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UM Employee Contribution & Retirement Plan Analysis

Explore the financial flow of UM retirement plan contributions, benchmarks, actuarial values, and benefit plans based on 2009 rates. Learn about UM's medical benefit plan, drug benefits, and relevant legislations impacting healthcare. Stay informed about national health care reforms.

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UM Employee Contribution & Retirement Plan Analysis

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  1. Missouri S&T Faculty Senate November 19, 2009

  2. UM Board of Curators

  3. Employee Contribution to Retirement Plan • 1% of first $50,000 in salary • 2% of salary in excess of $50,000 • Projected Contributions - $12,000,000 per year

  4. How Does the Money Flow? When UM share is Greater than budget

  5. Comparator Institution BenchmarksHewitt Associates Relative Value Study *After 7/1/09 pension plan amendment

  6. Benefit Plans Contribution AnalysisBased on 2009 Contribution Rates

  7. UM Retirement, Disability & Death Benefit Plan Financial Status

  8. Actuarial Value of Liabilities: The total actuarial accrued liability of pension benefits for all plan members including active employees, retired employees and terminated, vested employees. • Actuarial Value of Assets: Value of all assets held in trust using the Expected Return Asset Valuation Method. Using this approach allows for an amortization of unrecognized return over a 5 year period. The result is a “smoothing” of changes in market value over a 5 year period. • Market Value of Assets: Market value of all assets held in trust under the plan.

  9. UM Retirement, Disability & Death Benefit Plan Billion

  10. History of Actual UM Contribution Rates % of payroll

  11. UM Medical Benefit Plan • Great West Healthcare (CIGNA) • 1/1/10 Plan Design • 1/1/10 Premiums • Prescription Drug Benefits

  12. Premium Changes

  13. Prescription Drug Benefits • Express Scripts – St. Louis Business Health Coalition • Home Delivery

  14. Allocation of Drug Spending

  15. Key Brand Drugs Losing Patent Protection More than $63.5 billion within the next five years

  16. Legislation Overview – State Level • Consolidated Health Care Program • Pharmacy Benefit Management • Autism

  17. Legislation Overview – Federal Level • Mental Health Parity Bill • American Recovery & Reinvestment Act • COBRA Premium Assistance Subsidy • HIPAA Privacy and Security Rules • Children’s Health Insurance Program Reauthorization Act of 2009 • Michelle’s Law (HR 2851) • Genetic Information Nondiscrimination Act (GINA) • Medicare Secondary Payer Reporting Requirement • Newborn’s and Mother’s Health Protection Act • IRS Cafeteria Plan Guidance

  18. National Health Care Reform

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