[pps-news] DBA Meeting

[Roberta Nardico]

May 6, 2009

 

TO:  Department Benefits Representatives

 

FR:  Theron Lyon, Benefits Manager

 

We have decided to cancel the May DBA meeting, however there are several
items of importance that we need to inform you about.   Attachments are
also enclosed from the Wellness and Work/Life programs.  Highlighted
below are the updates from Benefits.

 

COBRA

Under the new American Recovery and Reinvestment Act that was passed
earlier this year employees who are involuntary terminated or who
receive a layoff are eligible to receive a 65% subsidy for their COBRA
premiums.  Attached is a list of the involuntary separation codes and
will continue to be used to determine eligibility.  It is important that
these codes are entered in by the department to ensure that eligible
employees receive the COBRA subsidy.   

 

Also, starting May 1, 2009 Conexis, our third party administrator, will
be sending out the new COBRA notices to employees and dependents.  In
the past this process has been administered by Human Resources. Please
be aware that if an employee is cancelling a dependent's coverage (e.g.,
divorce) the dependent is eligible for COBRA and the dependent should be
provided a UBEN 109 to elect COBRA and forwarded to our office.  The
link to the form:

http://atyourservice.ucop.edu/forms_pubs/forms_worksheets/uben109.pdf

 

Status of UCRP funding

The Regents voted last February to start employer and employee
contributions to the retirement plan (UCRP) in April of 2010 based on
the assumption that the Governor's budget would allocate 22 million
towards the employer contributions.  Since then the revised Governor's
budget has taken out the monies set aside for UC contributions, however
the goal is to start employer and employee contributions on that date.
In the meantime, UC will need to determine the funding source for the
employer contributions.

 

Retirement Savings Default Fund

At the last DBA meeting it was discussed that the default fund for the
Defined Contribution Plan (DCP) would be changing.  If an employee did
not designate a fund, one would be assigned based on the employee's age
using one of the Pathway funds.  Pathway funds target a retirement year,
and the employee's age would determine which Pathway fund they would
have been placed in if no specific selection was elected.   Due to
downturns in the stock market and the volatility these funds have shown
in the last year, this proposal has been eliminated.

 

New Buyback Rules

Effective May 1, 2009 new buyback rules for buying back service credit
for leaves or refund of deposits will be implemented.  Here is a brief
summary of the changes:

*          Liberalize payment options for all members

*          Eliminate 2-year leave limit

*          Allow those that have missed the 3-year window the
opportunity to buyback leaves or refund of deposits.

The buyback brochure will be changed to incorporate the new changes and
employees can access it through the At Your Service website.  

 

Reminders

Please encourage new employees or employees who have a change in
appointments and become eligible for benefits to please utilize the At
Your Service website to enroll in benefits.   We have recently
experienced an increase in the volume of UPAY 850 forms sent to our
office.

 

Some departments have invited a Fidelity representative to their staff
meetings to review the UC Savings Plans and we have received positive
feedback from departments and their employees who have taken advantage
of these sessions.  If you are interested in having a Fidelity
retirement counselor visit your department, please contact Rayna Brower
from Fidelity by e-mailing her at: Rayna.Brower at FMR.com

 

 

If you have questions, please call the Benefits Office at X24766.

 

Theron Lyon

UC Riverside

Benefits Manager

(951) 827-1434

theron.lyon at ucr.edu

 

 

 

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