Approved FEBC #4

FINANCE AND ECONOMIC BENEFITS COMMITTEE

2015 - 2016

October 28, 2015

Bayh College of Education #210

Present: Shiaw-Fen Ferng, Veda Gregory, Mark Green, Steve Lamb, Stephen Patton, Heather Rayl, Jin Park (Secretary), Noble Corey (Chair)

Absent: John Pommier

  1. N. Corey called meeting at 11:04 a.m.
  1. Approval of minutes
  • Motion to approve the minutes from October 14 meeting by V. Gregory and seconded by S. Ferng. The minutes were approved by acclimation.
  1. Review of health benefit package
  • S. Lamb commented that a female employee noted that the health insurance cost for single employee coverage is significantly higher than that for a family coverage ($282.50 for biweekly), per covered person basis.
  • V. Gregory exemplified that a family with one child pays higher premium than a family with five children, per person basis.
  • S. Lamb continued that the employee’s argument was that the premiums should be calculated per covered individual.
  • J. Park reviewed the proposed premium rates for 2016 and noted that the standard premium rate for an employee only coverage is $106.50 (biweekly) and the rate for a family coverage is $282.50 (biweekly).
  • Other committee members agreed to the point brought by S. Lamb and agreed that it is worth to take a look at the health insurance premium structure.
  1. Discussion about other benefits
  • N. Corey asked M. Green how likely ISU is reinstituting the phased retirement plan. Both M. Green and S. Lamb noted that they were not aware of this.
  • V. Gregory stated that ISU retirement supplement is as good as it could be, but M. Green commented that retired people said it is not and the paper work is kind of burden.
  • V. Gregory commented that young staff and faculty members rather preferred money now than saving for the retirement.
  1. New business
  1. Review of Dependent Fee Waivers for Graduate School Enrollment
  • M. Green noted that the fee waiver benefit is restricted to undergraduate students and the issue is to open this benefit up to dependent graduate students.
  • S. Patton questioned if this would be also extended to spouse’s graduate study, and S. Ferng noted that the committee was discussing the dependents benefits.
  • S. Patton questioned why ISU had to subsidize the dependent’s graduate study even after they were subsidized undergraduate study.
  • S. Lamb reasoned that the institutions were using this benefit to retain good faculty.
  • N. Corey questioned what percent of ISU personnel had children for this benefit.
  • M. Green and H. Rayl noted that the benefit is based on undergraduate not graduate students’ dependability on employee.
  • J. Park questioned whether or not the wording on the Handbook was based on a law that the fee waiver benefit given for graduate study is taxed while such benefit for undergraduate study is not taxed.
  • J. Park noted that the fee waiver for graduate level course by staff member and spouse/partner were taxable, while such benefit for a dependent’s undergraduate is not taxable.
  • M. Green suspected that the Handbook wording is based on tax laws.
  • N. Corey reminded that the committee needed to review the Section 555.5 on the Handbook and noted that the Section is specifically identified full time undergraduate students.
  • S. Ferng noted that a graduate student without income could still be claimed as a dependent for a tax purpose.
  • J. Park read from an IRS site that to be a taxpayer’s qualifying child, full time students under the age of 24 with some income can be claimed as a dependent
  • S. Lamb questioned about the status of full time students and H. Rayl and J. Park replied that the students must be full time at least five months of a year.
  • S. Lamb made a motion to change the Handbook word as follows:

Current Wording

Dependent children of full-time, benefits-eligible Staff members and qualified retirees are eligible for a fee waiver in the amount of 80 percent of qualified tuition per semester for a maximum of ten semesters. The staff member must be in a full-time, benefits-eligible position on the day before classes begin in order to receive the benefit for that semester. This fee award will be extended to full-time undergraduate students and limited to children enrolled full-time in an undergraduate degree program who are claimed as a dependent for federal income tax purposes.

Proposed Wording (The highlight is the proposed changes.)

Dependent children of full-time, benefits-eligible Staff members and qualified retirees are eligible for a fee waiver in the amount of 80 percent of qualified tuition per semester for a maximum of ten semesters. The staff member must be in a full-time, benefits-eligible position on the day before classes begin in order to receive the benefit for that semester. This fee award will be extended to full-time undergraduate/graduate students and limited to children enrolled full-time in an undergraduate/graduate degree program who are claimed as a dependent for federal income tax purposes.

Note: After the meeting on October 28, 2015, J. Park found and brought to the committee’s attention that graduate-level tuition assistance benefits for all dependents are subject to federal taxation.

  • H. Rayl seconded.
  • S. Lamb noted that these benefits are one of those benefits that do not cost ISU much or cost little since most of graduate classes are 15-ish and they have another one to sit in.
  • V. Gregory and S. Ferng questioned what percent of employees would be benefited from this change.
  • M. Green did not have a figure on hand, but committee members commented that they knew some faculty/staff that would benefit from this.
  • J. Park read from an IRS website that grandchildren are not considered qualifying children if they are not adopted or their parents are passed away.
  • The motion is passed with 4 – 0 – 2.
  1. Charges for next meeting
  • N. Corey announced that the committee would discuss the summer compensation policy
  • S. Ferng questioned why we are changing the current pay model of summer teaching.
  • S. Lamb noted that he saw a report on this matter and he felt some changes to the summer pay model are coming.
  • M. Green noted that there would not be a change on this. He continued that there had not been accurate summer budget in past summers, which might result in summer budget deficit. K. Brauchle handled this matter and he wanted to have the summer budget.
  • M. Green suggested inviting K. Brauchle and C. Roger since they worked with the summer budget. S. Lamb agreed to the idea of inviting them to the next meeting.
  • N. Corey said he would invite K. Brauchle, C. Roger and D. McKee to the next meeting.
  • N. Corey announced that the committee would continue to discuss the order of other charged businesses.

Meeting adjourned at 11:57 a.m.

Respectfully submitted by Jin Park, Secretary