+ All Categories
Home > Documents > 2020 Total Rewards Frequently Asked Questions...2020 Total Rewards FAQs - Employees Revised:...

2020 Total Rewards Frequently Asked Questions...2020 Total Rewards FAQs - Employees Revised:...

Date post: 09-Apr-2020
Category:
Upload: others
View: 7 times
Download: 0 times
Share this document with a friend
17
2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 1 of 17 2020 Total Rewards Frequently Asked Questions
Transcript
Page 1: 2020 Total Rewards Frequently Asked Questions...2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 2 of 17 Resource Guide Frequently Asked Questions GENERAL Q. Why

2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 1 of 17

2020 Total Rewards

Frequently Asked Questions

Page 2: 2020 Total Rewards Frequently Asked Questions...2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 2 of 17 Resource Guide Frequently Asked Questions GENERAL Q. Why

2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 2 of 17

Resource Guide

Frequently Asked Questions

GENERAL

Q. Why is SSM Health changing benefits, pay practices, job titling and HR systems in 2020?

A. Following in the footsteps of our founding Sisters, we believe that all people have a right to health care and to receive fair and socially just wages and benefits, with special consideration for the most vulnerable. Yet the structure of our benefits, pay practices and job titles varies greatly across our health ministries.

• SSM Health has nearly tripled in size over the past decade and not surprisingly, this has led to significant variation from ministry-to-ministry:

o Nine medical plans with different costs

o More than 25 different time-off plans

o About 8,000 job titles for approximately 1,700 unique roles

o Pay practices vary across all health ministries

o Six different HR, payroll and timekeeping systems

• For example, we have employees working next to each other, possibly in the same role with different benefit plans, health care premium costs, paid time off and an illness bank/extended medical time off plan.

• To ensure all employees are compensated and rewarded fairly and consistently, we are aligning our practices and are moving from six systems to one HR, payroll and timekeeping system called Workday.

Q. How did SSM Health go about creating one employee benefit plan?

A. We conducted a formal, ethical discernment session to ensure benefits are fair and socially just. The discernment team consisted of individuals across all regions representing mission, nursing, medical group, operations, legal, HR, finance and others. In this process, the team considered:

• Employee feedback from the January benefit preferences survey.

o Close to 11,000 employees shared their ideas, and we listened.

• Overall benefit competitiveness.

• Impact of changes to employees and their families, with special concern for those whose income level makes it difficult to afford coverage.

• Alignment of changes with SSM Health’s Mission, Values and Catholic identity.

• Financial impact, with a goal to remain cost neutral for SSM Health overall.

Q. What are the goals of the benefits redesign?

A. The benefits redesign will achieve several important goals:

• Market-competitive and consistent benefits: To ensure all employees are treated in a manner that is fair and socially just and meet the needs of our diverse workforce of today as well as for the workforce of tomorrow.

• Affordable benefits: Like our founding Sisters, we believe that all people have a right to health care and to receive affordable, fair and socially just wages and benefits, with special concern for the most vulnerable.

• Simplified benefit structures: Easier for employees and their families to understand and maximize their benefits.

Page 3: 2020 Total Rewards Frequently Asked Questions...2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 2 of 17 Resource Guide Frequently Asked Questions GENERAL Q. Why

2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 3 of 17

Q. Is the benefit redesign a cost savings for SSM Health?

A. No. This is not a cost savings for SSM Health.

Q. How will these changes affect me?

A. All employees will be impacted by the changes. The benefit choices you make, along with your years of service and pay will drive how the changes impact you. We have made every effort to minimize any adverse effects, while meeting the goals of providing consistent, competitive and affordable benefits to all employees.

Q. How will my benefit contributions be deducted from my pay in 2020?

A. Beginning with the first paycheck in 2020, all employees will be on one bi-weekly payroll cycle. Deductions for premiums and other employee contributions will be adjusted to 26-pay periods, instead of the current 24-pay periods. For example, if you enroll in a plan with a monthly premium of $100, your bi-weekly premium will be calculated as follows: $100 per month = $1,200 per year $1,200 divided by 26 pay periods = $46.15 deduction per pay period

Q. Who manages our SSM Health benefit plans?

A. Human Resources manages and oversees the administration of all benefit plans. However, we partner with external organizations that specialize in administering specific benefits, such as retirement accounts and health plan claims.

On January 1, 2020, several plan administrators will change for a number of our benefit plans. They were selected based on their industry reputation, customer service and value.

Q. How will you keep my benefit information confidential when there is a new plan administrator?

A. To ensure a smooth transition, your benefit information will be confidentially transferred to the new plan administrator, as appropriate. More information will be provided during open enrollment.

Q. How will I receive additional information about the benefit redesign? And who do I contact with questions about my benefits?

A. Information will be shared through our normal channels including email, meetings, huddles, one-on-one meetings, MyNews, MyHR, videos and more. Please remember to check your SSM Health email often for important information about your benefits and other human resources policies and programs.

If you have questions about your current benefits, you may contact your local benefits specialist, the plan administrator or seek information on your local intranet site. For questions about your 2020 benefits, please contact People Services at 1-844-776-6947, visit your local intranet site or www.ssmhealth.com/benefits.

Q. Will employees be paid for the time they spend enrolling in their benefits?

A. No. Reviewing benefit materials and/or choosing to enroll in SSM Health’s benefits plan is a not a job

requirement, so it is not a paid activity. However, we do encourage everyone to review the information

thoroughly to make the best choice for themselves and their families – and we want to ensure all

employees have access to our online tools. If you need access to a computer, you are welcome to use one

at your local ministry outside of working hours.

Page 4: 2020 Total Rewards Frequently Asked Questions...2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 2 of 17 Resource Guide Frequently Asked Questions GENERAL Q. Why

2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 4 of 17

Resource Guide

Frequently Asked Questions

MEDICAL AND PRESCRIPTION DRUG PLANS

SSM Health – All Employees

Q. In 2020, who will administer the Medical Plan?

A. The Plan administrator will be WellFirst Health, administered by Dean Health Services. Contact information will be available prior to open enrollment.

Q. Am I eligible for benefits?

A. In 2020, full-time benefits will be available to employees regularly scheduled to work 64 or more hours per pay period and part-time benefits will be available to employees regularly scheduled to work 40 to 63 hours per pay period. NOTE: Regularly scheduled means you have a status of at least .5 FTE.

Currently, the date when a new hire is eligible for benefits differs across SSM Health. In 2020, all new hires who are benefit-eligible will receive benefits the first day of the month coinciding with or following the hire date (start date). For example, if your hire date is June 15, your benefits will be effective on July 1. If your hire date is June 1, your benefits will be effective on June 1.

Q. What are the important changes to the Medical Plan for 2020?

A. In response to the feedback we received on the employee benefit preference survey, we are excited to offer a new Health Savings option (high-deductible health plan) and a new coverage tier (Employee + Child(ren)). All SSM Health benefit-eligible employees will choose from three medical plan options:

• WellFirst Plus option ($400 individual deductible)

• WellFirst Base option ($1,000 individual deductible)

• WellFirst Health Savings option ($1,500 individual deductible, works in conjunction with a Health Savings Account)

Employees will elect one of four coverage tier options:

• Employee Only

• Employee + Spouse/Legally Domiciled Adult (LDA)

• Employee + Child(ren)

• Employee + Family

The SSM Health Network remains the primary provider network for plan members. In our Southern Illinois, Mid-Missouri and Oklahoma regions where there are fewer local SSM Health Network options for care, members may access providers in a Secondary Network; however, higher deductibles, coinsurance, copays and out-of-pocket maximums may apply.

In 2020, SSM Health will adopt a new fee-for-service schedule to ensure consistency across our health ministries. As a result, when you or a family member utilize services, you may notice an increase/decrease in the amount paid for a service compared to 2019.

Q. Is there a limit to the number of children I can add on the employee + child(ren) tier?

A. No, there is no limit to the number of eligible children you may cover in the new employee + child(ren) tier.

• Your child(ren) up to age 26: biological, foster, adopted, step or legal guardian

• Disabled child(ren) age 26 or older (documentation required)

• Dependent child(ren) of an LDA

Page 5: 2020 Total Rewards Frequently Asked Questions...2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 2 of 17 Resource Guide Frequently Asked Questions GENERAL Q. Why

2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 5 of 17

Q. How are the Medical Plan premiums changing?

A. Your 2020 Medical Plan premiums will be close to your current premiums; some employees may experience a slight decrease, while others a slight increase.

Employees who elect the new Employee + Child(ren) coverage tier, will generally see lower premiums.

The Medical Plan Contribution Discount program has been expanded and may further change premiums for employees who qualify for this benefit.

Q. How is the Medical Plan Contribution Discount changing?

A. In plan year 2020, full-time employees whose family income is less than 400% of Federal Income Guidelines, may receive a discount of 25%, 50%, 75% or 100% on their premiums. Part-time employees do not receive a discounted percentage of their premium, but they will receive the same dollar amount that a full-time employee receives for the same election/level of discount.

Income as % of Federal Income Guidelines

Premium Discount % of Premium

Employee Pays

Less than 100% 100% 0%

100% - 199% 75% 25%

200% - 299% 50% 50%

300% - 399% 25% 75%

A new feature for 2020 – prescription drug copayments are also waived for all employees who qualify for the medical discount. Employees who elect the WellFirst Health Savings Option (HDHP) will see their copays waived once they meet their deductibles.

Q. If my household income or family size changes during the year, can I apply for an increased Medical Plan Contribution Discount?

A. No. Medical Plan Contribution Discount applications are only accepted during open enrollment, or when an employee becomes eligible for medical benefits. Changes in your household income or family size will be reflected in your next year’s discount application.

Q. What options are there to reduce my Medical Plan premiums?

A. There are three options to explore:

1. If your household income is less than 400% of Federal Income Guidelines, adjusted for family size, you may be eligible for the Medical Plan Contribution Discount Program.

2. If you want to cover your children, but not a spouse or LDA, the new Employee + Child(ren) coverage tier generally has lower premiums than the Employee + Family option you may have used in previous years.

3. If you elect the WellFirst Health Savings option, you are provided a Health Savings Account (HSA) where you can contribute pre-tax dollars to pay out-of-pocket medical expenses. SSM Health will also contribute to your HSA each year - $500 for full-time Employee Only coverage; $1,000 for other full-time coverage levels. NOTE: Part-time employees receive $250 for Employee Only coverage and $500 for other coverage levels.

Q. Are deductibles and out-of-pocket maximums changing in 2020?

A. Yes. The changes to deductibles and out-of-pocket maximums currently vary across the regions and are being aligned.

• Regions – Oklahoma, Missouri and Illinois: changes are minimal.

• Health Ministries – Home Health United, Monroe Clinic, Agnesian HealthCare, SSM Health St. Clare Meadows and SSM Health St. Mary’s Care Center: the new plans are similar or feature lower deductibles and out-of-pocket maximums.

• Health Ministries – Dean Health Plan, SSM Health Dean Medical Group, and the health ministries in Madison, Janesville and Baraboo: deductibles and out-of-pocket maximums are increasing.

Page 6: 2020 Total Rewards Frequently Asked Questions...2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 2 of 17 Resource Guide Frequently Asked Questions GENERAL Q. Why

2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 6 of 17

Q. What can I do to manage the cost of deductibles, copayments and coinsurance?

A. To help manage the cost of deductibles, copayments and coinsurance:

• Use an SSM Health Network provider or pharmacy whenever possible.

• Contribute to a Health Care Flexible Spending Account (FSA) if you choose the WellFirst Plus or WellFirst Base option. An FSA allows you to use pretax dollars on deductibles and other out-of-pocket medical expenses.

• Consider selecting the WellFirst Health Savings option and contributing to a Health Savings Account (HSA). An HSA allows you to use pretax dollars on deductibles and other out-of-pocket medical expenses. SSM Health also contributes directly to your HSA.

• Focus on maintaining and improving your health through a combination of healthy diet, exercise and sleep. With the help of your primary care physician, set up a personal plan to maintain and improve your health. In addition, while details of the Wellness Program for 2020 are in the process of being designed, we expect that the program will support your efforts to manage and improve your health.

• If you have a health condition, follow the guidelines to best manage or improve your health by taking prescribed medications and working with your physician(s).

Q. Will I be able to use the same providers in 2020?

A. In 2020, the SSM Health Network will experience minor changes, but most providers will remain available to all employees and covered family members, regardless of location.

In the Southern Illinois, Mid-Missouri and Oklahoma regions, there are fewer local SSM Health Network care options; therefore, a Secondary Network is available. Higher deductibles, coinsurance, copays and out-of-pocket maximums apply when care is provided by Secondary Network providers.

NOTE: For an up-to-date listing of providers, check the online provider directory on a regular basis.

Q. Can I use an SSM Health Network provider who is not in my region?

A. Yes, you may use an SSM Health Network provider at any of our locations. For example, an employee in the Mid-Missouri region chooses to see an SSM Health Network specialist in St. Louis, the benefit is the same as if the employee saw a Network specialist in Mid-Missouri.

Q. If my spouse or dependent child lives outside of the SSM Health service area, how will the Medical Plan cover them?

A. If you or a covered family member is residing outside of the SSM Health service area, you may apply to have your Medical Plans covered as out-of-area. Out-of-area coverage plan details and application will be available during open enrollment.

Q. What is the surcharge for covering my spouse/LDA in the SSM Health Medical Plan? Why is it charged?

A. The surcharge is $150 per month and deducted in the amount of $69.23 per 26 pay periods. This surcharge helps offset the additional cost to SSM Health for covering an adult on your Medical Plan, when the adult already has an offer of coverage elsewhere.

You may qualify for a surcharge waiver, if your spouse/LDA is:

• Employed by SSM Health.

• Self-employed or unemployed.

• Retired with no other group medical coverage available.

• Eligible for Medicare, Medicaid or Tri-Care, with no other medical coverage available.

• Employed, but not offered medical coverage.

• Employer does not offer medical coverage that meets the ACA definition of affordability standards.

If your spouse/LDA meets any of these criteria, you must submit a waiver each year through the online enrollment system to avoid the surcharge.

Page 7: 2020 Total Rewards Frequently Asked Questions...2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 2 of 17 Resource Guide Frequently Asked Questions GENERAL Q. Why

2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 7 of 17

Q. How do I decide which Medical Plan option is best for me?

A. Choosing the right Medical Plan option is a personal decision. Think about:

• What kind of ongoing medical care will you and your covered family members need?

• Are you more comfortable paying a higher premium to have the lowest out-of-pocket expenses when you need care?

• Or, would you prefer to keep your premiums lower, even though your out-of-pocket expenses could be higher when you need care?

During open enrollment, SSM Health will introduce an online Benefit Enrollment Decision Making Tool to help you compare the Medical Plan options. Take a few minutes to enter information about your health care needs and the tool will estimate your total costs (premiums plus out-of-pocket expenses) under each of the Medical Plan options. It’s completely confidential and available to help you work through this important decision.

Q. Will a Wellness Program be offered in 2020?

A. Yes. SSM Health is establishing a new Wellness Program for all regions and health ministries. More details will be forthcoming. Remember, many preventive and wellness services are available through your Medical Plan at no cost to you, and as required by the Affordable Care Act (ACA).

Q. In 2020, who will administer the Pharmacy Benefits Plan?

A. The Plan administrator for the Pharmacy Benefits Plan is Navitus. You may contact them via the website www.navitus.com or by telephone at 1-866-333-2757.

Q. What are the important changes to the Prescription Drug Plan for 2020?

A. In 2020, the Prescription Drug Plan features lower copayments for medications filled at an SSM Health pharmacy. Please make every effort to take advantage of this opportunity to save, and to help reduce the rate of growth of prescription drug costs.

NOTE: For the WellFirst Health Savings option, members must pay the full cost of prescription drugs until the deductible has been met.

Page 8: 2020 Total Rewards Frequently Asked Questions...2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 2 of 17 Resource Guide Frequently Asked Questions GENERAL Q. Why

2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 8 of 17

Resource Guide

Frequently Asked Questions

DENTAL PLANS

All Employees

Q. Who is the Plan administrator for the Dental Plan?

A. The Plan administrator is Delta Dental of Missouri, and they can be reached at www.deltadentalmo.com. Additional contact information for Delta Dental will be provided prior to open enrollment.

Q. How is the Dental Plan changing in 2020?

A. The benefit provisions and employee premiums are being aligned across SSM Health. As a result, there are a few small adjustments in the premiums for 2020. While employees may choose any dentist, the out-of-pocket costs of choosing a Delta Dental PPO or Premier Network Provider will likely be lower than choosing a dentist outside of the Delta Dental Network. And, because Delta Dental pays less for services to a network provider, the overall benefit will stretch further when you select a network provider.

In 2020, the maximum dental allowance for the Dental High Plan will increase from $1,500 to $2,000.

Page 9: 2020 Total Rewards Frequently Asked Questions...2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 2 of 17 Resource Guide Frequently Asked Questions GENERAL Q. Why

2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 9 of 17

Resource Guide

Frequently Asked Questions

VISION PLAN

All Employees

Q. Who is the Plan administrator for the Vision Plan?

A. The Plan administrator will be VSP, and they can be reached at www.vsp.com or by telephone at 1-800-877-7195.

Q. How is the Vision Plan changing in 2020?

A. The in-network allowance is increasing:

• Frame allowance: increases from $150 to $190

• Contact lens allowance: increase from $130 to $150

As in previous years, an in-network examination is available from a VSP provider for a $10 copay.

NOTE: If you are electing the Medical Plan in 2020, these plans will cover an annual eye exam. However, the copay is higher, and the network of providers is limited.

Page 10: 2020 Total Rewards Frequently Asked Questions...2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 2 of 17 Resource Guide Frequently Asked Questions GENERAL Q. Why

2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 10 of 17

Resource Guide

Frequently Asked Questions

HEALTH SAVINGS AND FLEXIBLE SPENDING ACCOUNTS

SSM Health – All Employees

Q. Who is the Plan administrator for the Health Savings Account (HSA) and Flexible Savings Accounts (FSA)?

A. The Plan administrator for the HSA and FSA is ConnectYourCare. Contact information will be available prior to open enrollment.

Q. What is a Health Savings Account (HSA)?

A. A Health Savings Account is offered to employees who enroll in the WellFirst Health Savings option provided you do not have secondary coverage. Employees may contribute to their HSA on a pre-tax basis and use the HSA to pay a wide range of out-of-pocket medical expenses. The 2020 contribution limits including the employer contribution from SSM Health, are:

• Employee only coverage: up to $3,550

• Other coverage tiers: up to $7,100

SSM Health also contributes to your HSA – divided among 26 pay periods and contributed into the account on a per pay period basis and is pro-rated based on the date an employee becomes benefit eligible:

• Employee only coverage: $500 (full-time) and $250 (part-time)

• Other coverage tiers: $1,000 (full-time) and $500 (part-time)

NOTE: If you are over age 55, you may contribute an additional $1,000 to your HSA.

Unspent HSA funds at any point continue to accumulate (tax-free) and can serve as an excellent source of funding for health care costs during your retirement.

Q. How does the Health Savings Account (HSA) compare to the Health Care Flexible Spending Account (FSA)?

A.

Health Savings Account Health Care Flexible Spending Account

• Must be enrolled in the WellFirst Health Savings Plan option. You may not have secondary coverage.

• Can be used to pay out-of-pocket medical expenses, including deductibles, coinsurance, copays and other IRS-qualified medical expenses not covered by insurance.

• Total 2020 pre-tax contributions to your account can be up to $3,550 for individual coverage or $7,100 for family coverage.

• SSM Health also contributes to your account in the amount of $500 for full-time employee only coverage ($250 for part-time) and $1,000 for other full-time coverages ($500 for other part-time).

• Contributions are made on a per pay period basis and you may access your HSA funds as they become available.

• Unspent funds in the account continue to accumulate.

• Funds in your HSA account can be invested to grow over time.

• Can be enrolled in the WellFirst Plus option or the WellFirst Base option.

• Can be used to pay several types of medical expenses, including deductibles, coinsurance, copays and other IRS-qualified medical expenses not covered by insurance.

• You make pre-tax contributions to your account up to $2,700 in 2020.

• Unspent funds in the account at the end of the grace period are forfeited.

• This account is 100% employee funded.

• You have immediate access to your Health Care FSA funds on January 1 of the plan year.

Page 11: 2020 Total Rewards Frequently Asked Questions...2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 2 of 17 Resource Guide Frequently Asked Questions GENERAL Q. Why

2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 11 of 17

Q. How do I decide how much to contribute to my HSA or Health Care FSA?

A. Estimate the eligible out-of-pocket medical expenses that you and your covered dependents expect to pay during the year. The Benefit Enrollment Decision Making Tool can help you with this calculation.

If you plan to contribute to an HSA, remember that SSM Health will also contribute to your account and that unused funds continue to accumulate and are not forfeited. Therefore, you may find this option helpful as you think about saving for health care costs during retirement.

If you plan to contribute to a Health Care FSA, it is a good idea to be conservative when estimating eligible expenses. If you contribute too much, you will forfeit the unspent balance.

Q. If I have existing funds in a Health Savings Account, can I roll them into the WellFirst Health Savings Account?

A. Yes. More information will be available during open enrollment.

Q. What is the maximum I can contribute to a Dependent Care FSA in 2020?

A. In 2020, you may contribute up to $5,000 in pre-tax dollars to pay for an eligible child or other dependent care expenses.

Page 12: 2020 Total Rewards Frequently Asked Questions...2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 2 of 17 Resource Guide Frequently Asked Questions GENERAL Q. Why

2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 12 of 17

Resource Guide

Frequently Asked Questions

PAID TIME OFF

All Employees

Q. Who is the Plan administrator for the Paid Time Off (PTO) Plan?

A. The Human Resources department administers PTO.

Q. How is the PTO Plan changing in 2020?

A. Currently, PTO accrual rates and maximum bank limits vary across the organization. In 2020, all SSM Health employees will participate in a standardized PTO schedule, which means some employees will experience an increase in PTO while others may experience a decrease.

The amount of PTO time depends on your years of service (in five-year increments) and your employee category:

• Staff

• Manager

• Director

2020 PTO Accrual Rates

Annual PTO days, includes holiday time

Completed Years of Service

0 5 10 15 20 25 29+

Staff 24 28 31 33 36 36 36

Manager 31 33 36 36 36 36 36

Director 36 36 36 36 36 36 36

Staff and managers accrue PTO based on the hours paid (up to a maximum of 80 hours) per pay period.

Directors will transition from an accrual schedule to a front-loaded PTO allocation. For 2020, the PTO bank will be credited with hours based on your FTE status on December 22, 2019. NOTE: Directors scheduled for less than 1.0 FTE, will receive a pro-rated PTO hours allocation.

Q. When I reach the next five-year milestone, when does my new PTO accrual start?

A. The new accrual begins the pay period following your anniversary date.

Q. Is time off for holidays included in Paid Time Off (PTO)?

A. Paid Time Off or PTO is a term used by many organizations for any time an employee is being paid while away from work and not working. Vacation, time off when sick, personal days and holidays are examples of time off that are typically included in PTO banks, especially for organizations that have 24/7 operations. We understand that some of our ministries have historically had a holiday bank separate from employee PTO banks. In 2020, as we standardize our benefits to ensure fair and consistent benefits for all employees, PTO time will be utilized for recognized holidays.

Staff and Managers

Q. What is the cap on the number of hours in the PTO bank and how do hours carry-over between years?

A. For staff and managers, the maximum accrual bank is 1.5 times the annual accrual. The PTO bank carries over from year-to-year.

For example, an employee who has 10 years of service earns 31 days of PTO, which translates to 248 hours. The maximum accrual would be 372. If you reach your maximum PTO hours, you will no longer accrue until you bring your PTO balance below the maximum.

Page 13: 2020 Total Rewards Frequently Asked Questions...2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 2 of 17 Resource Guide Frequently Asked Questions GENERAL Q. Why

2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 13 of 17

Q. May I elect to receive cash in lieu of time off and, if so, how will this be paid?

A. In general, PTO is provided to enable employees to take time away from work to rejuvenate. However, for some it may be difficult to utilize their full PTO allocation. As a result, the PTO policy will include an annual option for you to voluntarily cash out up to 80 hours of PTO, provided you have at least 40 hours in your PTO bank after the payment. The option will be offered during open enrollment each year (beginning in 2020), and you will receive your payment around the end of November/beginning of December.

Based on IRS regulations, if you voluntarily elect to cash out PTO, the payment will be made at 85% of your hourly rate, and the payment will be reported as taxable income.

Q. What will happen to my PTO balance if I were to leave or retire from SSM Health?

A. At the time of your separation, your PTO balance will be paid at 100% of your hourly rate.

Q. Currently as a part-time employee working less than 40 hours per pay period, I accrue PTO. Will this practice continue in 2020?

A. No. In 2020, paid time off is only offered to full-time and part-time employees who are regularly scheduled to work at least 40 hours or more per pay period. At the end of 2019, your current PTO balance will be paid to you in one lump sum.

Q. What will happen if my PTO balance is close to or above the new accrual cap?

A. If your PTO balance is within 60 hours or above the new overall maximum as of November 30 (cycle 1) or December 7 (cycle 2), SSM Health will provide a one-time PTO pay down to bring your PTO balance below the new maximum. This will ensure you continue to accrue PTO time. These PTO hours will be paid out at 100% of your pay rate on December 27.

Example 1: Jane is a full-time employee and has a PTO balance of 346 hours as of December 7. Her overall maximum under the new accrual schedule will be 336 hours which means she exceeds the overall balance allowed by 10 hours. Jane will be paid 10 hours plus 60 additional hours at 100% of her pay rate on December 27. Her new PTO balance will be 276 hours, allowing her to accrue PTO hours moving forward. NOTE: If Jane uses any PTO time after December 7, her balance will be further reduced.

Example 2: John is a full-time employee and has a PTO balance of 326 hours as of November 30. His overall maximum under the new accrual schedule will be 336 hours which means he is only 10 hours under the overall balance allowed. John will be paid 50 hours at 100% of his pay rate on December 27. His new PTO balance will be 276 hours, allowing him to accrue PTO hours without reaching the maximum. NOTE: If John uses any PTO time after November 30, his balance will be further reduced.

Q. How many years of service do I need to move to the next level of PTO accrual?

A. The accrual rate changes in five-year increments, until you reach your maximum annual accrual rate. The accrual rate will be effective the pay period following your employment anniversary date.

Q. May I donate unused PTO to another employee?

A. In response to your feedback on the employee benefits preference survey, we are introducing a PTO donation program in 2020. Unfortunately, there are tax rules that prohibit you from donating PTO hours directly to another employee. However, you can donate to a leave sharing bank that may be used by employees for medical emergencies. Program details will be provided in early 2020.

Page 14: 2020 Total Rewards Frequently Asked Questions...2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 2 of 17 Resource Guide Frequently Asked Questions GENERAL Q. Why

2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 14 of 17

Resource Guide

Frequently Asked Questions

DISABILITY PLANS

All Employees

Q. Who is the Plan administrator for Short-Term and Long-Term Disability Plans?

A. The Plan administrator is UNUM, and they can be reached at www.unum.com or by telephone at 1-800-445-0402.

Q. How is the Short-Term Disability (STD) Plan changing in 2020?

Special Note: The terminology used for former illness banks or salary continuation (EMB, EMTO, EIB, RSL) will be referred as EMTO in this section. These plans accrued hours each pay period, did not have cash value and are not vested or paid upon employment termination.

A. Across SSM Health, a number of ministries currently offer an Extended Medical Time Off (EMTO) program and/or Voluntary Short-Term Disability. The EMTO program offered full pay replacement to employees who had accrued significant days in their EMTO bank. The Voluntary Short-Term Disability option and EMTO will no longer be available in 2020.

In 2020, the EMTO program will be converted into a new employer-paid Short-Term Disability (STD) Plan. Under this plan, all benefit-eligible employees who experience an extended illness or injury will receive a portion of their base earnings during an approved leave.

Q. Is there a waiting period until I receive Short-Term Disability payment?

A. The first week (seven calendar days) of disability is an elimination period in which disability income is not paid. You must use available PTO to replace your income for the first week of your illness/injury, unless you are covered under the Wisconsin FMLA where you can choose to take this period unpaid.

Q. Can I combine PTO days with Short-Term Disability (STD) benefits to get 100% pay replacement while I am on disability?

A. Yes. When you apply for STD benefits, you may choose to supplement your disability income with PTO during an approved absence to achieve 100% income replacement.

Q. How does the Short-Term Disability (STD) Plan cover maternity leave?

A. If you are receiving Short-Term Disability due to maternity leave, 100% of your income will be replaced up to six weeks for routine delivery or up to eight weeks for a C-section. The first week (seven calendar days) elimination period applies to a maternity leave. The 100% maternity leave coverage is provided by SSM Health.

Q. How is the Long-Term Disability (LTD) Plan changing in 2020?

A. In 2020, both full-time and part-time, benefit-eligible employees who cannot work for an extended period of time due to a disability are covered under the Long-Term Disability Plan. The elimination period to qualify for LTD benefits is 90 days from the onset of the disability. The LTD Plan offers:

• 60% of base pay, up to $10,000 per month for staff, managers and directors

• Benefits paid are taxable income

NOTE: This plan does not include physicians and executives.

Q. How does the Short-Term Disability (STD) Plan work?

A. The Short-Term Disability (STD) Plan offers an employer-paid 60% pay replacement (with minimum and maximum monthly benefits) to all benefit-eligible employees. In addition, employees may purchase additional STD coverage up to 75% replacement pay.

Instead of the benefit noted above, the benefit during a regular maternity leave will be 100% of base pay. If a maternity leave is extended for medical reasons, the regular STD benefit will apply during the extension. If taking extra bonding time following a maternity leave, the employee must use PTO unless covered by Wisconsin FMLA, then they can take it unpaid.

Employees transitioning into the STD benefit from the Extended Medical/Illness Banks, will receive an employer-paid buy-up of 75% percent, based on your bank at the end of 2019. Please see Human Resources for details applicable to your health ministry.

Page 15: 2020 Total Rewards Frequently Asked Questions...2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 2 of 17 Resource Guide Frequently Asked Questions GENERAL Q. Why

2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 15 of 17

Resource Guide

Frequently Asked Questions

LIFE INSURANCE

All Employees

Q. Who is the insurer and Plan administrator for the Life Insurance Plans?

A. Beginning January 1, 2020, the insurer and Plan administrator is Securian Financial, and they may be reached at www.securian.com or by telephone at 1-833-810-8262.

Q. How are the Life Insurance Plans changing in 2020?

A. Beginning in 2020, staff will receive an employer-paid Life Insurance benefit equal to one times their annual base salary. In addition, staff will receive one times their annual base pay for Accidental Death or Dismemberment (AD&D), up to $500,000. Managers and above will receive two times their pay, up to $1,000,000 for each plan.

Q. What are the buy up options for the new Life Insurance Plan?

A. Both full- and part-time benefit-eligible employees may purchase supplemental life insurance coverage on themselves in multiples of one to eight times their pay, up to $2,000,000. You can purchase up to three times your base pay, without any evidence of insurability, up to $1,000,000, if you elect that amount for 2020. More information will be provided during open enrollment.

Q. What are the options to purchase Life Insurance for my family members?

A. You may elect to purchase life insurance for your spouse in increments of $25,000 up to $250,000. The first $100,000 will be provided without an evidence of insurability review.

You may also elect to purchase life insurance for your eligible child(ren) in increments of $5,000 up to $25,000.

Q. Can I convert the SSM Health Life Insurance to an individual policy when I leave or retire from SSM Health?

A. Yes, you will have options to continue (“port”) your coverage as annual term insurance or convert your coverage to permanent insurance. Securian Financial will provide these options to you when they are notified of your employment separation.

Page 16: 2020 Total Rewards Frequently Asked Questions...2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 2 of 17 Resource Guide Frequently Asked Questions GENERAL Q. Why

2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 16 of 17

Resource Guide

Frequently Asked Questions

RETIREMENT PLANS

All Employees, except Physicians

Q. Who is the Plan administrator for the Retirement Savings Plans?

A. Defined Contribution Plan: The Plan administrator is Empower Retirement, and they can be reached at www.empowermyretirement.com or by telephone at 1-855-728-7526.

Defined Benefit Plan/Pension Plan, employees who have earned benefits in one of the defined benefit plans sponsored by SSM Health, should contact People Services at SSM Health for questions: 1-844-776-6947.

Q. Why is the formula for the Basic/Fixed Contribution changing in 2020?

A. The formula is changing to ensure all employees can achieve financial security for retirement, regardless of seniority and income levels.

Q. How can Empower Retirement help me manage my retirement savings account?

A. Empower Retirement offers a range of services and investment options to help you make the most of the funds in your retirement savings Accounts. Empower provides complimentary one-on-one retirement consultations and can provide many account services (including rolling funds into the plan).

Q. How are the Defined Contribution Plans changing in 2020?

A. In 2020, the eligibility requirements and the contribution formula will change. SSM Health will contribute to the Retirement Savings Plan accounts of all employees who are age 18 or older, work 1,000 hours or more during the year, and are actively employed by SSM Health on the last day of the plan year:

• Basic/Fixed Contribution: SSM Health will contribute 3% of your eligible earnings to your retirement savings account (up to the IRS limit). The plan also has a minimum dollar benefit of $1,400 for an employee who completes at least 2,080 hours of service during the plan year. This amount is pro-rated for employees who complete fewer than 2,080 hours. NOTE: Employees do not have to contribute to their retirement savings account to receive this employer-paid contribution.

• Match Contribution: SSM Health will match 50% of your employee contribution up to 6% of earnings

for a total potential match of 3% of your salary, up to the IRS limits. Gran

o The Match is provided on the employee contributions you make to your retirement savings account on a per pay period basis. Based on current plan limits, you may contribute up to $19,000 to your retirement savings accounts. If you are age 50 or older during 2020, you may also contribute an additional $6,000 under the catch-up provision.

Q. I was Grandparented in the Defined Benefit (Pension) Plan, which freezes on December 31, 2020. Will I lose my retirement benefits under that plan?

A. No. Participants in this plan will keep all benefits earned and will be available to you when you retire. Please note that after December 31, 2020, you will transition to the Retirement Savings Plans shown above.

Q. As a Grandparented Participant in the Defined Benefit Plan, will I receive an employer match contribution during plan year 2020?

A. If you are Grandparented in the Defined Benefit Pension Plan (DB), your benefits during plan year 2020 will remain the same, including the DB and 50% of 3% match that you currently receive.

Q. I have frozen benefits in the Defined Benefit (Pension) Plan. Will those benefits be available to me when I retire?

A. Yes. Participants in this plan will keep all benefits earned through the date the plan was frozen. Your benefits will still be available to you when you retire, assuming you meet the vesting requirements.

Page 17: 2020 Total Rewards Frequently Asked Questions...2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 2 of 17 Resource Guide Frequently Asked Questions GENERAL Q. Why

2020 Total Rewards FAQs - Employees Revised: September 2, 2019 Page 17 of 17

Resource Guide

Frequently Asked Questions

OTHER BENEFITS

All Employees

Q. Who is the Plan administrator for the Employee Assistance Program (EAP)?

A. The Plan administrator will be Personal Assistance Services, and they can be reached at www.paseap.com or by telephone at 1-800-356-0845.

NOTE: Greater Fond du Lac ministries will continue to utilize their internal EAP.

Q. What other benefit plans are changing in 2020?

A. Changes to other benefit plans include the following:

Tuition Reimbursement:

• FT status starts at 64 hours to 80 hours per pay period

o 100% of tuition costs reimbursed up to $4,200 per calendar year

• PT status starts at 40 hours to 63 hours per pay period

o 100% of tuition costs reimbursed up to $2,100 per calendar year


Recommended