1. 2013 Benefits Briefing Presentation to Board of Regents November 15, 2012

2. Faculty Comp Model 1 Year to 100% Market

3. Staff Compensation Model 1 Year to 100% Market

4. 2012-2013 Operating Budget Total Operating Budget $135,700,000 – Total Personnel Budget (56.8%) $77,091,204 Note: Personnel Budget includes all salaries & fringe benefits

5. 2011-2012 Actual Salaries & Benefits by Division

6. Types of Benefits Health Insurance Dental Insurance Life Insurance Vacation Days Holidays Sick Leave Tuition Assistance Fitness Center Membership Retirement: – KTRS – KERS – ORP FICA – Medicare – Social Security Workers Compensation Unemployment Insurance

7. 2011-2012 Expense by Benefit

8. 3 Categories of Employees 1. Hourly employee working 8 hours per day at $12.19 per hour ($25,355 annually) 2. Mid-level exempt professional employee with $50,000 annual salary 3. Senior level employee with $103,259 annual salary

9. Cash and Non-Cash Benefits by Employee Category

10. Expense by Benefit- Hourly Employee

11. Expense by Benefit- Mid Level Employee

12. Expense by Benefit- Executive Level

13. Healthcare 2013 Strategy – Provide the best competitive healthcare for the lowest premium/cost – Accomplish this by involving all employees and dependents in becoming healthier, improving their lives and therefore reducing claims & premiums – Focus incentives on continually improving results

14. Healthcare 2013 0% increase in Anthem rates for 2013 – Continues a desired trend in rates indicating positive effect of wellness. MSU annual increases National Trend 8.17% increase 20089.4% 6.23% increase 20099.2% 7.00% increase 2010 9.0% 4.36% increase2011 9.0% 0% for 20128.5% 0% for 20137.0% est.

15. Healthcare 2012/13 Annual Premiums 2012 total actual premium $7,166,965 and HRA $792,400. 2012 actual annual University premium including $792,400 HRA, $5,518,563

16. Healthcare Rate Considerations for 2013

17. Workers Compensation Remain fully insured with KEMI (Kentucky Employers Mutual Insurance) 14.5% further reduction in premium for 2013 – 2013 Premium $208,668 – 2012 premium $243,973 – 2011 premium $255,233 – 2010 premium $317,715 – 2009 premium $746,340

18. QUESTIONS?

19. Hourly Employee Benefit Comparison to EKU Employer Contribution Employee Contribution CategoryBenefitMSUEKUMSUEKU Cash Outlay InsuranceHealth Insurance$7,272$7,575$3,588$5,239 Wellness Incentives$500$0 HRA Contribution$1,150$0 Dental Insurance$300$152$480$809 Life Insurance$39 $0 RetirementKERS - 23.61%$5,986 $1,268 Legally RequiredSocial Security - 6.2%$1,572 $1,065 Medicare - 1.45%$368 Workers Compensation$182 $0 Unemployment Insurance$90 $0 Non-Cash Outlay Paid LeaveVacation Days$1,755$1,950$0 Holidays$1,658$1,560$0 Sick Leave Days$1,170 $0 OtherFitness Center Membership$240$0 $180 Tuition Assistance @ $276/cr$4,968$4,575$0 TOTAL$27,250$25,119$6,769$8,929 % of Base pay107.47%99.47%

20. Hourly Employee Benefit Comparison to St. Claire Employer Contribution Employee Contribution CategoryBenefitMSUSt. ClaireMSUSt. Claire Cash Outlay InsuranceHealth Insurance$7,272$14,100$3,588$3,736 Wellness Incentives$500$0 HRA Contribution$1,150$0 Dental Insurance$300$403$480$403 Life Insurance$39$0 $192 RetirementKERS - 23.61%$5,986$1,268 Legally RequiredSocial Security - 6.2%$1,572 $1,065 Medicare - 1.45%$368 Workers Compensation$182 $0 Unemployment Insurance$90 $0 Non-Cash Outlay Paid LeaveVacation Days$1,755 27 PTO days $2,633 $0 Holidays$1,658$0 Sick Leave Days$1,170$0 OtherFitness Center Membership$240$0 Tuition Assistance @ $276/cr$4,968$2,763$0 TOTAL$27,250$23,378$6,769$7,032 % of Base pay107.47%92.20%

21. Retirement System Employer Rates with Projections KTRS KERS (Non- Hazardous) KERS (Hazardous) 2006/0713.84%7.75%22.00% 2007/0813.84%8.50%24.25% 2008/0914.84%10.01%24.35% 2009/1014.84%11.61%24.69% 2010/1114.84%16.98%26.12% 2011/1214.84%19.82%28.98% 2012/1314.84%23.61%35.89% 2013/1414.84%32.31%49.12% 2014/1514.84%41.00%62.32%

22. Retirement System Employer Rates with Projections ActualProjected

23. Full-Time Faculty and Staff by Gender FacultyStaffTotal Female19051%44957%63955% Male17949%33443%51345% Total369100%783100%1,152100%

24. Employee Demographics CategoryTotal # of Employees Full-Time Employees1,152 Faculty369 Staff783 Salary Employees802 Hourly Employees350 1,950 Hour Positions158 2,080 Hour Positions185 Salary Under $50,000775 KERS419 KTRS775

25. KERS Employees KERS Description Total # Employees Employee Contribution Employer Contribution KERS Non-Hazardous3165%23.61% KERS Non-Hazardous on/after 09/01/08 856%23.61% KERS Hazardous148%29.79% KERS Hazardous Retiree129.79% KERS Non-Hazardous Retiree 323.61%

26. KTRS Employees KTRS Description Total # Employees Employee Contribution Employer Contribution KTRS4226.84%14.52% KTRS on/after 07/01/081177.16%14.84% KTRS Retiree3516.10% KTRS ORP2015.10%