HR Liaisons Meeting

1. HR Liaisons Meeting July 15,2010

2. Welcome • Federal Work Study Job Postings • Compensation and Position Guidelines • Recruitment Consultative Model Review • Other Updates • Wrap Up • Aon Consulting - Health Reform Agenda

3. Federal Work Study Job Postings

4. Federal Work Study (FWS) Job Postings will go live on Monday, August 2, 2010. • Last year’s postings will be automatically re-opened for the 2010-11 academic year • The FWS Job Posting Request Form can be found at http://finaid.fiu.edu/index.php?id=6 and submitted to Ana.Jimenez@fiu.edu • Instructions on how students apply for FWS positions and hiring procedures may be viewed on the FWS PowerPoint presentation found in the link above FWS Job Postings

5. Compensation and Position Guidelines

6. Compensation objectives are: • Attract and recruit a talented, diverse workforce; • Reward and retain employees for outstanding contributions to the University. • Salaries are administered in accordance with Federal Wage and Hour laws and other applicable guidelines. • All salary actions will be effective at the beginning of a pay period and should not be retroactive. A retroactive payment will only be processed on an exception basis and departments are requested to contact HR before submitting paperwork. • Guidelines can be found at http://hr.fiu.edu/index.php?name=guidelines1. Compensation and Position Guidelines

7. Increase Types: • Additional Duties • Counter Offer • Retention • Salary Compression • Internal Salary Inequity • Across the Board Salary Increases

8. One-Time Award Types: • Educational Incentive • Spot Award • Project Based • Variable Compensation One-Time Awards

9. How to request an increase for Added Duties • How to request other salary increases or bonuses • How to request a Reclassification • Filled Position • Unfilled Position Procedures

10. New Hires – Hired within the posted target salary • Lateral Transfers – Usually at the current salary • Promotions, salary increases or reclassifications • Meets minimum qualifications – Up to a 5% increase if the current salary is within the target salary range or up to the minimum target salary, whichever is higher • Exceeds minimum qualifications – Up to a 10% of the current salary if the salary is within the target salary range Salary Appointment Guidelines

11. Form should be completed and signed before it is sent to the Division of Human Resources • Incomplete forms will be returned to the requesting department • Effective date will be assigned by DHR after all requirements are met Admin./Staff Change Form

12. Questions? Compensation and Position Guidelines

13. Recruitment Consultative Model Review

14. STEP 1- Action begins with Compensation Administration to: • Discuss departmental needs • Establish appropriate classification and target salary range • STEP 2- Subsequent exchange with area Vice President to: • Discuss proposed position • Get signature approval for recruitment of candidate within target salary established • STEP 3- Final Step: • Assignment of position number by EABM - (E&G & Aux Positions) • Assignment of position number by Ana Pineda (C&G Positions) • Submission of position description to Compensation Administration for approval and transition to Recruitment New Position Creation Process

15. A re-designed front-end process which will enhance communications and streamline the overall process • Single signature routing process to authorize target salary range, posting, selection and hire • A seamless transfer of information between Compensation and Recruitment Improvements & Expected Efficiencies

16. A “Client-Centered” approach • Recruiters serve as: • Consultants • Advisors • Business Partners • Model includes EEO guidance and advisement Recruitment Consultative Model

17. Step 1 • Discuss EEO/AA Hiring Goals • Review Position Attributes • Select appropriate Recruitment option • Provide Policy & Procedural Overview • Set Recruitment Timeline Recruitment Consultative Model • Interview and Select Finalists • Background & Reference Checks • Set salary & Extend Offers • Start On-boarding Process Step 3 Step 2 • Solidify recruitment plan • Advertise positions • Pre-screening applicants

18. Recruitment Consultative Model • THREE RECRUITMENT OPTIONS: • External Posting • Interdepartmental Posting • Intradepartmental Posting

19. External Process STEP 1- Recruitment Consultation initiated STEP 2- Seven- to ten-day (average) Posting STEP 3- Recruitment Team pre-screens qualified candidates STEP 4- Hiring Department interviews qualified candidates STEP 5- Hiring Department selects candidate and proceeds with pre-employment processes STEP 6- Discuss salary administration & get HR approval STEP 7- Offer position to finalist STEP 8- Begin on-boarding process

20. Interdepartmental Process STEP 1- Recruitment Consultation initiated STEP 2- Five-day posting to University community STEP 3- Interview qualified candidates STEP 4- Select candidate and proceed with pre-employment process (if required) STEP 5- Discuss proposed salary with HR & get approval STEP 6- Hiring Department has transitional conversation with current supervisor STEP 7- Offer position to finalist

21. Intradepartmental Process(Vacancy) STEP 1- Recruitment Consultation initiated STEP 2- Three-day posting STEP 3- Interview qualified candidates STEP 4- Select candidate and offer position STEP 5- Discuss proposed salary with HR & get approval

22. Intradepartmental Process (No Vacancy) STEP 1- New description evaluated by Compensation STEP 2- Three-day posting STEP 3- Interview qualified candidates STEP 4- Select candidate and proceed with reclassification * Underutilization in positions at Coordinator level and above

23. Pre-Employment Requirements Effective March 31, 2009: Policy # 1710.257 New Employees Faculty Administrative Staff Temporary Students & Volunteers (specific roles & responsibilities) Current Employees * Administrative * Staff * Employees who are transferring or being promoted into another position that by law or audit recommendation, require background investigation

24. Pre-Employment Requirements Types of Pre-Employment Checks Criminal Background (Misdemeanor & Felony) Social Security Tracing Educational Credentialing Employment Verification Driver’s License Checks Credit Checks Fingerprinting Professional Referencing Language Proficiency *Drug Testing *Professional Licensure Certification *Healthcare Sanctions

25. Pre-Employment Requirements • When finalist is selected for a career opportunity, the Recruitment • Consultant should be notified to initiate the pre-employment process. • All Pre-Employment Background Investigations will be conducted by the • Division of Human Resources-Recruitment Services (with exception of • specific checks). • Recruitment Consultant will notify hiring official or HR Liaison that checks • have been completed. If results are satisfactory, authorization to proceed • with preparation of action forms will be given. • Any background investigation results that are non-satisfactory will be • discussed with the Director of Recruitment Services. A recommendation for • hire or non-hire will be made based on those results. • Under NO circumstances should a verbal or formal offer of employment be extended prior to the review of all background investigations

26. Pre-Employment Requirements PROSPECTIVE EMPLOYEES CURRENT EMPLOYEES • Adverse Action Process • Non-hire recommendation • Recruitment Director notifies • Hiring Official of hiring decision • Recruitment Director notifies • finalist of hiring decision and • provides the following: • Memorandum • Name & contact information of • vendor that provided report • Copy of report • Summary of rights under FCRA • (Fair Credit Reporting Act) • Adverse Action Process • Termination recommendation • ELR Director will notify supervisor • Issue letter proposing termination • Administrative Leave for 3 days • Provide hearing or respond in writing • Final determination is based on the following: • Nature and gravity of the offense(s) • The time lapsed since conviction • and/or completion of sentence • Nature of the position • Application disclosure

27. HR LIAISON/DEPT ROLE HR ROLE Notify Recruitment Services of intent to hire candidate (prior to verbal or formal extension of employment offer) Wait for notification of clearance of background investigation from HR-Recruitment Services (prior to verbal or formal extension of offer) Attain required information for the facilitation of background investigation Submit information to third-party vendor for purposes of background investigation Notify Hiring Official/HR Liaison of hiring decision Conduct Adverse Action Process (if required) Maintain appropriate records Pre-Employment Requirements

28. Remember… The pre-employment requirement policy applies to all Faculty, Administrative, Staff & Temporary employees of FIU All pre-employment requirements must be met prior to extending a verbal or formal offer of employment to a new or transfer employee at FIU All hiring decisions & recommendations will be made by the Division of Human Resources Effective dates of employment should be assigned after pre-employment process has been completed and hiring decision has been made Pre-Employment Requirements

29. What constitutes a complete packet? Salary Actions

30. Once all salary action paperwork has been received and approved: • New employee should be contacted to complete Sign-on Packet and attain additional information as well as resources from Recruitment Services: • Panther ID Authorization Card • Temporary Parking Permit • NEE Information & Registration On-Boarding Process

31. Other Updates

32. HR Liaisons should ensure Performance Excellence Process (PEP) forms are signed and submitted to the Division of Human Resources by Tuesday, August 30, 2010 • Next week, Liaisons will receive a list of employees in their area who are required to complete a PEP form to assist with the process PEP Forms

33. Questions or Comments? Wrap Up

34. Aon Consulting Health Reform Florida International University July 15, 2010

36. Health Reform Overview • Health reform is a journey; not an event. • Legislation spans 2010 – 2018 • The legislation is complex and lacks clarity. • Employers will need professional advice and services to achieve compliance, assess cost implications, redesign benefit structure and establish long term strategy • Legislation drives coverage expansion and insurance market reform. • Focus is not on bending the cost curve or on improving quality 36

37. Today’s Discussion 1 Latest Regulatory Guidance 2 Plan Design Changes/Benefit Mandates 3 Employer Provisions 4 Administrative Requirements 5 Tax Provisions 6 Insurance Exchanges 7 Employer Case Study – Florida International University 8 Health Reform Self-Service Tools 37

38. What do these have in common?

39. Grandfathering • Generally, individual and group plans in effect on date of enacted are grandfathered • New guidelines were issued two weeks ago (121 pages) • Changes that will void grandfathering include: • Change in carriers • Significant change in benefits • Increase in copayments greater of medical inflation (4%) + 15% or $5 • Changes in cost sharing (deductibles, out-of-pocket maximums) greater than medical inflation (4%) + 15% • Changes in coinsurance • Decrease in employer contribution greater than 5% Grandfathered Plans

40. Grandfathering Non-Grandfathered Plan Provisions Provisions Applicable to All Plans • Grandfathered plans apparently are exempt from the following provisions: • Coverage of preventive services without cost sharing • Cost sharing limits • Nondiscrimination rules • Appeals and review process • Selection of doctors and referral requirements • Coverage of clinical trials • No discrimination against providers • Essential health benefits • Provisions applicable to all plans regardless of grandfathered status: • Coverage of adult dependents up to age 26 (prior to 2014, only if no other employer coverage available) • Lifetime limits • “Restricted” annual limits • Prohibition on rescissions • Preexisting condition exclusion (prior to 2014, children under 19) • Waiting periods • Uniform summary of benefits

41. Adult Child Dependent Coverage to Age 26 Interim Final Regulations issued May 10 – addresses coverage extension • Effective for plan years beginning on or after September 23, 2010 regardless of plan’s grandfathered status • Requires plans that provide dependent coverage to children to make coverage available to all “children” under the age of 26 • Student status, marital status, residency, financial support, dependent status for tax purposes, or other criteria not applicable • Mandates special enrollment opportunity for certain adult children • Timing: no later than 1st day of plan year; must last 30 days • Must provide written notice to eligible adult children IRS Notice 2010-38 issued April 27 – addresses taxation of coverage • Health coverage or reimbursement of medical expenses for a child who has not attained age 27 by the end of the taxable year will not be taxable to the employee • Tax exclusion applies even if the child is not a tax dependent • Effective on or after March 30, 2010

42. Latest Legislative Updates • Requires group health plan or group health insurance coverage that offers a network of providers to permit any practitioner in the network to be designated as an individual’s primary care provider, pediatrician, or gynecologist • Requires that notice be provided informing each participant of his/her right to make such a designation • Requires that emergency services be covered without the need for pre-authorization and without regard to whether the provider is in its network • Requires group help plan or group health insurance coverage that offers a network of providers, covers emergency services, and subjects such services to a copayment or to co-insurance to ensure that the rate imposed for out-of-network emergency providers does not exceed the cost-sharing requirements that would be imposed if the services were rendered by a network provider • Effective 1/1/2011 for FIU if not grandfathered Patient Protection

43. Latest Legislative Updates (cont’d) • Prohibits the rescission of health coverage except in the case of fraud or intentional misrepresentation of a material fact • Applies to insured plans in the group and individual markets, as well as self-insured plans • Does not prohibit coverage from being cancelled on a prospective basis • Does not prohibit coverage from being cancelled retroactively if the cancellation is attributable to a failure to pay required premiums or contributions • Requires 30 days notice of a rescission, when still permitted • Effective 1/1/2011 for FIU Rescissions

44. Plan Design Changes/Benefit Mandates Annual and Lifetime Maximums Dependent Coverage • No lifetime maximums permitted for overall benefits (annual/lifetime limits on specific benefits permitted) • Effective 1st plan year 6 months after enactment (1/1/2011 for FIU) • Complete elimination of annual limits beginning January 1, 2014 • Restrictions on annual limits prior to 2014 TBD by regulation • Effective 1st plan year 6 months after enactment (1/1/2011 for FIU) • Coverage of adult children up to age 26, regardless of marital or student status • If not eligible for other group plan • Applies even if the child is not a tax dependent • Special enrollment period required to allow those without coverage • Grandfathered plans are allowed to exclude if coverage elsewhere • Effective 1st plan year 6 months after enactment (1/1/2011 for FIU)

45. Plan Design Changes/Benefit Mandates (cont’d) Pre-existing Conditions Exclusions Preventive Benefits • Not permitted for children under 19 • Effective 1st plan year 6 months after enactment (1/1/2011 for FIU) • Not permitted for all plan enrollees • Effective 1/1/2014 • Must provide first dollar coverage for evidence based preventative care (not for grandfathered plans) • Effective 1st plan year 6 months after enactment (1/1/2011 for FIU if not grandfathered) • Waiting periods greater than 90 days are not permitted • Effective 1/1/2014 Waiting Periods

46. Plan Design Changes/Benefit Mandates (cont’d) Health Accounts Cost Sharing Limitations • Out of pocket expense will not exceed HSA related coverage • Deductibles cannot exceed $2,000 single & $4,000 family as indexed • Effective 1/1/2014 • Employers permitted to increase employee reward for participation in wellness programs to 30% of total plan cost • HHS may increase to 50% • Effective 1/1/2014 • OTC drugs no longer reimbursable under health FSA, HRA or HSA, unless prescribed by physician • Effective 1/1/2011 • Penalty on withdrawal of HSA funds for non-medical expenses increased to 20% • Effective 1/1/2011 • Annual contributions to health FSAs limited to $2,500 annually • Effective 1/1/2013 • Indexed to CPI as of 1/1/2014 Wellness Incentives

47. Employer Provisions Free Rider Provision • Applies to employees working 30+ hours per week • Employers would convert health coverage subsidy to cash for any employees who: • pay between 8% and 9.8% of their household income for health coverage • whose household income is less than 400% of poverty line • opt out of employer sponsored coverage for coverage in an Exchange based plan • Effective 1/1/2014 Employee Voucher • Applies to employees working 30+ hours/week • Employer pays $3,000 for each EE with coverage <60% of allowed costs or if EE pays >9.5% of their household income for health coverage • Employers not offering health coverage pay $2,000 per EE • First 30 employees not included in calculation of assessment • Effective 1/1/2014

48. Administrative Requirements Auto Enrollment W-2 Reporting • Applies to new hires • Employees can opt-out • Employer can choose plan for auto enrollment • Effective date unclear; may be upon enactment or until guidance issued • Employer plans must have HHS approved external review process • Effective 1st plan year 6 months after enactment (1/1/2011 for FIU if not grandfathered) • Employers required to report the “value” of health benefits provided to each employee • Value defined as COBRA cost less 2% administration fee • Effective 1/1/2011 Appeals Process

49. Administrative Requirements (cont’d) Uniform Explanation of Coverage Exchange Notification • Annual distribution of summary of benefits and coverage • Not to exceed 4 pages; 12 point font • Culturally and linguistically appropriate • Uniform Explanation is in addition to the SPD required by ERISA • HHS to issue standards • Effective 2012 (first summary due within 24 months of enactment) • Employers must notify employees at time of hire of the availability of Exchanges and their potential eligibility for a subsidy • No requirement to offer same coverage as Exchange based plans • Effective 1/1/2013 • Same transparency requirements as Exchange based plans • Claims payment policies and data • Information on rating policies, cost sharing and payment for OON Transparency Requirements

50. Administrative Requirements (cont’d) CLASS Act • Voluntary federal LTC insurance program • No underwriting restrictions • 5-year waiting period • Eligible for benefit if at least 2 ADLs for 90 days • Lifetime benefit payments • ERs may auto-enroll EEs and offer access via payroll deductions • EEs may opt-out • Must be actively employed to enroll • Effective 1/1/2011