No. 39
October 2006

University Human Resource Services
www.indiana.edu/~uhrs

Inside this Issue:

Annual Open Enrollment

2007 Health Care Plans

Updating Beneficiaries

Quit Smoking Successfully this Time: Develop a Plan

Tax Saver Benefit Plan

The TSB Card Option

Retirement Plan Misconceptions

2007 Medical Premium Rates

Benefits Change Connection

Prescription Drug Coverage and Medicare

Clery Act Notice

Investment Fund Performance

The Informed Employee is published 2-3 times a year by University Human Resource Services for approximately 16,000 full-time appointed staff and academic employees across the eight Indiana University campuses.

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Once a year, full-time employees have the opportunity to make changes in medical, dental, and Personal Accident Insurance coverages and to enroll in the university’s Tax Saver Benefit (TSB) Plan pre-tax reimbursement accounts.

If an employee does not take any enrollment actions during Open Enrollment, participation in medical, dental, and Personal Accident Insurance will remain the same at the 2007 contribution rates. If an employee does not enroll in a TSB reimbursement account, he/she will not be a participant in 2007.

Participation in the university’s TSB plan requires enrollment each year to take advantage of pre-tax reimbursement of health and dependent care expenses. Employees do not need to be enrolled in an IU-sponsored medical or dental plan to take advantage of the TSB plan.

The Open Enrollment period takes place during November of each year, with enrollment changes becoming effective on January 1. This is an opportunity to:

• Select a different medical plan or drop a plan.
• Add or drop dependents.
• Add or drop dental coverage (if eligible).
• Add, drop, or change Personal Accident Insurance.
• Allocate contributions for pre-tax reimbursement of 2007 health care and/or dependent care expenses (TSB).

An Open Enrollment packet with additional information and enrollment forms will be sent to full-time appointed employees early in November through campus mail. The deadline for submitting Open Enrollment forms is November 17, 2006.

2007 Health Care Plans
6.8 Percent Increase in Medical Premiums

For 2007, there will be a 6.8 percent increase in the weighted average adjustment in medical premiums for the university’s four medical plan options. There will also be a 6.0 increase in dental premiums.
The above are adjustments in total premiums, and employee contributions will increase or decrease based on the difference between total premium and the uni­versity’s contribution amount. For 2007, the university will contribute up to the indicated amounts for the following medical and dental plan coverages:

Note: The university will contribute a greater amount for Support and Service Staff employees with an annual base salary of less than $26,520. See page 3 for a list of 2007 medical plan premiums and employee contributions.

For Fiscal Year 2006/2007, it is estimated that Indiana University will contribute a total of $119 million for employee healthcare coverages.

Updating Beneficiaries

Many benefit plans sponsored by Indiana University request a participant to name a person or entity as beneficiary. A beneficiary may become entitled to benefits under a plan because of the death of the participant. Once designated, the beneficiary will remain in effect until it is updated by the participant.

Periodically, a participant may want to review and update the beneficiary designation. The beneficiary a participant designated when he/she first enrolled in the university’s benefit plans may no longer be current or appropriate; for example, if a participant has experienced a marriage, divorce, birth of a child, or death of a beneficiary. A participant does not need to experience a life-altering event to be eligible to change the beneficiary designation. A participant may change the beneficiary at any time simply because he or she wants to make a change.
Changing the beneficiary under one plan will not change the beneficiary under any other plan at Indiana University. Therefore, a participant must request a beneficiary change for each plan he or she wishes to make such a change.

Benefit plans with beneficiary options include:

• Basic life and Supplemental life
• Personal Accident Insurance
• IU Retirement Plan
• IU Tax Deferred Annuity Plan

Academic and Staff employees can now make beneficiary changes for many IU-sponsored benefit plans directly via the Web! A new optional tool—eBenefits—is available in OneStart. Contact a campus HR office if there are questions.

Tobacco Use and Health
Quit Smoking Successfully this Time: Develop a Plan

In 2000, 70 percent of smokers said they wanted to quit, but only five percent succeeded in quitting for three months or more. On average, former smokers make eight quit attempts before succeeding. To maximize success and quit for good, one must develop a plan. Having a plan is critically important because smoking is a complex habit that encompasses physical, behav¬ioral, and psychological aspects. Studies show that the best chance for long-term success happens when the quit plan simultaneously uses these three methods:

• Help of a professional quit counselor or program
• Use of tobacco cessation medication
• Active support from family, friends, and co-workers

Adapted from the American Legacy Foundation