Download HR Forum: Connecting HR… Serving the Duke Community

HR Forum:
Connecting HR…
Serving the Duke Community
August 9
9 a.m. – 10:30 a.m.
Medical Center Board Room
Agenda
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9.11 Memorial Events
Simplified 403(b) Investment Options
2011 State of Health Care
Policy Updates
Employee Kick-off
Run/Walk Club
Transit Changes
HR Staff Updates
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HR Forum
REMEMBERING 9.11
Campus Events on Sept. 11
University Worship Service
11 a.m. Duke Chapel
“Rebirth” Film Screening
1 and 3 p.m., Nasher Museum of Art Lecture Hall
Full Frame Documentary Film Festival
10th Anniversary Memorial Concert – Mozart Requiem
4 p.m., Duke Chapel
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Other Events
Now-through Oct. 16: “The Life of Memorials,” Perkins Gallery exhibition
Sept. 7: Flesh and Metal, Bodies and Buildings – Works by Jonathan Hyman, 5:30 p.m., Perkins
Library
Sept. 8: “The Lives of Veterans Since 9-11,” Office Hours with Bruce Kuniholm and son
Jonathan, Noon, Duke’s Ustream Channel
“Esse Quam Videre: Muslim-American Self-Portraits,” 4:45 p.m. Rubinstein Hall; Fleishman
Commons
Sept. 8, 9, 12: Ten Years Later: Reflecting on 9-11; Conference at Duke/UNC/NC State,
Symposium: Did 9-11 Change Everything? Anything,” On Duke’s campus 9-5 p.m., Sept. 9, Bryan
Center
Sept. 10: Reflections on 9-11: Concert with Karen Walwyn, 8 p.m., Nelson Music Room
Sept. 15: Muslims in America: The Next Ten Years, Religion Newswriters conference, Bryan
Center
Oct. 4: O’ Say Can You See, Exhibit through Oct. 22, 6-9 p.m. Center for Documentary Studies
Oct. 24-Dec. 11: Iraq | Perspectives, Photographs by Benjamin Lowy, 5:30 p.m. Nov. 10, CDS
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HR Forum
MAKING YOUR INVESTMENT
CHOICES EASIER
Making Your Investment
Choices Easier
• What’s changing:
– Simplified Enhanced Investment Line Up
– Lower Fees
– Ongoing Evaluation by Investment Advisory
Committee
• Effective September 1, 2011
• Applies to both 403(b) Plans
– The Faculty and Staff Plan
– The Savings for Retirement Plan
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What’s Changing
• Duke has formed an Investment Advisory
Committee (IAC) to ensure that you have access
to high quality investment options at the lowest
reasonable cost.
• The IAC has chosen a group of funds that will be
regularly monitored to ensure they remain
appropriate investment options for the
retirement plans.
• To make it easier to navigate your choices,
investments will be grouped into three tiers.
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What’s Changing
Tier 1
• Asset Allocation Funds for a ready made portfolio.
Tier 2
• Core Line Up include investment options from the three major asset
classes that have been carefully reviewed and selected by Duke’s
Investment Advisory Committee as best in class options.
• Chosen based on their suitability for inclusion in a customized retirement
portfolio.
Tier 3
• All other funds that were offered by the retirement plan vendor.
• Not monitored by the IAC.
• For experienced investors
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Asset Allocation Fund (Tier 1)
• The Asset Allocation Funds offer a way to make a
single choice for your retirement needs based on
your expected years to retirement.
– The Balanced Fund offers a fixed exposure to stocks and bonds
– The Target Funds include a diversified mix of stocks, bonds and
short-term instruments that changes automatically over time
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Core Funds (Tier II)
• These funds represent the
primary asset classes and have
been chosen based on their
suitability for inclusion in a
customized retirement portfolio.
• This option may be good if you
are more comfortable
diversifying your own
investments.
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Other Funds (Tier 3)
• Other Funds include all investment options
available through Duke’s retirement plan that
are not already listed under Tier 1 or Tier 2.
• These funds will not be monitored regularly
by the IAC, so you will be responsible for
monitoring the holdings and performance of
these funds to ensure they remain in line
with your investment strategy.
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Tier 1 - Asset Allocation Funds for a
ready-made portfolio
Target Date Funds: Vanguard Target Retirement
Your current age
or
Years to
Retirement
Target Fund
69+
64-68
59-63
54-58
49-53
44-48
39-43
34-38
29-33
24-28
18-23
In Retirement
About
4
About
9
About
14
About
19
About
24
About
29
About
34
About
39
About
45
About
47
Income
2010
2015
2020
2025
2030
2035
2040
2045
2050
2055
Balanced Fund: Vanguard Wellington
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Tier 2 - Core Funds — to build
your own portfolio
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Tier 3 - Other Funds: for the
experienced investor
• Other Funds include all investment options
available through Duke’s retirement plan that
are not already listed under Tier 1 or Tier 2.
• These funds will not be monitored regularly
by the IAC, so you will be responsible for
monitoring the holdings and performance of
these funds to ensure they remain in line
with your investment strategy.
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Tier 1 - Asset Allocation Funds for a
ready-made portfolio
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Your current age
or
Years to
Retirement
78+
73-77
68-72
63-67
58-62
53-57
48-52
43-47
38-42
33-37
28-32
Currently in
Retirement
Currently in
Retirement
Currently in
Retirement
About
1
About
4
About
9
About
14
About
19
About
24
About
29
About
34
Up to
27
About
45
Target Fund
Income
2000
2005
2010
2015
2020
2025
2030
2035
2040
2045
2050
Tier 2 - Core Funds — to build
your own portfolio
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Tier 3 - Other Funds for the
experienced investor
• Other Funds include all investment options
available through Duke’s retirement plan that
are not already listed under Tier 1 or Tier 2.
• These funds will not be monitored regularly
by the IAC, so you will be responsible for
monitoring the holdings and performance of
these funds to ensure they remain in line
with your investment strategy.
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Tier 1 - Asset Allocation Funds for a
ready-made portfolio
Target Date Funds: T. Rowe Price Retirement Funds
Your current age
or
Years to
Retirement
69+
59-68
49-58
39-48
Up to 38
Currently in
Retirement
About
1
About
9
About
19
About
29
Target Fund
Income
2010
2020
2030
2040
Balanced Fund: John Hancock Balanced
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Tier 2 - Core Funds — to build
your own portfolio
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Tier 3 - Other Funds for the
experienced investor
• Other Funds include all investment options
available through Duke’s retirement plan that
are not already listed under Tier 1 or Tier 2.
• These funds will not be monitored regularly
by the IAC, so you will be responsible for
monitoring the holdings and performance of
these funds to ensure they remain in line
with your investment strategy.
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Tier 1 - Asset Allocation Funds for a
ready-made portfolio
Target Date Funds: TIAA-CREF Lifecycle Retirement Funds
Your current age
or
Years to
Retirement
69+
64-68
59-63
54-58
49-53
44-48
39-43
34-38
29-33
Up to 27
Currently in
Retirement
About
1
About
4
About
9
About
14
About
19
About
24
About
29
About
34
About
39
Target Fund
Income
2010
2015
2020
2025
2030
2035
2040
2045
2050
Balanced Fund: CREF Social Choice
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Tier 2 - Core Funds — to build
your own portfolio
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Tier 3 - Other Funds for the
experienced investor
• Other Funds include all investment options
available through Duke’s retirement plan that
are not already listed under Tier 1 or Tier 2.
• These funds will not be monitored regularly
by the IAC, so you will be responsible for
monitoring the holdings and performance of
these funds to ensure they remain in line
with your investment strategy.
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Tier 1 - Asset Allocation Funds for a
ready-made portfolio
Target Date Funds: T. Rowe Price Retirement Funds
Your current age
or
Years to
Retirement
74+
69-73
64-68
59-63
54-58
49-53
44-48
39-43
34-38
29-33
24-29
Currently in
Retirement
Currently in
Retirement
About
1
About
4
About
9
About
14
About
19
About
24
About
29
About
34
About
39
Up to
23
About
45
Target Fund
Income
2005
2010
2015
2020
2025
2030
2035
2040
2045
2050
2055
Balanced Fund: Columbia Balanced
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Tier 2 - Core Funds — to build
your own portfolio
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Tier 3 - Other Funds for the
experienced investor
• Other Funds include all investment options
available through Duke’s retirement plan that
are not already listed under Tier 1 or Tier 2.
• These funds will not be monitored regularly
by the IAC, so you will be responsible for
monitoring the holdings and performance of
these funds to ensure they remain in line
with your investment strategy.
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What does this mean
for plan and participants?
Investment Option Expenses by Vendor
Current
Lineup
Core
Lineup *
DWS
0.90%
0.58%
$
24,397,454
$
78,072
Fidelity
0.66%
0.58%
$
868,125,889
$
694,501
TIAA-CREF
0.51%
0.51%
$
990,339,812
$
VALIC
1.27%
0.81%
$
516,889,303
$
Vanguard
0.32%
0.32%
$
373,767,479
$
$ 2,773,519,937
$
Vendor
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Assets (as of
12/31/2009)
Estimated Annual
Savings
2,377,691
3,150,263
Default Investment Option
• Where do your contributions go if you
do not choose a retirement plan vendor?
– Vanguard
– Target Retirement Fund closest to your 65th birthday.
• Where do your contributions go if you select a
retirement plan vendor but do not select
investment funds/investment options?
– Target Retirement Fund closest to your 65th birthday.
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Learning More About Retirement
Options at Duke
• Annual Personal Benefits Statement
• Log on to Retirement Manager at:
www.hr.duke.edu/benefits/retirement/manager
• Sign up for free Retirement Planning Workshops, offered
monthly.
www.hr.duke.edu/benefits/retirement/finplan/seminar
• Attend Duke’s annual Financial Fitness Week
• One-on-one meeting with a representative from any of
the five retirement plan vendors.
• Quarterly statement from your retirement plan vendor.
• Review “Retirement Planning Guide” on the Duke Human
Resources website.
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Enrolling in the 403(b) Plan
• Set up your payroll deduction and your
vendor allocation
• ONLINE – Duke’s Retirement Manager System
(https://www.myretirementmanager.com?duke )
• PAPER – download forms at
http://www.hr.duke.edu/forms
• Complete the investment vendor enrollment
application (http://www.hr.duke.edu/forms)
• Send all forms to HR by mail or fax
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To Do List …
• Review your personal
retirement information
• Meet with your preferred
retirement plan vendor
• Review your retirement
investment choices for
diversification
• Consider increasing your
contribution.
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Information Being Mailed Home
• The information being mailed to all
employees includes:
– Fund information from all 5 vendors
– Default investment options
– How to learn more about
retirement options at Duke
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HR Forum
2011 STATE OF HEALTH CARE
The cost of health care
• Duke is self insured, which means our costs are
directly related to cost of care for those we
cover.
• Health plans currently cover 59,607 individuals,
including employees, spouses and children.
• That represents nearly 2,094 more people than
last year.
• Average cost of health care per employee last
year was $6,650, most of which was covered by
Duke.
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Cost of Health Care at Duke
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Health costs continue to rise
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Balancing increasing costs
• Duke contributes about 25
cents in additional benefits for
every dollar an employee
earns.
• Duke invested an additional
$34 million in 2010 just to
maintain its benefits.
• Duke continues to pay 82% of
an individual employee’s
medical insurance premium.
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Health Plan Participation Growth
65,000
2007
2008
2009
2010
2011
2012 (projected)
63,000
61,000
59,000
57,000
55,000
53,000
51,000
49,000
47,000
45,000
Jan
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Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Medical Expenses Breakdown
Mental Health/
Substance Abuse
2%
Pharmacy
24%
Administrative
8%
Medical
Expenses (Prof.,
Technical,
Facilities)
66%
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Health Plan Participation by Plan
Duke Plus
(retirees)
11%
Duke Options
9%
Blue Care
14%
Duke Select
57%
Duke Basic
9%
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Participation by Coverage Type
17,496
18,000
16,000
14,000
12,000
10,000
8,000
5,223
6,000
3,015
4,000
3,852
2,279
2,000
0
Individual
Individual + Child
Individual +
Children
Individual +
Spouse/SSSE
Family
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Increasing Use of Generic Drugs
• Use of generic drugs rose
to 79.2% in first quarter of
2011, compared to 74.6%
last year.
• Rise in generic use saves
faculty and staff co-pays at
the pharmacy
• Projected to save at least
$2.3 million this year
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HR Forum
POLICY UPDATES
Changes Effective Aug. 15, 2011
DIVERSITY & INSTITUTIONAL EQUITY
Harassment & Discrimination: Additional details have been to
the policy to be consistent with the language from the Office of
Institutional Equity, which maintains the policy.
WORKPLACE EXPECTATIONS & GUIDELINES
Protected Health Information and Patient Privacy: This new
policy expands upon the Confidentiality policy and provides
specific details regarding the management of protected health
information and patient privacy, including definitions, reporting
responsibilities, process and corrective action.
Confidentiality: Language has been updated to reflect the
addition of the Protected Health Information and Patient Privacy
policy.
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HR Forum
EMPLOYEE KICK-OFF CELEBRATION
Game-Day Parking
• Parking is free only for Duke employees
with valid 2012 or 2013 Duke parking
permit. Otherwise, parking costs $10
(cash only).
• Employees are encouraged to park in offsite lots (H Lots and PG-I) and use shuttle
service
• Additional public parking will be available
in the Chemistry and Circuit Drive lots,
(no shuttle service).
• General public parking for persons with
disabilities will be located in the B-2, B-4
and B-7 portions of the Blue Zone.
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Shuttle Service
• Shuttles will run from 4 p.m. to
10:30 p.m. (or until one hour after
the game) every 15 to 20 minutes,
depending on traffic flow.
• Shuttles will travel between
the H Lot and PG-I to the
Chapel Drive circle, in front
of Duke Chapel.
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Shuttle Service
Fan
Zone
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Shuttle pick-up/drop-off locations:
• Flowers Drive/Yearby Avenue
• Flowers Drive/Trent Drive
• Chapel Drive Circle (in front of
Duke Chapel)
Reminders
• Bring Duke ID to pick up
tickets
• Wear Duke Blue shirt
• Fan Zone opens at 4 p.m.
• Team Walk through Fan Zone at 4:30 p.m.
• Game starts at 7 p.m.
• Fireworks at halftime
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Employee Appreciation Contest
• As a way of thanking faculty and staff for
their support, Duke Athletics is conducting an
Employee Appreciation contest.
• Anyone who signs up to stay informed about
special updates and ticket offers during the
year will be entered into a drawing for two
tickets to a Duke men's ACC basketball home
game, football tickets and more.
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Test Your Duke Football IQ, Win Prizes
• As part of the football season spirit, Duke
employees are invited to participate in a
Duke football trivia contest.
• Five trivia participants will be
randomly drawn to receive
prizes, which include (clean)
game-worn jerseys, and a mini
football autographed by
Cutcliffe.
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Get In the Game
SCORE!!
Are we
winning?
Go Duke!
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HR Forum
RUN/WALK CLUB
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Download this poster at
www.hr.duke.edu/runwalk
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HR Forum
TRANSIT CHANGES
Transit Changes Effective Aug 22
• Extending the H-5 route to include Hock Plaza, Lenox Baker
Children’s Hospital, the Duke Center for Living and Dialysis Center.
– The extended route will run M-F, every 15 minutes from 7:15 a.m. to
6:12 p.m.
• The LaSalle Loop, which runs from Duke Clinics to Sprunt Avenue
extended for an extra two hours and run from 7 a.m. to 1 a.m.
Monday to Friday.
• The C-5 route that runs from West Campus to Brightleaf Square will
be discontinued.
– GoPass and Bull City Connector provide downtown access.
• The Robertson Scholars Express Bus will maintain its normal
schedule but use a van on Saturday and Sunday.
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Transit Changes Beginning Sept 19
To reduce congestion in the Duke Hospital circle:
• H-1, H-3, H-5, and H-6 routes will no longer drop off
passengers in the Duke Hospital traffic circle
• Instead, additional stops will be made:
– H-1 will drop off passengers on both sides of Fulton Street.
– H-3 will stop at the Fulton Street and Erwin Road
intersection.
– H-5 will stop on both sides of Erwin Road near Duke
Hospital.
– H-6 will stop at the Fulton Street and Erwin Road
intersection.
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HR Forum
HUMAN RESOURCE STAFF UPDATES
Reminders
• “Check Yourself” campaign
begins Aug. 29
• GoPass – free bus pass
for area public transit
Staffing Changes
• Matt Marchione – Chief HR Officer for Duke Health Technology
Solutions (DHTS)
• Cindy Armstrong – Manager of Compensation Strategies. Cindy will
continue to support the implementation of RACI² initiatives across
the University and Medical School.
• Richard Holcomb – Manager of Compensation Strategies. Richard
will remain responsible for specific analytical projects and services
including the supervision of an HR Data Analyst.
• Leigh Fickling, JD, Director, Student Disability Access Office, will
serve as Interim Director for DMS.
– Mary Thomas, Director of Disability Management System (DMS), has
accepted a newly created position at Harvard University.
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HR Forum
THANKS FOR COMING
Please sign an attendance sheet