1. UMSYSTEM.EDU November 19, 2009 1 UMSYSTEM.EDU Missouri S&T Faculty Senate November 19, 2009

2. UMSYSTEM.EDU November 19, 2009 2 UMSYSTEM.EDU UM Board of Curators

3. UMSYSTEM.EDU November 19, 2009 3 Employee Contribution to Retirement Plan 1% of first $50,000 in salary 2% of salary in excess of $50,000 Projected Contributions - $12,000,000 per year

4. UMSYSTEM.EDU November 19, 2009 4 How Does the Money Flow? UM Benefits Budget Retirement Trust Fund Employee Contributions Budget Stabilization Fund When UM share is Greater than budget

5. UMSYSTEM.EDU November 19, 2009 5 Comparator Institution Benchmarks Hewitt Associates Relative Value Study Employer Paid ValueTotal Value IndexRankIndexRank Retirement117.93 rd 77.615 th Retirement*101.17 th 77.615th Pre Retirement Death-Group Life107.77 th 91.210th Long Term Disability143.94 th 107.98 th Dental85.312 th 93.012 th Preretirement Health98.910 th 102.88 th Post Retirement Health-prior to age 65161.93 rd 127.52 nd Post Retirement Health-age 65 and higher88.48 th 103.19 th All Post Retirement Health116.38 th 110.76 th All Benefits (Including Tuition)106.36 th 92.313 th All Benefits (Including Tuition)*98.511th92.313 th *After 7/1/09 pension plan amendment

6. UMSYSTEM.EDU November 19, 2009 6 Benefit Plans Contribution Analysis Based on 2009 Contribution Rates

7. UMSYSTEM.EDU November 19, 2009 7 UMSYSTEM.EDU UM Retirement, Disability & Death Benefit Plan Financial Status

8. UMSYSTEM.EDU November 19, 2009 8 Actuarial Value of Liabilities: The total actuarial accrued liability of pension benefits for all plan members including active employees, retired employees and terminated, vested employees. Actuarial Value of Assets: Value of all assets held in trust using the Expected Return Asset Valuation Method. Using this approach allows for an amortization of unrecognized return over a 5 year period. The result is a “smoothing” of changes in market value over a 5 year period. Market Value of Assets: Market value of all assets held in trust under the plan.

9. UMSYSTEM.EDU November 19, 2009 9 UM Retirement, Disability & Death Benefit Plan Billion

10. UMSYSTEM.EDU November 19, 2009 10 History of Actual UM Contribution Rates % of payroll

11. UMSYSTEM.EDU November 19, 2009 11 UM Medical Benefit Plan Great West Healthcare (CIGNA) 1/1/10 Plan Design 1/1/10 Premiums Prescription Drug Benefits

12. UMSYSTEM.EDU November 19, 2009 12 Premium Changes 2007200820092010 UM Choice Health Care Program 0% 3%5% UM Catastrophic Medical Program 0% 5% Retiree Indemnity Medical Pre 9/1/90 Retirees-4.1% to -5.6%-7.0% to -7.7%0%3.8% to 5.1% Post 9/1/90 Retirees-4.4% to 1.4%-4.2% to -6.4%3-4%1.5% to 2.6%

13. UMSYSTEM.EDU November 19, 2009 13 Prescription Drug Benefits Express Scripts – St. Louis Business Health Coalition Home Delivery

14. UMSYSTEM.EDU November 19, 2009 14 Allocation of Drug Spending

15. ©2008 Express Scripts, Inc. All rights reserved. Costs & Trends Key Brand Drugs Losing Patent Protection 20092010201120122013 Annual Sales $10.8 Billion $8.1 Billion $16.6 Billion $20 Billion $8 Billion Adderall XR Ambien CR Casodex Cellcept Depakote ER Prevacid Topamax Valtrex Aricept Arimidex Cozaar Effexor XR Flomax Hyzaar Patanol Sanctura Actos Levaquin Lipitor Protonix Zyprexa Avandia Avapro Detrol LA Diovan HCT Geodon Lexapro Plavix Provigil Seroquel Singulair Viagra AcipHex Avodart Cymbalta Namenda Niaspan OxyContin Propecia Sustiva Xopenex More than $63.5 billion within the next five years

16. UMSYSTEM.EDU November 19, 2009 16 Legislation Overview – State Level Consolidated Health Care Program Pharmacy Benefit Management Autism

17. UMSYSTEM.EDU November 19, 2009 17 Legislation Overview – Federal Level Mental Health Parity Bill American Recovery & Reinvestment Act COBRA Premium Assistance Subsidy HIPAA Privacy and Security Rules Children’s Health Insurance Program Reauthorization Act of 2009 Michelle’s Law (HR 2851) Genetic Information Nondiscrimination Act (GINA) Medicare Secondary Payer Reporting Requirement Newborn’s and Mother’s Health Protection Act IRS Cafeteria Plan Guidance

18. UMSYSTEM.EDU November 19, 2009 18 National Health Care Reform