Inside • • • · .. Garfinkle leaving, Page 2 · .• Board roundup, Page 2 · .. Ford grant~ Page 4 · .. Mensa requirements, Page 5 · .. Teacher training, Page 5 MSU News -Bulletin Vol. 4, No. 35 Michigan State University July 26, 1973 New benefits package.announced Three major changes in the University's employee benefit package have been announced by the Office of Employee Compensation and Benefits that will provide employees with increased life insUrance, hospitalization and death benefits. Generally, the changes will not mean cost increases to the employee, and the new health insurance program will actually mean decreased employee costs of up to 50 per cent in most cases. The three changes are in addition to the full payment of long term disability insurance to cover all full- time employees that was announced in January. Th.e new benefits have been coordinated through the Faculty Affairs and Faculty Compensation Committee, The Administrative - Professional Association, and campus collective bargaining units. The life insurance and death benefit improvements are effective as of July 1. and the new hospitalization plan becomes effective Aug. 1. LOwer contnbution rates by employees fo~ hospitalization will be reflected in July paychecks. . GroUp Life Inswanc:e The group term life insurance program offered through Lincoln National Life Insurance Company increased in value by 33 per cent July 1 without an increase in employee costs. According to Gary 1. Posner, director of employee compensation and be~efits, the increased coverage is the result of the increasfu.g number of employees enrolled in the program and " good group experience" over the past several years. The University has been able to increase the coverage of the group life program by 60 per cent in the past three and one half years without increasing employee cost. . Under Schedule A, the first of two options available in the plan, an employee under 4S years of age previously covered for $12,000 will be covered for $16,000; employees between the ages of 45 and 6S had their coverage increased from S9,000 to $12,000. Under Schedule B, employees under 45 are covered for $32,000 instead of $24,000; and those between 45 and 65 have had their coverage increased from S18,000 to $24,000. AFSCME strike over A two - W\lek strike ~y University service trades employees ended and skilled Monday when more than 1,300 members of AFSCME locals -999 and 1585 returned to their jobs. Agreement between and University and union officials came last Friday on a contract calling for a , 12.5 per cent wage increase spread over the next two years. The agreements were ratified by members of both bargaining units on Sunday. The work stoppage began July 10 when members of Local 999, reacting to the University's refusal to ' co~tinue some provisions the previous contract that expired pending agreement on a new pact, voted to withhold their services. June 30 Local 1585 followed suit the next day. told the unions C. Keith ' Groty, assistant vice - president for personnel and employee that relations, had regular conditions of employment wages and fringe benefits would continue beyond the June 30 date, but that the use of University facilities for dues' checkoff would be discontinued with the expiratiori of the contract. Union officials, however, contended that the entire contract shOUld have been extended on a day - to - day basis while negotiations continued as has happened in the past. In spite of the strike, the University continued to pay its share of hospital insurance premiums the employees. covering Although fringe benefits and classification titles were among items being negotiated during the bargaining sessions, wages. the predominant issue was The University had offered a 12 per cent increase spread over a two - year period prior to the strike action. strike. Talks Negotiations continued throughout the also went on simultaneously with members of Local 547, Operating Engineers, whose contract also expired on June 30, but who continued to provide essential services at the Power Plant. Most University services continued through the strike, although the delivery of some items to campus was restricted by the refusal of drivers to cross picket lines. Terms of the settlement included the following: * A 12.5 percent salary increase over the two years of the contract, with 6.5 (Continued on page 4) Coverage for those over 65 remains the same. The plan continues to provide double indemnity for accidental death. The coverage improvements are automatic. All enrolled employees will receive their new policies in the near future. _ Employees may enroll in the life insurance program or increase their cO\'e.r&ge to the higher Schedule B by fillingout a statement of insurabilitY prior to their 53rd birthday, usually without a physical examination. Hospitalization Beginning next month., the University will be paying at least 90 per cent of the premiums for employees enrolled in the American TIAA Mlijor Medical plans. . ' This means that, in spite of a 20 per cent increase in premiums effective Aug. 1, the higher University contnbution will significantly decrease most employee contributions. Family coverage under the Ametican/TIAA Major Medical plan, for example, will cost the employee $3.95 per month instead of the $7.80 be has been paying. Similarly. the higher University contribution will apply to those non-AFSCME employees covered under Blue Cross - Blue Shield. The family coverage tha~ used to cost them either S19.92 or SI4.77, depending upon whether they are salaried or hourly employees. will now cost only $9.37 a month. Part time employees (50 per cent or more time) who have been employed for five continuous years will receive an increase in University contributions to their hospitalization programs to $17.78 a month. . Single coverage under both insurance plans will continue to be paid in full by the University. . In addition to the lower cost to employees, the American(fIAA Major Medical coverage Will include a number of improvements beginning Aug. 1 'such as hospital and outpatient emerge.ncy benefits, pregnancy improvements in the amounts payable for in - hospital doctor's visits. termination pIOvisiODS, Death Benefits . Major changes in the University death benefit program also began July 1. In the past, salary or wage continuations, were paid to dependents for from seven to 12 months, depending upon length of service beyond five years: The Unive.sity now pays the premiums for an insu.rance policy on every full time employee with five years service that will provide the employee's beneficiary with an amount equal to a full - year's salary or wage. In addition to the higher benefits for most employees, the new program has a It Will iillow number of .other advantages. the employee to select his beneficiary, where previously a continuation payment went only to a spouse or dependent ; it will allow the beneficiary to select the method of payment; it will include single employees for the first time; and money paid will not be subject to federal and state income tax. Policy certificates will be sent to all employees in the near future. Long Term ~bility Insurance As announced last January, all full - time regular employees are now covered under a long - term disability program through TIAA at no cost. Booklets explaining the plan are being printed and will be distributed to employees as soon as possible. Briefly, the plan provides that after a six - month waiting period, 60 per cent of the Irrst $1,000 of an employee' s monthly income would be paid him plus 40 per cent of the excess, including Social Security and Workmen's Compensation benefits, for as long as the employee is disabled. _ There is a one - year waiting period before coverage commences for all new faculty, Cooperative Extension and A-P employees. All other new employees are covered after three years. ~ New ho~pitalization rates Single Two Person Family Americ