As a University of Tennessee regular or term, full- or part-time employee, medical resident or medical intern, you have the option to enroll in several deferred compensation plans to help meet your financial needs during retirement. You can enroll or make changes to these plans at any time.  However, there may be penalties for early withdrawals. 

These plans include 401(k), 403(b) and 457 and allow you to set aside a portion of your gross income and defer paying taxes on that income and any interest it earns until you actually receive the funds, which generally is upon retirement.  A 401(k) Roth also is offered, but contributions are from after-tax dollars.

The new deferred compensation limits set by the Internal Revenue Service (IRS) showing the general maximums you may defer for calendar year 2013 are available at: http://humanresources.tennessee.edu/benefits/docs/IRS_limits_2013.pdf.

You have a responsibility, along with the University, to ensure that you are not over-deferring. The University will assist you by monitoring your deferrals. Over-deferring can result in IRS penalties and additional taxes.

The University also offers a monthly 401(k) match of up to $50.  Please keep in mind that to receive the full $50 match, you must defer at least $50 per month to the 401(k). No matter which of the two 401(k) plans you choose, the University’s contribution must go into the traditional 401(k). The IRS does not allow matching contributions to the 401(k) Roth. 

If you:

* Need to check your current participation, review the deductions section of your online pay statement at: https://utap1.tennessee.edu/irj/portal.
* Already participate and do not wish to make changes for 2013, you do not need to take any action. 
* Would like to change the amount of your deferral(s), please complete a salary reduction agreement form(s).
* Would like to enroll in a deferred compensation plan(s), please complete an enrollment form(s). 

 All forms are available at: http://humanresources.tennessee.edu/benefits/docs/Forms/dc_forms.html and should be submitted to Kathy Taylor, UTC Human Resources, Dept 3603.

The annual enrollment/transfer period for 2013 benefits is October 1 through November 1, 2012.  Subject to eligibility, during this time you can:

• Enroll in the new vision plan
• Change health options – switch between the Partnership and Standard PPOs, subject to eligibility
• Change health insurance carriers – select either BlueCross BlueShield of Tennessee or Cigna
• Enroll in health insurance for yourself or your eligible dependents (a monthly late applicant fee will apply)
• Cancel health coverage
• Enroll in, cancel, or transfer between dental options
• Apply for optional accidental death coverage

If you want to enroll in the new vision plan or make other changes in your coverage, you must do so online using employee self service in Edison.  The State of Tennessee will no longer accept paper forms for health or dental changes or to enroll in the new optional vision plan.  For more information, see the following:

• Video: Quick How To Guide
• Video: Log In and Password Reset
• View: PDF Instructions
• Edison Self Service Web Site

If you are happy with your current benefit selections, no action is required to remain enrolled in coverage.  If you are currently enrolled and choose to stay in the Partnership PPO, you (and your covered spouse) are automatically agreeing to fulfill the 2013 Partnership Promise.

Based upon employee suggestions and advice from Human Resources, the University of Tennessee decided to outsource the administration of our medical and dependent care flexible spending account (FSA) program.  After a competitive procurement process, a company called PayFlex was awarded the contract.  The benefits of this new program include:

• Faster reimbursement – Once claims are approved, funds can be deposited in your personal bank account the next day.  No more waiting until pay day.
• Faster claims submission – Claims may be submitted electronically online, fax, or through a mobile application on your smart phone.
• PayFlex debit card – A debit card will be provided to allow point of sale purchases without submitting a claim.
• Online planning tools - These include savings calculators that will assist you in determining the amounts to contribute to your plan and the estimated tax savings.
• HealthHub.com – You no longer have to wait until pay day to see account balances, claim history, or amounts deducted from your pay.  All of this information is available in real time from the PayFlex website called “HealthHub.”  You create your own account and you will also receive access to listings of eligible items and other educational materials.
• HealthHub Mobile app - You can access your account information and file claims through an app that can be downloaded to your smart phone.

 What is a Flexible Spending Account?

If you paid for any out-of-pocket medical and dependent care expenses this year and are not currently enrolled in the University’s Flexible Spending Account plan, you are paying more in taxes than you would have if you were enrolled in the program.  A flexible spending account allows you to take money from your compensation and place it into accounts for medical and dependent care expenses.  These funds are not taxed, thereby potentially saving you hundreds of dollars.  The money put aside in the account is then used by you to pay eligible medical and dependent care expenses.  These payments can be made via the debit card provided or you can make the payments and request reimbursement from the funds in your account.

How Do I Enroll?

The enrollment period for the new Flexible Benefits Program will be from October 1 to November 1, 2012.  Enrollment will be online at www.healthhub.com.  Information will be sent to your office address on how to enroll and will also be provided on the flexiblebenefits.tennessee.edu website once it is available. View a tutorial on PayFlex.

Employees participating in the Partnership PPO and the Standard PPO may get a free flu shot and/or pneumococcal vaccine by either: presenting your Caremark care at a participating network pharmacy or presenting your health insurance card (Blue Cross/Blue Shield or CIGNA) at your in-network doctor’s office. Read MORE….

For Your Benefit is a newsletter addressing the benefits offered to you as a UT employee. This newsletter provides an opportunity to communicate information and issues that directly affect you. You will receive this newsletter twice a year. Because of the important nature of the content, it is being mailed to your home address. View the Spring newsletter.