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Additional Information
Application for Dependent Tuition Subsidy
Application for Tuition Reimbursement
2006 Electronic Enrollment Form
Flexible Spending Accounts
Health Insurance
Life Insurance
Retirement Savings Info
Rules for Benefit Elections
Mid-Year Family or life status changes
Benefits Home Page
Personnel
Safety
Security
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BENEFITS 2006
January 1 marks the beginning of a new year for Colby’s benefits plans. This newsletter describes the coverage options available to you and how to make your elections. Enclosed is your Benefit Election Form to make your elections for the upcoming plan year.
The renewal was negotiated in the context of double-digit increases nationally and a challenging insurance market here in Maine. After a competitive bid process, we have decided to continue providing a choice of health plans offered by Anthem Blue Cross Blue Shield of Maine (Anthem) and maintain other current benefit offerings. For your information, the renewal information was reviewed with the College’s Financial Priorities Committee.
Key changes for 2006 include:
Employee contributions for health insurance coverage will increase by 10 percent for 2006.
Group Dynamic, Inc. will continue administration of the FSA programs effective with the January 1 – December 31, 2006 Plan Year.
Employees will now have until February 28, 2006 to incur expenses and request reimbursement toward their 2005 Medical Reimbursement Account election. This means employees will have an extra 2 months to use their remaining 2005 account balance.
UNUM will continue as the College’s life and disability plans insurance carrier, with no rate increase for 2006. (Actual rates paid by some employees will increase as a result of moving into a higher-cost age bracket.)
Most employers in Maine will be subject to a 4 percent tax on paid claims to pay for the State’s Dirigo Health Plan, effective January 2006. Because final regulations on how the tax will be applied were not available when the renewal was submitted, Anthem agreed to pay the tax for 2006. It is highly likely that the 2007 rates will be increased an additional amount to cover this new tax.
It is important to note that national trends continue to suggest double-digit rate increases in the near term. The College will continue to monitor these trends, and our own experience, and will make appropriate changes to restrain future rate increases.
ANNUAL ENROLLMENT GUIDELINES
Your current health insurance election of HMO, Comp-Care, or opt-out will remain in force for 2006, unless a new election is made.
Elections or changes for the January 1 - December 31, 2006 year are due on Wednesday, November 23. These elections become effective January 1, 2006 and will remain in force for all of 2006, unless you have an eligible change in status.
In order to participate in a Flexible Spending Account (FSA), you must make a new election for 2006, even if you are participating in an FSA this year.
WHO NEEDS TO SUBMIT A BENEFIT ELECTION FOR 2006?
You must submit a benefit election for 2006 if:
You elect to CHANGE your current health insurance election (i.e. add/drop dependent coverage, change HMO, Comp-Care or opt-out coverage).
You elect to change any voluntary contributions to a retirement annuity contract.
You elect to participate in the Medical Reimbursement Account. Please note that the annual enrollment period is the only time you may elect to participate in the Medical Reimbursement Account for the 2006 Plan Year. If you do not elect coverage now, you must wait for the 2007 Plan Year to elect participation, even if you have a change in status during 2006.
You elect to participate in the Dependent Care Assistance Account.
You elect to change your current optional and/or dependent life insurance election.
HEALTH INSURANCE
The College's health plan will continue to offer a choice between HMO and indemnity plans (Comp-Care), administered by Anthem Blue Cross Blue Shield of Maine ("Anthem"). Contributions paid by Colby and employees toward the cost of coverage will increase by about 10 percent.
It is important to not that national trends continue to suggest double-digit rate increases in the near term. The College will continue to monitor these trends, and our own experience, and will make appropriate changes to restrain future rate increases.
The salary breakpoints for determining employee contibution will be $32,000 and $72,000 for 2006.
DOMESTIC PARTNER COVERAGE
Employees may continue to elect to cover same- and opposite-sex domestic partners under the health and life insurance programs (employees have had the option to cover same-sex domestic partners since 1993 and opposite-sex partners beginning in 2003), subject to completion of an affidavit of domestic partnership. (The form is available at http://www.colby.edu/personnel/benefits/affidavit.doc)
Employees interested in electing domestic partner coverage should understand that under IRS rules, contributions for domestic partner coverage are generally not tax-sheltered and employees will be required to pay additional taxes on the difference between the family rate and the individual rate—this is true even if the election includes coverage for other tax dependents. In other words, employees may be required to pay the monthly (semi-monthly) premium, but also additional federal, state, and social security taxes on the subsidy provided by the College. Please contact Mary Nelson, benefits specialist, for an estimate.
RETIREMENT PLAN
Colby’s retirement plan provides for mandatory contributions by the College and employees after 2 years of service. Colby’s base contribution is 8 percent and the employee mandatory salary reduction contribution is 2 percent of base salary. (Some pre-1993 employees receive additional supplemental contributions to the Retirement Plan associated with the termination of the Retirement Plan for Non-Academic Employees.)
If you would like to make additional contributions towards your retirement, you may do so by making additional voluntary contributions to your retirement annuity, supplemental retirement annuity (SRA), or to one of several other tax-deferred annuities (TDAs) offered through the College. Additional voluntary contributions are subject to Internal Revenue Code limits -- $15,000 in 2006 ($20,000 for employees age 50 and older) – and require execution of a salary reduction agreement.
If you wish to increase, decrease, or stop any additional voluntary contributions to the Plan, please contact Mary Nelson, benefits specialist (extension 5503, e-mail: mnelson) for more information and application materials.
DISABILITY INSURANCE
Colby’s long-term disability benefit will provide a monthly benefit equal to 60 percent of covered salary, subject to completion of the 180-day elimination period. In the event of disability after 2 years of service, the insurance program will contribute 12 percent of covered salary to the retirement plan, normally until age 65. The disability plan is underwritten by UNUM.
LIFE INSURANCE
UNUM will continue to provide benefits under Colby’s Group Life Insurance Plan, with no rate increase for 2006. Basic life coverage will continue to be paid for by Colby. Optional life insurance coverage is available through payroll deduction. The actual rates paid by some employees will increase as a result of moving into a higher cost age bracket.
The amount of basic coverage—based on your attained age as of January 1—and new cost for optional and/or dependent life insurance coverage is shown on your personalized Benefit Election Form.
OTHER
Three other points to keep in mind:
Please review the information links at the top left of this page prior to completing the 2006 Benefit Election Form.
Although we use a web-based benefit election process, our commitment to providing information and personal assistance to faculty and staff has not changed. Members of the Personnel staff will continue to be available to meet with individuals, answer questions, and provide help when needed.
While we are encouraging faculty and staff to use the web-based enrollment procedures, we will, of course, make printed materials and election forms available upon request.
If you have questions about Colby's benefit plans or suggestions for improving the benefits election process, please feel free to contact Mary Nelson or me at extension 5503.
Douglas C. Terp
Vice President for Administration
**This web site is only a summary of your benefits. If there is any inconsistency between this web site and any plan, contract or policy relating to your benefits, the actual terms of the plan, contract or policy will govern. If you have specific benefit questions, you should review your summary plan description, insurance certificate or policy, or contact Personnel Services.
2006 Electronic Enrollment Form
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