Welcome

1. Welcome! University of Maryland, College Park Benefits Orientation

2. Topics to Be Covered Eligibility Enrollment Procedures State Sponsored Benefits University Sponsored Benefits State Pension System Optional Retirement Plan Supplemental Retirement Plans More Information and Contact Points Please Feel Free to Ask Questions at Anytime

3. Eligibility for Coverage All exempt and non exempt employees working at least 50 % time are eligible to receive benefits at the full State subsidized rate Contingent II employees are eligible to enroll on a self pay basis All eligible employees must sign up within 60 days of their date of hire

4. Dependent Coverage Spouse and any unmarried child through the end of the calendar year in which the child reaches age 19 Any child between the age of 19 and 23 if they are a full time student

5. Enrollment Procedures Employee responsible for filing Enrollment Worksheet within 60 days of hire date When adding dependents must provide copy of marriage certificate and/or birth certificate with form Forms are available either in your department or in Benefit Office located in the Chesapeake Building Coverage begins when you see deductions come out of paycheck Can take coverage back to original start date by doing a retro adjustment. To do a retro contact Benefit Office at extension 55654

6. Open Enrollment Once enrolled, employees can change coverage, cancel coverage, add/delete dependents, or enroll in a Flexible Spending Account Plan during the Open Enrollment Period. This year the Open Enrollment Period runs from May 24, 2006, to June 14, 2006. Changes made during Open Enrollment become effective on July 1.

7. State Sponsored Benefits Health Insurance/Vision Care Prescription Drug Card Dental Plans Mental Health and Substance Abuse Vision Care Personal Accident and Dismemberment Flexible Spending Accounts Long Term Care Term Life Insurance

8. Health Insurance Plans PPO Preferred Provider Organization POS Point-of-Service HMO Health Maintenance Organization State Pays 80 percent of the premium cost for regular employees Contractual employees pay full group rate

9. PPO � Freedom of Choice Allows most freedom of choice � Can elect to use network doctor or out of network doctor every time service is required No referrals needed for specialists More Choice = Higher Premium In Network co-pays are $15 per visit to your Primary Care Physician and $25 for Specialist Out-of-Network services subject to annual deductible of $250 and reimbursed at 80% coinsurance Plan Options: Carefirst Blue Cross/Blue Shield and MLH Eagle

10. Point-of-Service Plan � A Middle Ground Can elect to use network or out of network provider for every service Less Choice = Lower Premiums Must choose Primary Care Physician for In Network services Referral required to access specialist�s services In-network co-pays for Primary Care Physician is $15 and $25 for Specialist Out-of-network services subject to $250 annual deductible and then reimbursed at 80% co-insurance POS Options: AETNA, Carefirst Blue Cross/Blue Shield, M.D. IPA Preferred Choice

11. Health Maintenance Organization - HMOs No coverage for out of network services unless for a medical emergency Must choose a Primary Care Physician and this doctor must authorize all care Need referrals to get to a specialist $15 co-payment for visit to PCP, $25 co-pay for visit to Specialist HMO vendors: Kaiser, Blue Choice, Optimum Choice

12. Choosing a Health Insurance Plan Ask Co-Workers about their plan Call your doctor�s office and ask them which plan(s) they participate with and which one they prefer to do business with Check our website and Link to State Commission that evaluates medical plans Web site is www.uhr.umd.edu , click on �Employees Benefits�, �Benefits Offered�. and Maryland Health Care Commission

13. Prescription Drug Card Plan Administered by Caremark Card is good at all major pharmacies nationwide Co-payments based upon formularies Co-payments are normally either $5, $15, or $25 dependent upon the drug being purchased You can use mail order to fill out a 90 days maintenance prescription drug, co-payment not to exceed $20 State pays 80% of premium costs for regular employees. Contractual employees pay full group rate

14. Dental Plans Three plans offered: United Concordia DHMO, United Concordia PPO, and Dental Benefits Providers DHMO State Pays 50% of premium costs No claim forms, no deductible No Charge for Preventative and Diagnostic Services Other charges reimbursed on fee schedule basis Must select Primary Care Dentist for DHMO

15. Mental Health/Substance Abuse Plan Available to all individuals and their dependents who carry medical coverage through the State of Maryland No additional premium required For individuals enrolled in a PPO or a POS plan, the coverage is administered by APS Healthcare. Inc. HMO plans administer their own mental health/substance abuse programs

16. Vision Care Available to all individuals and their dependents enrolled in a medical plan through the State of Maryland Covers an annual eye exam Pays partial cost for contact lenses and glasses every twelve months Contact your medical plan for instructions in accessing coverage

17. Personal Accident and Dismemberment Coverage Provides benefits if individual is killed or dismembered in an accident Accident can be either on or off the job Benefits options are $100,000, $200,000, or $300,000 Can purchase coverage for family members Premiums are inexpensive

18. Flexible Spending Accounts Two Types of Accounts: Health Care Account and Child Care Account Health Care Account pays for medical services not paid for by your medical plan Child Care Account pays for day care service for any child under the age of 13

19. Flexible Spending Accounts Employee contributes money out of their bi-weekly salary on a pre-tax basis Can contribute up to $3,000 annually Must re-enroll each year Use it or Lose it rule Plan carefully! Employee can contribute up to $5,000 annually from their pay on a pre-tax basis Must re-enroll each year Use it or lose it rule Contributions can also be used to pay for elder day care

20. Long Term Care Provides benefits for an individual who needs assistance with daily activities Services can be provided in either the home or a facility Coverage provided by Prudential Can choose level of coverage to fit your need or budget Can cover spouses, in-laws, parents, and grandparents under plan as well Coverage is portable

21. Term Life Insurance Coverage provided by American Standard Life First $50,000 is guaranteed issue Can sign up for as much as $300,000 in $10,000 increments with medical underwriting Spouse and dependent children can purchase 50 percent of employee�s coverage Rates are age based Coverage provided by UNUM First $50,000 is guaranteed issue if you enroll within 60 days Maximum amount is 6x salary up to $750,000 Spouse eligible for benefits equal to lesser of 100 percent of employee amount or up to $150,000 Children can be covered for $10,000 Coverage is portable

22. University Sponsored Benefits Term Life Insurance Long Term Disability Tuition Remission

23. Long Term Disability Pays 60 percent of monthly salary after individual has been unable to work for 90 or 365 days Benefits are provided tax free Coverage provided by UNUM Rates are age based Greater chance of becoming disabled while employed than of dying University has no short term disability coverage

24. Tuition remissionEmployees Eligible immediately for graduate or undergraduate courses (employees must be hired within 5 days from the start of the semester Can go to any institution participating in University System of Maryland program Can take up to 8 credits hours during Fall and Spring semesters, pro-rated to the employee�s FTE Eligible for 6 credit hours for the whole Summer sessions, pro-rated to the employee�s FTE Winter session is not covered by tuition remission Undergraduate tuition remission is non-taxable. Tuition remission for graduate courses in excess of $5,250 annually is taxable

25. Tuition remissionSpouse/Dependent Once the employee has completed 2 full years of employment at the University, their spouse/dependents are eligible for tuition remission for the first undergraduate degree only Must attend Institution where employee works Must meet entry requirements Eligible for full tuition remission for Fall and Spring, pro-rated to the employee�s FTE The winter session is not covered by tuition remission

26. Applying for Tuition remission For tuition remission requests for classes at the College Park Campus, the employees must complete the online TR-Elf form. Employees may contact their departmental benefits representative for assistance with the form For tuition remission requests for another USM institution, the employee must complete the USM Tuition remission Request Form, available at http://www.uhr.umd.edu

27. Pension Options Non-exempt Employees Must sign up for the State Pension System Should sign up as soon as possible Forms available in the Department or Benefit Office in Chesapeake Building If you need to talk to someone, please call the Benefits Office

28. Pension Options Continued Exempt Employees/Faculty Have choice of retirement plans Can elect to join either State pension System or enroll in an Optional Retirement Plan (ORP) Forms available in Department or Benefits Office If you need to talk to someone, please feel free to call Benefits Office

29. Pension Option for Non-Exempt Employees Mandatory enrollment in State Pension System Defined Benefit Plan � Retirement based upon formula: Longer you work, higher your salary, the better the pension will be 3 percent mandatory pre-tax contribution until June 30, 2007; 4 percent until June 30, 2008 and 5 percent from July 1, 2008 forward Vesting in 5 years Normal retirement age is 62 with five years of service or any age with 30 years of service Offers disability retirement provision Death benefit equal to 1 year of salary in event of death while actively employed Provides fully subsidized health insurance to retiree and their dependents once individual has reached 16 years of service Full retirement replaces approximately 45 percent of salary

30. Pension Options for Exempt Employees and Faculty - ORPs Can choose between the State Pension System just discussed or Defined Contribution Plan Employer contributes 7.25 percent of salary into plan for you Money vests immediately Employee selects company to deposit money with and how money is invested Pension based upon how investments perform Health insurance is subsidized upon retirement but differently than Pension System Three companies to choose from: AIG VALIC, Fidelity TIAA-CREF

31. Supplemental Retirement Annuities (SRAs) Available to everyone having FICA taxes taken from paycheck Allows employees to contribute up to $15,000 annually from their paycheck on a pre-tax basis If over 50 can put in an additional $5,000 Can deposit as little as $10 per pay period Can open account at anytime and can change amount being deposited as often as you like Can open a 403(b) or 401(k) plan in addition to a 457(b) plan and same maximums apply to both Four companies to choose from:AIG-VALIC, Fidelity,, TIAA/CREF, and the Maryland Supplemental Retirement Plan (PEBSCO) Forms available in your department or Benefits Office

32. Why Should I open a SRA? Experts say that you need to replace 70 to 80 percent of salary at retirement in order to maintain standard of living Social Security will replace about 25 percent At best State Pension System will replace 53 percent ORPs � Retirement income is uncertain because it is based upon investment performance In order to meet minimum income requirements, additional retirement resources must come from personal savings SRAs are easy way to do this: done through payroll deduction Deductions are pre-tax so you are saving on tax payments as well saving for retirement If you are enrolled in the Employees Pension System, the sate will match up to $600 in your SRA account

33. Additional Information and Contact Points Benefits Office Phone Number is extension 55654. Our Web Site is: www.uhr.umd.edu.

34. Geographic Service Model