RECOMMENDATION

EFFECTIVE
DATE

COST IMPLICATIONS

EMPLOYEE IMPLICATIONS

HEALTH CARE

Change HMO and POS medical plans from insured to self‐funded plans

01–01–12

($1.8 million)*

No impact on benefits

Provide drug benefits through a consolidated purchaser (versus through each medical plan)

01–01–12

($1.5 million)*

No impact on benefits

Authorize the Chancellor's Office and Administrative Board to change medical plan designs in consideration of employee survey results

($2.0 million)*

Upfront deductible and/or higher copayments and payroll deductions for medical coverage

Eliminate Health Reimbursement Account (HRA) employer contribution

01–01–12

($1.5 million)*

Employees will no longer receive $500 contribution from USNH

COMPENSATION

Take steps to ensure performance‐based distribution of salary increases, including enhanced performance management

FY12–13

Modest additional cost

Greater alignment between pay and performance

Eliminate longevity payments for new hires

07–01–11

Modest savings over time

No change for current employees

RETIREMENT

Reduce contributions to the 403(b) retirement plan

07–01–11

($1.8 million)*

Authorize the Chancellor's Office and Administrative Board to change 403(b) employer contributions in consideration of employee survey results

Provide access to group Medigap plan option for post‐65 retirees

01–01–13

None

New option for eligible retirees

Eliminate additional retirement contribution (ARC) for new hires

07–01–11

($1.0 million)

No change for current employees

Add Roth option to retirement plan

01–01–12

None

New option for all employees

TIME OFF

*Projected annualized savings
A number of other changes will be considered to enhance the employee experience, including financial planning, and enhanced performance management and training. The Board will also recommend that policies on workplace flexibility be reviewed.

**Approved by the USNH Board of Trustees February 17, 2011.