SCOPE: FACULTY AND STAFF
Issued: 4/1/00
Revised: 1/01/07
1. Policy: The University has developed a variety of benefits available to eligible employees. Participation in the various benefits is usually voluntary and predicated on meeting certain eligibility requirements. Some benefits have mandatory participation. Each benefit contained in this section is explained in general terms. For specific information, employees should contact the Office of Human Resources.
2. Insurance:
2.1 All benefits-eligible employees may participate in the University group insurance plans administered by the Employee Retirement System of Texas. The Human Resources office is responsible only for the administration of the programs and record keeping. The Human Resources office staff is available to provide general assistance to employees in dealing with insurance issues but each employee is individually responsible for meeting the requirements set by the insurance company policies.
2.2 Currently, the University has insurance coverage available in dental, prescription, medical/hospitalization, life, dependent life, accidental death and dismemberment, long-term care, and short- and long-term disability. Participation in any of these programs is voluntary.
2.3 The amount of state contribution, by current state law, provides coverage for medical and basic life coverage for the employee only. If dependents are enrolled, a lesser contribution will be made toward the dependent’s premium.
2.4 The State of Texas provides a contribution towards the premiums of these coverages. The amount of the contribution is set each legislative session. The employee must pay for coverage beyond the basic plan through payroll deductions. Long-term care premiums are paid to the carrier.
3. Reimbursement Account (TEX-FLEX):
3.1 A Reimbursement Account or Cafeteria Plan is an employee benefit plan that has been so-named for the "menu" of benefits offered. Such plans are optional to each participant. The major advantage of a Reimbursement Account is that it pays for benefits with pre-tax dollars, thereby creating tax savings for participants.
3.2 Employees who participate may use their pre-tax dollars to pay for unreimbursed medical expenses (such as health insurance deductibles physician visit co-pays, prescription co-pays and deductibles, vision care, dental care); and/or expenses for child care or dependent care.
4. Retirement Plan:
4.1 All regular employees must participate in a retirement program. Most staff employees will be enrolled in the Teacher Retirement System. Faculty and some administrative personnel will have the opportunity to choose between TRS and one of the programs available under the Optional Retirement Program.
4.2 Deductions made for these plans and the amount contributed by the State of Texas are determined by the State legislature. The state also regulates conditions for withdrawal of contributions.
4.3 Employees anticipating retirement should contact the Office of Human Resources for assistance. Employees who terminate prior to retirement should also contact the Office of Human Resources to determine disposition of any funds in the employee's account.
5. Social Security (FICA):
5.1 All staff and faculty employees are covered by Social Security except as provided in Sections 5.2 and 5.3. Under this program, deductions are made from each employee's paycheck and are matched by the University as the employer.
5.2 Undergraduate student employees who are enrolled in a minimum of 6 credit hours during each long semester and 3 credit hours during the summer semesters will not be subject to Social Security deduction, beginning June 1, 2000. Student employees enrolled for fewer than the designated hours or not attending class will be subject to Social Security.
5.3 Graduate student employees who are enrolled in a minimum of 6 credit hours during each long semester and 3 credit hours during the summer semesters will not be subject to a Social Security deduction, beginning June 1, 2000. Graduate student workers enrolled for fewer graduate hours than designated or not attending class will be subject to Social Security deductions.
5.4 The provisions of Sections 5.2 and 5.3 do not apply to employees in regular or temporary positions for which student status is not required as a condition of employment.
6. Savings Plan:
6.1 Employees may elect to participate in several plans which allow deductions from their payroll checks to be put into several types of savings. The plans are U.S. Savings Bonds, the State of Texas Deferred Compensation Plan, and Tax Sheltered Annuities. For further information on these, employees should contact the Office of Human Resources.