Big Price-Little Benefit: Proposed Locks on the Upper Mississippi
Benefit Programs of the Upper New York Area
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Transcript of Benefit Programs of the Upper New York Area
Clergy Retirement Security PlanClergy Retirement Security Plan
Health Care ProgramHealth Care Program
Long Term Disability and Death Long Term Disability and Death BenefitBenefit
Benefit Programs ofBenefit Programs ofthe Upper New York the Upper New York
AreaArea
CLERGY RETIREMENTCLERGY RETIREMENTSECURITY PROGRAMSECURITY PROGRAM
Benefits and structure of this programBenefits and structure of this program
remain the same. remain the same.
You are eligible to participate if you areYou are eligible to participate if you are a clergy member or local pastor a clergy member or local pastor
under Episcopal appointment to a under Episcopal appointment to a conference, church, charge, district conference, church, charge, district or conference-controlled entity or or conference-controlled entity or unit, and unit, and
are receiving compensation. are receiving compensation.
Funding CRSPFunding CRSP
New Act has approved New Act has approved recommendation that for July recommendation that for July through December of 2010, local through December of 2010, local churches will be billed on the same churches will be billed on the same basis as for the first half of 2010. basis as for the first half of 2010.
Proposal for billing in 2011 will be Proposal for billing in 2011 will be presented at the June 19, 2010 presented at the June 19, 2010 Conference.Conference.
CRSP ChallengesCRSP Challenges
It is estimated that the full cost of It is estimated that the full cost of CRSP is approximately 17% of CRSP is approximately 17% of clergy compensationclergy compensation
The new conference needs to The new conference needs to determine whether the use of determine whether the use of reserve funds is appropriate for this reserve funds is appropriate for this purposepurpose
Prior Pension PlansPrior Pension Plans
All four conferences need to adopt the All four conferences need to adopt the same Past Service Annuity Rate at the same Past Service Annuity Rate at the highest level, which is $552 per service highest level, which is $552 per service year with a survivor rate of 75% year with a survivor rate of 75%
The same rate will be proposed for 2011 The same rate will be proposed for 2011 The “Pre-82” pension plan and Ministerial The “Pre-82” pension plan and Ministerial
Pension Plan (MPP) funding was affected Pension Plan (MPP) funding was affected by 2008 market downturnby 2008 market downturn
Prior Pension Plans ChallengesPrior Pension Plans Challenges
There will be a contribution required in There will be a contribution required in 2011 by the new conference to 2011 by the new conference to
the Pre-82 plan the Pre-82 plan $1.2 million$1.2 million
Ministerial Pension PlanMinisterial Pension Plan$980,000 $980,000
It will be recommended that reserve It will be recommended that reserve funds be used for these payments funds be used for these payments
HEALTH CARE PROGRAMHEALTH CARE PROGRAM
Goals of the Health Insurance Task Goals of the Health Insurance Task ForceForce::
Provide equity in benefits across Provide equity in benefits across the new conferencethe new conference
Care for the concerns of retirees Care for the concerns of retirees
Be mindful of Be mindful of allall constituents constituents
Process for selection of Health Process for selection of Health Care ProgramCare Program
1.1. Met to outline our goals & process; Met to outline our goals & process; share our current practices; share our current practices; provided census data to health provided census data to health insurance organizationsinsurance organizations
2.2. Reviewed four conference policies Reviewed four conference policies and prioritized and prioritized
3.3. Heard presentations from MVP and Heard presentations from MVP and HealthFlex HealthFlex
4.4. Reviewed rates and compared plans Reviewed rates and compared plans
Quantitative AnalysisQuantitative Analysis
Listed 9 features that were most importantListed 9 features that were most important (cost – network – retiree benefits – wellness – enrollment (cost – network – retiree benefits – wellness – enrollment
flexibility – administration – RX – Mental health – maternity flexibility – administration – RX – Mental health – maternity benefit) benefit)
Ranked the features by importance (ranks Ranked the features by importance (ranks could be repeated) could be repeated)
Analyzed how each plan performed on a Analyzed how each plan performed on a scale of 1 to 10 in each of the features scale of 1 to 10 in each of the features
Arrived at a numeric score for each plan Arrived at a numeric score for each plan
Quantitative AnalysisQuantitative Analysis
HealthFlex ranked higher primarily due to HealthFlex ranked higher primarily due to retiree plan benefits & coverage arearetiree plan benefits & coverage area
Under age 65 plans for HealthFlex and Under age 65 plans for HealthFlex and MVP had very similar rates but MVP had very similar rates but HealthFlex rates are available in March HealthFlex rates are available in March as opposed to Oct.as opposed to Oct.
The provider network for HealthFlex The provider network for HealthFlex provides more options in areas that are provides more options in areas that are underserved in NYSunderserved in NYS
HEALTHFLEXHEALTHFLEX
The Health Insurance Task Force The Health Insurance Task Force recommended to New ACT, and recommended to New ACT, and New New ACT approvedACT approved, HealthFlex as the , HealthFlex as the health care program of the new health care program of the new conference for clergy at local conference for clergy at local churches, Conference lay and clergy churches, Conference lay and clergy staff, retirees, and surviving spouses staff, retirees, and surviving spouses
ELIGIBILITYELIGIBILITY
FUNDING FUNDING
ADDITIONAL ADDITIONAL RECOMMENDATIONSRECOMMENDATIONS
BENEFITSBENEFITS
HealthFlex EligibilityHealthFlex Eligibility
Eligibility Rules chosen state participants Eligibility Rules chosen state participants must be appointed full time at a local must be appointed full time at a local church or within the Conference structure. church or within the Conference structure. Conference will be billed for all full time clergyConference will be billed for all full time clergy Clergy person can choose not to enroll but Clergy person can choose not to enroll but
local church(es) will still be responsible for local church(es) will still be responsible for premium payment premium payment
Did not choose selective enrollment as it Did not choose selective enrollment as it results in 15% surchargeresults in 15% surcharge
Transition period for full time clergy in Transition period for full time clergy in Wyoming Conference Wyoming Conference not currently not currently enrolledenrolled in Conference plan is six in Conference plan is six months months
- will need to determine enrollment status by - will need to determine enrollment status by November 1 for Jan. 1, 2011 November 1 for Jan. 1, 2011
Clergy Couples; enrollment and billing Clergy Couples; enrollment and billing depends on percentage of appointment depends on percentage of appointment for each person for each person
Full time status based on clergy Full time status based on clergy appointment per Appointment Form appointment per Appointment Form filed by District Superintendent filed by District Superintendent
HealthFlex EligibilityHealthFlex Eligibility
Transition period for part time clergy: Transition period for part time clergy:
if enrolling in HealthFlex, will have until if enrolling in HealthFlex, will have until July 1, 2011 to secure alternative coverage July 1, 2011 to secure alternative coverage
Part time was not chosen as eligibility Part time was not chosen as eligibility category because 100% of part time category because 100% of part time clergy would need to enrolled and pay clergy would need to enrolled and pay premium premium
HealthFlex EligibilityHealthFlex Eligibility
Retirees, their spouses and surviving Retirees, their spouses and surviving spouses are eligible, but not spouses are eligible, but not mandatory participants mandatory participants
Future retirees are eligible to continue Future retirees are eligible to continue If active and not currently a If active and not currently a
participant, must be enrolled 5 years participant, must be enrolled 5 years prior to retirement OR as of 1/1/2011 if prior to retirement OR as of 1/1/2011 if retiring before 1/1/2016 to be eligible retiring before 1/1/2016 to be eligible for HealthFlexfor HealthFlex
HealthFlex EligibilityHealthFlex Eligibility
Dependents of participants are Dependents of participants are eligible until age 19 and up to age 25 eligible until age 19 and up to age 25 if enrolled in school full time if enrolled in school full time
If already enrolled, clergy going on If already enrolled, clergy going on Leave (Incapacity, Sabbatical, Leave (Incapacity, Sabbatical, Personal, etc.) are eligible to Personal, etc.) are eligible to continue their participationcontinue their participation
Health Program FundingHealth Program Funding
New ACT has approved the New ACT has approved the recommendation that all conference recommendation that all conference health care billings will continue for July – health care billings will continue for July – Dec. on the same basis as established by Dec. on the same basis as established by each conference for 2010 each conference for 2010
RecommendationRecommendation from HITF for 2011 is from HITF for 2011 is that churches with eligible clergy will be that churches with eligible clergy will be billed at a “blended” rate billed at a “blended” rate
There is a second funding There is a second funding recommendation on the table recommendation on the table
Health Program FundingHealth Program Funding
The “blended” rate is the total premium for all The “blended” rate is the total premium for all eligible participants divided by the number of eligible participants divided by the number of participants participants Same rate regardless of coverage levelSame rate regardless of coverage level
Example: Using the current census of eligible Example: Using the current census of eligible persons, the blended rate would be $986 per persons, the blended rate would be $986 per month … month …
If the Non-mandatory plan had been chosen, If the Non-mandatory plan had been chosen, the blended rate would have been $1,166 per the blended rate would have been $1,166 per month + additional $100,000 in shared month + additional $100,000 in shared ministry budget for staff premiumsministry budget for staff premiums
Health Program FundingHealth Program Funding
Recommendation is to bill a personal Recommendation is to bill a personal premium for enrolled clergy through premium for enrolled clergy through before-tax payroll deductionbefore-tax payroll deduction
Recommended percentage is 15% of Recommended percentage is 15% of premium based on coverage level premium based on coverage level
15% of Premium 15% of Premium Monthly AmtMonthly Amt
Single Coverage – Single Coverage – $104$104
Two Person Coverage – Two Person Coverage – $197 $197
EXAMPLEEXAMPLEFamily Coverage - Family Coverage - $260$260
New ACT/New CBOPHB New ACT/New CBOPHB ChallengesChallenges
A second proposal is being considered to A second proposal is being considered to direct bill a portion of the health insurance direct bill a portion of the health insurance cost based on financial strength and the cost based on financial strength and the remaining portion at a blended rate remaining portion at a blended rate
A 3-year phase-in plan for funding health A 3-year phase-in plan for funding health care for severely affected churches will be care for severely affected churches will be recommended recommended
Pursue alternative coverage options for Pursue alternative coverage options for part time clergy at local churches part time clergy at local churches
Retiree Funding ChallengesRetiree Funding Challenges
Desire for equality of coverage over a Desire for equality of coverage over a large population living in many places large population living in many places resulted in choosing a plan more resulted in choosing a plan more expensive than HMO expensive than HMO
Increasing long term liability to the Increasing long term liability to the conference if continuing to fund high conference if continuing to fund high percentage of retiree premiums percentage of retiree premiums
VERY different funding methods across the VERY different funding methods across the four conferences four conferences
Retiree FundingRetiree Funding
Three sources of fundingThree sources of funding: :
1.1. Local Churches (All) Local Churches (All) Recommendation to determine amount Recommendation to determine amount
based on financial strength based on financial strength
2.2. Reserve Funds Reserve Funds Recommended amount pending Recommended amount pending
3.3. Participants Participants
Retiree FundingRetiree Funding
Recommended Retired Participant Recommended Retired Participant ContributionsContributions: :
1.1. Remain as currently billed through 2010Remain as currently billed through 2010
2.2. Starting Jan 1, 2011 new formula to be usedStarting Jan 1, 2011 new formula to be used
3.3. Subsidy from Conference = 3% of premium Subsidy from Conference = 3% of premium for each year of service up to 30 yearsfor each year of service up to 30 years
4.4. Under age 65 persons also pay difference Under age 65 persons also pay difference between active premium and Medicare between active premium and Medicare Companion premium of $300Companion premium of $300
Recommendations to New ACTRecommendations to New ACT
Offer a subsidy to retirees who Offer a subsidy to retirees who maintain an alternative health maintain an alternative health insurance program, equal to what insurance program, equal to what would have been paid by the would have been paid by the conference if enrolled in conference conference if enrolled in conference plan but not to exceed the premium plan but not to exceed the premium paid by the retiree paid by the retiree
Recommendations to New CBOPHBRecommendations to New CBOPHB Seek alternative, lower premium Seek alternative, lower premium
coverage for over age 65 participants coverage for over age 65 participants
Conference Board of Pension & Conference Board of Pension & Health BenefitsHealth Benefits
Other Action Items being forward to Other Action Items being forward to the new boardthe new board: :
Two locations for retirement seminarsTwo locations for retirement seminars Use best practices for retiree recognitionsUse best practices for retiree recognitions Emergency support for retirees and Emergency support for retirees and
spousesspouses Central Conference Pension InitiativeCentral Conference Pension Initiative Consideration of Moving PoliciesConsideration of Moving Policies Personal delivery of death benefit checksPersonal delivery of death benefit checks
Changes in Benefits
There will be no dental coverage for active clergy under the Upper New York plan Participants are encouraged to schedule
dental work before July 1, 2010 There are many low-cost alternatives
available for individual coverage The Vision Plan through VSP will
remain the same
QUESTIONS?QUESTIONS?
Vicki PutneyVicki PutneyDirector of Ministry SupportDirector of Ministry Support
[email protected] ext. 317800-699-8715 ext. 317
Nancy StanleyNancy StanleyWyoming Conference Benefits OfficerWyoming Conference Benefits Officer
nstanley@wyomingconference.org800-799-9664800-799-9664607-757-0608607-757-0608