Benefits news and other updates from Statewide Voice

The latest issue of Statewide Voice is available online at alaska.edu/voice. Please take a moment to read the latest news and updates from across the UA system. The six articles below are of particular interest to UAA staff and faculty:

1. Reduction in Health Plan Annual Charge for FY18

The actual health care claims for FY17 were much lower than projected, therefore your employee deduction will be reduced. This will be accomplished by reducing the total amount of the employee contribution for FY18 (the plan year "goal" amount) by $475 per enrolled employee. This means you might have some paychecks in the remaining months of the plan year with no employee health care deduction.

When will you see this reduction? It depends on what plan you are on and when you started on the plan. For example, 12-month employees on the CHDP since July will see a reduced deduction in their paycheck on March 2, 2018, and no employee deductions after that. Less-than-12-month employees who have been on contract since the summer will see the reduction sooner. Employees on the 750 Plan will see the reduction later.

Please note: Deductions for dependent charges and credits for the wellness rebate will continue as scheduled; this change does not affect those items.

Why don't we just reduce the bi-weekly deduction for health care? The goal of the JHCC is to manage the plan to keep the deductions steady from year to year as much as possible. This practice allows employees and their families to plan and make informed decisions. Health care inflation is still here, high dollar claims are still happening and we do expect an increase in overall health care costs over time. It's better to keep rates steady than to risk a roller-coaster pattern of lower and higher rates year over year.

2. FY19 wellness rebate payout change

UA listened to your feedback and updated how the wellness rebate will be distributed. Previously this was paid out bi-weekly over the course of the fiscal year. NEW for FY19, the wellness rebate will now be distributed as a lump-sum payment! Employees and spouses/FIPs who complete the wellness program requirements by April 30, 2018, will get their rebate as a lump sum in November. That means you could see a $600 or $1,200 boost in your pay just before the holidays. This includes the earned rebate for any eligible spouse/FIP enrolled on the plan in November.

Why are we making this change? The reason is twofold, really. A process improvement team suggested that a lump sum would be easier to administer and would streamline the process for payroll. The Joint Health Care Committee agreed and thought it might be a better incentive to get some people who don't think that bi-weekly credit is big enough to bother to complete the program.

Just complete the program, and have your spouse do it too, and you'll see a rebate of $600 or $1,200 in November. All the details are on the UA Benefits web page. You can also call our program manager, Sara Rodewald, for help at (907) 450-8203.

3. Impact of tax changes will be seen on paychecks no later than March 2

On Jan. 11, the IRS released new tax tables for withholding of federal tax. It is required that employers implement the new tax tables in their payroll systems by February 15th. This means that any impact to your take home pay due to these changes will show on your paycheck issued on March 2nd at the latest.

There is no requirement for you to submit a new W-4 form for 2018 unless you would like to change your withholding elections. The W-4 form for 2018 has not yet been released by the IRS. You may continue to use the 2017 form for now.

You may want to contact your tax preparer to determine how changes due to the Tax Reform Legislation may impact you.

4. Bona fide termination required for PERS and TRS retirements

The State of Alaska has implemented a new regulation affecting what it means to terminate employment. This could affect you if you are on a state retirement plan and desire future employment on a temporary basis (including adjunct faculty) with the university after retirement. This new regulation refers to bona fide separation of employment and pre-arranged return to work agreements, and is effective for PERS and TRS members retiring or being rehired on or after January 1, 2018. Changes are not being made to the university's pension plan at this time.

In the simplest terms, this means that to be considered a bona fide termination, a retiree may not return to work in any capacity with the same employer from which they retired for at least 6 months if they are under age 62 at retirement, or 60 days if they are age 62 or older. In addition, there can be no pre-arranged return to work agreement, either verbal or written, at the time of termination. This means you can't have a future job, contract or agreement to work part time, teach a class or work on a grant.

Details on this regulation can be found on the State of Alaska Division of Retirement and Benefits website. Please review the Retiree Return to Work Policy, the Violation Procedures and the Frequently Asked Questions, all found on that site.

If you have questions about how this could affect you and your retirement, please contact the Division of Retirement at (800) 821-2251.

5. On-campus biometric screenings come to UAA Feb. 22 and 23

University of Alaska will once again offer on-site biometric screenings for all employees, spouses and FIPs who are currently enrolled in the UA Choice health plan. Appointments on the UAA campus are available for Feb. 22 and 23. Learn more here.

6. Reminder: Wellness program deadline is April 30

Don't forget that the wellness program deadline is April 30. All program requirements must be completed by this date in order to receive the FY19 wellness rebate. Verify that you are all set by logging in to your Healthyroads account and going to the Incentives/Plan Summary page. Having 100 percent on both progress bars means you are all set. Learn more and access log-in portals for Healthyroads at the UA Benefits page.

UA's On-Site Wellness Program Manager Sara Rodewald, (907) 450-8203 or sararo@ashn.com, is the person to contact if you have any questions or need additional clarification on the program and requirements.

February Archive