2016 Open Enrollment - Benefits Overview
CCC - Employee Benefits Program
• Open Enrollment is the annual opportunity for you to make changes and/or enroll in the benefits plan suitable for you.
• Your eligibility for the benefits depends upon your employment status, job family, and applicable union contract.
• For more information please refer to your applicable Benefits Summary and Benefits Guide. Then complete Open Enrollment online at by logging into HR Self-Service and clicking the Benefits Enrollment link.
• If at anytime you have questions or want more information about benefits you can:• Call the Benefits Call Center at 312-553-2895• Email the Benefits Department at [email protected]• Hours of operation are 8:30 AM to 5:30 PM, M-F
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Open Enrollment & Mid-Year Plan Changes
Open Enrollment:• Confirm your benefits options online starting on November 9, 2015 to
November 25, 2015.• Changes made during Open Enrollment will be effective as of January 1, 2016.
Mid-Year Plan Changes:Employee benefits options changes outside of Open Enrollment can only occur if:
• A qualifying life event happened, such as: Marriage, Divorce, Birth, Adoption, Death, Change in Employment Status
• Request for changes must be reported to CCC Benefits within 31 days from the date of the event.
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HIGHLIGHTS 2016 Open Enrollment
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• Open Enrollment November 9 – November 25
• 2016 Open Enrollment ALL Active Employees Must Actively
Confirm their 2016 Benefit Elections. We will not automatically
rollover your 2015 elections.
• Rate cost share remains at 85% CCC Cost and 15% Employee Cost
share.
• New Dental Plan Highlights for 2016
• Open Enrollment : WWW.ccc.edu/OE2016
2016 Plan Costs – Employee Contributions
• 2016 Costs are inline with national trend for increases by plan type and tiers:-Medical: PPO - 8% to 15%, HMO - 4.8%-Dental: 10 -12%- Vision: 6%
• See Individual Plan Summaries at www.ccc.edu/OE2016 for specific applicable job family 2016 rates.
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CCC Benefits
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Healthcare Plans:-HMO/PPO
-Vision-Dental
-FSA-Employer Life Ins.
Retirement Plans:- SURS -403 (b)- 457 (b)
Supplemental Plans:
-Voluntary LTD-Voluntary STD
- Critical Care Plan-Supp. AD&D
-Supp. Spousal/Dep. Insurance
Eligibility
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Dependent Eligibility
Who can you cover?• Your spouse/same sex domestic partner/civil union partner• Your biological, adopted, foster, and step-children up to their 26th birthday• Your covered spouse, legal civil union or same-sex domestic partner’s children up
to their 26th birthday• Disabled children after age 26• Children that you are a court appointed legal guardian for up to their 26th birthday
You cannot cover• Your grandchildren, nieces, or nephews if you are not their court appointed legal
guardian• Your parents or in-laws
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Part-Time Employee Benefits
As a part-time employee of the City Colleges of Chicago, you are eligible to elect and receive certain employee benefits during Open Enrollment.
Your eligibility for benefits depends upon your employee job family and applicable union contract.
To determine your benefits eligibility, please refer to your Benefits Guide and Benefits Summary at http://ccc.edu/benefits
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Pre-Tax Treatment Qualified Plans
• Health and Welfare Plans (Medical/Dental/Vision)
• Flexible Spending Accounts
• Dependent Care Accounts
• Retirement Accounts – 403(b) /457(b)
• Transit Benefits (CTA/METRA)
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How Pre-Tax Benefits Impact your Final Pay
• So, I Have Pre-Tax Benefits. What Exactly Are They?
In a nutshell, pre-tax benefits allow you to pay for certain expenses through deductions taken from your pay before any taxes are taken out. Those pre-tax deductions work by discounting the amount of taxable wages you owe taxes on, so your take home pay ultimately ends up being more than if you were to pay for the same benefits on a post-tax basis.
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Pre-Tax Illustration
• Example: John has a daughter who needs braces that will cost $1,200 over the next year. He also has a $250 major medical coverage deductible. Plus, he needs glasses costing $230. That totals up to $1,680 for the year, or $70 per bimonthly pay period.
• With a Healthcare Flexible Spending Account, John can increase his spendable income.
• Healthcare FSA illustration:John’s status: Married, two fed/state exemptionsBimonthly salary: $1,000Healthcare FSA: $70 per pay period
• Annual savings of $498.00 ($41.50 x12) - $20.75 bi- monthly.
Before Healthcare FSA reimbursement.
After Healthcare FSA reimbursement.
Gross pay $1000.00 $1000.00
Pre-tax Healthcare FSA -0- -$70.00
Taxable Income $1000.00 $930.00
FICA, fed & state taxes -$296.50 -$275.75
Net pay $703.50 $654.25
Healthcare FSA reimbursement +70.00*
Spendable income $703.50 $724.25*
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Healthcare Plans
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Medical Plans• HMO
– Primary Care Physician is required.– Referrals by PCP is required.– No annual deductible.– No co-insurance, plan covers 100%
after copay.– Prescriptions coverage through BCBS
Prime.
• PPO– No Primary Care Physician required.– Receive in-network coverage with
any in-network doctors, no referrals needed.
– Plan starts paying co-insurance after annual deductible is met.
– Prescriptions coverage through CVS/Caremark.
(PPO plan for Local 1600 employees is a grandfathered plan, some services such as Children Wellness Check-ups, Child Immunization are not covered.)
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Dental Plan Enhancements - 2016
– Cleanings updated to twice per calendar year
– Adult orthodontia– Veneers repair and replacement every 60
months.– Sealants cover for dependents up to age
19.
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Vision Plan
• No changes to vision plan in 2016.• Eye exam once every 12 months with $10 copay.• Contact lens every 12 months with $300 allowance .• Prescription lenses every 12 months with $10 copay for single vision, lined bifocal and
lined trifocal.• Frame every 24 months with $120 allowance with $10 copay.• Check to make sure your provider is a VSP participating provider.
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Flexible Spending Account (FSA)
What is FSA?• FSA allows you to put up to $2,550 pre-tax into an account to use toward your out-of-
pocket health care expenses.• Dependent Care FSA allows you to put up to $5,000 pre-tax into an account to use
toward child care expenses.
Why FSA?• The advantage of having a FSA is that you will reduce your taxable income and you are
using pre-tax money that would normally require you to use after-tax money.• It’s easy to use your FSA with the debit card issued with your account.
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What are other eligible FSA expenses
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Employer Paid Life Insurance
• All eligible employees automatically receive this coverage.• Coverage amount depends on your job family and annual salary.
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Voluntary Supplemental Plans
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Voluntary Supplemental Life and AD&D Insurance
• For Employee– Up to a maximum of the lesser of 5 times your pay or $750,000 at increments of $25,000.
• For Spouse– Up to a maximum of $250,000 at $10,000 increments, cannot exceed Employee’s supplemental life
coverage amount.• For Dependent Children
– At $10,000 or $25,000 coverage amount.• Other benefits included with Employee’s supplemental life coverage at no additional cost
– Will Preparation– Estate Resolution Services– Grief Counseling
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Voluntary Short/Long Term Disability
• Short Term Disability– Pays the benefit amount of 60% of your pre-disability weekly income up
to a weekly maximum of $1,000.– Benefits payout begin after a 7 days elimination period with a maximum
duration of 12 weeks.• Long Term Disability
– Pays the benefit amount of 65% of your pre-disability monthly income up to a monthly maximum of $8,000.
– Benefits payout begin after a 90 days elimination period.
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Voluntary Critical Illness
• Coverage available for Employee, spouse and dependent children.• The plan pays out a lump-sum benefit to help ease your financial
burden due to certain covered serious medical illnesses.• Coverage available at $15,000 and $30,000.• Examples of Critical Illnesses: Breast Cancer, Kidney Failure, organ
Transplant, Heart Attack, Stroke, and Coronary Bypass Graft, other conditions may be eligible for partials or recurring benefits, see plan summary.
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Retirement
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State Universities Retirement System (SURS)• SURS provides retirement, disability, death, and survivor benefits
to participants and annuitants.• SURS is a contributory system and you must contribute 8% of
your gross earnings on a pre-tax basis.
• CCC employees do not pay into Social Security so you are not eligible for Social Security benefits from CCC employment.
• No Social Security taxes are withheld from your earnings; however, contributions for Medicare are withheld from your gross earnings.
• Must select benefit plan type within 6 months of employment start date or will be permanently enrolled in the Traditional Benefit Plan
• Election is a one-time, irrevocable decision that cannot be changed
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SURS Benefit Options Portable Benefit Package Traditional Benefit Package Self-Managed Plan (SMP)
8% of Earnings 8% of Earnings 8% of earnings
Payment in form of lifetime monthly annuity OR lump sum payment
Payment in the form of lifetime monthly annuity
Portable Benefit Package
Funds invested by professional investment managers hired and
supervised by SURS
Funds invested by professional investment managers hired and
supervised by SURS
You select and manage the investment of your funds chosen
from a menu of investment vehicles offered by SMP service providers
Retirement benefit based on predetermined formula of your work
earnings and years of service
Retirement benefit based on predetermined formula of your
work earnings and years of service
Retirement benefit based on performance of investments you
select
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403(b) and 457(b) Retirement Savings Plans
• Contribute pre-tax money to the plan to help you save for retirement.• Lower your taxable income.• Taxes are paid at the time of distributions in retirement.• Earnings from investments are not taxable until distributions.• Access your funds through loans or hardship withdrawals.• Catch-up contributions available for employees over 50 years old.• Many investment options.
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Difference between 403(b) and 457(b)Plan Feature 403(b) 457(b)Service-based Catch-up Contributions
Employees with at least 15 years of consecutive service with City Colleges can contribute up to $3,000 per year to a lifetime maximum of $15,000. (Prior year contributions may limit this amount.) Employees can make this contribution and the age 50 additional contribution in the same year.
Employees within 3 years of Normal Retirement Age 65 can contribute up to 2 times the basic annual contribution limit—or up to $35,000 for 2015. (Prior year contributions may limit this amount.) Employees can make the greater of this contribution or the age 50 additional contribution, but cannot do both in the same year.
In-Service Withdrawals Permitted at age 59-1/2 with no 10% tax penalty. The amount you withdraw is subject to income tax.
No in-service withdrawals are permitted.
Unexpected Withdrawals Hardship withdrawals must meet one of 6 IRS-defined conditions and are subject to income tax plus a 10% penalty tax, followed by a 6-month contribution suspension period.
Unforeseen emergency withdrawals for severe financial hardships as defined by IRS regulations are subject to income tax with no tax penalty for early withdrawal.
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Difference between 403(b) and 457(b) (cont’d)
Plan Feature 403(b) 457(b)
Distributions Distribution events are separation from employment, retirement, disability or death. All distributions are subject to income tax. Distributions before age 59-1/2 are also subject to a 10% tax penalty unless due to death, disability or separation from service after attainment of age 55.
Distribution events are separation from employment, retirement or death. All distributions are subject to income tax with no tax penalty regardless of age.
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Other Benefits
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Transit Benefits
• Available for CTA/Pace Ventra Card Program and METRA Transit Prepaid MasterCard Program.
• Use pre-tax payroll deductions for your transit expenses.
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Auto and Home Owners/Renters Insurance Reimbursement
• Receive $200 reimbursement per year for a Travelers auto insurance policy.• Receive $100 reimbursement per year for a Travelers home owners/renters
insurance policy.• Available to most Full-time employees, refer to your Benefits Summary for
eligibility requirement.
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Important Contact Numbers
• CCC Benefits Dept. : 312-553-2895, or [email protected] • HMO Medical: 1-800-892-2803• HMO Prescription Drug: 1-800-423-1973• PPO Medical: 1-800-772-6895• PPO Prescription Drug: 1-877-542-0285• Dental: 1-855-557-5488• Vision Service Plan (VSP): 1-800-877-7195• Employee Assistance Program (EAP) : 1-800-511-3920
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