| Memo to: | All UH-Downtown/PS Holders | UH-Downtown/PS 02.A.12 | |
| From: | Max Castillo, President | Issue No. 2 | |
| Subject: | Employee Fringe Benefits Policy | Effective Date: 8/9/99 | |
| 1. PURPOSE | |
| This PS defines fringe benefits for which University of Houston-Downtown (UHD) eligible employees may qualify upon employment. | |
| 2. DEFINITION | |
| Benefits-eligible employees are defined as regular employees having FTEs of at least 50 percent and appointments of one semester (4.5 months) or longer. Benefits eligibility accrues only to employees where student status is not a condition of employment. The rate of pay must be comparable to that paid other employees performing similar work. | |
| 3. POLICY/PROCEDURES | |
| 3.1 UHD provides a number of group medical, dental and life insurance plans, tax-advantage programs and other fringe benefits of employment for eligible employees. Detailed fringe benefits information and plan eligibility requirements are available in the Human Resources Department. | |
| 3.2 Optional group insurance is provided to eligible employees and, where applicable, their dependents, at group plan costs. The University is authorized by state statute to contribute a portion of eligible premium costs for enrolled employees and qualified retirees. | |
| 3.3 Several health care options are provided to eligible employees including traditional medical plans, indemnity plans, health maintenance organizations (HMOs), a premium conversion option, and flexible spending accounts. Dental plans, group life insurance and accidental death and dismemberment coverage, as well as short- and long-term disability plans are included in the optional coverage. | |
| 3.3.1 Coverage for health insurance becomes effective the first day of employment and ceases on the date of termination. Continuation of group health coverage for employees and qualified beneficiaries after termination is available through the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) under certain conditions. Additional information may be obtained through Human Resources. | |
| 3.3.2 While employee coverage is automatic for health insurance, dependent coverage is not. Dependents must be enrolled by the employee within 30 days of initial eligibility. Thereafter, optional benefits and dependent coverage will not be available. | |
| 3.3.3 Employees enrolled in a UHD health insurance plan are automatically enrolled in Basic Term Life ($5,000) with Accidental Death and Dismemberment (AD&D) benefits. There is no additional premium above that required for the health plan. | |
| 3.3.4 In addition to Basic Term
Life, Optional Term Life is available for employees at a level of one times
(Election I), two times (Election II), three times (Election III) or four
times (Election IV) the employee's annual salary up to a total maximum of $400,000. This
policy also includes AD&D in the amount of the elected life insurance. Evidence of
Insurability is required for Elections III and IV. Dependent life insurance may be purchased for all dependents which provides basic term life and AD&D coverage. |
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| 3.3.5 Additional Accidental Death and Dismemberment coverage is available for the employee and dependents at a minimal charge. | |
| 3.3.6 Short- and long-term disability benefits are available to eligible employees. Both disability benefits provide protection against an extended absence resulting from either illness or accident. The benefit amount is 60 percent of the employee’s monthly salary not to exceed $3,000 or $10,000 monthly, respectively, for short- or long-term disability. Both benefits require certification by a licensed physician, filing an application for benefits and a waiting period. Waiting periods must be satisfied with whichever is the longer of, all the employee’s accrued sick leave or the 30 days for short term or the 90 days for long term. More details are available through the Human Resources Department. | |
| 3.4 Employees may choose to waive one or all of the group insurance plans available. However, enrollment in a retirement program is a condition of employment for all benefits-eligible employees. | |
| 3.4.1 Membership in the Teacher Retirement System (TRS) is required for all regular employees having FTEs of at least 50 percent and appointments of one semester (4.5 months) or longer. Each member contributes, through regular payroll deductions, a percentage of his/her salary and an annual membership fee. The state also contributes a percentage of the employee’s salary to the employee’s retirement fund. Vesting occurs after five years of state service. Current information on the state and employee contributions is available in the Human Resources Department. | |
| 3.4.2 Faculty
and some employees having FTEs of at least 100 percent and appointments of one semester
(4.5 months) or longer may select enrollment in the Optional Retirement Program in lieu of
participation in TRS. Eligibility for participation in this plan is restricted to those
employees meeting eligibility criteria as provided by the Texas Higher Education
Coordinating Board. Each employee contributes, through regular payroll deductions, a
percentage of his/her salary. The state also contributes a percentage of the
employee’s salary to the employee’s retirement fund. Current information on the
state and employee contributions is available in the Human Resources Department. Vesting
occurs after one year and one day of ORP participation. In both TRS and ORP, the
employee’s contributions are tax deferred. Once the Human Resources Department determines the employee has met all eligibility criteria for ORP, arrangements to enroll in the ORP are made between the employee and a carrier company selected by the employee from a list of vendors approved by the University of Houston System. UHD assumes no liability for the employee’s selection of, nor the financial performance of, an approved carrier. Employees previously vested in ORP must remain with ORP as their retirement plan. Furthermore, when an eligible employee elects participation in ORP, the employee is no longer eligible for TRS unless employment with an institution of higher education in Texas ceases and the individual becomes employed by the Texas Public School System. |
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| 3.5 Other fringe benefits available to eligible University of Houston-Downtown employees are outlined below. | |
| 3.5.1 Tax-deferred Annuity. A regular exempt or non-exempt employee may purchase tax sheltered annuities, within limits established by the Internal Revenue Service, through payroll deduction. | |
| 3.5.2 State of Texas Deferred Compensation Program. The State of Texas Deferred Compensation Program is one of several employee benefit programs available to all employees. Under this program, the employee may enter into an agreement with the University to reduce taxable income by applying a portion of the salary to purchase life insurance, fixed and/or variable annuities, mutual funds or investment contracts offered by financial institutions. Additional information may be obtained from the Human Resources Department. | |
| 3.5.3 Longevity Pay. With the exception of faculty members and commissioned police officers, regular full-time employees are entitled to receive longevity pay after completion of five years’ employment with the state. Longevity pay is computed at the rate of $20.00 per month for each five years of state service up to and including 40 years of state service a maximum of $100 per month. Employees are responsible for informing the Human Resources Department about other employment with the State of Texas in order to have the leave adjusted to reflect all such prior service. | |
| 3.5.4 Hazardous Duty Pay. Law enforcement personnel are entitled to hazardous duty pay. Increments accrue each year after one full year of service with the University. | |
| 4. REVIEW AND RESPONSIBILITIES | |
| Responsible Party (Reviewer): Vice
President for Administration Review: Biennial Signed original on file in the Human Resource Department. |
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| Policy History Issue #1: 4/25/94 |