Saint Mary’s College Employee Benefits Advisory Committee (EBAC) December 2013 Meeting Fall #3 December 18, 2013

EBAC Meeting – Fall 2013 #3 Agenda 7/14/2019 EBAC Meeting – Fall 2013 #3 Agenda Welcome / Introductions – EBAC Update Review Tuition Remission/Exchange Proposal Initial Open Enrollment Results Discussion of Renewal and OE Decision Process 2014 EBAC Initiative Timeframe and Schedule for 2014 Process December 18, 2013

7/14/2019 EBAC Meeting – Fall 2013 #3 The Employee Benefits Advisory Committee (EBAC) is established as a standing committee of the College to assist and advise the Vice President for Finance in shaping and funding the employee benefits program offered by Saint Mary’s College of California and to help assure that individual benefits plans are being managed in the best interests of program participants and of the College. The Saint Mary’s College Employee Benefits Program includes health and welfare plans, retirement plans and other benefits plans and programs offered by the College as well as the consideration of other employee benefits plans not yet offered by the College. December 18, 2013

EBAC Meeting – Fall 2013 #3 Tuition Remission / Exchange Programs 7/14/2019 EBAC Meeting – Fall 2013 #3 Tuition Remission / Exchange Programs Should the maximum ages for each program be aligned? TEP is to age 25 while Remission is to age 21 Tax implication for dependents at age 24 The following table demonstrates how other peer institutions are handling this December 18, 2013

EBAC Meeting – Fall 2013 #3 Survey of 16 peer organizations: 7/14/2019 EBAC Meeting – Fall 2013 #3 Survey of 16 peer organizations: Maximum Age # Schools Percentage No age limit 7 38% 26 age limit 4 25% 25 age limit 3 19% 23 age limit 1 6.5% 21 age limit 1 (SMC) December 18, 2013

EBAC Meeting – Fall 2013 - #3 Initial Open Enrollment Results- 7/14/2019 EBAC Meeting – Fall 2013 - #3 Initial Open Enrollment Results- Enrollment migration indications Flex Plan Results - run-out vs. rollover - bike benefits December 18, 2013

7/14/2019 EBAC Meeting – Fall 2013 - #3 Discussion of Open Enrollment Decision Process Context: External market issues/forces SMC specific issues Fiscal Realities Compressed timeframe December 18, 2013

2014 Carrier / Vendor Renewal 7/14/2019 EBAC Meeting – Fall 2013 - #2 2014 Carrier / Vendor Renewal Carrier Initial Renewal Final Renewal Notes Benu Aggregate 18.64%; 14.4%; 13.2% Weighted by the Kaiser and UHC renewals UHC   w/ Benu Adjustment HSA 27% ; 23.9% 20.40% HMO 37.2% ; 29%; 22.5% 19.30% This is rolled into the Benu renewal Kaiser 5.69% 9.30% Delta Dental PPO 0.00% Offering a 2 year rate guarantee DHMO 6.25% VSP UNUM Life / AD&D Renewed with no change for one year LTD MHN (EAP) 6.00% Adjusted down to no change for 2 years Overall this represents a $1 mil increase, or 11.2% December 18, 2013

Overall Estimated Savings: 7/14/2019 EBAC Meeting – Fall 2013 - #2 Consider plan changes: Detailed plan matrix attached Plan Current Benefit Option ONE Option TWO HMO Office Visit Copay $20 $25 No Change Hospital Copay $250 $500 HMO & HSA-PPO Rx Copay – $10 generic/$25 brand 10 / 30 Deductible $1500 in/$3500 out $2,000 / $4000 $2000 / $4000 Overall Estimated Savings: -1.43% -1.92% December 18, 2013

EBAC Meeting – Fall 2013 - #3 Basic Tenets - Contribution Strategy: 7/14/2019 EBAC Meeting – Fall 2013 - #3 Basic Tenets - Contribution Strategy: Employee choice of Kaiser / non-Kaiser Maintain a ‘Low/no-cost’ plan Reflect cost difference Stay within the target budget Ease of communication and administration Support coverage for dependents December 18, 2013

EBAC Meeting – Fall 2013 - #3 The final recommendations made were: 7/14/2019 EBAC Meeting – Fall 2013 - #3 The final recommendations made were: No change in benefit plans <minimize disruption> “Normalize” or re-balance contribution the college’s contribution percentages <move toward ‘fairness’ and equality> SMC contribution would increase by 8% December 18, 2013

EBAC Meeting – Fall 2013 - #3 Contribution History 7/14/2019 December 18, 2013

EBAC Meeting – Fall 2013 - #3 Feedback / Perceptions / Issues: 7/14/2019 EBAC Meeting – Fall 2013 - #3 Feedback / Perceptions / Issues: Lack of Transparency? Too much, too fast Enhanced communication process What are peer institutions doing ? December 18, 2013

DRAFT EBAC Meeting – Fall 2013 - #3 2014 EBAC Initiative: 7/14/2019 EBAC Meeting – Fall 2013 - #3 2014 EBAC Initiative: A re-examination of what and how Saint Mary’s College provides their employees with employee benefits; the vendors, the offerings, the budget and the competitive needs of the community. DRAFT December 18, 2013

EBAC Meeting – Fall 2013 - #3 EBAC Initiative: 7/14/2019 EBAC Meeting – Fall 2013 - #3 EBAC Initiative: Re-Consider the basic tenets Challenges and unknowns from the ACA Wellness as a integral part of the program Address women’s health/abortion issue Other topics……. December 18, 2013

EBAC Meeting – Fall 2013 - #3 Basic Tenets - Contribution Strategy: 7/14/2019 EBAC Meeting – Fall 2013 - #3 Basic Tenets - Contribution Strategy: Employee choice of Kaiser / non-Kaiser Maintain a ‘Low/no-cost’ plan Reflect cost difference Stay within the target budget Ease of communication and administration Support coverage for dependents December 18, 2013

EBAC Meeting – Fall 2013 - #3 Timeframe and Schedule for 2014 Process 7/14/2019 EBAC Meeting – Fall 2013 - #3 Timeframe and Schedule for 2014 Process Frequency of EBAC Meetings Public Forum Process Leadership buy in Define deliverables December 18, 2013

7/14/2019 EBAC Meeting – Fall 2013 - #3 Other topics for the future that need to be untabled: Survey of peer institutions Retirement Benefits Sub-Committee Back-up Dependent Care Disability Buy-Up options Other topics…. December 18, 2013

Thank you and have a great holiday ! 7/14/2019 EBAC Meeting – Fall 2013 - #3 Thank you and have a great holiday ! See you in the new year ! December 18, 2013