(Approved: Trustees, as negotiated; 10/14/88; Administrative Practice)
Various benefit plans are provided for Indiana University employees. Because these plans are subject to change by actions of the administration and of the Trustees of Indiana University and by legislation, individuals should contact University Human Resource Services for more current details.
HEALTH CARE COVERAGE
(For Full-Time Employees)
The university offers employees comprehensive health care coverage, with a significant portion of plan costs paid by the University. Enrollment in these coverages is typically effective from the date of hire. Employee premiums are deducted before taxes, which results in tax savings. Coverage is available at four membership levels: employee, employee with child(ren), employee with spouse, or registered domestic partner and family.
Indiana University offers a variety of medical care plans to employees, based on the availability of these plans near the employee’s place of residence. All of these plans provide comprehensive coverages and no pre-existing exclusion limits for services and medical needs, such as:
- a. Inpatient and outpatient treatments
- b. Primary care and specialist physicians
- c. Organ and tissue transplants
- d. Prescription drugs
- e. Mental health treatments
- f. Emergency room and urgent care
- g. Wellness, including eye exams
Employees may choose from three plans offered: Blue Preferred Primary POS, IU PPO-Plus, and IU PPO $900 Deductible. Each plan has designated preferred providers, deductibles, copays, and other distinguishing features.
During active employment, the University pays a significant portion of the premium. Academic year appointees whose regular appointments terminate at the end of the academic year but who are continuing their services throughout the summer may continue membership in the plan during the summer session, provided they pay their share of the premium through their campus Human Resource Services Office. Federal law (COBRA) allows employees or their dependents to continue in the group health care insurance plan, for specified periods, upon termination of employment, divorce, death, or dependent children reaching the cut-off age. Plan descriptions and details are available from each campus Human Resource Services Office.
Employees may enroll in the IU Dental Plan. Members may receive dental care from any licensed dentist; however, a higher level of benefit is paid when a network dentist is used. This plan has annual maximum benefits for each enrolled member and for child orthodontia.
Basic Life Insurance
The University provides group life insurance to formally appointed full-time employees in positions of expected duration of one academic year (or a minimum of nine months, if not a teaching position) who have actively commenced and continue compensated employment. The University bears the full cost of premium payments.
Employees age 65 and under are insured for an amount two times base salary to a maximum of $50,000 of insurance. After age 65, and for retirees, the amount of insurance is reduced.
Other Provisions of the Group Life Insurance Contract
- a. Spouses/registered domestic partners of employees are insured for $3,000 and dependent children for $1,000. Each child must be at least 14 days of age and under age 20, or a full-time student under age 24.
- b. A covered employee who becomes totally and permanently disabled before the sixtieth birthday may receive life insurance benefits in equal monthly disability installments. The number and amount of these are determined by the Master Policy, but the total amount thus paid is not to exceed the first $20,000 of coverage.
- c. When a covered employee suffers accidental death or dismemberment the designated beneficiary, or the employee, normally receives an additional benefit, over and above the regular coverage.
- d. If an employee has a terminal illness in which life expectancy is 12 months or less and the employee meets other requirements, the employee may elect to accelerate the payment of group life insurance in advance of death.
- e. Insured, academic-year appointees whose regular appointment has terminated at the end of the academic year but who continue services throughout the summer, will continue to be insured over the summer.
- f. When a covered employee is terminated, group coverage may be converted to individual coverage with the same insurance carrier and without evidence of insurability. Premiums are paid by the individual based on attained age. Application for such conversion must be made within thirty days after termination.
- g. After certain conditions of achieved age and length of University service, the employee’s membership in the group may continue after retirement.
Insurance is Continued for Employees
- a. On sabbatical leave of absence to the end of 12 months or, if earlier, the end of such leave
- b. On leave of absence due to sickness or injury to the end of 12 months after the disability began
- c. On an approved family medical leave to the end of six months or, if earlier, the end of such leave
- d. On leave of absence without pay for reasons other than sickness or injury to the end of 12 months or, if earlier, the end of such leave, provided that after the first three months of such leave, the covered employee has applied for continuance of such insurance and has made payment of the group premium to Indiana University in advance, at quarterly or greater intervals.
SUPPLEMENTAL LIFE INSURANCE
Optional Supplemental Life Insurance
Optional supplemental life insurance augments the Basic Life Insurance provided by IU. The amount of supplemental coverage depends on which option an employee chooses. The options available range from one to four times the base salary up to specified maximum amounts. Enrollment must be made within 60 days of first eligibility, or upon proof of medical evidence of insurability.
Basic Accidental Death and Dismemberment Insurance
In addition to Basic Life Insurance, the university provides basic accidental death and dismemberment insurance, 100 percent of which is paid by IU. In the event of an employee’s accidental death, the amount of this benefit is equal to twice the employee’s base annual salary, up to a maximum benefit of $50,000.
Optional Personal Accident Insurance
Personal Accident Insurance (PAI) pays benefits in the event of accidental loss of life or dismemberment. Employees can purchase coverage for themselves or for themselves and family members. Additional benefits are available for various situations. Eligible employees can purchase coverage from $30,000 to $500,000. Travel assistance services are available to plan enrollees.
Optional Long-term Disability Insurance
Long-term Disability (LTD) pays a significant percentage of an employee’s salary should an enrolled employee become disabled and cannot work. This plan replaces 60 percent of one’s salary, up to a maximum of $10,000 per month, less Social Security and other individual disability benefits. Benefits are paid as long as a total disability continues, until age 65 (or to a later age if disability occurs after age 60).
FEDERAL SOCIAL SECURITY
Most employees of Indiana University are entitled to two categories of benefits: Old Age, Survivors, and Disability Insurance (OASI) and Medicare health insurance. By law, the University and the employee share equally in the payment of the Federal Income Contribution Act (FICA) tax on salary and wages. The tax rate is set by Congress and may be changed from time to time. In 2008, it was 7.06% of each employee’s pay for OASI up to the annual limit of $102,000; plus 1.45% of each employee’s pay for Medicare, with no annual limit.
OLD AGE, SURVIVORS, AND DISABILITY INSURANCE (OASI)
In the most general terms, Social Security benefits in this category are payable to (a) retired employees, 62 years or older; (b) dependents of employees who are disabled, retired, or deceased; (c) employees who have become disabled before reaching retirement age.
This program provides hospital and medical insurance benefits for persons 65 years or older, the disabled, and those suffering from chronic kidney diseases. It is important to know that each person—employee and spouse separately, whether working or not— should file application for coverage with the Social Security Administration about three months before the 65th birthday if they are not yet receiving Social Security benefits to assure prompt coverage. For detailed information contact the local office of the Social Security Administration or (www.socialsecurity.gov).
WORKERS’ COMPENSATION AND OCCUPATIONAL DISEASE ACT
State law requires all employers to provide specific benefits for employees who are injured or diseased in the line of duty of their employment. The cost of the benefits is borne entirely by the University. Injuries should be reported to the employee’s immediate supervisor and by the supervisor to the office on each campus which is responsible for property and casualty insurance. Medical expenses covered by this law are not covered under the health care benefits otherwise provided through University employment.
The Federal Social Security Act requires extension of the Indiana Employment Security Act to employees of the University who are not primarily students. Such employees are entitled to unemployment compensation under the same conditions that are provided by the Indiana law for employees of private industry, except that University employees in an instructional, research, or principal administrative capacity on a 10-month basis are not entitled to benefits during the interval between two successive semesters, terms, or academic years of employment.
Tax Saver Benefit Plan
This is a voluntary plan available to full-time appointed employees which exempts certain insurance premiums, and health and dependent care expenses from federal, state, local, and Social Security (FICA) taxes. The plan has three distinct parts.
Part A allows payment of the employee's share of the premium for any IU Group Medical, Dental, or Personal Accident Insurance Plan by payroll reduction, on a before tax basis, thus lowering the net taxable income.
Part B is for reimbursement of expenses for health and dental care not covered by insurance.
Part C reimburses expenses for dependent care during working hours. Under Parts B and C, employee's taxable salary is reduced by an agreed amount which is placed on account to reimburse the employee for eligible services after they are rendered.
Enrollment is permitted only within 60 days of initial appointment, and during the month of November for the following calendar year. Employees must re-enroll each November to continue participation in Parts B and C.
Pre-Tax Commuting Expense Plan
This plan covers all IU employees with a regular salary, taking advantage of changes in IRS regulations by reducing income and FICA taxes for certain amounts related to commuting to and from employment at the University. The plan consists of two components: Pre-tax Parking Expenses and Pre-tax Mass Transit Expenses:
Pre-tax Parking Expenses (effective July 1, 1999):
- (1) Pre-tax expenses for parking, up to IRS maximum
- (2) Automatic payroll "salary reduction" for new/renewed parking permits
- (3) Option to pay fees directly to Parking Operations with after-tax funds
Pre-tax Mass Transit Expenses (effective January 1, 2000)
- (1) Pre-tax expenses for bus and train, up to IRS maximum
- (2) Payroll "pre-tax credit" upon submission of applicable receipts.
Expenses related to both plan components are exempt from federal and state income and FICA taxes, resulting in an increase in take home pay.
These pre-tax benefits do not impact other University benefits such a retirement and life insurance, except maximum employee contributions to TDA plan may be slightly reduced.