Oakton Board Book for May 2015

AGENDA ITEM 5/15-11
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There is an increase from Fiscal 2015 to Fiscal 2016, in the aggregate, of $77,277 or 11.8%.
Accounting for almost 80% of the increase are premiums for Worker’s Compensation coverage
which is increasing by $61,312 or approximately 12.5%. This is primarily due to experience but
it is also impacted by increased payroll.
The above premiums are the current projections. Any changes in premium projections will be
reflected in June 2015 Purchases.
c) Continuation of Employee Fringe Benefits: Life Insurance, Dental Insurance and Section
125 Administration – The Administration is currently working with the insurance providers to
develop the employee fringe benefit plans for FY15-16. Final updated premium information and
costs will be presented at the June 2015 Board meeting. As a reference, the following
information was approved by the Board at the June 2014 Board meeting;
The College is contractually obligated to provide life insurance and dental insurance to certain
employee groups. Gallagher Benefit Service (GBS) acts as broker to the Illinois Community
College Life Insurance Pool. This is the third year of a three year deal from Reliance Standard
Life Insurance Company to underwrite life insurance to the Pool. These guaranteed rates run
through FY 2015 and were negotiated by GBS for the Pool.
The College life insurance rate will not increase. It is estimated the College will pay $270,000
in life insurance premiums in FY 2015. Employee direct payments for optional life insurance
coverage represent about 50% of the premium. The annual premium paid by the College
includes over 750 lives and represents over $75 million in life insurance coverage.
UMR is the College’s Third Party Administrator (TPA) for its collectively bargained dental
insurance and optional Section 125 program. The College will pay UMR approximately $20,000
to process, pay and record $440,000 in annual dental claims. The College Section 125 Program
costs the College approximately $10,500 for UMR to administer. Last year, approximately 150
employees participated in this program that allows tax free dollars to be used for certain
medical and family care expenses. Health Insurance, the College’s most expensive insurance
benefit will be previewed at the November 2015 Board meeting.
d) Transportation Services for Athletic Teams - As of July 1, 2008, the College’s insurance
company no longer insured fifteen passenger vans. The College purchased twelve passenger
vans that cannot accommodate the transportation needs of several of the larger athletic teams.
For fiscal year 2014, the Administration issued a Request for Proposal (RFP) for transportation
services. The RFP covered transportation for Men’s and Women’s Soccer, Men’s and Women’s
Basketball, Women’s Volleyball, Men’s Baseball, Men’s Tennis, and Women’s Softball.