University Times

Office of Human Resources • April 2009

Open Enrollment

The annual Benefits Open Enrollment period will begin April 23, 2009 and continue through May 13, 2009. Benefits information, including a summary of your current benefits elections and a “Summary Guide to Benefits,” will be distributed beginning April 22, 2009. Benefits Fairs will be held on each campus, once again providing an opportunity for faculty and staff members to meet face to face with representatives from each of the insurance carriers.

Presentations by investment companies TIAA-CREF and the Vanguard Group, as well as the University’s Long Term Care Insurance carrier, Unum, will be given during each Benefits Fair. TIAA-CREF and the Vanguard Group will discuss strategies for staying calm and on track for retirement in a volatile market. Unum’s presentation will discuss preparing for long term care needs.

Open Enrollment for Long Term Care Insurance for Faculty, Staff, Family Members

The University of Pittsburgh is committed to providing benefit solutions that will help you plan for a future of financial stability and security. In keeping with this commitment, we are pleased to announce that there will be an open enrollment for the University of Pittsburgh sponsored Group Long Term Care Insurance plan April 23, 2009 to May 13, 2009.

What is Long Term Care?

Long Term Care is defined as the type of care received either at home or in a facility when someone needs assistance with activities of daily living, or suffers severe cognitive impairment, due to an accident, an illness or advancing age.

Long Term Care Insurance can help you preserve your independence and financial security, and can help relieve your family members of the burden of making decisions about how to pay for care. In addition, Long Term Care Insurance provides you with a choice of how and where you receive care. Like most people today, you want to receive quality care that lets you stay at home for as long as possible and have the flexibility to choose the care options that work best for you and your family.

How Much Does Long Term Care Cost?

The national average cost for care in a long term care facility is $70,000 per year. Home-based care costs vary depending on the type and frequency of care required. For most of us, this expense could have a significant impact on our financial security.

Who Pays for Care?

Many people believe that health insurance or a government program will pay for long term care. Health insurance will not cover these costs, and government programs like Medicare and Medicaid fall short as well. Without insurance protection, your assets could disappear quickly, along with your ability to make choices and maintain control over your life. In fact, 72 percent of those entering nursing homes are impoverished within one year.

The Return on Your Investment

To illustrate the value of Group Long Term Care Insurance, consider the following grid. The grid shows the return on investment an individual may experience when enrolled in the Group Long Term Care Insurance plan, based upon the amount of money paid in premiums versus the lifetime benefit provided by the coverage. The examples below are based upon enrollment in Plan 2 of Unum’s Group Long Term Care Insurance (covering long term care facilities, professional home care, and total home care, without inflation protection) with a monthly benefit of $6,000 and benefit duration of 6 years. As indicated by the grid, the maximum lifetime benefit provided by the Group Long Term Care Insurance coverage far exceeds the total premiums paid by participants of almost any age.

Age at enrollment:25;

Monthly LTC Insurance Premium: $25.80;

Years Until LTC Insurance Benefit is Needed*: 55;

Total LTC Insurance Premiums Paid: $17,028;

Maximum Lifetime Benefit Provided by LTC Insurance: $432,000

Age at enrollment:40;

Monthly LTC Insurance Premium: $34.20;

Years Until LTC Insurance Benefit is Needed*: 40;

Total LTC Insurance Premiums Paid: $16,416;

Maximum Lifetime Benefit Provided by LTC Insurance: $432,000

Age at enrollment:50;

Monthly LTC Insurance Premium: $56.40;

Years Until LTC Insurance Benefit is Needed*: 30;

Total LTC Insurance Premiums Paid: $20,304;

Maximum Lifetime Benefit Provided by LTC Insurance: $432,000

*Assuming the Long Term Care Insurance benefit will begin at age 80 (benefit may begin at any age if meeting Unum’s eligibility criteria).

What Can You Do?

During the open enrollment period you will have the opportunity to enroll for Group Long Term Care Insurance, or increase your Group Long Term Care Insurance if you are currently enrolled, without completing an Evidence of Insurability Application (referred to as Guarantee Issue). The opportunity to purchase this insurance at a group rate is available to faculty and staff, and their extended families. There is no guarantee this opportunity will be available in the future. All enrollment forms must be received by the Benefits Department no later than May 13, 2009.

The University’s Long Term Care Insurance carrier, Unum, will have representatives at this year’s on-campus Benefits Fairs. Please feel free to visit the Unum table at one of the Benefits Fairs. The Benefits Fairs will be held on the Oakland and regional campuses as follows:

April 28

Johnstown

Student Union, Cambria Room

10:30 am–1:30 pm

April 29

Oakland

William Pitt Union, Lower Lounge

Noon–3:00 pm

April 30

Oakland

William Pitt Union, Lower Lounge

Noon–3:00 pm

May 5

Greensburg

Village Hall, Rooms 101 and 118

11:00 am–1:30 pm

May 6

Bradford

Frame-Westerberg Commons Bldg. Mukaiyama University Room

11:00 am–2:00 pm

May 7

Titusville

Haskell Memorial Library Lobby

10:30 am–1:30 pm

Group Long Term Care Insurance presentations separate from the Benefits Fairs will be conducted by Unum representatives on the Oakland campus as indicated below:

April 24

William Pitt Union – Ballroom

Noon – 1:00 pm

April 27

Sennott Square Building, Room 4127

Noon – 1:00 pm

May 1

William Pitt Union – Ballroom

Noon – 1:00 pm

May 4

Sennott Square Building, Room 4127

Noon – 1:00 pm

May 8

William Pitt Union – Ballroom

Noon – 1:00 pm

May 11

William Pitt Union – Ballroom

Noon – 1:00 pm

Please contact the Unum toll-free line at 1-800-227-4165 if you have questions. You may also access Unum’s informational Web site at http://w3.unum.com/enroll/upitt/enrollment.aspx.