UMSYSTEM.EDU November 19, UMSYSTEM.EDU Missouri S&T Faculty Senate November 19, 2009

UMSYSTEM.EDU November 19, UMSYSTEM.EDU UM Board of Curators

UMSYSTEM.EDU November 19, Employee Contribution to Retirement Plan 1% of first $50,000 in salary 2% of salary in excess of $50,000 Projected Contributions - $12,000,000 per year

UMSYSTEM.EDU November 19, How Does the Money Flow? UM Benefits Budget Retirement Trust Fund Employee Contributions Budget Stabilization Fund When UM share is Greater than budget

UMSYSTEM.EDU November 19, Comparator Institution Benchmarks Hewitt Associates Relative Value Study Employer Paid ValueTotal Value IndexRankIndexRank Retirement rd th Retirement* th th Pre Retirement Death-Group Life th th Long Term Disability th th Dental th th Preretirement Health th th Post Retirement Health-prior to age rd nd Post Retirement Health-age 65 and higher88.48 th th All Post Retirement Health th th All Benefits (Including Tuition) th th All Benefits (Including Tuition)*98.511th th *After 7/1/09 pension plan amendment

UMSYSTEM.EDU November 19, Benefit Plans Contribution Analysis Based on 2009 Contribution Rates

UMSYSTEM.EDU November 19, UMSYSTEM.EDU UM Retirement, Disability & Death Benefit Plan Financial Status

UMSYSTEM.EDU November 19, Actuarial Value of Liabilities: The total actuarial accrued liability of pension benefits for all plan members including active employees, retired employees and terminated, vested employees. Actuarial Value of Assets: Value of all assets held in trust using the Expected Return Asset Valuation Method. Using this approach allows for an amortization of unrecognized return over a 5 year period. The result is a “smoothing” of changes in market value over a 5 year period. Market Value of Assets: Market value of all assets held in trust under the plan.

UMSYSTEM.EDU November 19, UM Retirement, Disability & Death Benefit Plan Billion

UMSYSTEM.EDU November 19, History of Actual UM Contribution Rates % of payroll

UMSYSTEM.EDU November 19, UM Medical Benefit Plan Great West Healthcare (CIGNA) 1/1/10 Plan Design 1/1/10 Premiums Prescription Drug Benefits

UMSYSTEM.EDU November 19, Premium Changes UM Choice Health Care Program 0% 3%5% UM Catastrophic Medical Program 0% 5% Retiree Indemnity Medical Pre 9/1/90 Retirees-4.1% to -5.6%-7.0% to -7.7%0%3.8% to 5.1% Post 9/1/90 Retirees-4.4% to 1.4%-4.2% to -6.4%3-4%1.5% to 2.6%

UMSYSTEM.EDU November 19, Prescription Drug Benefits Express Scripts – St. Louis Business Health Coalition Home Delivery

UMSYSTEM.EDU November 19, Allocation of Drug Spending

©2008 Express Scripts, Inc. All rights reserved. Costs & Trends Key Brand Drugs Losing Patent Protection Annual Sales $10.8 Billion $8.1 Billion $16.6 Billion $20 Billion $8 Billion Adderall XR Ambien CR Casodex Cellcept Depakote ER Prevacid Topamax Valtrex Aricept Arimidex Cozaar Effexor XR Flomax Hyzaar Patanol Sanctura Actos Levaquin Lipitor Protonix Zyprexa Avandia Avapro Detrol LA Diovan HCT Geodon Lexapro Plavix Provigil Seroquel Singulair Viagra AcipHex Avodart Cymbalta Namenda Niaspan OxyContin Propecia Sustiva Xopenex More than $63.5 billion within the next five years

UMSYSTEM.EDU November 19, Legislation Overview – State Level Consolidated Health Care Program Pharmacy Benefit Management Autism

UMSYSTEM.EDU November 19, Legislation Overview – Federal Level Mental Health Parity Bill American Recovery & Reinvestment Act COBRA Premium Assistance Subsidy HIPAA Privacy and Security Rules Children’s Health Insurance Program Reauthorization Act of 2009 Michelle’s Law (HR 2851) Genetic Information Nondiscrimination Act (GINA) Medicare Secondary Payer Reporting Requirement Newborn’s and Mother’s Health Protection Act IRS Cafeteria Plan Guidance

UMSYSTEM.EDU November 19, National Health Care Reform