Salary and Benefits Easy as XYZ

Jonathan R. Hiatt Professor of Surgery Vice Dean for Faculty

Camille Carr Benefits Counselor

Campus Human Resources

http://www.ucop.edu/acadpersonnel/apm/welcome.html

Today’s Topics

Structure of salary composition

How it is negotiated

What the paycheck reflects

Benefits

Retirement

Salary

X + X’ + Y = Total Negotiated Salary (TNS)

Salary

X + X’ + Y = Total Negotiated Salary (TNS)

Monthly paycheck is 1/12 of TNS

Salary - X

X + X’ + Y = Total Negotiated Salary (TNS)

X determined by step and rank

Set by the University

Tables found on websites

http://www.ucop.edu/acadpersonnel/1112/

Salary – X’

X + X’ + Y = Total Negotiated Salary (TNS)

X’ is the retirement factor

APU (Academic Personnel Unit) – Dept./Div.

Scale 1 to 8 = retirement at 110% to 180% of X

X + X’ = base salary, covered compensation for retirement purposes

Salary - Y

X + X’ + Y = Total Negotiated Salary (TNS)

Y is the delta

From activities: grants, clinical earnings

In Research series, Y may be the X’

Salary - Z

Mostly for clinical faculty Contribution beyond primary responsibility Usually paid every 2-3 mos as a check after

departmental taxes Set by Divisional and Dept. Bylaws In Medicine, based on RVUs Taxation on Z lower than on Y Fixed Z: paid by dept. for a particular job

Retirement

(X + X’) x (Yrs. of service) x (Age factor)

Age factor 2-2.5, maxes at age 60

Vested at 5 yrs of service

Vested in health at 20 yrs of service

http://atyourservice.ucop.edu/employees/retirement_savings/ucrp.html

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UC Benefits Review for

Health Sciences Faculty

October 18, 2012

CCARR/PWRPOINT/Health Sciences Faculty 10-2012.PPT

UCLA BENEFITS COUNSELORS

Name Email Extension Client by Alphabet:

Camille Carr ccarr@chr.ucla.edu x40847 A-J Robert Larriva rlarriva@chr.ucla.edu x40837 K-Z

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Location: 10920 Wilshire Blvd. #200; Mailcode: 146548

NEXT 30 MINUTES…

UC Health & Welfare Plans University of California

Retirement Plan (UCRP) Current Tier

Retiree Health Plans G1, G2 and G3

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UC HEALTH & WELFARE PLANS

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UC HEALTH PLANS Medical Plans

PPOs: Co-Insurance with Deductible Payments Anthem BC PPO^ ($250 deductible, 80%/20%* co-insurance) Anthem Lumenos PPO with HRA ($1,700 deductible,

80%/20%* co-insurance, $1,000 HRA) Core ($3,000 deductible, 80%/20%* co-insurance)

POS: Anthem BC Plus^: Co-Pay/Co-Insurance Method Hybrid HMO with PPO Options ($20 co-pays in network; $500

deductible, 70%/30%* co-insurance out-of-network) HMO^s: Co-Payment Plans

Health Net ($20 office visit, $250 hospital, $50 ER) HN Blue & Gold ($20 office visit, $250 hospital, $50 ER) Kaiser ($20 office visit, $250 hospital, $50 ER)

PIE / HIPAA / Open Enrollment Subsidy based on Salary Bands ^ Plans have co-payment structure for Rx *Anthem contracted rates Beware of balance billing

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UC HEALTH PLANS Dental Plans

Delta PPO (Co-Insurance with Deductible) $1,500 year annual benefit

2x/year Prophylaxis, 1x/year Bite wing x-rays $50 Deductible, co-insurance: 75%/25% minor, 50% major

Delta Care (Co-Payment Plan) No annual benefit

PIE / Open Enrollment No Employee Premium

Vision Plan VSP (Choice Network)

$10 co-pay exam, $25 co-pay on materials 1x/year Lenses (contacts or single/bi/tri focals) 1x/other year Frames ($130 benefit, $70 benefit @ Costco)

PIE / Open Enrollment No Employee Premium

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UC WELFARE PLANS Life Insurance (cost based on age and salary)

UC Paid ● 1x annual salary up to $50,000 Employee Paid: Supplemental Chose between flat $20,000, 1x, 2x, 3x, or 4x annual

salary PIE / Statement of Health

Employee Paid Dependent Life 50% of Employee Paid Supplemental Amount PIE / Statement of Health

Accidental Death & Dismemberment $5,000 to $500,000 coverage levels Self, Self and Spouse, Self and Child(ren), Family Enroll anytime; subject to pay compute deadlines

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UC WELFARE PLANS Legal Insurance (ARAG)

Flat Monthly Premium PIE / selective Open Enrollment

Disability Insurance UC Paid ● Short Term (55% up to $800/mo. up to 26 weeks) ● Automatic – commences with appointment ● Assumes the same wait period as Employee Paid plan Employee Paid (7-day, 30-day, 90-day, and 180-day) Employee cost based on waiting period, age & salary Short Term (70% up to $10,000/mo. up to 12 months) Long Term

70% up to $10,000/mo. If offset by other sources 50% up to $10,000/mo. If not offset by other sources $100 minimum monthly payment if other sources >70%

PIE / Statement of Health

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UC WELFARE PLANS – FSAS

Pretax employee contributions

Use for Health (M/D/V) expenses that exceed insurance limitations, co-pays / insurances, eligible medical supplies, chiropractic / acupuncture

Convenient debit card $2,500/year max. 2013

Pretax employee contributions

Use for day care expenses for dependents [child(ren), parents, spouse(s)] that allow you/spouse to work or go to school

$5,000 annual household maximum ($2,500 if married and filing a separate tax return)

Health Care Dep Care

21 “Use it or lose it” UC annually files for extension to March 15th Requires Positive Re-enrollment during the annual Open Enrollment

UC WELFARE PLANS WORK LIFE BENEFITS Stay Well (Premium paid by UC)

Wellness initiation program Incentive: $100/employee, $50/spouse-d.p. Deadlines:

June 15, 2012 – Health Assessment December 15, 2012 – Follow-up Activity

SelectPlus (formerly Sittercity, premium paid by UC) Provider service website

Nannies, babysitters, eldercare, pets (walkers/care), tutors and housekeepers

Participant responsible for all hiring arrangements and payments for services

www.sittercity.com/universityofcalifornia www.selectplus.com/universityofcalifornia

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UC HEALTH PLANS 2013 Changes

Health Net / Kaiser / Anthem Plus +$5 co-payments* OP Surgery co-payment $100 +$25 ER co-payment

All Anthem Plans Out-of-Network Ambulatory Surgical Center limit of $350

(still requires prior authorization)

Prescription Drug Plans +$5 co-payments on Retail rx brand and non-formulary +$10 co-payments on Mail rx brand and non-formulary

Supplemental Disability Monthly benefit maximum raised to $15,000 (70% of $21,429)

*Including Optum formerly UBH (Behavioral Health) co-payments

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2012 Open Enrollment

October 29th

8:30am – November 20th 5:00pm

January 1, 2013 effective date

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University of California

Retirement Plan (UCRP)

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UCRP – 1976 TIER 5 full service years to vest Requires contributions (7/1/2012): Employee: 5% - $19/month University: 10%

Defined Benefit Plan Service credit x age factor x [HAPC - $133] = BRI

Service Credit Excludes: Student titles, WOS, BYA, LWOP

Age 50 is earliest retirement age Age factor assigned at retirement age

1.1% age 50 2.5% age 60 .14% incremental increase between 50 and 60

HAPC is highest average 36-consecutive month plan compensation (x plus APU scale) Reduce by $133 for Social Security coordinated members

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UCRP AGE FACTORS

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UCRP COVERED COMPENSATION

HAPC Eligible HAPC Not Eligible X = Base Salary

–FTE for Part-time appointments

–Step Salary; Above & Off Scale

Y

Negotiated Additional Compensation

Health Science Scale attached to Academic Programmatic Unit

Z

Incentive/Bonus Compensation

28 NOTE: Not all Base salary and Health Science Scale totals may be used for HAPC due to Covered Compensation Limits

UCRP COVERED COMPENSATION LIMIT

UCRP Entry Date Before 7-1-94 7-1-94 & later

7-1-12 $375,000 $250,000 7-1-11 $360,000 $245,000 7-1-10 $360,000 $245,000 HAPC $30,416.67 $20,555.55

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SAMPLE PAY STUB PAY TYPE TITLE PAY RATE TIME GROSS TEMP-B-11MON. Asst Prof-MEDCOMP 12.590.00 .4461% 5,616.40 HS-TEMP-.3-T- Asst Prof-MEDCOMP 12.590.00 .1337% 1,683.28 HS-TEMP->.3-T Asst Prof-MEDCOMP 12.590.00 .2230% 2,807.57 TEMP-DELTA-N Asst Prof-MEDCOMP 12.590.00 .1176% 1,480.58 TEMP-DELTA-N Asst Prof-MEDCOMP 12.590.00 .0796% 1,002.16

* TOTAL EARNINGS * 12.590.00 DEDUCTIONS COVERAGE AMOUNT TAX-SHELTERED YEAR… ANTHEM BC PPO SELF 125.62 125.62 HEALTH FSA 18.00 18.00 PARK REG PRT 68.00 68.00 612.00 UCRP 486.36 486.36 4,377.24 MEDICARE 179.48 1,615.32

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See handout of sample pay stub

UNIVERSITY OF CALIFORNIA - LOS ANGELES Payroll Office, 10920 Wilshire Blvd., Suite 620, Los Angeles, CA 90024

IMPORTANT: PLEASE VERIFY ALL INFORMAITON CONTAINED IN THIS STATEMENT AND NOTIFY YOUR DEPARTMENT OF ANY ERRORS. RETAIN THIS STATEMENT AS A RECORD OF EARNINGS AND DEDUTIONS FROM THE UNIVERSITY.

EARNINGS STATEMENT ADDRESS: 3610

JOSEPH BRUIN

200 WILSHIRE CENTER

146548

NET EARNINGS OF $8,151.64 WILL BE AVAILABLE AS OF 08/31/12 AT YOUR BANK

EMPLOYEE ID NUMBER: 123456789 FEDERAL WITHHOLDING: SINGLE 002 ALLOWANCES XXX-XX-0000 STATE WITHHOLDING: SINGLE 001 ALLOWANCES HOME DEPARTMENT NUMBER: 361000 STATE ITEMIZED: 000 ALLOWANCES

FEDERAL CALIFORNIA STATE TOTAL NET GROSS EARNINGS TAXABLE EARNINGS TAXABLE EARNINGS DEDUCTIONS EARNINGS

CURRENT $12.590.00 $11,892.01 $11,892.01 $4,185.49 $8,151.64 YEAR TO DATE $113,310.00 $107,028.09 $107,028.09 PAY TYPE TITLE PAY RATE TIME GROSS PERIOD END DATE TEMP-B-11MON. Asst Prof-MEDCOMP 12.590.00 .4461% 5,616.40 08/31/12 HS-TEMP-.3-T- Asst Prof-MEDCOMP 12.590.00 .1337% 1,683.28 08/31/12 HS-TEMP->.3-T Asst Prof-MEDCOMP 12.590.00 .2230% 2,807.57 08/31/12 TEMP-DELTA-N Asst Prof-MEDCOMP 12.590.00 .1176% 1,480.58 08/31/12 TEMP-DELTA-N Asst Prof-MEDCOMP 12.590.00 .0796% 1,002.16 08/31/12 * TOTAL EARNINGS * 12.590.00

DEDUCTIONS COVERAGE AMOUNT TAX-SHELTERED YEAR-TO-DATE SICK VACATION COMP ANTHEM BC PPO SELF 125.62 125.62 BEGIN 0.00 192.00 .00 HEALTH FSA 18.00 18.00 PARK REG PRT 68.00 68.00 612.00 ACCRUED 0.00 16.00 .00 UCRP 486.36 486.36 4,377.24 MEDICARE 179.48 1,615.32 TAKEN 0.00 24.00 .00 FEDERAL TAX 2,557.32 23,015.88 CA STATE TAX 959.43 8,634.87 FINAL 0.00 184.00 .00 SUPPL DIS 180 DAY WAIT 11.12 100.08 ARAG LEGAL SELF 10.02 90.18 UNIV REC CARD 23.00 207.00 OASDI 4,624.20 * TOTALS * $4,438.35 $697.98 UC CONTRIBUTIONS ANTHM PPO CT SELF 466.94 DDENTAL CON SELF 43.96 VISION PLAN SELF 11.76 * TOTALS * $522.66

UCRP – 1976 TIER

Defined Benefit Plan Service credit x age factor = Benefit % Benefit % x [HAPC - $133] = BRI

(Basic Retirement Benefit)

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UCRP – 1976 TIER

Monthly Retirement Income (MRI) Retiree Health Insurance Survivor Benefits Payment Options (Contingent Annuitant) Cost of Living Adjustments $7,500 Death Payment

Or Lump Sum Cashout (LSC)

Forfeit all future UCRP benefits

Or Refund of Accumulations Forfeit the Monthly Retirement Income / LSC 33

RETIREE HEALTH BENEFITS

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• You must elect a monthly benefit • Your health insurance must be current • You must retire (start payments) within

120 calendar days of the date your UC employment ends to continue your medical, dental and legal plans, if eligible.

• If you do not continue your medical, dental and/or legal plans when you retire, you will not be eligible to enroll in these plans at any time in the future.

RETIREE HEALTH BENEFITS G1

UCRP entry date pre 1/1/1990 Retire at age 50 – 54 with 10 years or more UCRP Retire at age 55 or older with 5 years or more UCRP

G2 UCRP entry date or rehire date 1/1/1990 or later Retire at age 50 or older:

10 years of service credit, 50% UC Contribution Each additional year of service credit +5% 20 years or more 100% UC Contribution

G3 UCRP members who do not meet 2 thresholds by 7/1/13

5 years of UCRP service Age plus service credit equals 50 or more

Retire age 56 or older with 10 years is 5% UC contribution

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Retiree Health Benefits Subsidy Levels – G1, G2, G3 Example 18 years of UCRP service credit

Health Net HMO, 2-Adult coverage Both H&W age 60

2012 Premium $ 1,300.45

2012 Maximum (100%) UC Contribution $ 907.89

Retiree Insurance Level

G1 100%

G2 90%

G3 45%

$907.89 $817.10 $ 408.55

Monthly Retiree Cost

$ 392.56 $ 483.35

($90.79 + 392.56) $ 966.70

($499.34 + $392.56)

G1 = UCRP Members before 1/1/1990 without a break in service, 100%

G2 = UCRP Members 1/1/1990 or later, or above with a break in service of >120 days: 50% with 10

years, +5% for each additional year, 100% with 20 years or more.

G3 = UCRP Members who do not meet 5 years of UCRP service credit and age plus service credit of 50

as of 7/1/2013.

QUESTIONS??? Campus Human Resources, 310.794.0847

— www.chr.ucla.edu

UC Benefits, 800.888.8267 — http://atyourservice.ucop.edu

FITSCo, 866.682.7787 — http://www.netbenefits.fidelity.com

IRS, 800.772.1213 — www.irs.gov

Social Security — http://www.ssa.gov

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Jr. Faculty Lecture Series

4 pm, Gonda 1357

11/15/12 Work-life balance Lynn Gordon

1/17/13 Mentoring Linda Baum

2/21/13 Negotiations seminar Carol Mangione

3/21/13 Networking M. Ines Boechat John Luo

4/18/13 Academic process David Hovda

5/16/12 Research update Judith Gasson