OP-C-7-C BENEFITS
OVERVIEW
It is the policy of Florida State University to announce the availability of and facilitate the enrollment of eligible personnel in the insurance plans and programs authorized by the state, the State University System and the University. These include state-sponsored health, life and supplemental insurance plans, retirement plans, tax sheltered annuity program and private sector benefit offerings.
Plans and programs are available to all salaried Administrative & Professional (A&P), Faculty and University Support Personnel System (USPS) and certain OPS employees. Some programs have enrollment time frame limitations or contract requirements that must be satisfied. Payment of premiums is facilitated through the convenience of payroll deduction in keeping with the biweekly payroll deduction schedule.
OP-C-7-C1 STATE SPONSORED HEALTH, LIFE AND SUPPLEMENTAL INSURANCE
OVERVIEW
Health and life insurance for salaried employees is administered by People First/Convergys through the Division of State Group Insurance. Premiums are a combination of pretax employer deductions (unless an official exception is requested) and employee contribution.
Supplemental insurance plans are administered by People First/Convergys through the Division of State Group Insurance however; this is an employee pay-all program. For a list of current plans, contact the Human Resources Insurance and Benefits Office.
State sponsored health, life and supplemental insurance plans may be added at the time of new hire, annual open enrollment or when a qualifying status change event occurs. Changes in plan coverage may only be made during open enrollment or when a qualifying status change occurs.
AUTHORITY
Florida Statute Chapter 110.123
State Group Insurance Rule 60.P1-10
OBJECTIVE
To identify the procedures required in the enrollment process for state sponsored health, life and supplemental insurance plans.
A. PROCEDURES
Human Resources Responsibility:
1. Provide updated information on the Human Resources website. All plans offered will be on the website. All forms and enrollment information will be provided on the website.
2. Conduct new employee orientation on a regularly scheduled basis. The orientation session shall include a detailed overview of all plans/ programs including coverage, participant eligibility, enrollment/ dis-enrollment procedures, and premium information.
3. Provide assistance in the completion of required forms and documents. Maintain record reflecting the employee's enrollment or dis-enrollment in the plans/programs, as well as all mandated supportive documentation.
4. Obtain employee authorization and initiate the collection and or deduction of premiums. Process refund request when necessary. All actions shall be completed in a timely manner.
5. Maintain edit reports to monitor employee participation and the deduction of premiums. Initiate corrective actions if applicable.
6. Advise employee of continuation of coverage options.
Department's Responsibility:
1. Ensure employee attends new employee orientation, or does the online new employee orientation- within 60 days of hire.
2. Complete required personnel actions in a timely manner to establish the appointment and facilitate payroll deduction of insurance premiums. Advise employee to bring:
-Copy of marriage certificate and
-Copies of birth certificates for all children to be claimed as dependents
-List of dependents' Social Security numbers and birth dates
The effective date of coverage for supplemental insurance plans is established two months after the appointment appears in the HRMS payroll system. A delay in appointment processing adversely impacts the employee's ability to obtain coverage.
Employee's Responsibility:
1. Create New Employee Orientation prior to sixty (60) day insurance enrollment deadline or schedule appointment with the University Benefits representative to initiate enrollment in the insurance program.
2. Monitor insurance deductions to ensure accuracy.
3. Notify Benefits Section immediately when a qualifying status change event (QSC) occurs. All "QSC" events must be processed within thirty (30) days from the date of occurrence.
OVERVIEW
The State University System currently provides three (3) active retirement plans for employees, the Florida Retirement System Pension Plan, Florida Retirement System Investment Plan and the Optional Retirement Plan. A benefit is paid to employees upon their retirement. Current participants may also retire from the Teachers' Retirement System or the State and County Officers' and Employees Retirement System
Retirement contributions are paid by the employer for all salaried employees. A brief description of the plans are provided below.
SPECIFIC AUTHORITY
Florida Administrative Code 60S (Division of Retirement)
ORP Rules 60U
Florida Statute Chapters 121 and 122
OBJECTIVE
These procedures provide a cursory retirement guide for University employees. For additional information, Official Division of Retirement Website and guidelines should be consulted.
A. RETIREMENT PROGRAMS
1. Florida Retirement System Pension Plan (FRS) is a defined benefit pension plan sponsored by the State of Florida. Upon completion of six (6) years, effective July 1, 2001 of creditable service, members are vested in the plan and are eligible to receive a lifetime income benefit upon retirement. The amount received is based on the member's age, years of creditable service, the value of each year of service, and the average final compensation. The University pays the full cost of the plan.
2. Florida Retirement System Investment Plan is a defined contribution plan sponsored by the State of Florida. Upon completion of one year of credible service, you are vested in the plan. The amount of your benefit at retirement is determined by the contributions made by the employer and the performance of the investments choices. Contributions are directed into an individual account and the employee decides how to allocate the contributions among various investment funds. This plan does not accept employee contributions.
3. Optional Retirement Plan (ORP) is a defined contribution pension plan sponsored by the State of Florida. Each pay period, the University will contribute a percentage of earnings in an annuity. Regardless of the length of service, participants will receive a lifetime monthly annuity income at retirement that is based on the amount of funds contributed, the investment earnings of those funds, and the type of annuity selected. The employee may choose to contribute to their selected annuity in accordance with Internal Revenue Code regulations.
4. In addition, the Teacher's Retirement System (TRS) and the State and County Officers and Employees Retirement System (SCOERS) are available for retirement purposes to existing members only. A detailed description of the retirement options may be obtained from the Division of Retirement or the Human Resources Benefits office.
The University also offers an early retirement incentive option. It is the Deferred Retirement Option Program (DROP).
DROP: Effective 7/1/98, all eligible FRS members may elect to participate in the Deferred Retirement Option Program (DROP). The DROP is an alternative method for payout of retirement benefits for up to sixty (60) months after a member reaches age sixty-two (62) or has completed thirty (30) years of employment with an FRS employer. The DROP allows a member to have their retirement benefits deposited monthly into an annuity account, which earns interest, while the employee simultaneously continues to work. The purpose of this program is to provide a means for retirees to accumulate additional savings while continuing employment.
(1) Eligibility Criteria (Regular):
-must be either age sixty-two (62) and vested
OR
-completed thirty (30) years of service(2) Eligibility Criteria (Special Risk):
-must be either age fifty-five (55) and vested
OR
-completed twenty-five (25) years of serviceNOTE: If an employee has already reached normal retirement age or date before the effective date, they will have twelve (12) months from eligibility date to elect to participate, subject to the maximum length of participation allowed.
(3) Length of Participation:
-maximum of sixty (60) months following date employee first reaches normal retirement age or satisfies the eligible years of service date. Failure to terminate on time, results in the loss of the accumulated DROP account and retirement is canceled. Membership in FRS will be retroactively reestablished to reflect the start date of DROP and the University will assume responsibility for payment of any additional contributions to the employee's FRS account.
NOTE: If an employee first reaches normal retirement age or years of service, they are only eligible to participate in DROP for a period not to exceed the remainder of sixty (60) months.
(4) Account Earnings and Payment Options:
-DROP accounts earn interest compounded monthly at an effective annual rate of 6.5%. No interest is earned on benefits on deposit for less than one (1) month.
-Payment is received upon termination as either lump sum, direct rollover, or combined partial lump sum and rollover. Eligible rollover plans include an individual retirement account, an individual retirement annuity, a qualified trust and an annuity.(5) Leave options:
-DROP participants may elect to be paid for unused annual leave and any overtime or special compensatory leave (if earned within the last eleven months).
-Annual leave and compensation payments are included in the calculation of the highest five years. A participant may receive payment up to the maximum allowed for the class. Any annual leave hours in excess of the maximum (240 hours: USPS; 352 hours: Faculty and A&P; 480 hours: Executive Service) will remain as annual leave to be used during the five year DROP period.
-Leave payments may also be tax sheltered. The employee must arrange for deferment by contacting the annuity company representative and completing a DROP Leave Election form prior to receiving payment.
B. FRS & ORP Enrollment Procedures
Human Resources Responsibility:
a. Conduct New Employee Orientation and provide an overview of the retirement plans and options.
b. Provide required forms at new employee orientation and on the Human Resources website.
c. Inform employees on the retirement program.
d. Enter data into payroll system.
e. Process enrollment forms and forward to Division of Retirement.
Employee's Responsibility:
a. Complete required enrollment forms in the specified timeframe and submit to the Human Resources Benefits office.
b. If participating in the ORP, contact a tax sheltered annuity representative and complete an annuity contract within the first ninety (90) days of employment. Monitor deductions for accuracy. Notify TSA company and University Retirement Coordinators if changes or corrections are needed.
Department's Responsibility:
a. Ensure the appointment is processed in a timely manner.
b. Monitor employee forms processing to ensure forms are completed accurately and timely.
FRS Retirement Procedures
Employee Responsibility:
a. Complete an FRS Audit Summary Request available in the University Benefits Office or on the website to confirm years of creditable service on record, benefit payment eligibility and cost of purchasing military or refunded service.
b. Locate birth certificate or other proof of age as defined in the Division of Retirement Benefit Handbook.
c. Complete an FRS retirement application available from the University Benefits Office, or the Human Resources website. Form should be completed at least thirty (30) days prior to expected retirement date. Schedule an appointment with the University Benefits Office and submit retirement forms for processing.
d. Notify supervisor of retirement plans and request termination checklist.
e. Meet with University Benefits representatives and complete necessary forms to continue or cancel insurance during retirement.
Department's Responsibility for FRS and ORP:
a. Process termination in a timely manner and submit required documentation.
b. If applicable, audit leave reports.
Human Resources Responsibility for FRS and ORP:
a. Assist employee in the termination process as indicated on the termination checklist.
b. Process termination notice provided by department.
c. If applicable, initiate payment of unused leave for A&P and USPS employees. The processing of leave payments for faculty is initiated by the Office of the Dean of the Faculties.
d. If applicable, inform employee of continuing benefits and cancel deductions in the payroll system.
e. Process retirement application.
ORP Retirement Procedures
Employee's Responsibility:
a. Contact annuity company representative.
b. Notify supervisor of retirement plans and request termination checklist.
c. Meet with University Benefits representatives and complete necessary forms to continue or cancel insurance coverage.
Department's Responsibility:
a. Ensure termination is completed timely.
b. If applicable, audit leave records.
Human Resources Responsibility for FRS and ORP:
a. Assist employee in the termination process as indicated on the termination checklist.
b. Process termination notice provided by department.
c. If applicable, initiate payment of unused leave for A&P and USPS employees. The processing of leave payments for faculty is initiated by the Office of the Dean of the Faculties Office.
d. If applicable, inform employee of continuing benefits and cancel deductions in payroll system.
e. Process retirement application
OP-C-7-C3 TAX SHELTERED ANNUITIES
OVERVIEW
Florida State University employees are encouraged to establish additional savings for retirement through participation in tax sheltered programs. Enrollment may occur at any time. There are no taxes assessed on annuity contributions or earnings until funds are withdrawn.
Included in the University's tax deferred programs are several 403(b) Tax Sheltered Annuities and 457 Deferred Compensation plans. The vehicles include money markets, stocks, bonds, fixed and variable annuities.
Specifics on each of the available plans may be obtained from the plan representatives: The Gabor Agency, Lincoln National, MetLife, State Deferred Compensation Program, TIAA-CREF and AIG VALIC.
SPECIFIC AUTHORITY
Chapters 403(b) and 457 of the Internal Revenue Code
Florida Administrative Code Section 4C-6
OBJECTIVE
To offer employees a method of saving income and sheltering salary from federal withholding tax through payroll deduction.
A. PROCEDURES
Human Resources Responsibility:
University Retirement Coordinator acts as liaison with employee and Tax Sheltered Annuity (TSA) representative. Coordinator assures required paperwork is completed, including Salary Reduction Agreement, and enters data in payroll system.
TSA Representative's Responsibility:
1. Advise employee of investment options. Calculate all employee investment amounts as either dollars or percentages, whichever is applicable. Complete required forms to initiate payroll actions and forward notification of contributions and copies of the completed contract to the retirement coordinator for processing.
2. Adhere to the University Solicitation Policy.
Employee's Responsibility:
1. Initiate request for annuity prospects or other information with appropriate annuity representative.
2. Monitor personal account(s) to ensure compliance with IRS guidelines. An amount an employee may annually contribute to a tax shelter as outlined in IRS guidelines is referred to as a maximum exclusion allowance.
3. Notify annuity representative of enrollment interest and/or reduction actions.
OVERVIEW
The standards for companies conducting business transactions with employees of the University are set forth in the Florida Statutes, Florida Administrative Code and this Human Resources Policy and Procedure on Solicitation. All product offerings and marketing materials must be approved by the appropriate authorities (Division of Retirement, Division of State Group Insurance or University Insurance and Benefits Committee).
Business transactions should be conducted in a professional and equitable manner. The Benefits Office and/or the Insurance and Benefits Committee will review complaints regarding this policy.
Unprofessional vendor behavior is defined as:
- Pressuring an employee to select one company over another
- Criticizing and making negative comments about another company
- Conducting unauthorized on-site visits with employees
- Continual harassment by phone, e-mail or work visits
Noncompliance with this policy may result in marketing privileges being revoked or suspended.
SPECIFIC AUTHORITY
Florida State University Human Resources Solicitation Policy
Insurance and Benefits Committee
Florida Statutes Chapter 121.35
Florida Administrative Code Chapter 60U
A. PROCEDURES
Human Resources Responsibility:
1. Provide authorized vendor with all applicable solicitation policies.
2. If applicable and requested, provide vendors with list of benefit eligible employees.
3. Respond to employee complaints regarding the Solicitation Policy, review and resolve complaints, and if necessary report unresolved issues or violations to the appropriate authority.
4. Serve as liaison between vendor and University Insurance and Benefits Committee.
5. Coordinate the distribution of approved marketing materials.
6. Coordinate employee informational meetings.
Vendor Responsibility
1. Adhere to Division of Retirement applicable solicitation policies and maintain a signed Benefits Solicitation Agreement on file with the Human Resources Benefits Office.
2. Provide the Human Resources Benefits Office with a list of authorized agents every January 1st.
3. When authorizing a new agent, provide Human Resources Benefits Office with a signed Benefits Solicitation Agreement.
4. Obtain appropriate approval of all marketing materials prior to distribution to employees and assume responsibility for the accountability and accuracy of all information provided by the company to employees.
5. If applicable, conduct regular reviews of annuity accounts to ensure compliance with IRS regulations (e.g. contribution limits) and counsel participants as needed.
6. Process applications, enrollment forms, contracts, and claims in a timely manner.
OP-C-7-C5 DECEASED EMPLOYEE GUIDELINES
OVERVIEW
This procedure is a guide for departmental representatives to utilize when providing assistance to the surviving spouse and/or other beneficiaries of deceased employees. Information is provided to assist them in obtaining benefits that are due beneficiaries.
SPECIFIC AUTHORITY
Florida Statutes Chapter 121.021(28)
Division of State Group Insurance, 60-P Rule, Sections 2.015 and 4.009
Division of Retirement FRS Rule, Section 60S-4.011 and 6.001(9) and (34)
OBJECTIVE
To assist in the processing of benefits for the beneficiaries of a deceased employee.
A. PROCEDURES
Department's Responsibility:
1. Notify Human Resources Benefits section of employee's death. Provide date of death and contact information of surviving spouse.
2. Initiate appropriate personnel action.
3. Contact Human Resources or The Office of the Dean of the Faculties regarding the payout of any leave accrued for which the employee would have been eligible.
Human Resources Responsibility:
1. Prepare letter(s) to appropriate beneficiaries advising them of all benefits due and the steps necessary for receiving any benefits.
2. Notify appropriate agencies of the employee death.
3. Process all required forms for payment or continuation of benefits.
4. Provide assistance to surviving spouse and/or other beneficiaries.
OP-C-7-C6 EMPLOYEE TUITION SCHOLARSHIP PROGRAM
OVERVIEW
The Employee Tuition Scholarship Program is available to all full time employees, (including those on sabbatical, professional development, Grant-in-Aid, and educational leave), who are employed in a salaried position. This program permits employees who meet academic requirements to enroll for a maximum of six (6) free credit hours of classes a semester.
OP-C-7-C7 GRANT-IN-AID PROGRAM
OVERVIEW
The State University System Employee Grant-In-Aid Program is offered under the Revised Plan for Equalizing Educational Opportunity in Public Higher Education in Florida, and is designed to address the problems of under-representation of minority and female employees in non-traditional disciplines or employment areas. The award is made available in an effort to increase the number of these employees who are qualified for promotion in the University Support Personnel System, Administrative and Professional and Faculty positions.
OBJECTIVE This policy provides general information regarding the State University System/Florida State University Grant-in-Aid Program.
A. AWARD
The grant for Faculty or Administrative and Professional staff members consists of salary for up to two semesters with no work obligations. Awards to faculty are limited to persons seeking degrees in under-represented disciplines. The University Support Personnel System employee award provides salary for up to two semesters with a $600 stipend per semester. There is no stipend for Faculty or Administrative and Professional participants; however, all will be eligible for continued accrual of annual and sick leave as appropriate.
B. ELIGIBILITY CRITERIA
All Grant-in-Aid recipients must be permanent (continuing), or regular University employees with service to the institution for at least two (2) years, a recipient must agree to continue employment with the University, another SUS institution, or the Board of Trustees for a period of time equal to twice the length of the leave.
C. APPLICATIONS
Applications and letters of nomination for the Employee Grant-in-Aid Program will be accepted each spring by Florida State University. The application process is generally held mid-March through mid-April.
The Grant-in-Aid educational leave awards are granted via a committee process and generally announced in May or early June.
Applications should be submitted to the Employee Grant-in-Aid Selection Committee, c/o Human Resources.
OP-C-7-C8 MISCELLANEOUS BENEFITS
A. PAYROLL DEDUCTION OPTIONS
There are several programs offered to employees for the convenience of payroll deduction. They are: Pre-paid College, State Childcare Centers, Auto/Homeowner's Insurance and Leach Recreational Center.
B. RECREATIONAL AND CULTURAL OPPORTUNITIES
1. The University sponsors social clubs, public lectures, art exhibits, motion pictures, plays, concerts, dances, and sports events that are available to its employees. The facilities of the University are also available to employees; these include the library, student union, bookstore, food service facilities, golf course, tennis courts, swimming pool, the Seminole Reservation, and facilities in the Recreation Center.
2. Discount cards and information brochures are available in the Office of Human Resources for many Florida attractions. Call (850) 644-6034 for more information.
