MINUTES

EMPLOYMENT BENEFITS COMMITTEE

April 15, 2010

Members Present

Don Clothier / Scott Moses
Debbie Copp / Sue-Anna Miller
Brenda Freese - Chair / Jannie Porter
Suzanne Gilmore / Will Wayne
Chad Johnson / Frances Wen
Darryl McCullough – Vice Chair / Justin Wert
Members Absent
Alisa Dougless
Don Harrison
Frank Lawler
Simone Pulat

Ex Officio Members

Barbara Abercrombie

Julius Hilburn

Nick Kelly

The meeting was called to order by the Chair at 1:30 pm.

I.  Approval of Minutes

·  The March 2010 minutes were not approved. Changes were requested by the Committee and the minutes will be resubmitted for approval at the May 2010 meeting.

II.  Cost Reductions

·  Julius began the discussion by explaining to the committee that additional scenarios were not sent out in effort to minimize confusion. Details about the budget are rapidly changing at this time and it is unclear as to how it will all unfold, and what the actual deficit will be at the end of the legislative session. All decisions in response to budget issues will be made by President Boren.

·  The timeline for budget decisions depends on the legislature. Most often the budget is not complete until the end of the legislative session.

·  Furloughs vs. DCP

·  Because parts of the University are not state funded the number of furlough days required could vary substantially based on who is included vs. excluded. However, based on projections which include all employees approximately 4 furlough days could be required during the next fiscal year.

Comment: There have been rumors that furloughs would only affect staff.

Response: Julius indicated that he had not heard anything other than there seems to be a difference in preference between faculty and staff regarding furloughs vs. DC reductions.

Question: Could some savings be realized through the paid leave budget?

Response: Julius explained that no savings could be realized because paid leave is an unfunded liability.

III.  Master Record Keeper

·  An investment group was formed approximately 2 years ago to evaluate potential vendors for the Master Record Keeper which will consolidate the administration of all defined contribution plans. The committee consists of people with financial management backgrounds and was put into place to ensure the university fulfills its fiduciary responsibility to provide well managed plans to the OU community.

·  The committee is currently in the process of finalizing negotiations. The goal is to have a recommendation this summer so plan changes can be effective January 2012.

Question: Has a Roth 405(b) been considered?

Response: Julius told the committee that the primary focus has been to select a vendor. However, there have been discussions about the 403(b), and when there would be an opportunity to look into it.

IV.  Request for Proposal

·  Nick told the group that an RFP is currently being prepared for the Flexible Spending Account, COBRA Administration, and Retiree Billing which is currently through PayFlex. There have been multiple issues with members and the documentation requirements on the FSA. Additionally, since moving COBRA Administration and Retiree Billing to PayFlex in September there have been numerous issues with customer service, retiree bills, and reporting which remain unresolved today.

·  Human Resources is targeting the September Regents Meeting for selection of a new vendor or renewal with PayFlex, if all issues are resolved.

V.  Healthcare Reform

·  Nick Kelly informed the committee that the Benefits Office is currently reviewing the new healthcare reform legislation in order to assess the impact it will have on OU.

·  The issues with the most immediate impact are as follows:

§  Dependent coverage through age 26 - As of the beginning of the plan year occurring 6 months after enactment, plans must allow parents to keep their children on the plan through age 26 regardless of student or marital status. However, until 2014 there is a stipulation that there can be no offer of other coverage through an employer.

§  FSA – as of January 1, 2011over the counter drugs will no longer be eligible for FSA reimbursement without a prescription. On January 1, 2014, the maximum annual contribution will be dropped to $2,500.

VI.  Other Business

Question: Is there an implementation date for Retiree Medical?

Response: Julius told the committee that no implementation date has been set, but there is ongoing dialogue.

The next EBC meeting will be Thursday, May 20, 2010.

There being no other business, the meeting was adjourned at 2:35 p.m.