Benefits Office Re-Enrollment Project - Maximizing Efficiency and Cost Control

1. Benefit Re-enrollment Project October 2006 - February 2007 Benefits Office March 2007

2. Benefits Office Mission Statement • To support the strategic mission of the Peralta Community College District by • exercising fiduciary responsibility • efficiently maintenance and administer programs for employees retirees and dependents • maintaining compliance with prevailing benefits regulations Benefits Office March 2007

3. What we are our outreach efforts? • Health & Wellness Week • March 26 – 29 • Campus Visits • Wellness talks • Promotion of other fringe benefits • Theme park discounts, Costco memberships, fitness memberships • More to come Benefits Office March 2007

4. More Highlights • Customer Service Satisfaction Survey • Cash-in-lieu of benefits implementation • Website development • Professional Development Day participation • Consolidated 5 forms into 1 Universal Enrollment Form • Pending improvement of paycheck as a tool communicate total compensation • Add Employer PERS/STRS retirement contribution • Describe employer contributions • ex: “Kaiser + 1 dep”; not just “Kaiser “ Benefits Office March 2007

5. Issue Ensure accurate population Manage revenue offsets Work with vendors to timely process billing. Support healthy lifestyles-regular wellness events Action Mandatory re-enrollment Apply for subsidies & manage our offsetting revenues Medicare D Medco Cobra Stop loss Surviving spouse insurance payments Increase electronic exchange of information Offer and promote wellness events Health care costs are expected to rise 15% - Our 2006-7 budget for benefits: $14,000,000 How do we mitigate escalating costs? Benefits Office March 2007

6. Ensure accurate population Mandatory Re-enrollment Project overview • Objectives • Review of Census Data • Outcomes from Re-enrollment Benefits Office March 2007

7. Re-enrollment Objectives • Cost control effort-assigned by the Finance Committee of the Trustee Board to the Benefits Office • Compounded by the need to integrate new technology with vendor records • Identify ineligible employees & dependents • Identify workflow processes • identify areas where we can improve the documentation of our business practices Benefits Office March 2007

8. Make it Happen! • How do you eat an elephant? Benefits Office March 2007

9. Forms went out 1584 Forms returned 1505 95% return rate We were prepared to rightfully de-enroll the non-respondents and offer them COBRA. Under COBRA, former insureds are entitled to retain coverage at their cost. The Benefits Office widely communicated that fact throughout the planning stages during the Benefits Fringe Committee Meetings Wide communication Campus visits Certified mail Cooperation of unions Peralta Retirees Organization Use of telephone technology Approach Benefits Office March 2007

10. As a result of this effort, PCCD will save $916,120.16 over the next year! How did we do it? Benefits Office March 2007

11. Census changes Benefits Office March 2007

12. Next Steps & Recommendations • With our PCCD staffing ratio of 1:3000, we are encouraging the use of vendors and broker services to support on-going customer service efforts. • Consider dependent re-enrollment verification • marriage certificates • domestic partner verifications or • tax forms • Board Policy (3.86) states that If the District suffers any loss because of a false statement contained in any benefit enrollment/change form or failure to notify the District of the termination or change of any dependent status, PCCD may bring civil action to recover their losses including reasonable attorney fees. This language will be incorporated into upcoming form revisions. • Consider full execution of PPS for benefits administration (future board action) • Project Cost $64,000 • Implementation January 2008 • Broker recommends more training of our managers –communicate to them our compliance requirements and need of timely processing of personnel actions Benefits Office March 2007