Transcript November 19, 2009

Missouri S&T
Faculty Senate
November 19, 2009
UMSYSTEM.EDU
1
November 19, 2009
UM Board of Curators
UMSYSTEM.EDU
2
November 19, 2009
Employee Contribution to
Retirement Plan
• 1% of first $50,000 in salary
• 2% of salary in excess of $50,000
• Projected Contributions - $12,000,000 per
year
UMSYSTEM.EDU
3
November 19, 2009
How Does the Money Flow?
UM
Retirement
Benefits
Trust
Budget
Fund
Employee
Contributions
When UM share is
Greater than budget
Budget Stabilization
Fund
UMSYSTEM.EDU
4
November 19, 2009
Comparator Institution Benchmarks
Hewitt Associates Relative Value Study
Employer Paid Value
Total Value
Index
Rank
Index
Rank
Retirement
117.9
3rd
77.6
15th
Retirement*
101.1
7th
77.6
15th
Pre Retirement Death-Group Life
107.7
7th
91.2
10th
Long Term Disability
143.9
4th
107.9
8th
Dental
85.3
12th
93.0
12th
Preretirement Health
98.9
10th
102.8
8th
Post Retirement Health-prior to age 65
161.9
3rd
127.5
2nd
Post Retirement Health-age 65 and higher
88.4
8th
103.1
9th
All Post Retirement Health
116.3
8th
110.7
6th
All Benefits (Including Tuition)
106.3
6th
92.3
13th
All Benefits (Including Tuition)*
98.5
11th
92.3
13th
*After 7/1/09 pension plan amendment
UMSYSTEM.EDU
5
November 19, 2009
Benefit Plans Contribution Analysis
Based on 2009 Contribution Rates
UMSYSTEM.EDU
6
November 19, 2009
UM Retirement, Disability &
Death Benefit Plan
Financial Status
UMSYSTEM.EDU
7
November 19, 2009
• Actuarial Value of Liabilities: The total actuarial accrued
liability of pension benefits for all plan members including
active employees, retired employees and terminated, vested
employees.
• Actuarial Value of Assets: Value of all assets held in trust
using the Expected Return Asset Valuation Method. Using this
approach allows for an amortization of unrecognized return
over a 5 year period. The result is a “smoothing” of changes
in market value over a 5 year period.
• Market Value of Assets: Market value of all assets held in
trust under the plan.
UMSYSTEM.EDU
8
November 19, 2009
UM Retirement, Disability & Death
Benefit Plan
Billion
UMSYSTEM.EDU
9
November 19, 2009
History of Actual UM Contribution Rates
% of payroll
UMSYSTEM.EDU
10
November 19, 2009
UM Medical Benefit Plan
•
•
•
•
Great West Healthcare (CIGNA)
1/1/10 Plan Design
1/1/10 Premiums
Prescription Drug Benefits
UMSYSTEM.EDU
11
November 19, 2009
Premium Changes
2007
2008
2009
2010
0%
0%
3%
5%
0%
0%
5%
5%
Pre 9/1/90 Retirees
-4.1% to -5.6%
-7.0% to -7.7%
0%
3.8% to 5.1%
Post 9/1/90 Retirees
-4.4% to 1.4%
-4.2% to -6.4%
3-4%
1.5% to 2.6%
UM Choice Health Care Program
UM Catastrophic Medical Program
Retiree Indemnity Medical
UMSYSTEM.EDU
12
November 19, 2009
Prescription Drug Benefits
• Express Scripts – St. Louis Business Health
Coalition
• Home Delivery
UMSYSTEM.EDU
13
November 19, 2009
Allocation of Drug Spending
UMSYSTEM.EDU
14
November 19, 2009
Costs & Trends
Key Brand Drugs Losing Patent Protection
2009
2011
Annual Sales
$10.8 Billion
$8.1 Billion $16.6 Billion
• Adderall XR • Aricept
• Actos
• Ambien CR • Arimidex • Levaquin
• Casodex
• Cozaar
• Lipitor
• Cellcept
• Effexor XR • Protonix
• Depakote ER • Flomax
• Zyprexa
• Prevacid
• Hyzaar
• Topamax
• Patanol
• Valtrex
• Sanctura
©2008 Express Scripts, Inc.
All rights reserved.
2010
2012
$20 Billion
• Avandia
•
• Avapro
•
• Detrol LA •
• Diovan HCT •
• Geodon
•
• Lexapro
•
• Plavix
•
• Provigil
•
• Seroquel •
• Singulair
• Viagra
2013
$8 Billion
AcipHex
Avodart
Cymbalta
Namenda
Niaspan
OxyContin
Propecia
Sustiva
Xopenex
More than
$63.5 billion
within the next
five years
Legislation Overview – State Level
• Consolidated Health Care Program
• Pharmacy Benefit Management
• Autism
UMSYSTEM.EDU
16
November 19, 2009
Legislation Overview – Federal Level
• Mental Health Parity Bill
• American Recovery & Reinvestment Act
• COBRA Premium Assistance Subsidy
• HIPAA Privacy and Security Rules
• Children’s Health Insurance Program Reauthorization Act of
2009
• Michelle’s Law (HR 2851)
• Genetic Information Nondiscrimination Act (GINA)
• Medicare Secondary Payer Reporting Requirement
• Newborn’s and Mother’s Health Protection Act
• IRS Cafeteria Plan Guidance
UMSYSTEM.EDU
17
November 19, 2009
National Health Care Reform
UMSYSTEM.EDU
18
November 19, 2009