The latest work-life information at IU

No. 40
February 2007

Inside this Issue:

Reduced Premiums and Enhancements to Long Term Disability (LTD) Insurance

Conflicts of Interest and Conflicts of Commitment Policies

Tobacco Use and Health: Men and Smoking

TSB Reminders

2007 Open Enrollment Results

2007 Holidays

Hourly vs. Appointed Positions

CSI Project Status

Policy Refresher about
Staff Work Arrangements

Important Information about Beneficiary Designations

Annual Federal Notices

Web Wise: Jobs@IU

Investment Fund Performance


The Informed Employee is published 2-3 times a year by University Human Resource Services for approximately 16,800 full-time appointed staff and academic employees across the eight Indiana University campuses.

Human Resource
Indiana University
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Reduced Premiums and Enhancements to Long Term Disability (LTD) Insurance

Negotiations with The Standard, underwriter of the IU LTD plan, have resulted in a reduction of premiums and several enhancements that become effective March 1, 2007. These enhancements include the opportunity for current participants to add a unique option to protect retirement benefits as well. The LTD plan consists of these two parts:

(1) Income Replacement. This provision replaces a significant portion of an employee’s salary should the enrolled employee become disabled and cannot work. The plan replaces up to 60 percent of salary, with a maximum of $10,000 per month less Social Security and other disability benefits.

(2) Optional Retirement Protection Benefit. For each month the participant is disabled, the LTD plan pays contributions equal to 10 percent of base salary to a retirement annuity fund. For those who enrolled before July 1, 1999, this benefit provision equals 12 percent of the employee’s base salary.

Currently Enrolled Participants

Reduced Premiums

  • The university’s LTD plan will have a 10 percent overall reduction in premiums effective March 1, 2007.


  • The addition of an Assisted Living Benefit provides extra income replacement for severely disabled individuals.
  • The annual 3 percent Cost of Living Adjustment increase in benefits will now begin after the first year of benefits rather than after 36 months.
  • Benefits for mental illness are no longer limited to 24 months.
  • The period of participation required to be eligible for survivor income benefit has been shortened.

Opportunity to Add Retirement Protection Benefit

Current enrollees who do not have the Retirement Protection Benefit will have a one-time opportunity to enhance coverage by adding this benefit without showing proof of eligibility. This opportunity is only available between March 1, 2007, and April 30, 2007. Participants will soon receive a letter describing this option. For their convenience, a change form will be included. Employees can simply complete the form and return it to a campus HR office or University Human Resource Services.

New Enrollees Can Enroll at any Time

The university’s LTD plan is not tied to the annual Open Enrollment period. Full-time employees may enroll at any time after their initial eligibility period (60 days after first becoming eligible) by showing proof of insurability. Employees not already enrolled in LTD insurance may want to consider enrolling now.

The two-step process to enroll and all necessary forms are at the Benefits Change Connection. Plan information is available at or by calling a campus HR office.

Over 21 million Americans aged 16 to 65 have a disabling condition that affects their ability to earn a living and meet financial obligations. The LTD plan can provide continuing income and retirement contributions when one needs it most.

Conflicts of Interest and Conflicts of Commitment Policies
Staff and Hourly employees

Indiana University feels strongly about employees avoiding and managing possible conflicts of interest and not having conflicts of commitment. These basic business principles are summarized below. See the personnel policies for a full explanation of each one.

Conflicts of interest occur when an employee or his/her immediate family member (1) has an external activity that does business with IU; (2) receives a financial benefit from this activity; and (3) is in a position to influence the university’s decision to do business with this activity.

Staff and Hourly employees are required to avoid conflicts of interest. If this cannot be done, then employees are required to disclose in writing any real or potential conflict of interest to her/his manager. Managers are required to take affirmative actions to manage conflicts of interest, up to and including removing responsibilities from the employee. If there is no other alternative, an employee may be separated from the university.

Conflicts of commitment are not allowed; therefore, there is nothing to disclose and there is no form to complete. Conflicts of commitment occur when the time or effort that an employee devotes to external activities interferes with the fulfillment of assigned university responsibilities, or when an employee makes unauthorized use of university resources in the course of an external activity. (This may also be considered ghost employment or theft.)

Staff and Hourly employees are expected to devote their university work activities to official functions. Non-university-related services (such as those listed below) for or provided to another entity shall take place outside of the employee’s designated work activities or during periods of authorized leave.

  • Services to a corporation, business, association, agency or not-for-profit organization
  • Services as a voluntary or paid expert witness in a civil or criminal case
  • Private lessons in art, music or any field of study
  • Private consulting for financial aid, academic consideration, career development, etc.

Staff and Hourly employees shall not accept any compensation from another agency, entity, or individual for work performed in the course of their university employment, except under very limited circumstances.

In the course of external activities, Staff and Hourly employees shall not use university resources that have a material cost to the university.

It is essential that employees ask their manager for clarification and direction regarding these matters. Managers should maintain a working environment that encourages employees to ask questions.

Tobacco Use and Health
Men and Smoking

Adult men smoke at higher rates than adult women. Twenty-three percent (23%) of men smoke, compared to 18.5 percent of women.

Tobacco-related disease kills approximately 260,000 men every year. Men who die of a smoking-related disease lose on average 13 years of life. Deaths attributed to smoking include cancers of the trachea and lung, and bronchus, cardiovascular diseases, and heart attacks.

Men who quit at age 35 increase their life expectancy by 7 to 9 years; quitting at age 45 increases life expectancy by 6 to 7 years; quitting at age 55 increases life expectancy by 3 to 5 years; and quitting at age 65 increases life expectancy by 1 to 2 years.

Adapted from the American Legacy Foundation


Last updated: 15 February 2007
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