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Benefit Programs of the Upper New York Area

Benefit Programs of the Upper New York Area. Clergy Retirement Security Plan Health Care Program Long Term Disability and Death Benefit. CLERGY RETIREMENT SECURITY PROGRAM. Benefits and structure of this program remain the same. You are eligible to participate if you are

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Benefit Programs of the Upper New York Area

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  1. Benefit Programs ofthe Upper New York Area Clergy Retirement Security Plan Health Care Program Long Term Disability and Death Benefit

  2. CLERGY RETIREMENTSECURITY PROGRAM Benefits and structure of this program remain the same. You are eligible to participate if you are • a clergy member or local pastor under Episcopal appointment to a conference, church, charge, district or conference-controlled entity or unit, and • are receiving compensation.

  3. Funding CRSP • New Act has approved recommendation that for July through December of 2010, local churches will be billed on the same basis as for the first half of 2010. • Proposal for billing in 2011 will be presented at the June 19, 2010 Conference.

  4. CRSP Challenges • It is estimated that the full cost of CRSP is approximately 17% of clergy compensation • The new conference needs to determine whether the use of reserve funds is appropriate for this purpose

  5. Prior Pension Plans • All four conferences need to adopt the same Past Service Annuity Rate at the highest level, which is $552 per service year with a survivor rate of 75% • The same rate will be proposed for 2011 • The “Pre-82” pension plan and Ministerial Pension Plan (MPP) funding was affected by 2008 market downturn

  6. Prior Pension Plans Challenges • There will be a contribution required in 2011 by the new conference to the Pre-82 plan $1.2 million Ministerial Pension Plan $980,000 • It will be recommended that reserve funds be used for these payments

  7. HEALTH CARE PROGRAM Goals of the Health Insurance Task Force: Provide equity in benefits across the new conference Care for the concerns of retirees Be mindful of all constituents

  8. Process for selection of Health Care Program • Met to outline our goals & process; share our current practices; provided census data to health insurance organizations • Reviewed four conference policies and prioritized • Heard presentations from MVP and HealthFlex • Reviewed rates and compared plans

  9. Quantitative Analysis • Listed 9 features that were most important (cost – network – retiree benefits – wellness – enrollment flexibility – administration – RX – Mental health – maternity benefit) • Ranked the features by importance (ranks could be repeated) • Analyzed how each plan performed on a scale of 1 to 10 in each of the features • Arrived at a numeric score for each plan

  10. Quantitative Analysis HealthFlex ranked higher primarily due to retiree plan benefits & coverage area Under age 65 plans for HealthFlex and MVP had very similar rates but HealthFlex rates are available in March as opposed to Oct. The provider network for HealthFlex provides more options in areas that are underserved in NYS

  11. HEALTHFLEX The Health Insurance Task Force recommended to New ACT, and New ACT approved, HealthFlex as the health care program of the new conference for clergy at local churches, Conference lay and clergy staff, retirees, and surviving spouses

  12. ELIGIBILITYFUNDING ADDITIONAL RECOMMENDATIONSBENEFITS

  13. HealthFlex Eligibility • Eligibility Rules chosen state participants must be appointed full time at a local church or within the Conference structure. • Conference will be billed for all full time clergy • Clergy person can choose not to enroll but local church(es) will still be responsible for premium payment • Did not choose selective enrollment as it results in 15% surcharge

  14. Transition period for full time clergy in Wyoming Conference not currently enrolled in Conference plan is six months - will need to determine enrollment status by November 1 for Jan. 1, 2011 • Clergy Couples; enrollment and billing depends on percentage of appointment for each person • Full time status based on clergy appointment per Appointment Form filed by District Superintendent

  15. HealthFlex Eligibility Transition period for part time clergy: • if enrolling in HealthFlex, will have until July 1, 2011 to secure alternative coverage • Part time was not chosen as eligibility category because 100% of part time clergy would need to enrolled and pay premium

  16. HealthFlex Eligibility • Retirees, their spouses and surviving spouses are eligible, but not mandatory participants • Future retirees are eligible to continue • If active and not currently a participant, must be enrolled 5 years prior to retirement OR as of 1/1/2011 if retiring before 1/1/2016 to be eligible for HealthFlex

  17. HealthFlex Eligibility • Dependents of participants are eligible until age 19 and up to age 25 if enrolled in school full time • If already enrolled, clergy going on Leave (Incapacity, Sabbatical, Personal, etc.) are eligible to continue their participation

  18. Health Program Funding • New ACT has approved the recommendation that all conference health care billings will continue for July – Dec. on the same basis as established by each conference for 2010 • Recommendation from HITF for 2011 is that churches with eligible clergy will be billed at a “blended” rate • There is a second funding recommendation on the table

  19. Health Program Funding • The “blended” rate is the total premium for all eligible participants divided by the number of participants • Same rate regardless of coverage level • Example: Using the current census of eligible persons, the blended rate would be $986 per month … • If the Non-mandatory plan had been chosen, the blended rate would have been $1,166 per month + additional $100,000 in shared ministry budget for staff premiums

  20. Health Program Funding • Recommendation is to bill a personal premium for enrolled clergy through before-tax payroll deduction • Recommended percentage is 15% of premium based on coverage level 15% of Premium Monthly Amt Single Coverage – $104 Two Person Coverage – $197 EXAMPLE Family Coverage - $260

  21. New ACT/New CBOPHB Challenges • A second proposal is being considered to direct bill a portion of the health insurance cost based on financial strength and the remaining portion at a blended rate • A 3-year phase-in plan for funding health care for severely affected churches will be recommended • Pursue alternative coverage options for part time clergy at local churches

  22. Retiree Funding Challenges • Desire for equality of coverage over a large population living in many places resulted in choosing a plan more expensive than HMO • Increasing long term liability to the conference if continuing to fund high percentage of retiree premiums • VERY different funding methods across the four conferences

  23. Retiree Funding Three sources of funding: • Local Churches (All) • Recommendation to determine amount based on financial strength • Reserve Funds • Recommended amount pending • Participants

  24. Retiree Funding Recommended Retired Participant Contributions: • Remain as currently billed through 2010 • Starting Jan 1, 2011 new formula to be used • Subsidy from Conference = 3% of premium for each year of service up to 30 years • Under age 65 persons also pay difference between active premium and Medicare Companion premium of $300

  25. Recommendations to New ACT • Offer a subsidy to retirees who maintain an alternative health insurance program, equal to what would have been paid by the conference if enrolled in conference plan but not to exceed the premium paid by the retiree Recommendations to New CBOPHB • Seek alternative, lower premium coverage for over age 65 participants

  26. Conference Board of Pension & Health Benefits Other Action Items being forward to the new board: • Two locations for retirement seminars • Use best practices for retiree recognitions • Emergency support for retirees and spouses • Central Conference Pension Initiative • Consideration of Moving Policies • Personal delivery of death benefit checks

  27. Changes in Benefits • There will be no dental coverage for active clergy under the Upper New York plan • Participants are encouraged to schedule dental work before July 1, 2010 • There are many low-cost alternatives available for individual coverage • The Vision Plan through VSP will remain the same

  28. QUESTIONS? Vicki Putney Director of Ministry Support Vicki@ncnyumc.org 800-699-8715 ext. 317 Nancy Stanley Wyoming Conference Benefits Officer nstanley@wyomingconference.org 800-799-9664 607-757-0608

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