Article 21
FRINGE BENEFITS
A. Health Benefits
1. Eligibility
a. All
temporary full-time FACULTY MEMBERS who are employed to work a standard
workload for one academic year and all regular full-time FACULTY MEMBERS are
eligible for all health benefits provided in this Section. Whenever a full-time
temporary FACULTY MEMBER is employed during the spring semester with a
reasonable expectation of being re-employed during the fall semester, the
FACULTY MEMBER shall be eligible to receive health benefits during the
intervening summer. All temporary
part-time and all regular part-time FACULTY MEMBERS who are employed to work at
least fifty percent (50%) of a standard workload for one academic year are
eligible for health benefits provided in this Article. All
regular part-time FACULTY MEMBERS are also eligible for health benefits
provided in this Article.
b. The
STATE SYSTEM shall provide dependency coverage where the dependents,
spouses/domestic partners and children, of the FACULTY MEMBERS qualify under
such plan.
c. Eligible FACULTY MEMBERS shall be those
determined by the health plans in accordance with the eligibility provisions of
the STATE SYSTEM OF HIGHER EDUCATION Group Health Program (SSHEGHP). The choice among plans shall be operated as
follows:
1. The option to elect the coverage in a
plan shall be made available to those FACULTY MEMBERS who reside within the
service area of the plan.
2. The amount and kind of benefits
available to the FACULTY MEMBERS shall be those offered by the plan and
contracted for by the STATE SYSTEM.
3. The Health and Welfare Fund contribution rate, as set forth in Article 30, will not be affected as a result of the plan selected by the FACULTY MEMBER.
4. The
option to elect coverage under a plan shall be available during annual open
enrollment periods designated by the STATE SYSTEM and the plans. FACULTY MEMBERS who move into a plan’s
service area may choose from available plans.
FACULTY MEMBERS who are dissatisfied
with an HMO may elect coverage in the PPO (plan design as referenced in the Memorandum of Agreement of February
6, 2004) or another available plan.
2. Full-Time
Employee Health Care Choices
a. Eligible full-time FACULTY MEMBERS
shall be provided a choice annually between enrollment in a Preferred Provider
Organization (PPO) plan (plan design as referenced in the Memorandum of
Agreement of February 6, 2004) or
a Health Maintenance Organization (HMO).
b. Effective July 1, 2007, the current
indemnity plan will be closed to new enrollments. Only eligible full-time FACULTY MEMBERS
enrolled in the indemnity plan on July 1, 2007, may continue to participate in the
plan. Provisions regarding the indemnity plan are set forth in Appendix I.
c. An open enrollment period shall be
scheduled for full-time FACULTY MEMBERS enrolled in the indemnity plan on July
1, 2007, for a two (2) week period in November 2007, with enrollment selections
to be effective
d. During the term of this Agreement, the
STATE SYSTEM will offer a consumer driven health plan option (high deductible
health plan and health savings account) to eligible full-time FACULTY MEMBERS.
The consumer driven health plan option shall be developed and recommended by
the Health Care Cost Containment Committee.
3. Full-Time
Employee Premium Contribution
a. Effective July 1, 2007, all
participating active full-time FACULTY MEMBERS shall contribute on a pre-tax
basis, through bi-weekly payroll deductions, at a flat rate of 10 percent (10%)
of the STATE SYSTEM’S expected costs (maximum premium rate) for the type of
contract for the chosen health and prescription drug plan for fiscal year
2007-2008.
b. Effective July 1, 2008, all
participating active full-time FACULTY MEMBERS shall contribute on a pre-tax
basis, through bi-weekly payroll deductions, at a flat rate of ten percent
(10%) of the STATE SYSTEM’S expected costs (maximum premium rate) for the type
of contract for the chosen health and prescription drug plan for fiscal year
2008-2009.
c. Effective July 1, 2009, all
participating active full-time FACULTY MEMBERS shall contribute on a pre-tax
basis, through bi-weekly payroll deductions, at a flat rate of ten percent
(10%) of the STATE SYSTEM’S expected costs (maximum premium rate) for the type
of contract for the chosen health and prescription drug plan for fiscal year
2009-2010.
d. Effective July 1, 2010, all
participating active full-time FACULTY MEMBERS shall contribute on a pre-tax
basis, through bi-weekly payroll deductions, at a flat rate of fifteen percent
(15%) of the STATE SYSTEM’S expected costs (maximum premium rate) for the type
of contract for the chosen health and prescription drug plan for fiscal year
2010-2011.
e. Contributions shall be established by
plan based on the following demographic tiers: single, two-party, and family.
f. The STATE SYSTEM will offer a health
care management program (wellness program) to all eligible FACULTY MEMBERS
which shall be made available by no later than July 1, 2008, following
consultation with the Health Care Cost Containment Committee as provided in
Appendix J.
g. Active eligible full-time FACULTY
MEMBERS and covered spouses/domestic partners must complete the requirements of
the health care management program (wellness program) when available by the cut
off dates in order to contribute at the participation levels in 3.b, c. and d.
above.
h. For those eligible full-time FACULTY
MEMBERS and covered spouses/domestic partners who do not participate in the
health care management program (wellness program) when available, contributions
will increase as follows:
(1) As of January 1, 2009, an additional five
percent (5%) which shall bring the total premium contribution for
non-participants to fifteen percent (15%) of the STATE SYSTEM’S expected costs
(maximum premium rate) for the type of contract for the chosen health and
prescription drug plan for fiscal year 2008-2009;
(2) As of July 1, 2009, an additional ten percent
(10%) which shall bring the total premium contribution for non-participants to
twenty percent (20%) of the STATE SYSTEM’S expected costs (maximum premium
rate) for the type of contract for the chosen health and prescription drug plan
for fiscal year 2009-2010; and,
(3) As of July 1, 2010, an additional ten percent
(10%) which shall bring the total premium contribution for non-participants to
twenty-five percent (25%) of the STATE SYSTEM’S expected costs (maximum premium
rate) for the type of contract for the chosen health and prescription drug plan
for fiscal year 2010-2011.
Below
is a chart describing the provisions set forth above:
|
Premium Contribution
Date |
Premium Contribution |
Wellness
Program Non-Participant
Increase |
Total
Wellness Program Non-Participant
Premium Contribution |
|
July 1, 2007 |
10% |
N/A |
N/A |
|
|
10% |
5% |
15% |
|
July 1, 2009 |
10% |
10% |
20% |
|
July 1, 2010 |
15% |
10% |
25% |
i. FACULTY MEMBERS enrolled in an
HMO shall not experience the increases for non-participants as set forth in h.
above.
4. Part-Time
Employee Health Care Choices
a. Eligible part-time FACULTY MEMBERS shall
be provided a choice annually between enrollment in a Preferred Provider
Organization (PPO) plan (plan design as referenced in the Memorandum of
Agreement of February 6, 2004) or a Health Maintenance Organization (HMO).
b. The
STATE SYSTEM shall provide eligible part-time FACULTY MEMBERS, who are expected
to be in an active pay status at least fifty percent (50%) of the time every
pay period of the academic year or full year, as appropriate, for each FACULTY
MEMBER'S position, with coverage under the indemnity plan, HMO, or PPO
plan (plan design as referenced in the Memorandum of Agreement of February 6,
2004).
c. Effective July 1, 2007, the current
indemnity plan will be closed to new enrollments. Only eligible part-time
FACULTY MEMBERS enrolled in the indemnity plan on July 1, 2007, may continue to
participate in the plan. Provisions regarding the indemnity plan are set forth
in Appendix I.
d. An open enrollment period shall be
scheduled for part-time FACULTY MEMBERS enrolled in the indemnity plan on July
1, 2007, for a two (2) week period in November 2007 with enrollment selections
to be effective
e. During the term of this Agreement, the
STATE SYSTEM will offer a consumer driven health plan option (high deductible
health plan and health savings account) to eligible part-time FACULTY MEMBERS.
The consumer driven health plan option shall be developed and recommended by
the Health Care Cost Containment Committee.
5. Part-Time
Employee Premium Contribution
a. Effective July 1, 2007, all
participating active eligible part-time FACULTY MEMBERS shall contribute on a
pre-tax basis, through bi-weekly payroll deductions, at a flat rate of
fifty-five percent (55%) of the STATE SYSTEM’S expected costs (maximum premium rate)
for the type of contract for the chosen health and prescription drug plan for
fiscal year 2007-2008.
b. Effective July 1, 2008, all
participating active eligible part-time FACULTY MEMBERS shall contribute on a
pre-tax basis, through bi-weekly payroll deductions, at a flat rate of
fifty-five percent (55%) of the STATE SYSTEM’S expected costs (maximum premium
rate) for the type of contract for the chosen health and prescription drug plan
for fiscal year 2008-2009.
c. Effective July 1, 2009, all participating
active eligible part-time FACULTY MEMBERS shall contribute on a pre-tax basis,
through bi-weekly payroll deductions, at a flat rate of fifty-five percent
(55%) of the STATE SYSTEM’S expected costs (maximum premium rate) for the type
of contract for the chosen health and prescription drug plan for fiscal year
2009-2010.
d. Effective July 1, 2010, all
participating active eligible part-time FACULTY MEMBERS shall contribute on a
pre-tax basis, through bi-weekly payroll deductions, at a flat rate of
fifty-seven and one-half percent (57.5 %) of the STATE SYSTEM’S expected costs
(maximum premium rate) for the type of contract for the chosen health and
prescription drug plan for fiscal year 2010-2011.
e. The
STATE SYSTEM will offer a health care management program (wellness program) to
all eligible part-time FACULTY MEMBERS which shall be made available by no
later than July 1, 2008, following consultation with the Health Care Cost
Containment Committee as provided in Appendix J.
f. Active eligible part-time FACULTY
MEMBERS and covered spouses/domestic partners must complete the requirements of
the health care management program (wellness program) when available by the cut
off dates in order to contribute at the participation levels in 5.b, c, and d
above.
g. For
those eligible part-time FACULTY MEMBERS and covered spouses/domestic partners
who do not participate in the health care management program (wellness program)
when available contributions will increase as follows:
(1) As of January 1, 2009, an additional two and
one-half percent (2.5%) which shall bring the total premium contribution for
non-participants to fifty-seven and one-half percent (57.5%) of the STATE
SYSTEM’S expected costs (maximum premium rate) for the type of contract for the
chosen health and prescription drug plan for fiscal year 2008-2009;
(2) As of July 1, 2009, an additional five
percent (5%) which shall bring the total premium contribution for
non-participants to sixty percent (60%) of the STATE SYSTEM’S expected costs
(maximum premium rate) for the type of contract for the chosen health and
prescription drug plan for fiscal year 2009-2010; and,
(3) As of July 1, 2010, an additional five
percent (5%) which shall bring the total premium contribution for
non-participants to sixty-two and one-half percent (62.5%) of the STATE
SYSTEM’S expected costs (maximum premium rate) for the type of contract for the
chosen health and prescription drug plan for fiscal year 2010-2011.
Below
is a chart describing the provisions set forth above:
|
Premium Contribution
Date |
Premium Contribution |
Wellness
Program Non-Participant
Increase |
Total
Wellness Program Non-Participant Premium Contribution |
|
July 1, 2007 |
55% |
N/A |
N/A |
|
|
55% |
2.5% |
57.5% |
|
July 1, 2009 |
55% |
5% |
60% |
|
July 1, 2010 |
57.5% |
5% |
62.5% |
h. FACULTY
MEMBERS enrolled in an HMO shall not experience the increases for
non-participants as set forth in g. above.
6. The
employee contribution for health and prescription drug benefits for
non-represented employees of the STATE SYSTEM (except those in the PEBTF) shall
be no less than the same contribution percentage in effect for active FACULTY
MEMBERS.
7. If the indemnity and prescription drug card plan costs increase more than twelve percent (12%) from one year to the next, any cost increase in excess of twelve percent (12%) shall be paid by the plan participants in addition to the flat ten percent (10%) contribution rate, unless the plan is redesigned to maintain costs within the twelve percent (12%) cap. Any such additional contributions shall be paid by pre-tax payroll deductions.
8. a. Eligible
FACULTY MEMBERS who are granted leave without pay due to sickness or parental
leave will continue to receive health and prescription drug benefits under the
SSHEGHP for up to six (6) months.
Regular FACULTY MEMBERS who are granted family care leave may continue
to receive health and prescription drug benefits for up to twelve (12) weeks.
Health and prescription drug benefits will continue provided that required
employee contributions are paid while on leave.
If the FACULTY MEMBER does not pay their share of the premium, their
coverage will be cancelled and they will be permitted to continue coverage
under COBRA provisions or on a direct pay basis.
b. Eligible
FACULTY MEMBERS who are granted leave without pay for any reason other than for
sickness, parental, or family care
leave for longer than one (1)
full pay period, or who are on leave
without pay due to sickness or parental leave longer than six (6) months, or family care leave longer than
twelve (12) weeks will be permitted to continue coverage under COBRA provisions
or on a direct pay basis.
c. The
STATE SYSTEM/FACULTY MEMBER contributions shall continue as stated in
subsections 3 and 5 above for
eligible FACULTY MEMBERS for the period of time for which they are entitled to
benefits under this Section.
9. Prescription
Drug Card
The STATE SYSTEM shall provide prescription
drug coverage for all of the SSHEGHP plans through a prescription drug card.
The prescription drug coverage shall include:
a. A three-tier open formulary with retail
co-payments of $5 for generic, $10 for brand formulary, and $20 for brand non-formulary
drugs for up to a thirty (30) day supply. Effective
b. Co-payments
for mail order prescriptions of two times the retail co-payments set forth in
subsection 9.a. above for up to
a ninety (90) day supply.
c. A
deductible for all employee prescription coverage (total retail and mail order)
of $100 per person maximum per calendar year, $300 per family maximum per
calendar year. Effective
d. If
a physician prescribes a brand name drug and indicates no substitution, then
the FACULTY MEMBER will not pay the difference between that drug and the
generic drug. However, if the
FACULTY MEMBER chooses a brand name drug when his/her physician has indicated
that substitution of a generic drug is acceptable, the FACULTY MEMBER must pay
the difference in cost between the brand name drug and the generic drug.
10. Annuitant
Health Care Coverage
a. Eligibility
(1) The STATE SYSTEM shall allow each FACULTY
MEMBER who was
eligible as an active FACULTY MEMBER
under
the SSHEGHP to elect coverage upon retirement in an
approved
plan under the Annuitant Health Care Program (AHCP).
(2) Dependency
coverage shall be allowed where the dependents
of the annuitant qualify under such Plan.
b. Annuitant
Health Care Choices
(1) Effective
July 1, 2004, AHCP benefits for new pre-Medicare eligible retirees shall be
those in effect for active employees, and may change from time-to-time as
active employee benefits change.
(2) A FACULTY MEMBER who retires prior to
July 1, 2009, and is enrolled in the indemnity plan at the time of retirement,
may continue that enrollment as an annuitant. However, the indemnity plan will
not be available to pre-Medicare retirees who retire after June 30, 2009.
(3) Eligible FACULTY MEMBERS who retire after
June 30, 2009, and who enroll in the
AHCP and are not eligible for Medicare, will have the choice of enrollment in
the PPO (plan design as referenced in the Memorandum of Agreement of February
6, 2004), HMO, if available, or other approved plan under the AHCP.
c. Annuitant
Premium Contributions
(1) The
STATE SYSTEM shall continue to pay the full cost of AHCP benefits for those
eligible FACULTY MEMBERS who retired prior to July 1, 2005.
(2) Eligible
employees who retire after June 30, 2005, and before July 1, 2008, and who enroll in the AHCP and are not
eligible for Medicare, shall contribute to the cost of coverage at the same
dollar amount for their choice of plan that was in effect the day of their
retirement. Upon becoming eligible for
Medicare, they shall cease the foregoing contribution and instead pay the same
percentage of the STATE SYSTEM’s cost for the
Medicare supplement as active employees are paying for their PPO plan (plan
design as referenced in the Memorandum of Agreement of February 6, 2004)
benefits.
(3) Eligible FACULTY MEMBERS who retire after
June 30,
2008, and
who enroll in the AHCP shall contribute to the cost of the
AHCP at the
same dollar amount for the type of contract and choice
of plan as that in effect on the day of the FACULTY MEMBER’S
retirement. Throughout the annuitant’s lifetime while
enrolled in the
AHCP, the
dollar amount paid by the annuitant shall be adjusted
whenever the percentage of contribution paid by active FACULTY MEMBERS for the
same type of contract and choice of plan is adjusted. The new percentage shall
be applied to the rate for the type of contract and choice of plan that was in
effect on the day of the FACULTY MEMBER’S retirement to determine the new
annuitant contribution. The wellness program and non-participant contribution
increases set forth in sections 3.h (1), (2), and (3) and 5.g (1), (2), and (3)
above shall not apply to annuitants.
(4) If
an annuitant who retires after June 30, 2005 and before July 1, 2008, opts to change health plans, he/she shall
contribute to the new plan in the same dollar amount that was in effect for that
plan as of the date of his/her retirement.
(5) If
an annuitant who retires after June 30, 2008, opts to change health plans,
he/she shall contribute to the new plan in the same dollar amount that was
being contributed to that type of contract and choice of plan by active FACULTY
MEMBERS on the day of the FACULTY MEMBER’S retirement, adjusted for any changes
occurring since that time in the percentage of contributions paid by active
FACULTY MEMBERS.
d. Any FACULTY MEMBER who retires prior to July 1, 2009, and receives health benefits in accordance with subsection f. below under the present indemnity plan shall have major medical coverage in retirement equal to the major medical coverage that he/she had on the day prior to his/her retirement.
e. FACULTY MEMBERS who retire and are covered under the
AHCP will be required to enroll in Medicare Part B when they become Medicare
eligible in order to continue comprehensive medical coverage. The STATE SYSTEM
shall continue to provide the Blue Shield Signature 65 Supplement or
equivalent.
f. Annuitants who retire under the
provisions of paragraphs (1), (2), or
(3) below will be
eligible to elect coverage under the STATE SYSTEM Annuitant Health Care Program
(AHCP) as provided in this Section. For
purposes of this Section, “credited service” for all FACULTY MEMBERS who begin
employment in the fall semester 1997 and after, shall only include actual
service with the STATE SYSTEM or COMMONWEALTH and shall not include other types
of service purchasable for retirement credit.
(1) Retirement
at or after superannuation age with at least ten (10) years of credited service
in the State and/or Public School Employees’ Retirement Systems, except that a
FACULTY MEMBER who leaves STATE SYSTEM employment through resignation or
discharge prior to superannuation age, vests retirement benefits and does not
retire until at or after superannuation age must have had on the date of
resignation or discharge, twenty-five (25) years of credited service in the
State and/or Public School Employees’ Retirement Systems.
A FACULTY MEMBER, who is retrenched prior to
superannuation age, vests his/her retirement benefits and subsequently retires
at or after superannuation age during the furlough period must have ten (10) or
more years of credited service in the State and/or Public School Employees’
Retirement Systems. For purposes of this
subsection, superannuation under the Alternative Retirement Plans (see Article 20.C.) shall be sixty (60) years
of age with at least ten (10) years of COMMONWEALTH, STATE SYSTEM and/or public
school service. For purposes of this
subsection, for all FACULTY MEMBERS who begin employment in the fall semester
1997 and after, the service requirement shall be fifteen (15) years; rather than ten (10) years.
For all FACULTY MEMBERS who begin employment
after July 1, 2004, the years of credited service required for eligibility
shall increase to twenty (20) years of credited service.
(2) Disability
Retirement, which requires at least five (5) years of credited service in the
State or Public School Employees’ Retirement Systems. For purposes of this subsection, retirement
under the Alternative Retirement Plan (see Article 20.C.) shall be considered disability retirement if the
retiree meets the same disability retirement standards used by the State
Employees’ Retirement System in accordance with the procedures provided for in
Appendix E.
(3) Other
retirement, including retirement under the Alternative Retirement Plan (see
Article 20.C.) with at least twenty-five (25) years of credited service in the
State and/or Public School Employees’ Retirement Systems, and who have elected
coverage under the AHCP.
For purposes of this subsection, Alternative
Retirement Plan (see Article 20.C.) members who begin employment before the end
of the 1996-97 academic year may receive retirement credits equal to the
retirement credit which they would be entitled to purchase under the rules of
the State Employees’ Retirement
System (SERS) for military service, for service in other public colleges and
universities, and for other permissible service credit purchases. Such retirement credit must be certified as
eligible by SERS as creditable under its rules.
This provision shall be effective only for those FACULTY MEMBERS who
retire on or after July 1, 1990 and who began employment before the end of the
1996-97 academic year.
11. It
is understood and agreed that the references to the types of health plans in
this Article shall not restrict the Employer's right after consultation with
APSCUF to replace the current insurers/administrators with other
insurers/administrators, provided equivalent coverage, benefits and employer/FACULTY
MEMBER contributions are maintained.
B. Health
Care Cost Containment Committee
1. The
Health Care Cost Containment Committee which was established as of July 1,
2004, shall continue as modified herein. Effective July 1, 2007, the Health Care
Cost Containment Committee shall be composed of twelve (12) members with six
(6) management representatives and six (6) union representatives four (4) of
whom shall represent and be appointed by APSCUF, one (1) who shall represent
and be appointed by OPEIU Healthcare Pennsylvania, Local 112, and one (1) who
shall represent and be appointed by SPFPA.
2. The
Health Care Cost Containment Committee shall meet periodically to discuss
health care cost containment strategies, including plan redesign of the indemnity
program to maintain costs within the twelve percent (12%) cap provided for in
subsection A.7. above. The Committee may
also make recommendations for modifications to the other health care plans. The Committee shall make recommendations to
the STATE SYSTEM and APSCUF for modifications of the health care plans for
active FACULTY MEMBERS. All
recommendations must have been approved by Committee members by majority vote
of both management members and majority vote of union members.
3. Health
and prescription drug rate information used to determine premiums and employee
contributions shall be shared with all members of the Committee.
C. In the event that comprehensive
healthcare legislation is passed, the parties agree to refer such legislation
to the Health Care Cost Containment Committee to make a recommendation
regarding appropriate changes for the existing active and annuitant health care
program.
D. Life Insurance
1. The
STATE SYSTEM/UNIVERSITIES shall assume the entire costs of life insurance coverage
as described in this Section. The
eligibility of FACULTY MEMBERS for life insurance will be as set forth in the
currently existing life insurance plan.
The amount of life insurance will be based on the FACULTY MEMBER'S
annual pay rate in effect on the preceding
2. The
STATE SYSTEM/UNIVERSITIES shall continue to provide each FACULTY MEMBER who is
covered under the currently existing life insurance plan with fully paid
accidental death benefits for work-related accidental deaths in addition to the
life insurance coverage provided in subsection 1. above. The amount of coverage is $20,000.
3. FACULTY
MEMBERS eligible for life insurance pursuant to this Article, who are granted
sick leave without pay or parental leave without pay will continue to receive
one hundred percent (100%) State System paid coverage under the current life
insurance plan for up to six (6) months.
FACULTY MEMBERS, who are on sick leave or parental leave without pay for
longer than six (6) months, may remain in the program for an additional six
(6)-month period by paying the entire premium.
FACULTY MEMBERS, who are granted family care leave, will continue to
receive one hundred percent (100%) State System paid coverage under the current
life insurance plan for up to twelve (12) weeks.
E. Holidays
1. The
following days shall be recognized as major holidays for ADMINISTRATIVE FACULTY
MEMBERS who are on twelve (12) month
contracts:
a. New Year's Day e. Labor
Day
b. Martin Luther King Jr.’s Birthday f. Thanksgiving Day
c. Memorial Day g. Christmas Day
d. Independence Day
Monday shall be recognized as a holiday for
all holidays occurring on a Sunday, and Friday for all holidays occurring on a
Saturday. An ADMINISTRATIVE FACULTY
MEMBER on a twelve (12) month contract shall be paid for any holiday listed
above provided he/she was scheduled to work on that day and was in an active
pay status on the last half of the ADMINISTRATIVE FACULTY MEMBER'S scheduled
work day immediately prior and the first half on the ADMINISTRATIVE FACULTY
MEMBER'S scheduled work day immediately subsequent thereto.
2. The
following days shall be recognized as minor holidays for ADMINISTRATIVE FACULTY
MEMBERS on twelve (12) month contracts and shall be scheduled by the President
of each University. At the request of
local APSCUF, the President or his/her designee(s) shall meet and discuss concerning
the matter of rescheduling the following minor holidays:
a. President's Day
b. Columbus Day