Ohio University

Benefits, compensation changes announced

May 13, 2011
From staff reports

This communication will address the following topics for fiscal year 2011-12:

• Benefits open enrollment
• Health care premium increases
• Compensation

The annual benefits enrollment period will begin the week of May 16.  During the enrollment period, employees can make changes to their medical, dental and life insurance coverage and enroll in flexible spending accounts.  All changes will be effective July 1, 2011.  Enrollment will be done via an online process this year.  Employees will receive a separate communication regarding open enrollment.  All employees are asked to participate in the enrollment process.  Failure to participate will result in continuance of current enrollment choices except for flexible spending accounts which will be closed.

As previously announced and discussed in budget forums, an offset approach involving total compensation will be pursued.  Employees will assume 100 percent of the projected increase in health care costs for FY2011-2012 via an increase in payroll premiums, which will be covered by the University through a matching increase in salary.  The premium changes will result in employees collectively paying approximately 15 percent of the cost of health insurance, which equates to a 91 percent-96 percent increase in employee premiums.  The new premiums will be included in open enrollment materials along with information regarding plan options and coverage levels.  (AFSCME employee premiums will follow the current bargaining unit contract; any changes in AFSCME premiums must be mutually agreed upon.)  

Compensation increases for FY12 include:

• An offset of health care premiums increases based on benefits at the close of open enrollment.
• On the Athens campus only, an offset to the new $150 faculty, administrator and classified staff parking fee (further communication will be distributed regarding the parking fee),
• 1.66% percent raise pool (in addition to the above offsets)
• • For classified staff, the 1.66 percent raise pool will be distributed as an across-the-board pay increase.
  • For faculty and administrative staff, the 1.66 percent raise pool will be distributed based on merit.

Questions regarding benefits enrollment and health care premiums should be directed to Human Resources at 593-1636 or hrweb@ohio.edu.