June 27, 2013

June 2013 APAC News Vol. 6, No. 6

Flexible Spending Accounts Undergo Changes

By Monica M. Walk

A NAME change and a revised healthcare debit card mark a new system for handling employee Flexible Spending Accounts (FSA) in the Medical Care Assistance Plan (MCAP). The administrator name and system changes also apply to the Dependent Care Assistance Plan (DCAP); the debit card changes apply only to MCAP.

BEGINNING MONDAY, July 1, FSA accounts will be processed by WageWorks, which purchased the FSA account business from former plan administrator Fringe Benefit Management Company.  WageWorks technically has been the State’s FSA plan administrator since purchasing the business several years ago, but is now officially converting the State accounts to the WageWorks system.

CONVERSION TO the new system will include a two-week hold period for Fiscal Year 2013 claims being made by paper reimbursement request. Fiscal Year 2013 ends June 30.

“CMS ADVISED that either they or WageWorks would send a letter to all current FY2013 members in June letting them know about the hold period and transition,” said Carole Devaney, UPB benefits manager, University Payroll & Benefits Services.

WHILE THE current myFBMC and future WageWorks healthcare debit cards can be used by employees to pay for eligible healthcare expenses on-site at the time of appointments and purchases, claims being processed by paper will be subject to the holding period.

“FY 2013 paper claim forms will be subject to a two-week hold period from July 1 through July 15 during the transition to WageWorks,” said Katie Ross, director, Human Resources Administration, University Human Resources. “FY2013 debit card transactions during this hold period could be inadvertently reimbursed from FY2014 accounts and would require the employee’s action to request an adjustment to correct this with WageWorks. It is in employees’ best interest to submit paper claim forms for any FY 2013 reimbursements during the hold period.”

THE CURRENT myFBMC card will continue to work through June 30, 2013; however, employees electing to re-enroll for the new plan year will need to use the new WageWorks debit card beginning July 1.

THE FSA debit card system removes much previously required paperwork, although some transactions require documentation.

“IF YOU use the card at a healthcare provider or pharmacy for an amount that is not a known copayment, or the merchant does not have an Inventory Information Approval System (IIAS) in place, WageWorks will most likely require that you submit a receipt or explanation of benefits form,” Devaney said. “IIAS enables merchants to verify FSA-eligible purchases at the register, eliminating the need for members to submit receipts. WageWorks will notify members of any card transactions that require attention by email and when members log onto their system.”

THE STATE of Illinois Medical Care Assistance Plan allows employees to set aside up to $208.33/month ($277.77/month for University employees paid over nine months), tax free, for eligible medical care expenses. Money in this plan can be used to cover the cost of medical expenses that are not paid by health, dental or vision insurance, such as deductibles, co-payments, and eligible non-covered expenses. 

Mentors, Proteges Needed

UNDER THE direction of the Office for Access and Equity (OAE), a volunteer committee with members from APAC and the Chancellor's Status Committees has announced the Fall 2013 Administrative Professional Mentoring Program, or APMP, a mentoring program for Academic Professionals and Civil Service staff at UIC. See http://www.uic.edu/depts/oae/APMP/APMP_home.html for information.

THE PROGRAM allows Academic Professionals and Civil Service staff the opportunity for professional development, advancement, and leadership and skills development in their careers. It will run from the beginning of September through May 31, 2014. A kick-off event for all participants will be held in mid-September, with the date TBD at this time.

AHLAM AL-KODMANY, APAC Vice Chair, has participated in the APMP in the past and commented, “It’s a great program because it brings together professionals from different backgrounds—work, ethnic, racial, and cultural—to exchange ideas on how we can improve in professional development, skill set, conflict management, graduate/professional degree pursuit, and home/life balance. Whether mentor or mentee, we all learn from each other.”

THE APMP committee is accepting applications for mentors and protégés through Monday, July 1. There is a greater need for mentors in the program. If you are interested in becoming a mentor and/or a protégé for the first time or participating in program again, visit the APMP website and complete an application:

IF YOU have questions, contact the committee at apmp_committee@uic.edu.

CIVIL SERVICE employees must have their supervisor’s approval before joining the program.

Brenda Russell Becomes UIC United President; Fights to Protect Pensions

Brenda Russell, PhD, new President of UIC United, the UIC chapter of SURS,
and her husband, Jack Cooksey, MD.
By Lucia Gonzalez

BRENDA RUSSELL, Professor Emerita, Physiology and Biophysics, has been elected President of the UIC United chapter of the State University Annuitants Association (SUAA). This organization is for anyone who has ever paid into the State Universities Retirement System (SURS). The goals of UIC United are to push for fairness for UIC employees and retirees concerning retirement benefits, including taking legal action with coalition partners or independently when unconstitutional or adverse legislation is proposed that could diminish or impair promised benefits.
           
RUSSELL JOINED UIC United in hopes of protecting the pension plans of all UIC employees. She retired two years ago mainly to ensure her pension plan would be protected, as she did not trust the political system to protect her or other SURS members. “I am rehired to continue my NIH-funded research, so I see the current situation first hand,” explained Russell. “I am very concerned about the fiscal crisis in Illinois, with the resulting cuts to both higher education and the attack on State pensions.”

AT THE moment, UIC United is trying to give information to SURS members about their pensions and is encouraging everyone to contact his or her own Illinois Senator or Representative in the Illinois House. “We don’t tell people what to say,” Russell said, “but we do want them to express their opinion directly to their own elected officials. Future votes matter.”

RUSSELL HOPES there will be fairness for UIC employees. “The State employees should not be paying an unfair load for past fiscal mismanagement in Illinois, which now has the lowest credit rating of all 50 states,” Russell explained. Currently, $9 out of $10 of Illinois General Fund spending is going towards four core services: education, health care, human services, and public safety. “Spending on pensions may mean devastating cuts for our most basic public services,” Russell said. “I understand that is why some feel pensions should be targeted, but that’s the wrong solution. My own opinion is that the State needs to raise revenue because we cannot cut our way out of the fiscal mess without doing serious harm to the pensions and to UIC’s State funding.”

BESIDES PENSION cuts, health care is another major concern for SURS members. The Senate plan proposed by Senate President John Cullerton offers a potential choice between cost of living increases and health insurance for retirees. “Health care is a fast moving situation, especially as Obamacare will start January 2014,” Russell said, noting that the potential impact of this legislation is unclear at this point.

DURING A recent survey of UIC United members, it was reinforced that they wanted information that they can trust about pensions and benefits. “We are starting a quarterly newsletter and will have bulletins any time hot news or immediate action is required,” Russell announced. The events that UIC United holds will be focused on the pension issues.

IT IS important to note that the UIC United chapter of SUAA and the faculty union, also called “UIC United,” are not the same thing, she said. “Our word ‘united’ is to register the fact that we are uniting current employees and those who are retired,” explained Russell. Anyone who is an employee and is currently paying into SURS is eligible to join.

MEMBERSHIP IS easy as it takes five minutes and can be completed online. “Membership is affordable—it costs less than Netflix—and can be set up to be automatically deducted from your paycheck,” Russell said. One can join via the UIC United website, www.uic.edu/orgs/suaa/applicat.html. The application can be printed, completed, and mailed with a $42 check to the SUAA office. The application also can be completed online through the SUAA website, www.suaa.org.

TO CONTACT Russell directly with questions or to share concerns, e-mail Russell@uic.edu.

Chancellor’s Academic Professional Excellence Award Nominations Due in June

Chancellor Paula Allen-Meares once again is sponsoring the CAPE Awards.
THE CHANCELLOR’S Academic Professional Excellence Award (CAPE) acknowledges the demonstrated excellence of Academic Professional employees (APs). The CAPE Award, sponsored by Chancellor Paula Allen-Meares, honors the contributions of individual staff members and encourages the professional growth and achievement of APs at UIC. Each winner of the CAPE Award receives a $1,000 permanent salary increase, a certificate and a pin. The names of the winners are added to the CAPE plaque on the first floor of University Hall. In addition, a $2,000 one-time cash award is given to each recipient.

THE DEADLINE for receipt of nominations and all supporting credentials is noon on Friday, June 28, 2013. The CAPE awards will be presented in November at a reception as part of the UIC Employee Recognition Week.  2013 Nomination forms are available at the APACwebsite page about CAPE. If you have any questions, please contact Ahlam Al-Kodmany, Chair of the 2013 CAPE Selection Committee, at ryyan@uic.edu or at (312) 996-7458.

APAC Meetings Scheduled

ALL APs are invited to the monthly APAC meeting at 12:30 p.m. on the second Wednesday of the month. Meetings are held either in Room 5175 of the College of Medicine Research Building, 909 S. Wolcott, or Room 2750 of University Hall on the East Campus. Next meeting is July 10 in Room 2750 of University Hall. For information, call (312) 996-0306.

WEBSITES TO KNOW

APAC DOCUMENT archive: https://sites.google.com/site/uicapac/documents.

THE CONTINUING CRISIS

Editor’s Note: “The Continuing Crisis” is a section of APAC News which links to news pertinent to the State budget crisis and other financial matters as they affect the University and Academic Professionals. These news outlets are not affiliated with or endorsed by APAC.
PUBLIC PENSIONS rebound from recession. See Marketplace, May 20: http://www.marketplace.org/topics/economy/public-pension-funds-rebound-recession.
‘STATE OF denial’ over true amount of UI financial reserves? See News-Gazette, June 9: http://www.news-gazette.com/news/local/2013-06-09/state-denial-over-true-amount-ui-financial-reserves.html

Vol. 6, No. 6 June 2013

ISSN 1946-1860
Editor: William S. Bike
Staff: Lucia Gonzalez, Neal Lorenzi, Gail Mansfield, Monica M. Walk
Vice Chair: Ahlam Al-Kodmany
Chair: Michael Moss
Secretary: Mary Berta
Treasurer: Virginia Buglio
Web Chair: Jeff Alcantar

May 21, 2013

President Easter Meeting with APAC Representatives:
Discussion Post

Please provide feedback and suggestions by posting a "comment" below.

AP REPRESENTATIVES from Chicago, Springfield, and Urbana Champaign will be meeting with President Easter on Tuesday, June 11th. This post is an opportunity for AP readers to provide feedback and suggestions on what we should discuss.

THE FOLLOWING items are already on the agenda:

  • Pension Reform Legislation
  • FY14 Salary Plan
  • Health Insurance Premium Costs

Is there anything missing from this agenda that you would like us to discuss? Please let us know. If you chose, your response can be anonymous.

Click the word "comment" below to add your feedback or suggestions.
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May 2013 APAC News Vol. 6, No. 5

Employees’ Monthly Insurance Payments to Rise

By Monica M. Walk

DRAMATICALLY INCREASED monthly insurance payments may be a dose of bitter medicine for University of Illinois employees trying to watch both their budget and their health.

STILL, STATE of Illinois health plan costs for employees remain below the national average.

ACCORDING TO an Aon Hewitt report, the 2012 national employee-only monthly premium was $183 and is expected to rise to $198 in 2013. Monthly healthcare premiums for all State employees will remain well below that mark, except for employees earning over $100,000 annually; these highest earners will pay premiums in line with the national average. (See the NESSIE website http://illinois.edu/blog/view/1418/92394?count=1&ACTION=DIALOG&sort=asc for charts showing FY2014 employee and dependent monthly premiums for both managed care and quality care programs.)

A SERIES of unique issues over the last several years have insulated State employees in Illinois employees from the rising costs of healthcare.

“THE LAST two years, due to contracting issues the State had in procurement of managed care plans, emergency contracts were in place and rates essentially held flat,” said Human Resources Administration Director Katie Ross, University Human Resources. “Now we see the aggregated impact: The new rates reflect what we would have seen incrementally. All at once, it’s hard to swallow.”

THE TOTAL monthly premium increase from July 2007 to July 2012 was only $12 for both plans; they increased $6 per month in Fiscal Year 2009 and again in Fiscal Year 2010, but remained the same in 2011, 2012, and 2013.
Click image for larger picture.
“REALLY, WHAT we are seeing now is primarily what we see nationwide: the rising cost of healthcare,” Ross said.

EMPLOYEE MONTHLY premium rates are determined through State-wide bargaining by the Illinois AFSCME (American Federation of State, County, and Municipal Employees) and extend to all State employees on the State Employee Group Insurance Plan. Monthly premium rates, published May 1, are priced by a series of six salary bands, with employee premiums increasing with salary income. For example, an employee earning up to $30,200 will pay $68 for managed care or $93 for quality care each month; an employee earning between $75,901 and $100,000 will pay $137 for managed care or $162 for quality care each month.

EMPLOYEES CAN also choose to provide health insurance for dependents.  Choices again include managed or quality care, and monthly costs depend on the number of dependents being insured. Employees insuring dependents pay both the employee premium and the dependent premium each month.

THE STATE also pays a portion of health care costs for each employee; generally the amount is considerably larger than the monthly premium paid by employees. The State has not yet published these amounts for the upcoming fiscal year, but Ross expects to receive this information soon.

THE BENEFITS choice period concludes May 31; plan and fee changes are effective July 1.

DEDUCTIBLES, CO-PAYMENTS and out-of-pocket maximums for all healthcare plans also will increase July 1.

“THIS YEAR, more than ever, employees need to read the material from CMS and the Benefit Choice Options booklet,” said Ross. “Especially if they traditionally don’t make a change. They need to look at premium rates, the plan changes, and the “What You Should Know” notes in the Benefits Choice Options booklet. I encourage everyone to look at this information, even if they haven’t in the past.

“SELECTION OF health insurance is a very personal issue,” Ross continued. “CMS has benefit fairs around the city and in the suburbs. The University is putting on employee information sessions on each campus. I encourage employees to attend and make the best decision for themselves and their families.”

FOR DETAILS about employee benefits information sessions see NESSIE: http://illinois.edu/blog/view/1418/92277?count=1&ACTION=DIALOG&sort=asc.

SEND AN email to benefits@uillinois.edu or contact UPB Benefits Services at Chicago (312) 996-6471 with additional benefits questions.

UNIVERSITY RETIREES also are experiencing a health-care cost increase. Retirees, or those planning to retire this year, should contact SURS directly.

Dental, Vision Plans Also Affected

By Monica M. Walk

STATE DENTAL and vision plans, like medical plans (see article above), also will have associated cost changes.

MONTHLY DENTAL premiums (not changing this year) for employees are $11; the addition of one dependent increases the monthly premium to $17, while an employee with two or more dependents pays $19.50.

THE ANNUAL dental deductible increases from $125 to $150. The maximum annual in-network benefit remains at $2,500 and the annual maximum for in-network orthodontia remains $2,000. Benefits for out-of-network services have decreased by $500.

EMPLOYEE COSTS for vision eye exams, lenses, and standard frames have doubled from $10 to $20.

FOR COMPLETE details see http://www2.illinois.gov/cms/Employees/benefits/StateEmployee/Documents/QCHP_Changes.pdf.

University Finalizes Human Capital Strategy

By Neal Lorenzi

THE UNIVERSITY of Illinois recently finalized a Human Capital Strategy (HCS) document, which is designed to address some of the issues impacting University employees. Wayne Stahl, Director of Organizational Effectiveness, University of Illinois, facilitated a cross-campus team to create the document.

THE HCS team defines a Human Capital Strategy as: the determination of the right mix of human capital for the short-term and projected needs of the organization based on workforce planning data and talent management systems and programs. “In our strategy, we defined human capital as what people know, how people interact, how committed people are to the organization, and the work people do that drives an organization toward achieving its strategic objectives,” Stahl said.

In the Beginning
ON JUNE 8, 2010, the University’s Administrative Review and Restructuring Human Resources Management (ARR-HR) Subcommittee issued a Final Report, which recommended that a supportive human capital strategy be developed. Such a strategy should be grounded in job analysis so that the content of the position, the title of the position, and the required qualifications and competencies are well understood.

A SECOND recommendation called for a Human Capital Strategy for Academic Professionals (APs). Areas that need to be reviewed include the total compensation for Academic Professionals, professional development, and career advancement.

WITH RESPECT to Academic Professionals, the report stated: “APs are critical to the everyday functions performed at the University and to the future success of a transformed University. They are described as ‘a workforce that breaks through traditional barriers that is flexible, self-directed, multidisciplinary, and able to adapt to the changing needs of the University.’”

Details of the Strategy
THE HCS team followed those recommendations to create the recently released Human Capital Strategy document. According to Stahl:

FOR THE purposes of our report, human capital is: what people know, how people interact, how committed people are to the organization, and the work people do that drives an organization toward achieving its strategic objectives. The guiding principles for the creation of our human capital model are:
  • Human Capital Management is a fundamental component of strategic business management. It is guided by and directed toward fulfillment of the university’s and each campus’s strategic mission, vision and values. Human capital considerations are reflected when designing and implementing operational policies and practices.
  • People are viewed at the University of Illinois as assets whose value to the university can be enhanced through investment. As with any investment, the University’s goal is to maximize the value of its people to increase operational effectiveness and efficiency, and add greater value to students, parents and other stakeholders.
  • A University-wide competency model provides a common base to implement a human capital strategy. Competencies are a guide for employees to support the University in achieving its goals. As an operational tool, the competency model is used to build and sustain the university’s pool of leaders through recruiting, hiring, development, retention, and succession policies and practices targeted for leaders with identified characteristics and work experiences.
  • Performance management systems, including pay and other incentives, link performance to results.
  • Individuals interact, support and learn from each other as a means of contributing to the high performance of their peers, colleges, units and the University as a whole.
  • The organizational structure should support high performance in the workplace.
  • Talent management only “works” if all leaders, managers and employees are responsible for hiring, engaging, developing and retaining top talent. HR enables these efforts by developing and providing tools, templates, processes, systems, analyses and training to help leaders, managers and employees be more effective in their talent management responsibilities. However, ownership rests with line management.
Potential Impact of the Document
THE IMPACT to University employees by campus and across the three campuses is potentially significant. The size and complexity of the recommendations range from developing a policy on bullying and developing processes for more opportunities for internal promotions to the modernization of the State Universities Civil Service System and changing our culture to drive continuous improvement in everything we do.

WE NOW have a strategy for human resources to integrate into the campus strategies, and UIC HR has been a leader in this area. The Chicago campus HR office has developed a robust strategy that integrates some of the elements found in the University’s human capital strategy.

THE OTHER campuses and the hospital are looking at opportunities where they can make changes and improvements to their respective organizations and collectively where the University as a whole can benefit. The challenge is to keep the momentum going while we all face financial and resource shortfalls.

Status of the Initiative
THE PROPOSED strategy was presented to the Human Resource Leadership Team on March 27, 2013, for review and approval. Members of the team are collecting input from their respective campus and University administration leadership groups, at which point they will discuss the next steps for the human capital strategy and make recommendations.

For More Information
The strategy is posted on the APAC website. “As new teams are formed to carry out these recommendations, Academic Professionals will be asked to participate directly,” Stahl concluded. “As a stakeholder group, they will be asked for input through organizations such as APAC. Our project team has had a great relationship with APAC during the development of the Human Capital Strategy document. I expect that relationship to continue to be nurtured and grow.”

IGPA Report Details Retirement Contribution Changes Across US


THE UNIVERSITY of Illinois Institute of Government and Public Affairs (IGPA) has released a report that provides a compilation of data on the changes to current employees' retirement contribution rates and post-retirement cost of living adjustments (COLAs) that have been enacted in the United States since 2009. Click here to read the report: The National Picture of Public Pension Changes: What benefit reductions have otherstates enacted?

“ILLINOIS’ STATE pension system has the lowest funding ratio of any state, with roughly $100 billion in unfunded liabilities,” said James R. Paul, Assistant Director, IGPA. “That means that the State has promised to make these payments to workers when they retire, but does not have the resources set aside to do so. IGPA has conducted many analyses of this situation.” You can read all of IGPA's work on public pensions here.

SINCE 2009, changes have been made to public employee pension systems in about half of all states, but the details vary widely. Post-retirement COLAs have been reduced, adjusted, and tied to inflation and pension funding ratios. Employee contribution rates have been increased in numerous states, but these increases are not always permanent and some states have also mandated larger employer contributions. 

TO SEE which states have made changes, and brief summaries of each change, as well as links to resources, readthe report here (PDF)For more information, call (217) 333-3340.

Chancellor’s Academic Professional Excellence Award Nominations Due in June

Chancellor Paula Allen-Meares.
THE CHANCELLOR’S Academic Professional Excellence Award (CAPE) acknowledges the demonstrated excellence of Academic Professional employees (APs). The CAPE Award, sponsored by Chancellor Paula Allen-Meares, honors the contributions of individual staff members and encourages the professional growth and achievement of APs at UIC. Each winner of the CAPE Award receives a $1,000 permanent salary increase, a certificate and a pin. The names of the winners are added to the CAPE plaque on the first floor of University Hall. In addition, a $2,000 one-time cash award is given to each recipient.

THE DEADLINE for receipt of nominations and all supporting credentials is noon on Friday, June 28, 2013. The CAPE awards will be presented in November at a reception as part of the UIC Employee Recognition Week.  2013 Nomination forms are available at the APAC website page about CAPE. If you have any questions, please contact Ahlam Al-Kodmany, Chair of the 2013 CAPE Selection Committee, at ryyan@uic.edu or at (312) 996-7458.

APAC Meetings Scheduled

ALL APs are invited to the monthly APAC meeting at 12:30 p.m. on the second Wednesday of the month.. Next meeting is June 12 in a special location: College of Medicine West, 1853 W. Polk St., Room 119A. For information, call (312) 996-0306.

BENEFIT BEAT

Hotel and Motel Discounts Available
EMPLOYEES ARE eligible for a number of discounts via online shopping.
SOME BUSINESSES provide a discount code that you can use on their website, or provide over the phone.  Other businesses require you to contact them directly for the discount.  In order for them to identify the discount you qualify for, you may need to let them know:
  • You are a University of Illinois at Chicago employee
  • You are a State of Illinois employee
  • You are a government employee
  • You are employed at "Big Ten" University
  • You are staff/student/faculty at the University
HOTEL AND MOTEL deals are available from Best Western, www.bestwestern.com, discount code 01026040, Big Ten rate; Club Quarters, www.clubquarters.com, call for discount; Hilton Hotels, www.hilton.com, call for discount; Howard Johnson’s, www.hojo.com, discount code 160617; Holiday Inn, www.holidyinn.com, discount code 176095; Quality Inn, www.qualityinn.com, discount code 026678; Radisson Hotels, www.radisson.com, discount code WP1602, Big Ten rate; Ramada Inn, www.ramada.com, discount code 901597, government employee rate; Red Roof Inn, www.redroof.com, discount code CP514137; and Starwood Hotels, www.starwoodhotels.com, discount code 6674-CO.

THE CONTINUING CRISIS

Rep. Lou Lang.
Editor’s Note: “The Continuing Crisis” is a section of APAC News which links to news pertinent to the State budget crisis and other financial matters as they affect the University and Academic Professionals. These news outlets are not affiliated with or endorsed by APAC.


UIC UNITED, the UIC chapter of the State Universities Annuitants Association, held its Spring membership meeting on April 25 at the UIC Student Center West. Dr. Nicole Kazee, Director of Health Policy and Programs at the University of Illinois Hospital & Health Sciences System, spoke on The Affordable Care Act: What Does Health Reform Mean for You and Your Families? Her presentation may be viewed here
IT’S TIME the Chicago Tribune stops treating the Illinois Constitution like yesterday’s newspaper when it comes to State pensions, says Rep. Lou Lang. See Chicago Tribune, May 12, 2013: http://www.chicagotribune.com/news/opinion/ct-oped-0512-lang-20130512,0,544832.story

Vol. 6, No. 5 May 2013

ISSN 1946-1860
Editor: William S. Bike
Staff: Lucia Gonzalez, Gail Mansfield, Monica M. Walk
Vice Chair: Ahlam Al-Kodmany
Chair: Michael Moss
Secretary: Mary Berta
Treasurer: Virginia Buglio
Web Chair: Jeff Alcantar