missouri s&t faculty senate
DESCRIPTION
Missouri S&T Faculty Senate. November 19, 2009. UM Board of Curators. Employee Contribution to Retirement Plan. 1% of first $50,000 in salary 2% of salary in excess of $50,000 Projected Contributions - $12,000,000 per year. How Does the Money Flow?. When UM share is Greater than budget. - PowerPoint PPT PresentationTRANSCRIPT
UMSYSTEM.EDU November 19, 20091UMSYSTEM.EDU
Missouri S&T Faculty Senate
November 19, 2009
UMSYSTEM.EDU November 19, 20092UMSYSTEM.EDU
UM Board of Curators
UMSYSTEM.EDU November 19, 20093
Employee Contribution to Retirement Plan
• 1% of first $50,000 in salary• 2% of salary in excess of $50,000• Projected Contributions - $12,000,000 per
year
UMSYSTEM.EDU November 19, 20094
How Does the Money Flow?
When UM share isGreater than budget
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Comparator Institution BenchmarksHewitt Associates Relative Value Study
Employer Paid Value Total Value
Index Rank Index Rank
Retirement 117.9 3rd 77.6 15th
Retirement* 101.1 7th 77.6 15th
Pre Retirement Death-Group Life 107.7 7th 91.2 10th
Long Term Disability 143.9 4th 107.9 8th
Dental 85.3 12th 93.0 12th
Preretirement Health 98.9 10th 102.8 8th
Post Retirement Health-prior to age 65 161.9 3rd 127.5 2nd
Post Retirement Health-age 65 and higher 88.4 8th 103.1 9th
All Post Retirement Health 116.3 8th 110.7 6th
All Benefits (Including Tuition) 106.3 6th 92.3 13th
All Benefits (Including Tuition)* 98.5 11th 92.3 13th
*After 7/1/09 pension plan amendment
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Benefit Plans Contribution AnalysisBased on 2009 Contribution Rates
UMSYSTEM.EDU November 19, 20097UMSYSTEM.EDU
UM Retirement, Disability & Death Benefit Plan
Financial Status
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• Actuarial Value of Liabilities: The total actuarial accrued liability of pension benefits for all plan members including active employees, retired employees and terminated, vested employees.
• Actuarial Value of Assets: Value of all assets held in trust using the Expected Return Asset Valuation Method. Using this approach allows for an amortization of unrecognized return over a 5 year period. The result is a “smoothing” of changes in market value over a 5 year period.
• Market Value of Assets: Market value of all assets held in trust under the plan.
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UM Retirement, Disability & Death Benefit Plan
Billion
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History of Actual UM Contribution Rates
% of payroll
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UM Medical Benefit Plan
• Great West Healthcare (CIGNA)• 1/1/10 Plan Design• 1/1/10 Premiums• Prescription Drug Benefits
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Premium Changes
2007 2008 2009 2010
UM Choice Health Care Program
0% 0% 3% 5%
UM Catastrophic Medical Program
0% 0% 5% 5%
Retiree Indemnity Medical
Pre 9/1/90 Retirees -4.1% to -5.6% -7.0% to -7.7% 0% 3.8% to 5.1%
Post 9/1/90 Retirees -4.4% to 1.4% -4.2% to -6.4% 3-4% 1.5% to 2.6%
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Prescription Drug Benefits
• Express Scripts – St. Louis Business Health Coalition
• Home Delivery
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Allocation of Drug Spending
©2008 Express Scripts, Inc. All rights reserved.
Costs & Trends
Key Brand Drugs Losing Patent Protection
2009 2010 2011 2012 2013Annual Sales
$10.8 Billion $8.1 Billion $16.6 Billion $20 Billion $8 Billion
• Adderall XR• Ambien CR• Casodex• Cellcept• Depakote ER• Prevacid• Topamax• Valtrex
• Aricept• Arimidex• Cozaar• Effexor XR• Flomax• Hyzaar• Patanol• Sanctura
• Actos• Levaquin• Lipitor• Protonix• Zyprexa
• Avandia• Avapro• Detrol LA• Diovan HCT• Geodon• Lexapro• Plavix• Provigil• Seroquel• Singulair• Viagra
• AcipHex• Avodart• Cymbalta• Namenda• Niaspan• OxyContin• Propecia• Sustiva• Xopenex
More than $63.5 billion
within the next five years
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Legislation Overview – State Level
• Consolidated Health Care Program• Pharmacy Benefit Management• Autism
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Legislation Overview – Federal Level
• Mental Health Parity Bill• American Recovery & Reinvestment Act
• COBRA Premium Assistance Subsidy• HIPAA Privacy and Security Rules
• Children’s Health Insurance Program Reauthorization Act of 2009
• Michelle’s Law (HR 2851)• Genetic Information Nondiscrimination Act (GINA)• Medicare Secondary Payer Reporting Requirement• Newborn’s and Mother’s Health Protection Act• IRS Cafeteria Plan Guidance
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National Health Care Reform