In an effort to reduce spending on employee benefits and compensation by $9 million over the next two fiscal years, College administrators announced on Tuesday proposed changes to the benefits package provided to faculty and staff. The changes include reductions in the College's contributionto employee retirement plans, increases in health insurance copayments and deductible levels, and the implementation of a more steeply graduated system for the College's contribution to employee health insurance plan costs, according to the College Office of Human Resources web site.
The proposal would also eliminate a previously required payment for employees who wish to opt out of health coverage provided through the College, according to the site, and would create a fund for employees facing catastrophic medical expenses.
If implemented, the College plan would reduce its contribution to retirement benefits for employees over the age of 34. Employees aged 35 to 39 will receive retirement compensation equal to 7 percent of their base pay, while employees over age 40 will receive payments equal to 9 percent of base pay -- a reduction from 10 percent in both categories.
Health insurance plans provided through the College would also carry higher copays for visits to primary care doctors, specialists and emergency room visits. Insurance deductibles -- the minimum amount an employee must spend before insurance payments begin -- will be raised under the proposal, as will the ceiling for out-of-pocket payments.
Under the proposal, the College would also reduce the health credit given to employees with salaries above $60,000. The College currently reduces its contribution to an employee's health benefit plan by a certain amount for every $1,000 an employee is paid each year over $20,000, up to $60,000. The new plan would raise that cap to $200,000, according to the web site.
Employees at all salary levels would see an increase in their contributions to insurance premium costs under the revised plan, according to information on the site.
A public comment period on the proposed changes will continue until April 23, according to the web site.
This is a breaking news web update. This article will be updated as more information becomes available.
