faq's- frequently asked questions
- Scroll down to review the following questions:
- benefits NEW!
- prescription plan changes
- campus directory
- ARP mitigating rates
- taxation of educational benefits
- position information management
If you have a question that is not listed below email it to: hrweb@ohio.edu
Benefits
How do I request new or additional insurance cards?
Prescription Plan Change
When will I receive new prescription drug cards?
Prescription drug card will be mailed to your home address beginning June 25th.
What will happen to current prescriptions at retail locations such as CVS, Kroger, and Wal-Mart?
If you have an existing refill at a local pharmacy, or have a new prescription, simply present the new identification cards to the pharmacist. You will be able to obtain your prescription and pay the appropriate co-pay.
What will happen to my current mail order prescriptions at IPS?
If you have refills remaining for a mail order prescription, your refills will automatically transfer to Express Scripts*.
However, your payment information will not transfer. You will need to establish an account and payment method with the Express Scripts Mail Order Pharmacy. To establish an account contact Express Scripts directly at 1-866-515-1442 or visit http://www.express-scripts.com after July 1, 2009.
*Please note that mail order refills for controlled drugs or compound prescriptions are not allowed to transfer. Examples of controlled drugs include Darvocet, Tylenol #3, and Vicodin. In addition, prescriptions that are over 1 year old or have no refills remaining will not be transferred to Express Scripts. If you need a refill of a controlled or compound drug, you will need to submit a new prescription to Express Scripts. Contact Express Scripts directly after July 1 at 1-866-515-1442 for assistance with obtaining new prescriptions for these types of prescriptions.
How much will I pay for a prescription?
Prescription co-pays for Administrators, Classified Staff, and Faculty are as follows:
| Type of Prescription | Retail Co-pay | Home Delivery -
Mail Order Co-pay |
| Generic Drug: | $10 | $15 |
| Brand Name If Generic Available and Not Used: | Full cost difference between the Brand Name and Generic Drug (both Retail and Home Delivery) |
| Brand Name if No Generic Available: |
$20
|
$30
|
| Non-Formulary Drug: | $30 | $45 |
How do I find out if a generic drug is available?
Your pharmacist should be able to tell you if a generic drug is available. You mat=y also contact Express Scripts at 1-866-515-1442 to determine whether a generic drug is available.
How do I find out what is on the formulary?
The University's prescription drug plan and benefits will be based on Express Scripts' formulary. To learn more about the Express Scripts formulary, visit: http://www.ohio.edu/hr/benefits/healthcare/prescription.cfm.
Should you have questions about your medications prior to July 1, please call Express Scripts at 1-866-515-1442. A representative will be able to assist you in determining what the co-pay will be for your medication.
What is the Generics Preferred Program?
With the Generics Preferred program, when filling a prescription or a refill for a brand-name drug, the pharmacist will check whether a generic drug is available. If a generic is available, employees are encouraged to utilize the generic option, which may reduce your co-pay. If a generic is available and you or your physician chooses to use the brand name instead of the generic drug, you will be charged the full cost difference between the generic and the brand-name drug.
If there is no generic option available, you will be charged the normal brand name co-pay, which is less than the full cost of the brand name drug. The Generics Preferred Program applies to both prescriptions filled at a local pharmacy and for mail order prescriptions.
If you are allergic to a generic, if there is some other medically relevant reason to fill with the brand instead of the generic, or your physician wants a specific brand name drug to be utilized, you and your physician can apply for a waiver to the Generics Preferred Program. Your physician must contact Express Scripts to provide the reasons the brand name drug must be utilized. Express Scripts will review the clinical details and determine whether the Generics Preferred Program can be waived. If a waiver is granted, the normal brand name co-pay will be applied for that medication.
What is the Exclusive Home Delivery Program?
The Exclusive Home Delivery Program pertains to maintenance medications, or those that are taken routinely over an extended time period. As an example, Lipitor is a maintenance medication that is taken on an ongoing basis to control high cholesterol.
Under the Exclusive Home Delivery Program, you can fill a prescription of a maintenance medication up to 2 times at a retail pharmacy such as CVS, Wal-Mart, or Kroger. After that, the University's health plan will cover the medication only if it is ordered through Express Scripts Mail Order Pharmacy.
You can receive a 90 day supply of your medication through the Exclusive Home Delivery program, verses only a 30 day supply at retail.
How to I sign up for the Home Delivery (Mail Order) Prescription Program?
Beginning July 1, you will need to establish an account and payment method with the Express Scripts Mail Order Pharmacy. To establish an account, visit http://www.express-scripts.com or contact Express Scripts directly at 1-866-515-1442. When establishing an account, you will verify your name and address and set up a payment method, such as a credit card. Accounts can not be established until July 1.
Online: Visit www.express-scripts.com and follow the instructions to get prescription home delivery. There are no forms to mail, no doctor visits to schedule. Just submit your request online, and the Express Scripts Pharmacy will do the rest.
By Mail:
- Ask your doctor to write a prescription for up to a 90-day supply of your medication (plus refills for up to one year, if appropriate).
- Complete a Home Delivery Order Form. If you don't have an order form, you can print one at www.express-scripts.com. Or simply request one by calling the toll-free number on your member ID card.
- Mail your order form and your prescription to the address on the form.
Your medication will be delivered in a plain, weather resistant package. You can order refills by phone or by mail. With each refill, you'll again get up to a 3-month (90 day) supply of medication and free home delivery.
Campus Directory
I do not understand "Include these details" section for telephone, home address and spouse name, what do I need to do?
The current setting's is highlighted in the BLACK box. If you want to change the setting's you need to circle Y or N.
N (no) = do not print in directory
Y (yes) = print in directory
My title is incorrect. How do I change it?
Department head or Budget Unit Manager must verify correct title and send correction to University Human Resources, Compensation Dept.
My name has changed. What should I do?
Notify Human Resources or Payroll Office. A new W4 (tax card) must be completed and forwarded to Payroll. Also, notify the appropriate retirement system.
Also, notify the appropriate retirement system.
OPERS – 1-800-222-7377 or www.opers.org
STRS – 1-888-227-7877 or www.strsoh.org
ARP Provider Contact listing
W4 tax cards are available from the Payroll website: http://www.ohio.edu/finance/forms/payroll.cfm
How can I list my degree in the directory or the correct degree?
Fill in "Highest Degree" section of information form with:
- School attended
- Degree
- Major
- Year degree obtained
(NOTE: all degree information must be provided or the degree can not be added toemployee's record)
My email address is not listed or is incorrect?
Email addresses will be automatically updated with Ohio University assigned email address and CANNOT be changed.
What is the deadline to return my form?
September 30, 2008
Where do I return my form?
University Human Resources, Human Resources & Training Center, 169 West Union Street
Can I email my changed information to Human Resources?
No. We need to have ALL forms returned with changes made.
Do I need to return the directory form if I don't have any changes to make?
Yes, all forms need to be initialed and returned to University Human Resources.
I lost my form, what do I do?
Information forms for the Campus Directory were mailed to all faculty and staff at their campus address. Blank forms may be downloaded from the Human Resource website http://www.ohio.edu/hr/forms.cfm
UP
ARP Mitigating Rates
What is the mitigating rate?
House Bill 586, effective March 31, 1997, established Ohio Revised Code Chapter 3305 which permitted certain academic and administrative employees of higher education institutions to select an Alternative Retirement Program (ARP) offered by a private vendor in lieu of participating in the appropriate state retirement system (either OPERS, State Teachers Retirement System (STRS) or School Employees Retirement System (SERS). Certain employees (those with less than five years of service and new hires) were permitted to opt out of the state retirement system with the understanding that it could have a negative financial impact on the state retirement systems. To mitigate the negative financial impact of the loss of this population, the Ohio General Assembly authorized the state retirement systems to collect a portion of the employer contribution rate for those employees that elected to participate in an ARP. By comparison, when the state retirement systems were authorized to establish defined contribution options for their members in 2001, the Ohio General Assembly gave each system the authority to collect a mitigating rate from the employer contribution made on behalf of members who elect a defined contribution plan.
As someone who chose an ARP, why should a portion of my contribution go to OPERS?
Ohio is a non-Social Security state, meaning that public employees by law pay into a state retirement system instead of Social Security. If a public employee chooses an ARP instead of OPERS, there is the potential of a negative effect on the state retirement system. Therefore, the Ohio General Assembly mandated that the potential negative impact be mitigated by the collection of the "mitigating rate." Similarly, when the Ohio General Assembly authorized the state retirement systems to offer defined contribution options to their members, the general assembly also authorized the systems to collect a mitigating rate from the employer contribution made on behalf of members who elect a defined contribution plan.
What is the process for the determining the mitigating rate?
Every three years according to law, the Ohio Retirement Study Council uses an independent actuary to review and determine any necessary adjustments in the mitigating rate to reflect any changes in the level of the negative financial impact on the state retirement systems. The most recent review was completed in June 2005. At the time the study was completed, OPERS was not authorized to begin collecting the ARP mitigating rate because the OPERS Board was not collecting a mitigating rate from participants in the OPERS defined contribution plans. (OPERS started collecting a mitigating rate from its defined contribution members in January 2006.)
Once determined, OPERS notifies its employers with ARP participants of the upcoming change and the implementation date. This was completed in March 2007. Each employer then notifies the impacted participants of the implementation date.
Can the mitigating rate change?
Yes. The General Assembly has authorized the Ohio Retirement Study Council with the responsibility of setting the mitigating rate every three years. The rate is determined by an actuarial analysis that projects the potential impact of ARP participation on OPERS
The ARP mitigating rate is also impacted by the mitigating rate charged to OPERS defined contribution plan participants. By law, OPERS cannot collect a mitigating rate from ARP participants that exceeds the rate collected from OPERS' defined contribution participants. The OPERS Board evaluates the OPERS mitigating rate annually for its defined contribution participants and, thus, to the extent that this rate does not exceed the rate set by the ORSA, the ARP mitigating rate may change.
When does the mitigating rate go into effect?
Aug. 1, 2007.
What is the negative financial impact?
The funding for the statewide retirement systems is based on average expected employee and employer contributions, which in turn is impacted by the employee's salary. The ARP program, which was established in 1997 and subsequently expanded in 2005, allows certain new hires who would otherwise participate in a state retirement system to opt-out of membership in the system. In sum, the statewide retirement systems are negatively impacted if a portion of the population base is excluded.
In developing the employer contribution rate, the actuary determines the portion of the contribution rate that is allocated to fund what is referred to as the "unfunded liability." To the extent the pool of new members is diminished, the employer contribution available to fund the "unfunded liability" is reduced, and thus the state retirement systems are negatively impacted.
What causes the unfunded liability?
Unfunded liability is created when a benefit is provided and the appropriate employer and employee contributions (and corresponding investment return) needed to fund the cost of the benefit are not paid. Assume for example that you are an employer with two employees. Employee A has worked for you for 18 years, and Employee B has worked for you for 6 years. You have no pension plan in place, but you have opted to start one. Should both of these employees have the same benefit? Typically, the pension plan would consider all the past service for both of these employees and would give them credit for their service in the retirement calculation. However, this creates a benefit for which there is an unfunded liability.
Unfunded liability is also impacted by the amount the retirement system earns on its investments. As you are aware from your own personal investments in the ARP, only a small portion of the funds you plan to have for retirement come from the contributions from you and your employer. The more significant component of the retirement savings comes from the investment earnings of the long-term investment of the retirement funds. This also applies to the state retirement systems. To the extent that the retirement systems earn less than they anticipate, the unfunded liability grows. Conversely, to the extent that the retirement systems are able to earn more than they anticipate, the unfunded liability is reduced. With the exception of the fiscal years 2000-2002, the Ohio Public Employees Retirement System has had good returns and has been able to reduce the unfunded liability.
Is there a limit on the mitigating rate?
Yes. The enabling statute authorizes the state retirement systems to collect up to 6% of the employer contribution made on behalf of ARP participants until such time the unfunded pension liability is/was fully amortized or more simply put, fully paid off, excluding unfunded liability for health care benefits and benefit improvements enacted after the enabling legislation. By comparison, when the state retirement systems were authorized to establish defined contribution options for their members in 2001, the Ohio General Assembly gave each system the authority to collect a mitigating rate from the employer contribution made on behalf of members who elect a defined contribution plan.
Why is it being implemented now?
With the enactment of H.B. 586, which took effect on March 31, 1997, OPERS began collecting a mitigating rate of 6 percent. Beginning January 1, 1999, OPERS reached full funding, which means there was no unfunded liability. Consequently, OPERS ceased charging a mitigating rate to the ARP participants. In 2002, OPERS was no longer fully funded and thus could have begun charging ARP participants a mitigating rate.
In 2004, the legislature passed Senate Bill 133, which became effective August 1, 2005. This bill expanded the population of OPERS employees (and potential new hires) that could participate in the ARP. Pursuant to the actuarial study completed by ORSA in July 2005, OPERS was authorized to collect 6 percent of the employer contribution made on behalf of ARP participants; however, the 6 percent rate was limited to the mitigating percentage rate that was being collected from OPERS defined contribution participants. OPERS did not implement a mitigating rate for its defined contribution participants until January 2006.
The implementation of this mitigating rate to participants of ARP was delayed until August 2007 to allow adequate time for OPERS to notify employers, who in turn needed to notify the impacted employees and make changes to their payroll systems.
What are the other Ohio statewide retirement systems doing?
Each of the state retirement systems whose populations are eligible to opt out to participate in the ARP (OPERS, SERS and STRS) are authorized to collect a mitigating rate to offset the negative financial impact of the electing employees' participation in ARP. OPERS and SERS previously ceased collection of the mitigating rate because each system reached full funding in 1999. Since the expansion of the eligible ARP population in August 2005, SERS resumed collecting 6 percent of the employer contribution made on behalf of the ARP participants. Due to differences in funding status, STRS has never reached full funding status since the passage of the enabling legislation. Consequently, STRS has continually collected the mitigating contribution rate, which is currently 3.5 percent.
Is the mitigating rate impacted by the increased employer and member contribution rates?
No. While the increase in employer and member contribution rates reduces unfunded liability, which ultimately should reduce the mitigating rate collected from the ARPs, there is no immediate impact.
UP
Taxation of Educational Benefits
What are the tax consequences of the benefit?
Qualified tuition reductions, such as Ohio University's Education Benefit, are excludable from an employee's gross income under Section 117(d) of the Internal Revenue Code.
What's a qualified tuition reduction?
IRS Publication 970, Tax Benefits for Education (http://www.irs.gov/pub/irs-pdf/p970.pdf) further explains the meaning of a qualified tuition reduction. A qualified tuition reduction is free or reduced rate tuition below the graduate level at an eligible educational institution (like Ohio University) for the following individuals: 1. Employees of the eligible institution
2. Former employees of the eligible institution who retired or left on disability
3. Widows or widowers of an individual described in (1) or (2) above
4. Dependent children or spouses of an individual described in (1) through (3) above What's a dependent?
IRS Publication 501, Exemptions, Standard Deductions, and Filing Information (http://www.irs.gov/pub/irs-pdf/p501.pdf) defines dependents in great detail.
In general, a dependent child is a U.S. citizen, national, or resident alien who is not married and who cannot be claimed as a dependent on someone else's return. In addition, a dependent child must:
- Be under age 19 at the end of the calendar year OR be under age 24 at the end of the calendar year and a student OR be permanently and totally disabled,
- Not provide over half of his or her own support,
- And live with the taxpayer for more than half of the year. Temporary absences such as time living at college counts as living with the taxpayer. If you have additional questions, your individual tax preparer can help determine if your child is a dependent.
For purposes of the qualified tuition reduction, a dependent child of divorced parents is treated as the dependent of both parents. Are scholarships included in calculating a child's support?
Scholarships received by full-time students should not be included in calculating their support. See IRS Publication 501, Exemptions, Standard Deductions, and Filing Information (http://www.irs.gov/pub/irs-pdf/p501.pdf) for more information.
Who else is covered by OU's policy?
Ohio University's education benefit extends to the following individuals who do not qualify as recipients of a qualified tuition reduction:
- Spouses and dependent children taking classes at the graduate level
- Domestic partners taking classes at any level
- Non dependent children taking classes at any level
Because the individuals listed above do not qualify for qualified tuition reductions, employees receiving the benefit must include the value of the tuition reduction in their gross income. Ohio University is required to withhold taxes on this amount. Additional information may be found in IRS Publication 970, Tax Benefits for Education (http://www.irs.gov/pub/irs-pdf/p970.pdf).
When will taxes be withheld?
Taxes will be withheld once per quarter, and the schedule may be obtained from Payroll at http://www.ohio.edu/finance/payroll/employee.cfm.
Taxes will be withheld at the flat rates of 25% for Federal and 3.5% for State. In addition, Medicare will be withheld along with the appropriate city and school district income taxes.
Who should be contacted with additional questions?
Please contact University Human Resources at 593-1636 with additional questions.
UP
Position Information Management
Did implementing Position Information Management change the way we recruit and hire people?
Absolutely not! Positions are merely assigned a number so that a history can be accumulated in Oracle HRMS. You will continue with your current internal processes for approving and recruiting positions.
What positions are "benefits eligible?"
A working definition is that the person is current, active in Oracle and has a "People Group" (The first part is "BENEFIT_PROGRAM" and the second part is "BENEFIT_PROGRAM_LEVEL") entry that matches one of the following:
- AFSCME|Full
- AFSCME|PT Full
- Class NBU|Full
- Class NBU|PT Full
- FOP|Full
- Faculty|Full
- Faculty|Retiree
- Other Appt|Full
What criteria are used to decide who is eligible for Full, Part Time Full or Retiree Benefits?
The employee must be one of the following:
- A Full Time Regular or Full Time Term Classified
- A Part Time Regular Classified
- A Full Time Regular Administrator (9,10,11 or 12 months) aka Group I Admin
- A Part Time Regular Administrator (9,10,11, or 12 months) aka Group II Admin
- A Re-employed retiree Admin (not healthcare bene)
- A Full Time Regular Faculty -- aka Group I Faculty
- A Part Time Regular Faculty -- aka Group I Faculty
- A Part Time Term Faculty -- aka Group II Faculty
- A Full Time Term Faculty -- aka "visiting" faculty Group IV Faculty
What does a position number look like?
ex.PN101377|VPADMIN|ADMIN|FT|AUX|000
What do all the segments mean?
| PN000000 | PU | STATUS | JOBCAT | FUND | VERSION |
| position number | planning unit | full time or part time | classified, administrative or faculty | auxiliary or general fund or restricted fund | version of this position |
When will I use the Position Number? Do I need to know my own number?
The only time a position number is needed is when a position is being filled, changed, or abolished. Budget unit managers have access to a report that lists the currently filled and vacant positions in their unit. The report is also used for budgeting processes. You do not need to know your position number for any reason, but if you are interested, please ask your budget unit manager to provide it to you.
UP
