Indiana University
  The latest work-life information at IU

No. 42
October 2007

University Human Resource Services

Inside this Issue:

Annual Open Enrollment

2008 Health Care Plans

New Self-directed Brokerage Window

Tobacco Use and Health: Smoking Can Cause Blindness

New IU Tobacco-free Wellness Program

Tax Saver Benefit Plan

TSB Debit Card

Highlights of Changes for 2008

M-Plan HMO Participants

2008 Medical Premium Rates

Medicare Prescription Drug Coverage

Preferred Providers and Customer Service Contacts

Investment Fund Performance

New Fidelity Investment Funds


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
Poplars E165
400 E. 7th Street
Bloomington, IN 


Annual Open Enrollment

Once a year, full-time employees have the opportunity to make changes in medical, dental, and Personal Accident Insurance coverages and to enroll in the university’s Tax Saver Benefit (TSB) Plan pre-tax reimbursement accounts. This year, employees will have a new opportunity—to participate in the Wellness Health Reimbursement Arrangement (HRA). See separate article in this issue.

If an employee does not take any enrollment actions during Open Enrollment, participation in medical, dental, and Personal Accident Insurance will remain the same at the 2008 contribution rates. If an employee does not enroll in a TSB reimbursement account or the new Wellness HRA, he/she will not be a participant in 2008.

Participation in the university’s TSB plan requires enrollment each year to take advantage of pre-tax reimbursement of health and dependent care expenses. Employees do not need to be enrolled in an IU-sponsored medical or dental plan.

The Open Enrollment period takes place during November of each year, with enrollment changes becoming effective on January 1. This is an opportunity to:

  • Select a different medical plan or drop a plan.
  • Add or drop dependents.
  • Add or drop dental coverage.
  • Add, drop, or change Personal Accident Insurance.
  • Allocate contributions for pre-tax reimbursement of 2008 health care and/or dependent care expenses (TSB).
  • Complete a tobacco-free affidavit to participate in the Wellness HRA.

An Open Enrollment packet with additional information and enrollment forms will be sent to full-time employees early in November through campus mail. The deadline for submitting Open Enrollment forms is November 16, 2007.

Eligibility provisions for enrolling dependents in IU-sponsored medical and dental plans will be enhanced to provide coverage for unmarried tax-dependent children until age 24. Eligibility details are available at These provisions will also be available in the Open Enrollment packet.

2008 Health Care Plans
13.4 Percent Increase in Medical Premiums

For 2008, there will be a 13.4 percent increase in the weighted average adjustment in medical premiums for the university’s medical plan options. There will also be a 4.3 increase in dental premiums. These are adjustments in total premiums, and employee contributions will increase or decrease based on the difference between total premium and the university’s contribution amount. For 2008, the university will contribute up to the following amounts for medical and dental plan coverages:

2008 University Contributions
Employee Only
$ 4,989.50
$ 8,681.99

For Fiscal Year 2007/2008, it is estimated that Indiana University will contribute a total of $127 million for employee health care coverages.

Continued: Highlights of Changes for 2008

IU-sponsored Supplemental Retirement Plans
New Self-directed Brokerage Window

Indiana University is pleased to announce that a new TIAA-CREF self-directed brokerage window is now available in the IU Tax Deferred Annuity Plan and IU Retirement Savings Plan.

  • The brokerage window gives plan participants access to thousands of non-TIAA-CREF mutual funds in which to invest.
  • Mutual funds with and without transaction fees are available.
  • Includes such mutual fund families as Calvert and Vanguard.
  • The minimum initial investment is $5,000 and subsequent minimum investments are $1,000.

To begin investing through the brokerage window:

  1. Participant transfers some of her/his plan assets to the brokerage window as an asset allocation adjustment.
  2. A welcome kit, identification and password will be issued within 72 hours of initial investment in the brokerage window.
  3. Trading can be done online via TIAA-CREF Brokerage Services web site, by phone through an individual consultant, or by automated telephone system.
  4. Trade confirmations are generated upon each purchase or sale of securities and sent directly to the participant.
  5. Standard commissions apply to trades placed within the brokerage window.
  6. The annual account fee is $40 deducted in quarterly installments of $10 from the participant’s account.

To take a distribution from the brokerage window:

  1. Investments are liquidated and revert back to the brokerage window.
  2. Assets may be distributed to the participant or be reinvested in other plan investment options subject to plan terms.

Record keeping

  • TIAA-CREF quarterly statements will reflect the total value of assets in the plan account, including assets in the brokerage window.
  • A separate quarterly statement from TIAA-CREF Brokerage Services will detail investment transactions made through the brokerage window.

Tobacco Use and Health
Smoking Can Cause Blindness

In addition to all the other health problems smoking causes, smoking has been linked to age-related macular degeneration (AMD), a disease of the eye. AMD is the leading cause of blindness for people aged 65 years and older, affecting more than 10 million Americans. There is no cure for AMD.

AMD is caused by a deterioration of the retina—the layer of the eye that relays images to the brain. The center of the retina is called the macula and is responsible for the detailed central vision that allows people to read, drive, and recognize faces. If the macula starts to break down, areas in the center of the visual field start to look blurred.

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Page updated: 8 October 2007