University of South Alabama
Fringe Benefits Committee – Meeting Minutes
Date:
Time:
Place:
1
April 22, 2014
3:00 p.m.
HR Learning & Development Center
Members
Mr. Steve Simmons, Chair
Dr. Lanier S. Cauley
Ms. Janice Collins
Mr. M. Wayne Davis
Mr. Charles Dunnam
Ms. Cathy Faison
Ms. Amy Fleet
Dr. Susan Gordon-Hickey
Mr. Ronnie Hodges
Dr. David Johnson
Mr. Andy Lightbourne
Dr. Doug Marshall
Dr. Vaughn Millner
Dr. Mike Mitchell
Mr. John Pannelli
Ms. Kelly Peters
Dr. Victoria Rivizzigno
Ms. Barbara Shirvanian
Dr. John Smith
Dr. J. Allan Tucker
Ms. Carolyn Williams
Financial Affairs
Mechanical Engineering
Radiology - UMC
President’s Office
Maintenance Department
Admissions - CWH
Marketing & E-Commerce
Chair, Faculty Senate Fringe Benefits Committee
Pharmacy - CWH
Academic Affairs
Computer Services Center
President, Faculty Senate
Continuing Education
Student Affairs, Dean of Students
COM Business Office
Business Office
Arts & Sciences
Student Affairs
Student Affairs/Special Asst. to the President
Pathology - UMC
Medical Surgical - UMC
Present
Absent
Absent
Present
Absent
Present
Present
Absent
Present
Present
Present
Absent
Present
Absent
Present
Absent
Present
Present
Present
Present
Absent
Others Present
Mr. Gerald Gattis, Director, Human Resources, Benefits, Employee Relations
Ms. Tina Stalmach, Associate HR Manager, Employee Benefits
Ms. Pam Henderson, Assistant Vice-President, Human Resources
Mr. Ed Kahalley, Jr., Benefits Consultant, Secretary to the Committee
Ms. Allison Kahalley, Benefits Consultant
Call to Order & Meeting Minutes
Mr. Simmons called the meeting to order and asked for approval of the July 30, 2013, meeting
minutes. A motion was made, seconded, and the vote unanimous to dispense with the reading of
the meeting minutes and approve same as prepared by the Secretary.
University of South Alabama
Fringe Benefits Committee – Meeting Minutes 4/22/2014
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Experience Report
The Experience Report for the year ended December 31, 2013, was distributed along with an
excerpt of the experience report for the three-month period ended March 31, 2014, for
comparison. The Consultant stated that the employer contribution has increased 5.7% over this
time last year and accounts for 74% of the total cost. Expenses increased $3.2 million over this
time last year. The Plan ended the year with a reserve of $5,923,012. The first three months of
this year indicate a cash flow advantage of $1.3 million. The reserve amount has increased to
$7.2 million which is the target based on the reduced 15% reserve compared to 25% and this
includes income from the wellness incentive. Mr. Kahalley finished his review and thanked the
Committee for the opportunity to serve.
USA HCM LLC/PEEHIP Health Plan Coverage
Mr. Gattis stated that the monthly PEEHIP employer contribution will increase $14 for a total
monthly employer subsidy of $370 per retiree starting 10/1/2014. The University’s subsidy
towards the retiree health plan will be about $8.2 million based on current population.
Update to Employee Benefits Booklet
Mr. Kahalley distributed the Update to the USA Health & Dental Plan Benefits Booklet (2009).
He explained that while the Plan is not required to have a summary plan description due to its
status as a non-ERISA governmental plan, the booklet is a useful resource for employees. The
current insert will bring the booklet up to date on eligibility and benefit changes since the last
restatement. The insert also includes a detailed summary of benefits for both the Base Plan and
Standard Plan.
Employee Educational Benefit Plan
Ms. Stalmach stated that the Fringe Benefits Committee has reviewed the tuition reimbursement
program and approved the recommendation to change the Educational Benefit Plan to provide a
tuition credit up front instead of the student paying and then receiving a reimbursement. This
change is required for the purpose of not confusing costs for federal financial aid programs. The
change will be effective Spring Semester, and some students are grandfathered.
Ms. Henderson commended the Committee members for their prompt responses when emailed
concerning this change to the Educationl Benefit Plan.
Health Insurance Payroll Deduction for New Employees
Mr. Simmons noted that he has received some questions from new employees regarding their
first payroll deduction for insurance when the employee’s start date is the first of the month. He
noted that payroll deduction for insurance coverage is paid in advance.
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Fringe Benefits Committee – Meeting Minutes 4/22/2014
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This means that an employee starting on the first of the month will have two months’ employee
contribution deducted from their first paycheck. For example, if an employee starts on April 1,
the deduction to their first paycheck is for coverage in April and May.
Mr. Simmons stated that this is worth understanding so that the Committee can respond to
questions from employees and assist in providing a better explanation in advance to new
employees.
Employee Wellness Initiatives Committee
Mr. Simmons reported that President Waldrop had approved the formation of a Wellness
Initiatives Committee as requested by the Faculty Senate and the Fringe Benefits Committee.
President Waldrop is very supportive of the initiative. The Wellness Initiatives Committee is
charged with developing recommendations that promote employee engagement in wellness. Mr.
Simmons will Chair the new Committee and coordinate with this Committee. The Wellness
Initiatives Committee will be a campus only initiative as the hospitals have different needs.
Adjourn
There being no other business to come before the Fringe Benefits Committee, the meeting was
adjourned at 3:40 p.m.