DIXIE STATE COLLEGE OF UTAH

POLICIES AND PROCEDURES MANUAL


Section: 4-Staff

Policy No: 15

Approved: 12/1/95

Policy: COLLEGE-SUPPORTED BENEFITS AND PAYROLL DEDUCTIONS

4-15 COLLEGE-SUPPORTED BENEFITS AND PAYROLL DEDUCTIONS

15.1 Social Security

15.1.1 All College employees are covered by Social Security.

15.1.2 This benefit is paid in addition to the retirement allowance received from the Utah State Retirement System or from TIAA/CREF.

15.2 Utah State Retirement

15.2.1 The Public Employees Noncontributory Retirement System is a defined benefit retirement plan.

15.2.1.1 It is a qualified tax-deferred plan under Internal Revenue Code Section 401(a).

15.3 TIAA/CREF Retirement

15.3.1 The Teachers Insurance and Annuity Association/College Retirement Equities Fund is a defined annuity contribution plan.

15.3.1.1 The contribution rate for TIAA/CREF is set by 49-3-207, Utah Code Annotated 1953.

15.3.1.2 The investment options within the system are determined by TIAA/CREF.

15.4 Group Health and Accident Insurance

15.4.1 The employee health, accident and major medical insurance is provided by different carriers.

15.4.2 This extensive coverage is available to employees .75 FTE or above.

15.4.2.1 This coverage includes: major medical-health insurance, group term life insurance, and long-term disability benefits.

15.4.2.2 Employees who were hired prior to July 1, 1995, will have their benefit program grand-fathered into the plan and will continue to receive the same portion of medical, dental, disability, life insurance and retirement benefits that they received before this policy, until they make a position change or their benefits status changes.

15.5 Consolidated Omnibus Budget Reconciliation Act (COBRA): Legislation requiring short-term availability of medical insurance to those experiencing termination of benefits, including employees and their dependents.

15.5.1 If an employee terminates voluntarily or involuntarily for any reason other than "gross misconduct," s/he will be eligible for COBRA coverage in compliance with federal law.

15.5.1.1 Eligible employees may purchase COBRA insurance for up to 18 months or until other insurance coverage is available, which ever is less.

15.5.1.2 Qualified beneficiaries of terminating eligible employees, may purchase COBRA coverage for up to 18 months.

15.5.1.2.1 A qualified beneficiary is a spouse or dependents who were covered under the College health plan at time of the termination of the employee.

15.5.1.2.2 In the cases of divorce or legal separation from an employee, employees becoming entitled to Medicare, cessation of dependency, and employees' death, the qualified beneficiary may purchase COBRA insurance for up to 36 months.

15.5.2 The premium rate may not exceed 102% of the cost for similar coverage.

15.5.2.1 The premium will be paid by the employee.

15.6 Alternative Health Insurance Coverage

15.6.1 When an employee or dependent is no longer eligible for health insurance coverage through the College Group Plan, the insurance provider offers an alternative for individual coverage.

15.6.1.1 An individual interested in this plan, must contact the insurance provider's Enrollment Department.

15.6.1.2 The individual is responsible for the payment of the premium.

15.7 Life Insurance

15.7.1 Employee must refer to his/her plan for specific coverage.

15.7.2 A group term life insurance plan is provided for regular employees working .75 FTE or above.

15.7.3 Death benefit is 2 x salary with a minimum payment of $18,300 and maximum payment of $50,000.

15.8 Long-term Disability Insurance

15.8.1 Dixie State College has provided a program, in conjunction with the medical plan, of support to all contract employees working .75 FTE or above for possible loss of income through extended illness or injury.

15.8.1.1 If the employee becomes totally disabled, the plan pays 2/3 of the covered monthly salary, reduced by any compensation received from Workman's Compensation or Social Security.

15.8.1.2 There is a six (6) month waiting period which may be covered by accumulated sick leave.

15.9 State Industrial Insurance (Workers Compensation Fund)

15.9.1 All employees are covered by State Industrial Insurance.

15.9.2 This provides for hospital costs, physician's fees and weekly benefit payments while absent from work due to injury incurred while at work.

15.9.3 The entire cost is borne by Dixie State College.

15.10 Tax Deferred Programs

15.10.1 Tax deferred salary and annuity investment programs are available on payroll deduction through companies previously authorized by the Administration.

15.11 Flexible Spending

15.11.1 Flexible Spending is a program which allows an employee to have the payroll department set aside pre-taxed income in an account for later withdrawal to pay for allowable expenses.

15.11.2 It provides the employee with an opportunity to reduce taxes by paying for certain health care (medical, dental and vision) and dependent care (child/elderly) expenses not covered by insurance, with pre-taxed dollars

15.11.3 Flexible spending is funded by monthly contributions through payroll reduction.

15.11.4 Funds will be held in trust until eligible claims are submitted for reimbursement.

15.11.5 Any unclaimed funds at the end of the plan year will be forfeited to the employer.

15.11.6 Accounts require annual enrollment in the Flexible Spending Account Program.

15.12 Contributions

15.12.1 Employees may make charitable contributions to Dixie State College through payroll deduction.

15.13 Professional Associations

15.13.1 Dues for the Dixie State College Faculty Association, Dixie State College Staff Association, the Utah Public Employees Association (UPEA) or American Federation of Teachers (AFT) may be paid through payroll deduction.