Benefits Committee Releases Annual Report

After its first full year of work, in which it addressed several significant issues relating to health and retirement benefits, the University Benefits Committee (UBC) has issued its first annual report.

The report, sent to Deans and Vice Presidents for distribution within their organizations, summarizes the UBC's work from its establishment in 1995 through May of 1996 and sets out the likely focus of study in the near future.

According to Provost Albert Carnesale, who chairs the UBC, "Establishment of this committee has provided a permanent forum for discussion and resolution of benefits issues by faculty and staff who have become well-versed in University benefits programs and policies. It allows Harvard to respond quickly to changing circumstances, as was the case this year when Blue Cross Blue Shield announced that two of their health plans would no longer be available."

The UBC advises the President, Provost, Deans, and Vice Presidents on University-wide benefit policies for members of the Harvard community who are not represented by a union. (For a complete list of UBC members, see the sidebar to this story.)

In its first year, the committee recommended several changes in Harvard's benefits which were subsequently approved by the President, Provost, Deans and Vice Presidents. These included:

-- A one point increase in University pension contribution rates for junior faculty, returning the rates to the pre-July 1995 level of 5 percent for the salary portion under the Social Security wage base and 10 percent for the amount equal to the Social Security wage base or higher.

-- A cost-of-living adjustment for faculty retirees who participate in Option A of the 1950 Faculty Retirement Plan. Unlike other retirees, who have benefited from a robust investment climate or who receive automatic cost-of-living adjustments, these individuals have experienced significant erosion of pension income. From time to time, the University has granted adjustments to their pensions to offset the effect of inflation.

-- Changes in health plan options 1.) to accommodate to the loss of two health plans, Health Flex Blue and Bay State, no longer offered by Blue Cross Blue Shield; and 2.) to offer a fuller range of point-of-service options. The result is that faculty and staff now have a choice of 10 health plans for 1997, including three new point-of-service plans, and all former HMOs plus the addition of HMO Blue.

-- A co-payment reimbursement plan to begin in 1997 that will cap out-of-pocket costs for office visits at the level of $200 for an individual and $500 for a family. Faculty and staff may apply for reimbursement if their co-payments exceed those limits.

Looking to the Future

The UBC, working through its three sub-committees, has a full agenda for the coming year and beyond. The Retirement Subcommittee, chaired by Dennis Thompson, associate provost and professor of government, will evaluate possible changes to the benefits package that may affect the decision to retire. The subcommittee will also consider related policies that could help the University maintain its capacity to renew the faculty and staff in the face of the end of mandatory retirement. The work will include a review of the faculty pension plan and consideration of alternative designs for that plan.

The Health Plans Subcommittee, under the leadership of chairman Peter Marsden, professor of sociology, will consider several issues: employer-sponsored long-term care insurance; additional tiers for health insurance coverage to cover such categories as two-adult families; a HUGHP Senior Plan; and the development of a quality-of-care measurement for Harvard health plans based on the experience of Harvard faculty and staff.

The Administrative Sub-Committee, chaired by Karen Davis, associate dean at the Medical School, will continue to review the short-term disability program and study the results of the benefits administration review project now in progress.

Copies of the UBC report may be requested from the Office of the Provost, Massachusetts Hall.

UNIVERSITY BENEFITS COMMITTEE

MEMBERSHIP LIST

Albert Carnesale, Provost (Committee Chair)

Richard Cannon, Dean for Administration, School of Public Health

Karen Davis, Associate Dean, Medical School

Gary Feldman, Professor of Physics, FAS

Peter Marsden, Professor of Sociology, FAS

Scott Mason, Professor of Finance and Banking, Business School

Daniel Meltzer, Professor of Law, Law School

Joel Monell, Dean for Administration and Academic Services, Graduate School of Education

Rita Moore, Senior Manager, Project ADAPT

Polly Price, Associate Vice President for Human Resources

Eleanor Shore, Dean for Faculty Affairs, Medical School

Elisabeth Swain, Associate Director of the Core Program, FAS

Dennis Thompson, Associate Provost, and Professor of Government, FAS

David Wise, Professor of Political Economy, KSG