MSU Human Resources >> Policies-procedures >> Faculty-academic-staff >> Executive Management Benefits Summary



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 30 days of appointment or January 1st if 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 30 days of employment or during an annual open enrollment. The University currently pays the full cost of the Delta Dental premium for individuals working full-time. Employees will pay a premium for the Aetna dental, even if 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 30 days of appointment. Enrolling after 30 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

In case of death of an active employee (including leaves of absence for up to 180 days from the last day paid), the University provides life insurance equal to one year’s annual base salary ($50,000 maximum).

 

Flexible Spending

Accounts (FSA)

Employee

(Pre-tax basis)

The first of the month following the month of enrollment if enrolled within 30 days of appointment or January 1st if during the annual open enrollment period.

Employee may enroll in a FSA by designating an amount of pre-tax dollars to be set aside for health related and/or dependent care expenses. This results in a tax savings on federal, state, city (if applicable) and social security taxes.

Health Care Coverage

 

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

Date of employment if enrolled within 30 days of appointment or January 1st if 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), Blue Care Network (BCN), or a Consumer Driven Health Plan with a Health Savings Account (CDHP/HSA), 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.

Consumer Driven Health Plan/Health Savings Account:

CDHP/HSA is a high-deductible health plan (annual deductible for single coverage is $2,000/$4,000 family) with a Health Savings Account (MSU contributes up to $750 annually); you may also contribute on a pre-tax basis up to the IRS limits. With this plan, you pay a higher deductible first before the plan pays medical and prescription benefits. Preventative care and certain generic prescriptions for chronic conditions are covered at 100% with no deductible or co-pays. The provider network is the same as the BCBSM plans.

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. See Copays for more detail.

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

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 Program account 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 cancelled.

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

 

Offered upon employment.

Individual enrollment is necessary. Required at age 35 and 24 FTE service months.

The individual contributes 5% and the University contributes a match of 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.

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 allowances are granted on July 1 of odd-numbered years. Proportional allowances are granted to individuals appointed during the biennial 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.

Voluntary Employee Benefits

     Voluntary benefits include long term care, vision, pre-paid legal, pet insurance, critical illness, home/auto insurance. These Programs may have open enrollment periods that limit when you can enroll for coverage. For information, see MSU Benefits Plus. www.hr.msu.edu/msubenefitsplus

Waiver of Health Care Coverage

University

Date of employment if enrolled within 30 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 30 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.

In addition, the following benefits/privileges are provided:

Social Security
Workers’ Compensation
Unemployment Compensation
Access to University athletic, recreation and cultural facilities/events
Athletic event tickets at staff rates
Library privileges

*Other Eligible Individual (OEI):

Please see Other Eligible Individual (OEI) for more detail.

©