboratory Technician title series, HEO title series, and Business Manager title series employed prior to January 1, 1988, and all employed as Research Associates have 25 work days per year of annual leave. Full-timers employed in College Laboratory Technician series, HEO title series, and as Research Assistants on or after January 1, 1988, accrue annual leave: During the 1 st year of service - 15 days During 2 nd through 11 th year - 15 days plus of service thereafter one additional day for each year of service to a maximum of 25 days Prepared 6/30/05 by The University Benefits Office 30

ANNUAL LEAVE (VACATION) CONT…. . Full-timers employed as Librarians on or after January 1, 1988 accrue annual leave at the following rates. Full-timers appointed as Counselors or to other student personnel assignments on or after January 1, 1988, except those in Higher Education Officer series, accrue annual leave: During the 1 st year of service - 20 days During 2 nd through 11 th year - 20 days plus of service thereafter one additional day for each year of service to a maximum of 30 days Prepared 6/30/05 by The University Benefits Office 31

OTHER BENEFITS COBRA - Employees, retirees and family members offered opportunity to continue group health and/or welfare fund coverage where coverage would otherwise terminate. Ø Monthly premium is 102% of group rate. Ø Maximum period of coverage is 18, 29, or 36 months depending on the reason for continuation. COLLEGE SAVINGS PLAN (529) - College Savings Tax Deductible Plan administered through Upromise Investments Inc. Parents, grandparents, relatives or friends set up tuition savings account for future college students through payroll deductions. Program allows savings for higher education expenses. Can save $5, 000 per year person. Married couples filing jointly can save $10, 000. CUNY E-MALL - The CUNY E-Mall lists a variety of discounts and offering of products and services for CUNY employees and students. www. cuny. edu then go to the CUNY e-mall. Prepared 6/30/05 by The University Benefits Office 32

OTHER BENEFITS CONT… FEDERAL CREDIT UNIONS - Employees eligible to participate in the Education Affiliates FCU (formerly PSC-CUNY FCU) & the Municipal Federal Credit Union. Services include share savings plans, individual retirement accounts (IRA) and term share certificates with various maturities, loans, credit cards. HIPPA - Certificate of Group Health Plan coverage issued to employee upon termination to certify coverage that will be credited against any pre-existing exclusion period under a new health plan. SAVINGS BONDS - U. S. Savings Bonds are a safe easy way to save money and a way to increase retirement investment portfolio through payroll deductions. Prepared 6/30/05 by The University Benefits Office 33

OTHER BENEFITS CONT… TRANSITBENEFIT – Transportation Spending Account (TSA) is a voluntary benefit for eligible employees interested in saving on New York City Transit subway and bus costs. Depending on particular tax situation and NYCT commuting expenses, employee could save more than $200 annually commuting by subway or local bus, more than $300 if commuting by express bus. CUNY Work. Life Program – A voluntary, free and confidential benefit for active employees and their families. The program is administered by Corporate Counseling Associates, Inc. (CCA). Services offered under the program include: 1) traditional counseling for stress; 2) family issues or substance abuse; 3) access to legal and financial assistance; 4) referrals for child care; and 5) elder care. Updated 03/05/09 by The University Benefits Office 34

OTHER BENEFITS CONT… TUITION WAIVERS -Tuition may be waived for Undergraduate, Graduate and Online Baccalaureate courses at any college of CUNY on a space available no cost basis for the employee only (online courses are available through the School of Professional Studies at the Graduate School and University Center). No waivers are available in summer or winter sessions. Number of undergraduate credits for which tuition may be waived is unlimited. One year service requirement. Number of graduate credits for which tuition may be per semester waived is six. No service requirement for graduate tuition waiver. WORKERS’ COMPENSATION - Benefits if employee suffers a job-related injury or illness. Prepared 6/30/05 by The University Benefits Office 35

TRAVIA (Sick Leave Paid Upon Retirement) Members of a public retirement system (TRS, ERS or BOERS) must meet the eligibility requirements for a service retirement and must declare their bonafide intention to retire, file an application for retirement with their retirement system ORP members are eligible for Travia if they declare their bonafide intention to retire, file an application for retirement with TIAA/CREF and are: Tier 1 - age 55 or possess 20 years of service; Tier 2 - age 55 or possess 20 years of service; Tier 3/4/5 - age 55 and possess 5 years of service Retirees are granted a retirement leave of absence with full pay consisting of a maximum of five (5) months of pay if they have accrued 160 days. Those who have fewer than 160 sick days will receive onehalf of their accumulated unused sick days Prepared 6/30/05 by The University Benefits Office 36

Eligibility for Retiree Health Benefits § NYCERS/TRS members who retire with immediate payability are eligible for benefits § Tier 1 NYCERS members who retire with deferred payability can retain benefits for 5 years while in such status. If the deferment lasts longer than 5 years, benefits will be suspended until the retiree begins receiving retirement income from NYCERS § TRS members who retire with deferred payability retain the right to retiree health coverage upon receiving retirement income from TRS § Retirees pay their share of the premiums through pension deductions. The employer share is paid by CUNY Prepared 6/30/05 by The University Benefits Office 37

Eligibility for Retiree Health Benefits Cont…. TIAA-CREF members initially appointed to a full-time position: a. on or before June 30, 1976: 1. Separated at age 55 or over, with at least 10 years of pensionable, continuous, full-time CUNY service, or 2. Separated prior to 55, with at least 15 years of pensionable, continuous full-time CUNY service and attained the age of 55. b. appointed between July 1, 1976 and August 31, 1985: 1. Separated with at least 15 years of pensionable, continuous, full-time CUNY service and attained the age of 62, or 2. Separated with at last 10 years of pensionable, continuous, full-time CUNY service, and no subsequent full-time employment in a college, university, or other institution of post-secondary education related to duties performed while in active service in CUNY or to duties normally performed by Instructional staff at CUNY and attained age 62. Prepared 6/30/05 by The University Benefits Office 38

Eligibility for Retiree Health Benefits Cont…. c. appointed on or after September 1, 1985: 1. Separated at age 62 or over with 15 years of pensionable, continuous, full-time CUNY service, or 2. Separated prior to age 62, with 15 years of pensionable, continuous, full-time CUNY service and no subsequent full-time employment in a college, university, or other institution of post secondary education related to duties performed while in active service in CUNY or to duties normally performed by Instructional staff at CUNY and attained Prepared 6/30/05 by The University Benefits Office age 62. 39