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November 3, 2014
Welcome to this edition of HR & Benefit News . Always feel free to send us your comments and questions .
SUMMARY UT FLEX Activity by Institution for Plan Year 2014 Below is a summary of UT FLEX activity for Plan Year 2014 by institution. Total contributions were over $38 million which resulted in an aggregate FICA tax savings of about $2.5 million. Overall, UT FLEX participation increased by about 1% from the prior year.
REMINDER Institution Contact Lists
As we move into the 2014-2015 plan year, this is a good time for you to update your institution’s contact list on the secure SharePoint site to reflect any institution HR/Benefits Staff changes that occurred. Please contact a member of the OEB Benefits Team if you have any questions.
DON'T FORGET UT FLEX Deadlines for FY2014
Health Care Reimbursement Account (HCRA):
- There is a Grace Period for the HCRA; therefore, HCRA enrollees may submit claims incurred through 11/15/2014
- HCRA claims must be filed no later than 11/30/2014
Dependent Day Care Reimbursement Account (DCRA):
- DCRA claims must have been incurred no later than 8/31/2014
- DCRA claims must be filed no later than 11/30/2014
ACTION REQUESTED Complete Life/AD&D Beneficiary Designation Form
A recent review by Dearborn National indicated that fewer than 40% of UT employees and retirees have a designated beneficiary on file with the carrier for their Life and/or AD&D coverage. Please be sure to strongly encourage your newly hired employees and retirees to complete a Beneficiary Designation Form. With the beginning of a new plan year, it’s also a good time to remind current employees and retirees to make sure their designations are up-to-date. The preferred and fastest way to make or revise beneficiary designations is by using the online tool via My UT Benefits on the OEB website. An alternative way is to complete, print, sign and mail the paper form that is located on the OEB and Dearborn National websites. When Dearborn National receives a paper form, they will review it for completeness and notify the member if additional information is required. If all information has been provided, a Dearborn National representative will enter the member’s designation(s) in the online system, allowing the member to easily make changes in the future, if necessary. Recently, we learned when an employee retires, his/her beneficiary designation(s) are removed from the online site because Dearborn does not know if they are terminating employment or changing from active to retiree status. The designation still remains in Dearborn’s historical file system, and when they receive a claim for benefits, they will review all of their systems and pay claims based on the most recent beneficiary designation on file. However, we recommend that you encourage your new retirees to complete a new Beneficiary Designation Form, either online or paper, to expedite the claims process in the future.
The following OEB policies have been revised and updated effective September 1, 2014:
- Policy 141 - Waiting Period for Group Insurance Benefits
- Policy 142 - Premium Sharing for Part-Time Employees and Graduate Student Employees
- Policy 210 - Employee Eligibility and Enrollment
- Policy 220 - Retired Employee Eligibility and Enrollment
The versions highlighting the changes are posted on the SharePoint site, and the clean versions are posted in the OEB Administrative Manual on the OEB website's Forms and Publications page.
YOU ASK, WE ANSWER Accessing Benefits More Than Once in the Same Plan Year
Question: Is a UT employee/retiree eligible to access her Vision benefits more than once in the same plan year if she has a break in coverage during the year?
Answer: Maybe, but only if she did not reach the maximum benefit amounts during her first employment period. An enrollee may only access her vision benefits up to the maximum amounts once per plan year. Therefore, if you have an employee who was previously employed at your or another UT institution during the current plan year, has a break in employment, and then begins employment at your institution during this same plan year, you should advise this individual that if she re-enrolls in the vision plan, she will only be eligible to access vision benefits that were not used during her prior enrollment period. For example, if this employee had received an eye exam during her first employment period but did not purchase eyeglasses or contacts, then during her second employment period in the same plan year, she cannot receive another eye exam but is still eligible for the eyeglasses and frames benefit.
Question: Is a UT employee/retiree eligible to access his Dental benefits more than once in the same plan year if he has a break in coverage during the year?
Answer: The response to this question is essentially the same for the UT SELECT Dental and UT SELECT Dental Plus plans as the above response for the Vision and Vision Plus plans. For example, if an employee is enrolled in the UT SELECT Dental plan, terminates employment, subsequently becomes re-employed in the same plan year and enrolls in the UT SELECT Dental or Dental Plus plan, he will be eligible for benefits up to the maximum amounts in the newly enrolled plan minus any benefits received during the first employment period. There are no maximum benefits for the Dental HMO plan. Therefore, if the employee were enrolled in the DHMO plan during the first employment period and enrolls in the second employment period, the DHMO copays will continue to apply. If the employee were enrolled in the UT SELECT Dental or Dental Plus plan during the first employment period and then enrolls in the DHMO in the second employment period, the DHMO copays will apply. If the employee were enrolled in the DHMO in the first employment period and then enrolls in either the UT SELECT Dental or Dental Plus in the second employment period, then the employee will be eligible for the full annual maximum benefits.
Voluntary Group Term Life (VGTL) Conversion for Dependent Children
Question: I am an Employee and have $10,000 of Dependent Voluntary Group Term Life (VGTL) insurance to cover my spouse and two children. Next month my oldest child will reach age 25. Since this child will no longer be eligible to be covered under my Dependent VGTL benefit, can he convert the $10,000 to an individual policy with Dearborn National without Evidence of Insurability?
Answer : Yes, your dependent child reaching age 25 may convert up to $10,000 to an individual policy with Dearborn National. If your child wishes to elect the full $10,000 of life insurance coverage, the premium is currently $6.95 per month.