2013 Open Enrollment - Administrators & Faculty

Below you will find important information about the 2013 open enrollment process and costing for

• The 2013 Retirement Annuity & Supplemental Retirement Plans, including information about new matching requirements and maximum allowable contributions;

• The Oxford Health Plan;

• The Aetna Dental Plan; and

• The 2013 Flexible Spending Enrollment, Allegiance

Please review the information carefully as there are changes to matching requirements for the College’s retirement program, changes to employee costs for the health plan, and reductions to the maximum amounts for flexible spending accounts that you should understand before deciding on your elections.

You need to complete forms only if you wish a change in your supplemental retirement plan contributions, current health care or dental care elections, or to participate in the flexible spending program.  Should you wish to change your elections, change forms are available in Human Resources and on the website at www.barnard.edu/hr/forms.html.  You do not need to complete a form if you are not making changes to your supplemental retirement plan contributions, current health care or dental care elections.  Please note that you must complete a new flexible spending enrollment form to participate in the program for 2013 even if you participated in 2012.  The deadline for submitting any enrollment, change or waiver forms is Friday, December 7, 2012.  Forms must be returned to the Human Resources Department by that date.

Should you have any questions about the Open Enrollment process, please do not hesitate to call Human Resources for assistance at x42551.

2013 Retirement Annuity & Supplemental Retirement Plans

Barnard College provides two retirement plans: the Basic Retirement Annuity Plan and the Supplemental Retirement Annuity Plan.  You may choose to invest these funds with Teachers Insurance and Annuity Association - College Retirement Equity Fund (TIAA-CREF) or Fidelity Investments.  The College offers you a choice of investment options through TIAA-CREF and through Fidelity Investments, providing you with a wide array of investment options.  Please note that effective January 1, 2013, loans and hardship payments are available only to participants enrolled through TIAA-CREF.  A copy of the plan modification document is included with your Open Enrollment information.

Effective January 1, 2013, the College has made changes to the contribution amounts for all current employees.  As described in some detail below, faculty and Administrative employees who were hired by the College prior to July 1, 2012 must begin making a matching payment to the Supplemental Retirement Annuity if they wish to maintain their current level of contributions from the College.

Basic Retirement Annuity:

Eligibility - Contributions to the Basic Retirement Annuity plan are made by Barnard.  All eligible Administrative Officers whose positions are classified as Grade Five or above begin participation immediately.  Those employees whose positions are classified as Grade Four or below will begin participation on January 1st or July 1st following their two-year anniversary date.  However, employees with two years of full-time service at an institution of higher education during the 24-month period directly preceding their date of employment at the College may begin participation immediately.  Employees are asked to notify the Human Resources Department if this exception applies.  Part-time employees who work a minimum of 1,000 hours per year also participate in this plan. 

College Contributions to Individual Accounts - Effective January 1, 2013, the College will make a baseline contribution of 9% of annual salary for all full-time faculty below the rank of Professor and for all administrators whose positions are classified as Grade Eight and below.  Faculty and administrators in these classifications who were hired by the College in searches that began prior to July 1, 2012 are eligible to receive an additional 1% match from the College if they choose to contribute a match of 1% to the Supplemental Retirement Annuity as described below.  Faculty and administrators hired as a result of searches that began after July 1, 2012 are ineligible for the additional 1% matching contribution from the College.

Effective January 1, 2013, for full-time faculty with the rank of Professor and administrators at Grade Nine and above, the College will make a baseline contribution equal to 12% of gross annual salary.  Faculty and administrators in these classifications who were hired by the College in searches that began prior to July 1, 2012 are eligible to receive an additional 3% match from the College if they choose to contribute a match of 3% to the Supplemental Retirement Annuity as described below.  Faculty and administrators hired as a result of searches that began after July 1, 2012 are ineligible for the additional 3% matching contribution from the College.

Supplemental Retirement Annuity:

All full-time and part-time faculty and administrators may elect to make contributions to a supplemental tax-deferred retirement annuity account (SRA) administered by TIAA-CREF or Fidelity.  SRAs are tax-deferred annuities that can help you save for the future. Your contributions lower your current tax bill because they are deducted from your gross income and invested before taxes are calculated.  Because your taxable income is lower, you pay less income tax now.  In most instances, you will pay no federal, state or local taxes on your contributions until you begin withdrawing the funds after your retirement.

Employees can elect to contribute any amount up to an allowable maximum set by the Internal Revenue Service. This can be done either by designating a fixed percentage of your monthly income to the SRA (we recommend this for record-keeping and for maintaining matching contribution from the College, if applicable) or by deducting a specific dollar amount for your contribution to the SRA each month.  The maximum employee contributions are shown below:

The limits indicated above may not be accurate if you fall into any of the following categories:

• You have taken a sabbatical or any similar break in service

• You are currently, or have ever been, a part-time employee

• You are terminating employment in the calculation year

• You have participated in a Tax Deductible Annuity (TDA) Plan with another carrier

If you are affected by any of these situations, or if you have questions about your limits and the advantages available to you through SRAs, please call TIAA-CREF or Fidelity to speak with a noncommissioned retirement planning specialist.

Calculating Employee Matching Contributions:

As described above, faculty and administrators hired as a result of searches that began prior to July 1, 2012, will be asked to make a contribution to the SRA to continue receiving their present levels of retirement contributions from the College.  In order to help you to determine your level of contribution for the year, we are providing you with two examples of how the matching requirement works:

Example 1, for faculty below the rank of professor and administrators below Grade 9:

Example 2, for faculty at the rank of professor and administrators at Grade 9 or above:

If you choose not to make SRA contributions at the levels suggested above, your monthly retirement contribution from the College will revert to the baseline amounts of 9% or 12%, depending on your rank or grade.

Enrollment:

The College’s plan requires that that you execute an authorizing Salary Reduction Agreement when you first participate in the plan. If you are already a participant and you are not planning to change your deductions, you need not take any action at this time.

If you wish to contribute to an SRA for the first time or if you wish to change your deductions, you may do so by completing a Salary Reduction Agreement, which is found on the Human Resources website at www.barnard.edu/hr/forms.html.  Please drop off the completed form in Human Resources.

Oxford Healthcare Open Enrollment 2013

The Open Enrollment Period:

At this time of year, Barnard College offers employees the opportunity to make changes to their health care coverage.  During the Open Enrollment period, employees may add eligible dependents to their existing health care plan, switch from their current health care carrier to the Oxford Health Plan, or switch to Oxford Plan A or Plan B.  Information regarding the basic Oxford Freedom plan is available in Human Resources.

This is the only time during the year that employees may change to the Oxford Health Plan, switch between Oxford Plan A and Plan B, and/or add eligible dependents (other than within 31 days following a life status change).  Dependents may be dropped from coverage at any time.

Health Care Costs:

The increase for Oxford coverage that is borne by the College for 2013 is 11.5%.  In accordance with discussions at the Joint Faculty & Administrators Benefits committee, the College is absorbing 10% of the increase.  The remainder of the cost has been allocated through premium cost sharing to the highest salary bands.  Premium cost sharing amounts for Plan A have remained at 2012 levels for individuals earning less than $75,000.

Contributions you make toward your Oxford insurance will be deducted from your pay, pre-tax, on a monthly basis.  Please note:  IRS regulations do not allow a pre-tax payroll deduction for domestic partner coverage. Effective January 1, 2012, the College provided an offset to the federal tax that faculty and administrators pay to cover a same sex domestic partner or spouse on the Oxford Health Plan, a tax which is not applicable to opposite sex spouses.

For 2013, the Employee/College monthly contributions will be as follows:

PLAN A

PLAN B

Dependent Child Coverage:

1. Recent health care reform legislation has approved provisions for dependent child coverage to age 26.
2. New York State provisions allow for coverage of a dependent child through age 29.  The employee will pay the full cost for dependents older than age 26 at the individual rate of $718.57 for Plan A, or $866.67 for Plan B.  Anyone with questions about the extended coverage should contact Human Resources.

Opt-Out Provision:

Employees may waive Oxford coverage by completing a form available in Human Resources and submitting satisfactory proof of coverage under another health insurance plan.  Employees who waive coverage may terminate the waiver and elect the College’s coverage if there is a life status change that results in the loss of their current health coverage. Please keep in mind that you have 31 days to notify Human Resources should this occur.

Enrollment:

As noted on the cover page, you only need to complete forms if you want a change in coverage.  Otherwise, your Oxford coverage will remain as currently in force, and your monthly deductions for health care will be automatically adjusted based on your salary.  Forms are available in Human Resources and on the website at www.barnard.edu/hr/forms. Forms are due in Human Resources by Friday, December 7, 2012.

Aetna Dental Open Enrollment 2013

The Open Enrollment Period:

During the open enrollment period, the College offers faculty and administrators the opportunity to enroll in dental coverage.  At this time, participants may also add eligible dependents to their existing dental plan. 

• If you are in the DMO or PPO and want your coverage to remain in the DMO or PPO, you do not need to complete any new forms.

• If you wish to add dependents, you must complete a change form.

• If you now wish to enroll in the dental plan for the first time, you must complete an enrollment/change form.

Dental Care Costs:

The employee monthly contributions for 2013 are as follows:

• $15.00 Individual coverage

• $40.50 Family coverage (applies to employee + one, as well as to full family)

Important Information about the Aetna Dental Plan:

The plan includes Dental Maintenance Organization (DMO), Preferred Provider Organization (PPO), and out-of-network access to dentists.  While an out-of-network benefit (similar to an indemnity option) is available, the greatest out-of-pocket savings will result if dentists in either the DMO or the large PPO networks are used. 

One of the unusual features of our plan is that participants may switch between the DMO and the PPO options on a monthly basis.  You may switch back and forth between the DMO and the PPO by calling Aetna customer service by the 15^th of any month.  The change of option will become effective the first of the month following your call.  

Information regarding the Aetna Dental Plan design is available in Human Resources.

Late Entry/Opt-Out Provision:

Please be aware that there is a late entry penalty for Aetna dental plans.  Aetna defines a late entrant as an employee who does not enroll when initially eligible as a new employee.

If you chose not to participate when you were eligible or cancel your coverage now, you may only enroll in the plan at an open enrollment period, and you will be subject to a late entry penalty.  Those penalties are detailed on Dental Insurance Waiver form available in Human Resources or by clicking here.  Please complete that form if you wish to cancel your coverage.

Enrollment:

As noted on the cover page, you only need to complete Aetna Dental forms if you want a change in coverage.  Forms are available in Human Resources and on the website at www.barnard.edu/hr/forms. Forms are due in Human Resources by Friday, December 7, 2012.

Flexible Spending Account Enrollment 2013

The Barnard College Flexible Spending Accounts (FSA) are benefit programs which enable you to reduce taxes by paying for your unreimbursed health and/or dependent care expenses with pre-tax income. 

The FSAs are administrated by Allegiance, a division of CIGNA.  They bring on-line tools that help you to manage your account.

In order to participate for the calendar year 2013, you must complete and return your election form by the deadline, Friday, December 7, 2012.

IRS Regulations and Changes to Annual Maximums:

As noted last year, recent national health care reform legislation includes new regulations for FSAs. The maximum amount for Health Care Spending has been reduced to $2,500 from $6,000 for 2013 in order to comply with the requirements of the Affordable Care Act.  The new limits are:

• Health Care Spending          $2,500

• Dependent Care Spending   $5,000

Beginning with the 2011 FSA plan year, the costs of over-the-counter purchases were no longer reimbursed from the account unless a prescription is obtained.  For example, prior to January 2011 you could submit receipts for items such as non-prescription allergy medication.  After January 2011, those items were not reimbursable from your FSA unless you have special documentation from your physician.  You are still able to use your pre-tax FSA funds to pay for prescription glasses, contact lenses, office co-pays, prescription co-pays and deductibles.    For more information about FSA reimbursements, you can visit Allegiance’s website:  www.allegianceflexadvantage.com or call member services at 1-877-424-3570.

Once the plan year begins, you may change the amount of your flexible spending contributions only if there is a change in your family status – marriage, death, divorce, birth or adoption of a child – or a change in a spouse’s employment status.  This change must occur within 31 days of the qualifying event.  Otherwise, your election may not be changed during the year.

Forms are available in Human Resources and on the website at www.barnard.edu/hr/forms. Forms are due in Human Resources by Friday, December 7, 2012.  Please feel free to call Human Resources with any questions at x42551.

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Barnard College Defined Contribution Plan for Officers of Instruction and Administrators

Summary of Material Modification

Employer/Sponsor: Barnard College, 3009 Broadway, New York, New York 10027

Employer Identification Number (“EIN”): 13-1628149

Plan number: 001

Type of Plan:  Defined Contribution, Money Purchase Plan

Funding vehicles:  Annuity Contracts and Custodial Accounts

Effective as of January 1, 2013, loans and hardship distributions are permitted from funding vehicles offered by TIAA-CREF only.  No other funding vehicles are authorized to offer loans and hardships under the Plan.

Please keep this information with your Summary Plan Description for reference purposes.

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Supplemental Fee Disclosure Information for 2012 Plan Year

For participants who elected to take a loan from their Fidelity accounts, these loan fees were deducted directly from each participant’s account.

a.  Loan Recordkeeping Fee:   $6.25 per quarter, for each outstanding loan. 

b.  Loan Application Fee:        $50.00 non-refundable loan application fee

The elimination of the loan option for Fidelity accounts means that these fees will not be applicable after January 1, 2013 except to the extent that a loan remains outstanding.  Outstanding loans remain subject to the quarterly fee. 

(REV. 11/08/12)