Summary of Dartmouth College Benefits Changes
In his February 8, 2010, message to the Dartmouth Community, President Kim outlined a series of savings and revenue targets for fiscal years 2011 and 2012, including a reduction of $13m in annual benefits and compensation budgets. The College Benefits Council (CBC) was charged with identifying approximately $9m in benefits-specific savings. Core guiding principles were established as part of the decision-making process. After thoroughly reviewing the CBC's recommendations and more than 400 comments from the Dartmouth community, the College will implement the following benefits changes effective January 1, 2011.
Health premium cost changes, to be effective January 1, 2011, are as follows:
Highlights of the plan design, to be effective January 1, 2011, are as follows:
Dartmouth will eliminate the annual $800 payment for those employees who opt out of coverage with the College because they have coverage from another source.
A Flexible Spending Account (FSA) allows an employee to set aside a portion of his or her earnings to pay for qualified medical and/or dependent care expenses. Money deducted from an employee's pay into an FSA is not subject to payroll taxes, resulting in a substantial payroll tax savings. A $250 FSA benefit will be available to all employees whose base pay is $60,000 or less annually.
A Health Savings Account (HSA) is a tax-advantaged medical savings account available to employees who are enrolled in a High Deductible Health Plan. The funds contributed to the account are not subject to federal income tax at the time of deposit and the funds roll over and accumulate year to year if not spent. HSA's are owned by the individual, and funds are used to pay for qualified medical expense. The HSA will be available to those employees who are in the Indemnity Plan. To meet federal regulations for an HSA, the deductible for the Indemnity Plan has been raised (see Plan Design Details).
Dartmouth will provide financial assistance to eligible employees who face unanticipated catastrophic medical expenses.
The College retirement contribution levels for employees aged 21–29 and 30–34 will remain the same, at 3% and 5%. A new level is introduced for employees aged 35-39 with a contribution level of 7%. For those aged 40 and up, the contribution will be 9%.
o 21-29 3%
o 30-34 5%
o 35-39 7%
o 40+ 9%
Additionally, the College will provide a 457b retirement savings option to eligible employees, which will allow eligible employees who reach the current IRS maximum on supplemental retirement savings to contribute additional pre-tax dollars to their accounts.
