BENEFIT PROGRAMS

The University offers the following variety of voluntary group insurance benefits:

• Medical Insurance
• Dental Insurance
• Vision Insurance
• Short Term Disability Insurance
• Supplemental Life Insurance
• Flexible Spending Accounts for qualified Health care and Dependent care expenses

In addition, the University purchases basic group term life insurance for eligible employees.

PRE-TAX GROUP INSURANCE BENEFIT PROGRAM

The Arizona Board of Regents has authorized the University to establish a pre-tax group insurance benefits program where the employee's portion of the premium cost for medical, dental, vision, and supplemental life (up to the first $50,000) insurance benefit is excluded from the employee's gross income for federal and state individual income tax and social security tax calculations. These premiums are deducted from employee paychecks before taxes, thereby reducing the employee's gross taxable income.

ENROLLMENT

A Regular Classified Staff employee may elect to participate in group insurance benefits. Determination of eligibility and details of the programs offered are available on the Human Resources website at http://www.hr.arizona.edu

To participate in any of the benefit programs, the employee must enroll for benefits within the first 31 days of the date of hire or eligibility date. Coverage becomes effective the first of the month after enrollment. If the employee does not enroll within the 31-day enrollment period, he/she will waive rights to participate in these benefit programs until the next annual applicable Open Enrollment period. Under certain circumstances, an employee may be eligible to enroll or modify elections if experiencing a Qualified Life Event change during the plan year.

BENEFITS CONTINUATION

The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) provides for continuation of medical, dental, and vision coverage for covered participating employees should they or their covered dependents become ineligible for coverage as a result of one of the following events:

• the employee's termination or death,
• the employee's divorce or legal separation from a spouse,
• the employee's dependent child no longer qualifies as a dependent child under the applicable requirements of the plan, or
• the employee's dependent child is no longer a full time student.

Employees with currently active coverage may continue participation in group insurance benefits, except Long Term Disability, during an approved Leave of Absence.

RETIREMENT PROGRAMS

Classified Staff employees who are scheduled to work at least 20 hours per week for a minimum of 20 weeks in a fiscal year are required by state law to enroll in the Arizona State Retirement System (ASRS). Each retirement-eligible Classified Staff employee is required to contribute a percentage of gross earnings by pre-tax payroll deduction, an amount which is matched by an equal contribution by the University. This retirement plan includes a component for long term disability insurance with a taxable premium paid by both the University and the employee. Employees exempt from FICA are ineligible to participate in the retirement plan.

Retirement eligible certified peace officers of the University of Arizona Police Department are required by state law to enroll in the Arizona Public Safety Personnel Retirement System (PSPRS). Each eligible employee is required to contribute a percentage of gross earnings by payroll deduction and the University makes a contribution. This retirement plan includes a component for long term disability insurance paid by the University.

The employee has a vested right to some level of retirement income, based on the plan's rules, after accruing sufficient credited service years. Once vested, if the employee separates from employment prior to retirement, the employee is eligible to receive employer contributions, plus interest. The ASRS vesting schedule is defined by A.R.S. §38-846.02. The PSPRS vesting schedule is defined in A.R.S. §38-954.

Normal retirement is the earliest an employee may retire with a full benefit. For the ASRS, a normal retirement date occurs under the earliest of the following circumstances:

• At age 65;
• At age 62 with 10 or more years of credited service;
• At any combination of years of credited service and age totaling 80 points.

For the PSPRS, a normal retirement date occurs immediately following completion of twenty years of credited service, or at age 62 with completion of 15 years of credited service.

The amount of the retirement benefit for each plan is based on a calculation involving total credited service and average monthly compensation. Visit the ASRS and PSPRS websites for details.

OFFICIAL UNIVERSITY RETIREMENT BENEFITS

To be eligible to receive official University retirement benefits, an individual must:

• Be considered in retirement status by any recognized State of Arizona retirement program in which the individual is participating;
• Be at least fifty (50) years of age;
• Have completed five (5) years of continuous, full-time employment in the Arizona University System (or approved leave of absence or long-term disability) immediately preceding retirement; and
• Have not been terminated for cause by the University.

Notwithstanding these provisions, university peace officers who have retired before age fifty (50) pursuant to the provisions of the Arizona Public Safety Personnel Retirement System but have completed five (5) years of continuous, full-time employment in the Arizona University System (or approved leave of absence or long-term disability) immediately preceding retirement shall also be eligible for this benefit.

TAX-DEFERRED SAVINGS PROGRAMS

The University offers supplemental retirement savings programs to which employees may contribute on a pre-tax basis. These programs are based on sections 403(b) and 457(b) of the IRS Code. The accumulated value in these savings programs is tax-deferred until money is withdrawn. Information about these programs is available on the Human Resources website at www.hr.arizona.edu.