Executive Management Benefits Summary

Benefit

Who Pays

Coverage Begins

Benefit Specifics

Accidental Death & Dismemberment  

Employee

Date of employment if enrolled within 60 days of appointment or during the annual open enrollment period.

A voluntary AD&D plan is available through payroll deduction in increments ranging from 1 to 8 times an employee’s base annual earnings up to a maximum of $1 million dollars. 

COBRA  

If employment terminates or a position is reduced to less than 50% time, coverage under the health and/or dental plans may be continued in accordance with the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1986, for up to 18 months (29 months if disabled and receiving Social Security Disability (SSD) or deemed disabled by SSD any time during the first 60 days of COBRA coverage) by paying 102% of the monthly premium cost.

Course Fee Courtesy

University

Upon employment

Dependent children and spouses admitted to Michigan State University to pursue a curriculum leading to a first baccalaureate degree (maximum of first 120 credits attempted) or to a certificate in the Agricultural Technology Program are entitled to Course Fee Courtesy, providing credit of an amount equal to one-half of the applicable Michigan resident on-campus undergraduate course fee.

Dental Coverage

University

Date of employment if enrolled within 60 days of appointment or during the annual open enrollment period.

Employees may choose dental plan coverage through Delta Dental or Aetna Dental Maintenance Organization for themselves and their dependents within 60 days of employment or during an annual open enrollment. The University currently pays the full cost of the premium for individuals working full-time. The coverage is briefly described below:

The Delta Dental plan pays 50% of the usual reasonable and customary costs of most dental services up to a maximum payment of $600 per person per calendar year. Orthodontia is covered for persons under age 19 with a 50% co-payment and has a $600 lifetime maximum.

The Aetna Dental Maintenance Organization (DMO) utilizes primary care dentists to lower the cost – it is a managed care dental plan. Members select a primary care dentist (PCD) from the provider network and visit their PCD as needed for treatment and care. There are fixed co-pays for services and there is no annual or lifetime benefit maximum or an annual or lifetime deductible.

Employee-Paid Life Insurance

Employee

Date of employment if enrolled within 60 days of appointment. Enrolling after 60 days requires Statements of Insurability and waiting until the annual open enrollment period to apply.

Optional life insurance is available through payroll deduction in increments ranging from 1 to 8 times an employee’s base annual earnings up to a maximum benefit of $2 million dollars. Rates for this coverage vary depending on the employee’s age.

 Basic Life Plan

 University

Upon employment

Flexible Spending Accounts (FSA)

Employee (Pre-tax basis)

The first of the month following the month of enrollment if enrolled within 60 days of appointment or during the annual open enrollment period.

Health Care Coverage  

University and employee (on a pre-tax basis) make a monthly contribution toward the premium

Date of employment if enrolled within 60 days of appointment or during the annual open enrollment period.

Spouses or other eligible individuals who have access to coverage elsewhere must purchase single coverage through their own employer if the annual premium contribution toward that coverage is $850 per year or less.

Employees have the option of choosing either Blue Cross Blue Shield of Michigan Community Blue (PPO) or Blue Care Network (BCN) for themselves, their spouse or Other Eligible Individual* and their eligible dependents. Coverage through Blue Cross Blue Shield of Michigan Transition Plan is available only when there is a mix of Medicare and non-Medicare family members (if certain medical criteria are met).

The coverages are briefly described below:

Community Blue:  Community Blue is a Preferred Provider Organization (PPO) and allows you to choose whether you receive health care services from an in-network or out-of-network provider. There is a nationwide network of participating PPO physicians and hospitals that allow you to choose any physician in the network without requiring a referral from a primary care physician. The in-network deductible is $100/individually and $200/family for the calendar year. For out-of-network services, the deductible is $250/individually or $500/ family for the calendar year with higher out-of-pocket costs, usually a 20% co-pay.

Blue Care Network (BCN):  BCN is a Health Maintenance Organization (HMO), meaning that enrollees will select and work closely with a primary care physician to manage care. MSU members can seek services from both in-network and out-of-network (non-contracted) providers. Deductibles, co-insurance and prior- authorization requirements apply in some circumstances. The in-network deductible is $100/individually and $200/family. The out-of network deductible is $500/individually and $1,000/family for the calendar year. A majority of the services are subject to a 20% co-insurance after meeting the deductible, up to a maximum of $3,000 individually or $6,000/family per calendar year.

CVS Caremark Prescription Drug Plan:  The prescription drug plan is administered through CVS Caremark. CVS Caremark has a large network of over 55,000 participating retail pharmacies, including some of the largest drug store chains. Employees may choose to purchase their prescriptions at a participating retail pharmacy, at an MSU pharmacy or through CVS Caremark’s mail order program. Copays are as follows:

Prescription Coverage

 Non-Sedating Antihistamines or NSA’s with decongestants (such as Claritin, Allegra and Zyrtec, among others) are not covered.

*Generic Prescribing Program

Level I of the Program: If you or your dependent selects a brand-name prescription drug for which a direct generic equivalent is available, in addition to the generic copay, you will also need to pay the difference in cost between the brand-name drug and the direct generic equivalent that could have been chosen.

Level II of the Program: For certain therapeutic classes of drugs, if you or your dependent choose a brand-name drug for which generic options exist within the same therapeutic class of drugs, in addition to the regular copay, you will also need to pay the difference in cost between the brand-name drug and the average cost of the generic alternatives available in the therapeutic class. The therapeutic classes of drugs impacted by Level II of the program include osteoporosis, nasal steroids, high cholesterol, high blood pressure, migraine, acne antibiotics, sleep problems and GERD/acid reflux.

Excluded-Drugs: Drugs that are not impacted by the provisions of Level I and Level II include: Premarin, Lanoxin, Dilantin, Coumadin and Synthroid.

Exception Process: In rare cases, some people are unable to use a certain generic drug for documented medical reasons. There is a process through CVS Caremark that physicians can use to request an exception if there is a documented medically necessary reason that a patient needs to take a band medication instead of a generic. There will be no additional charge to you or your physician to file an appeal (However, your physician may charge you a fee or co-pay for their time).

** CVS Caremark Specialty injectable medications (medications for conditions such as Hepatitis B & C, RSV, Hemophilia, Immune Deficiency, Osteo & Rheumatoid Arthritis) are only covered through CVS Caremark Specialty Pharmacy.

Holidays

University

Upon employment

There are nine paid holidays in any calendar year: New Year’s Day, the day preceding or following New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and the day following Thanksgiving Day, Christmas Day and the day preceding or following Christmas Day, or as otherwise announced by the University.

Jury Duty

University

Upon Employment

Individuals who are called to serve on jury duty or to testify pursuant to court-issued subpoena will be compensated for the difference between pay for jury duty and regular pay if absent from work for more than 80 hours.  No adjustment is required for jury duty service of 80 hours or less.

Leave Without Pay  

Upon Employment

Leave without pay may be granted for up to two years.  Extensions beyond two years may be approved by the administrative superior to whom responsibility for personnel actions has been delegated.

Long Term Care Insurance    

Employee

Eligible employees may enroll any time for Long Term Care insurance. If enrollment occurs within the first 60 days of employment, a medical evaluation will not be necessary and enrollment is guaranteed; coverage is effective the first of the month after John Hancock receives/approves the application.

Long Term Care Insurance provides coverage for one or more necessary or medically necessary diagnostic, preventive, therapeutic, rehabilitative, maintenance or personal care services provided in a setting other than an acute care unit of a hospital, such as in a nursing home, in the community or in the home.

You will automatically be accepted for coverage (other than SharedCare), regardless of health status if you are newly hired or newly eligible, actively-at-work applying within 60 days of first becoming eligible for benefits.

All full-time and part-time Executive Managers on U.S. payroll, actively working 50% time or more with a 9-month or longer appointment are eligible to apply.

Eligible family members may apply whether or not the active Executive Manager applies.

Long-Term Disability

University

Upon full-time employment

Benefits normally begin on the 181st day following the completion of 180 days of continuous disability.

The monthly income benefit is 60% of monthly base salary up to $15,000. The LTD benefit amount is offset by any Social Security, Workers’ Compensation or other applicable wage replacement benefits.

The monthly waiver benefit will pay both the employee’s 5% and the University’s 10% contribution to the Base Retirement Plan of the employee. This is in addition to the monthly LTD income benefit.

Both the monthly income benefit and the monthly waiver benefit are increased each year. In addition, the University contribution toward health, dental and Employee-Paid Life benefits will continue.

Medical Leave

University

Upon Employment

Up to six months of paid leave is available if health problems prevent the individual from working. Medical leave is non-accruable with no terminal payoff. Individuals on a Family Medical Leave (FMLA) will have their health and dental benefits continued at the same level and with the same premium contribution as prior to the FMLA leave. Any share of premiums which had been paid by the individual prior to the leave must continue to be paid during the leave, otherwise coverage will be canceled.

Military Duty  

University

Upon Employment

The University cooperates fully with individuals taking part in the reserve program of the military forces which calls for up to 15 days active duty training annually with the National Guard, Officers’ Reserve Corps, or similar U.S military organizations. The University will pay the individual the difference between military pay and allowances and normal take-home pay for up to 15 calendar days when ordered to active duty for training, and for up to 10 additional calendar days per fiscal year when ordered to active duty for the purpose of handling civil disorders.

Outside Work for Pay

Covered by the faculty policy which is described in the Faculty Handbook.  The Policy provides an average of four days per month with written approval of the supervisor.

Professional Development

Support for professional development is provided to individuals serving as executive managers. The nature of such support is variable but the level provided is broadly equivalent on a pro-rated basis to the sabbatical leave program for faculty, i.e., approximately $6,000 per year. Requires approval of the supervisor. (Degree-related tuition support in excess of $5,250 is taxable as income per IRC 127).

Retirement Eligibility  

Upon Employment

To be considered a retiree from Michigan State University, an individual must have attained one of the following: 1) 15 years of service in an Executive Management position; 2) at least age 62 with a minimum of 15 years of University service; 3) 25 years of service at any age. If the condition of #1, above, is met, the individual retains eligibility for Michigan State University retiree status if assigned subsequently to a non-Executive Management position. If 15 years of executive management service is not completed at the point of transfer, the years served as an executive manager as a percentage of the 15 years for EM retirement eligibility will be applied to the 25 year eligibility requirement for all other university employees, rounded up to the next half year.

An individual entering executive management status from an MSU position in which service credits toward retirement status have been earned shall be given immediate credit toward the fifteen year Executive Management retirement requirement in proportion to the ratio that such prior service bears to the 25 year vesting requirement for all other University employees, rounded up to the next half year.

Access to retiree health coverage is based on employment date:

Executive Managers hired prior to July 1, 2005 and meeting the minimum University retirement requirements will remain eligible to maintain health and dental coverage and receive a University contribution toward the premiums based on the number of full-time equivalent (FTE) service months at retirement.

For Executive Managers hired on or after July 1, 2005 and before July 1, 2010, the University will contribute to the lowest cost health plan’s single rate for which the employee/retiree is eligible. (The contribution is based on the full-time equivalent (FTE) service months at the time of retirement).

Executive Managers appointed on or after July 1, 2010 are not eligible for a University contribution to health care benefits. Retiree health coverage is available to purchase through the University.

Retirement   Program

University & Employee

Offered upon employment. Individual enrollment is necessary. Enrollment must occur prior to the first of the month the application is to be effective. Required at age 35 or after 24 FTE service months, whichever is later.

A contributory tax deferred annuity program is provided. The individual contributes 5% and the University contributes 10% of the annual base salary under the 403(b) Base Retirement Program. The University also offers a voluntary 403(b) Supplemental Retirement Program and a 457(b) Deferred Compensation Plan. The MSU Human Resources Benefits Office provides detailed information about retirement programs.

Salary

University

Upon Employment

All salary adjustments will be allocated on the basis of merit.

Special merit salary adjustments in recognition of superior performance or expanded responsibilities may be provided in addition to regular salary adjustments.

Regular reviews of compensation shall be conducted to ensure competitiveness with peers (salary at the midpoint of the Big Ten (CIC) universities is the accepted benchmark).

Transitional Support

The employment of an executive manager may be terminated at any time without notice or cause. An executive manager terminated as a result of reorganization or changes in program needs and directions may receive, in the President’s discretion, up to three months transition pay, pay off of unused vacation days at the time of termination, and continuation of university health, prescription, and dental benefits with the usual university contribution for up to three months following termination. Transition support will not be provided if the executive manager’s employment is terminated for misconduct or unsatisfactory performance. The President will consult with the Board of Trustees’ Compensation Committee regarding any severance arrangements that provide more generous benefits than those described above.

Travel Accident  

University

Upon employment

While traveling on University business or approved activity on or beyond campus limits, the University provides accidental death and dismemberment coverage in the principal amount of $50,000.

Vacation  

University

Upon Employment

Eligible for forty-eight (48) vacation days biennially on a fiscal year basis. Vacation days are available prospectively; they are non-accruable beyond the biennial fiscal year period. (Vacation days do not include Saturdays and Sundays or official university holidays.) Arrangements to take one’s vacation entitlement should be made prior to resignation/retirement; however terminal payoff can be made by agreement with the supervisor.
 

Waiver of Health Care Coverage

University

Date of employment if enrolled within 60 days of appointment.

If currently covered by another health plan, employees may waive MSU’s coverage in exchange for a cash payment ($600 maximum). Employees have 60 days to enroll or during annual open enrollment. The waiver is not an option when both the employee and spouse or Other Eligible individual* are employed by MSU.