New York University Re-engineering II Benefits Taskforce July 2009 APPENDIX D

1 Re-engineering 2 – Benefits Committee Initial scope defined as: –Reduce future benefits costs for new employees (retirement, retiree health, tuition remission, etc.) Scope expanded to look at benefits for all employees, not just new hires –Creation of new rules for incoming employees only will create second class/tier of employees –Implementing rules for all employees is more equitable way of sharing impact of budget shortfall –Retention of grandfathered benefits for current employees and creation of new plans for new hires will make benefits administration more complex RE2 Committee reviewed recommendations from HRPAT and UBAT as well as new options and concentrated only on those with significant budget savings –Other HRPAT and UBAT recommendations not discussed by RE2 should proceed as recommended by those committees

2 Recommended Benefits Changes - 1 of 2 Benefits changes with significant savings and low negative impact expected. AreaOpportunityAnnual Savings Estimate ($ thousands) CommentsEarliest Implementation Date HRPAT / UBAT / RE2 Tuition Remission Eliminate Retiree TR600 – 1,00023 retirees (current volume)Retiring on or after 05/01/2010 Y / N / Y Tuition Remission Eliminate Spouse/Domestic Partner TR for Graduate and Undergraduate Degrees 1,000Estimated savings based on current 50% TR level reduced to zero. Spouses and DPs who commence matriculation on or after 05/01/2010; decision needed by 01/01/2010 N / N / Y Tuition Remission Reduce Employee Graduate TR to 75% 1,400Affects Code 100,102,10301/01/2011Y / N / Y Tuition Remission Increase Employee TR waiting period from 3 to 6 months 250New hires only for Code 100, 102, 103; eligibility simultaneous to completion of probation. 01/01/2010; decision needed by 11/01/2009 Y / N / Y Retirement 403(b) Implement two-year waiting period (with waiver) 2,400Affects code 100, 102, 103All new hires for 01/01/2010 and forward; decision needed by 11/01/2009 N / N / Y Medical / RxConsolidate Health Plans by eliminating Oxford HMO 215Affects all codes01/01/2011N / N / Y

3 Recommended Benefits Changes - 2 of 2 Benefits changes with significant savings and low negative impact expected. AreaOpportunityAnnual Savings Estimate ($ thousands) CommentsEarliest Implementation Date HRPAT / UBAT / RE2 LeavesEliminate Bonding Leave35048 Code 100 (current volume); will not affect Faculty 01/01/2011Y / N / Y Tuition Reimbursement Eliminate Employee Fee Reimbursement 550Affects Code 100, 102, 10301/01/2010Y / N / Y TOTAL6,515 – 6,915 AreaOpportunityAnnual Savings Estimate ($ thousands) CommentsEarliest Implementation Date HRPAT / UBAT / RE2 Tuition Remission Implement 1 year waiting period for dependent children TBDNew hires only for Code 100, 102, /01/2010; decision needed by 11/01/2009 N / N / Y Tuition Remission Implement limitation that all dependent children must be matriculated and enrolled by the end of calendar year where age 25 is attained TBDAffects Code 100,102,103Dependent children who commence matriculation on or after 05/01/2010; decision needed by 01/01/2010 Y / N / Y Benefits changes with minimal savings but considered good policy or best practice. Data for estimating savings not currently available.

4 Other Options Considered - Not Recommended Benefits changes with significant savings but highly negative impact expected. AreaOpportunityAnnual Savings Estimate ($ thousands) CommentsEarliest Implementation Date HRPAT / UBAT / RE2 Retirement 403(b) Implement variable Non- matching NYU contribution in Safe Harbor Plan 4,000 (for every 1% reduction) Affects Code 100,102,10301/01/2010N / N / N Retirement 403(b) Implement uniform 2-year waiting period (no waiver) 5,400Code 100,102,103; could affect recruitment 01/01/2011N / N / N Retirement 403(b) Uniform 1-year wait (no waiver)1,500Affects Code 100,102,10301/01/2011N / N / N Tuition Reimbursement Reduce Employee Undergrad TR to 75% 400Affects Code 100,102,10301/01/2011Y / N / N Medical/RxImplement 3-month waiting period 750New hires in codes 100,102,103; Other codes already have 3-month wait 01/01/2011N / N / N Medical/RxImplement higher Rx co-pay Increase deductibles Increase office visit co-pays Increase out-of-pocket max Affects Codes 100,102,10301/01/2011N / N / N ChildcareEliminate Child Care Scholarships 475Code 100,102,103; will affect employees in low grade levels 01/01/2011Y / N / N TOTAL14,427