This summary provides a brief overview of the flexible compensation program. It is not intended to cover all program details.
Click on the links below to go to the desired section.
Benefits for Employees with Greater Than .50 FTE
Core Benefits Paid for By the College | Retirement Annuity Plans | Flexible Benefits Plan | After-Tax Benefits | Emeriti Retirement Health Account | Other Information
Benefits for Employees with Less Than .44 FTE
Group Supplemental Retirement Annuity | Reimbursement Accounts | Medical Reimbursement Account
Dependent Care Reimbursement Account
BENEFITS FOR EMPLOYEES WITH GREATER THAN .50 FTE
I. CORE BENEFITS PAID FOR BY THE COLLEGE
Group Term Life Insurance
Employees with an FTE of 0.50 or more (faculty who teach three (3) or more courses per year) will be provided with basic life insurance equal to two (2) times their regular annual salary (unless they limit it to $50,000), effective on the first of the month concurrent with or following the date of hire. To receive coverage, employees must complete a Life/Disability Enrollment Form.
Long-Term Disability InsuranceEffective on the first of the month concurrent with or following the date of hire, long-term disability is provided for all employees with an FTE of 0.50 or more (faculty who teach three (3) or more courses per year). Employees must complete the Life/Disability Enrollment Form.
The benefits begin after a six-month waiting period (assuming the medical criteria is satisfied). The benefits include 60% of pay, continuation of college life insurance and reduced contributions to retirement. No benefits will be paid for the first 12 months for a disability due to a pre-existing condition. See summary plan for details.
Group Travel Accident InsuranceGroup travel accident insurance is automatically provided at the time of hire for all employees with an FTE of 0.44 or greater. Employees are covered for $50,000 for loss of life (varying amounts for total disability and loss of limb) while traveling on College business.
Retirement Annuity - Matched SavingsThe retirement annuity is a "Defined Contribution Plan." As the name suggests, there are set or defined levels at which both the employee and the College can contribute to this plan.
All employees who work 1,000 hours per year (faculty who teach three or more courses per year), who have reached the age of 21, and who have completed one year of service are eligible to participate in the retirement annuity. The one year of service is waived for employees who have been previously employed by an educational or church institution.
Employee pre-tax contributions starting at 1% are matched by an equal percentage contribution plus an additional 6% from the College. Employees can choose contributions by full percentage points. Although employees may contribute more than 3%, the College contribution will not exceed 9%.
Employee Contribution College Contribution
1% |
7% |
2% |
8% |
3% |
9% |
The employee election of a contribution level may be made at the initial time of eligibility, and following that, once per plan quarter.
The employee's and the college's contributions to the retirement annuity may be invested in TIAA or CREF (thirty options). Employees will determine how their contributions will be invested and can change the allocations once they are on the plan. Employees who wish to participate in the retirement annuity must complete a TIAA-CREF application on line or in paper and a College salary reduction agreement.
Group Supplemental Retirement Annuity (GSRA)
Upon hire, all regular employees may contribute before-tax dollars to a group supplemental retirement annuity. The maximum contribution is $15,500*, minus contributions that you may be making to the Retirement Annuity. If you are age 50 or older, you may contribute an additional $5,000*. If you have 15 or more years of service with St. Olaf College, you may be able to contribute more* (contact Payroll for assistance).
Group Supplemental Retirement Annuities (GSRAs) are funded entirely by employee contributions. Participants's contributions will be invested with TIAA-CREF. Participating employees must complete an application on line or in paper form and a College salary reduction agreement.
The employee election of a contribution level may be made at the initial time of eligibility, and following that, once per plan quarter. Participants may stop their contributions to the Retirement Annuity or Group Supplemental Retirement Accounts at any time during the plan year and are limited to making changes once each plan year quarter).
*Limit cannot exceed 100% of pay. The minimum monthly contribution to a GSRA is $25.00.
The flexible benefit plan, also known as a cafeteria benefit plan, is a plan which allows employees to select benefits from a number of different options that fit their own situations.
Limitations On Changes To Flexible Benefit
The plan year for benefits runs from September 1 to August 31. The IRS regulations governing flexible benefit plans and retirement plans limit the types of changes that participants may make during the plan year.
Participants who have elected health coverage are required to keep the coverage for the entire plan year. Participants are not allowed to discontinue or change their coverage except under very limited circumstances called status changes.* Participants who set aside money in medical or dependent care reimbursement accounts are bound to those amounts for the entire plan year. Participants are not allowed to discontinue or change the amount of the reduction, except under very limited circumstances.*
*Examples of status changes include a change in your marital status or number of dependents, a termination or commencement of your spouse's employment, a change on the part of you or your spouse from full-time to part-time employment status or vice versa, or taking an unpaid leave of absence (any of which result in a loss of group health coverage). Changes in benefits must be consistent with the change in family status and must be made within 30 days of the status change.
Health InsuranceEmployees with an FTE of 0.50 or more are eligible to participate in the College health plan.
New employees will have 30 days from the date of hire to elect health insurance without being subject to pre-existing conditions. While employees can elect coverage after this initial open enrollment period, they will be subject to pre-existing conditions. This provision will be waived if they can demonstrate that they have been covered by another group health plan for the 18 months preceding application for coverage under the St. Olaf Plan.
The employee's share of the premium will be deducted on a pre-tax basis (click here for current premium costs). An application form is required. The plan provides coverage for illness and injury as well as for diagnostic and preventive medical care.
Once employees elect coverage, they are required to keep the coverage for the entire plan year (September 1 – August 31) unless they experience a status change. Change in benefit must be made within 30 days of the qualifying status change. New dependents must be added within 60 days for the birth or adoption of a child.
If you have questions about your particular circumstances, see Human Resources.
Dental InsuranceEmployees with an FTE of 0.50 or more who participate in the College health plan will also receive dental coverage through Delta Dental. The dollar benefit is $400.00 per person per calendar year for all covered dental expenses.
Reimbursement AccountsReimbursement accounts allow employees to pay for medical and/or child care expenses with before-tax dollars. For most employees, it results in substantial savings of 20% or more.
Money set aside for these programs is exempt from Social Security, Federal income tax and State income tax and can not exceed 100% of pay.
Despite the real savings that these accounts can generate, some care needs to be used in determining how much money to set aside. Money that is designated but not used will be forfeited. This is the government's way of discouraging employees from trying to use these plans as pre-tax savings accounts. Employees are not allowed to discontinue or change the amount contributed during the plan year (September 1 - August 31) except under very limited circumstances. The Human Resources Department can provide claim forms for employees to submit their expenses. At any point during the plan year, you can claim reimbursement for eligible medical expenses up to your annual elected level; reimbursement of eligible dependent care expenses is limited to an amount equal to the remaining balance in your account. Claim forms are also available on the HR web page.
Expenses will be reimbursable under this plan only if the participant provides third-party documentation of the date of service, name of person receiving services, relationship to employee, nature of service and the amount of the expense Itemized bills or receipts or Insurance Explanation of Benefits (EOB) forms are acceptable. Canceled checks or credit card receipts are not acceptable forms of documentation.
Medical Reimbursement AccountAll eligible employees may participate in this program, up to a maximum of $5,000 per year. This account is designed to reimburse employees for medical expenses that are not paid for through other plans (i.e., dental care, glasses and contacts, prescriptions, deductibles, co-payments, etc.). Certain over the counter medicines are also eligible. Employees may participate in the reimbursement accounts even if they don't participate in any other college-sponsored plan.
Dependent Care Reimbursement AccountAll eligible employees may participate in this program up to a maximum of $5,000 per year. If you are married, the services must be provided to enable you and your spouse to be employed, unless one spouse is a full-time student and the other is employed. In the case of a student spouse, benefits are limited to $250 per month if one dependent is being cared for or $500 per month for more than one dependent. Claim forms and provider receipts are required for reimbursement. The amount you are reimbursed may not be greater than your income or your spouse's, whichever is less.
There may be some situations where it would be more advantageous to take the tax credit on your income tax. Employees should consult their tax consultant if they have questions in this area.
For the purposes of this plan, dependents are generally under age 13 who are listed as dependents on your federal income tax return. However, there may be other individuals who qualify, such as older children, spouses or parents who are physically or mentally incapable of self-care.
Additional optional benefits are available on an after-tax basis and are paid for entirely by the employee.
Supplemental Term Life InsuranceEmployees with a 0.50 FTE (faculty who teach at least three (3) courses per year) who qualify for basic life insurance may purchase supplemental life insurance equal to one or two times their regular annual salary. Any insurance that participants buy is in addition to the basic life insurance that is paid for by the College. Participants pay premiums for this coverage based on age.
If supplemental life insurance is elected more than 31 days after eligibility for basic life insurance, the insurance carrier requires participants to provide proof of insurability at their own expense. The carrier reserves the right to accept or deny additional coverage based on the proof of insurability. The combined total of the College paid life insurance and the employee paid life insurance cannot exceed $500,000.
Dependent Term Life Insurance
Employees who qualify for basic life insurance may purchase optional dependent life insurance ($7,500 for spouse and $2,500 for each dependent child). The cost for dependent coverage is $2.53 per month regardless of the number of dependents covered.
If dependent life insurance is elected more than 31 days after eligibility for basic life insurance, the insurance carrier requires participants to provide proof of insurability for their dependents at their own expense. The carrier reserves the right to accept or deny this coverage based on proof of insurability.
Proof of insurability is not required if new dependents are added within 30 days of the date of marriage, or birth or adoption of a child.
Note: If both spouses work at the College, only one may purchase dependent life insurance. This
Voluntary Accident InsuranceAll employees with an FTE of 0.50 or greater can purchase 24 Hour Accidental Death & Dismemberment insurance. This coverage is elected on an annual basis with the premium paid through monthly payroll deductions. 24 Hour AD&D can be elected in $10,000 increments up to $500,000 (amounts in excess of $250,000 cannot exceed ten (10) times annual base salary. The amount can be changed annually without proof of insurability. The cost of this insurance is 23 cents per $10,000 per month for single coverage and 32 cents per $10,000 per month for employee and family coverage. Note: If both spouses work at the College, only one may purchase family coverage.
Employee Assistance Program
The College offers an Employee Assistance Program (EAP) through CIGNA Behavioral Health to all employees and members of their immediate families. The EAP provides free, confidential, short-term counseling. This benefit is paid entirely by the College. The number for the EAP is 1-800-554-6931.
V. EMERITI RETIREMENT HEALTH ACCOUNT
The Retirement Health Account is a "Defined Contribution" plan that will be available tax-free in retirement for payment of health insurance premiums and reimbursement of other qualified medical expenses.
Contributions to the plan by the college will begin when an employee with a FTE of .50 or greater reaches age 39. Effective January 1, 2006 the college contribution will be $84/month.
In addition to the college contribution, employees can make voluntary contributions to the plan on a percentage of salary basis each payroll at age 21 or older. Contributions will be made on an after-tax basis.
*** The College reserves the right to amend or terminate any benefit at any time.
Other Important Information
Introducing: Two new programs for the employees and dependents of St. Olaf College covered under the BlueCross BlueShield health plan.
FirstHelp is a telephone triage system in which registered nurses assess a member's condition and help you make decisions regarding the best time and place for care. Members may call the toll free, around-the-clock service anytime they are experiencing symptoms or need health care information.
The toll free number is: 800-622-9524
St. Olaf College and Blue Cross and Blue Shield of Minnesota are launching a new program to support employees with chronic diseases and conditions. BluePrint for Health care support will be available to employees beginning the fall of 2003. Employees living with the challenges of heart disease, diabetes, asthma and other conditions will receive phone-based support from nurses who specialize in chronic disease.
BluePrint for Health â Online : bluecrossmn.com/blueprint
Welcome to tips and tools tailored to your concerns and curiosity! You choose which health topics are most important to you. BluePrint for Health Online gathers the latest health research, news and tips.
GoldNet Pharmacy: to find a participating pharmacy, call our GoldNet Pharmacy Locator toll free at 800-509-0545 . Representatives are available Monday through Friday from 7:00 a.m. to 11:00 p.m., Saturday and Sunday from 7:30 a.m. to 6:00 p.m.
BlueCard Providers: to find a provider when you are traveling:
There are two ways to find doctors, specialists and other health care providers who participate in the Blue Cross and Blue Shield BlueCard national network:
- Call BlueCard toll free at 800-810-Blue (2583).
- Or go on the provider finder at www.bcbs.com and select BlueCard Doctor and Hospital Finder.
BENEFITS FOR EMPLOYEES WITH LESS THAN .44 FTE
Group Supplemental Retirement Annuity (GSRA)
Upon hire, all regular employees may contribute pre-tax dollars to a group supplemental retirement annuity. The maximum contribution is $15,500*. If you are age 50 or older, you may contribute an additional $5,000*. If you have 15 or more years of service with St. Olaf College, you may be able to contribute more* (contact Payroll for assistance).
Group Supplemental Retirement Annuities (GSRAs) are funded entirely by employee contributions. Participants may invest contributions with TIAA-CREF or any other seven 403 (b) annuities that are approved by the College. TIAA-CREF participating employees must complete an application on line or in paper form and a College salary reduction agreement.
*Limit cannot exceed 100% of pay. The minimum monthly contribution to a GSRA is $25.00.
Reimbursement AccountsReimbursement accounts are programs which allow employees to pay for medical and/or child care expenses with before-tax dollars. For most employees, it results in substantial savings of 20% or more.
Money set aside for these programs are exempt from Social Security, Federal income tax and State income tax and cannot exceed 100% of pay.
Despite the real savings that these accounts can generate, some care needs to be used in determining how much money to set aside. Money that is designated but not used will be forfeited. This is the government's way of discouraging employees from trying to use these plans as pre-tax savings accounts. Employees are not allowed to discontinue or change the amount contributed during the plan year (September 1 - August 31) except under very limited circumstances. The Human Resources Department can supply forms for employees to use to submit their expenses. At any point during the plan year, you can claim reimbursement for eligible medical expenses up to your annual elected level; reimbursement of eligible dependent care expenses is limited to an amount equal to the remaining balance in your account.
Expenses will be reimbursable under this plan only if the participant provides third-party documentation of the date of service, name of person receiving services, relationship to employee, nature of service and the amount of the expense. Itemized bill or receipt or an Insurance Explanation of Benefits (EOB) form are acceptable. Canceled checks or credit card receipts are not acceptable forms of documentation.
Medical Reimbursement AccountAll eligible employees may participate in this program, up to a maximum of $5000 per year. This account is designed to reimburse employees for medical expenses that are not paid for through other plans (i.e., dental care, glasses and contacts, prescriptions, deductibles, co-payments, etc.). Certain over the counter medicines are also eligible. Employees may participate in the reimbursement accounts even if they don't participate in any other college-sponsored plan.
Dependent Care AccountAll eligible employees may participate in this program up to a maximum of $5000 per year. If you are married, the services must be provided to enable you and your spouse to be employed, unless one spouse is a full-time student and the other is employed. In the case of a student spouse, benefits are limited to $250 per month if one dependent is being cared for or $500 per month for more than one dependent. Claim forms and provider receipts are required for reimbursement. The amount you are reimbursed may not be greater than your income or your spouse's, whichever is less.
There may be some situations where it would be more advantageous to take the tax credit on your income tax. Employees should consult their tax consultant if they have questions in this area.
For the purposes of this plan, dependents are generally under age 13 who are listed as dependents on your federal income tax return. However, there may be other individuals who qualify, such as older children, spouses or parents who are physically or mentally incapable of self-care.
