Faculty Benefits Special Session Meeting Minutes
January 15, 2008, 9:30 – 10:30 AM
Present: Bettina Cothran, Blair Funderburk, Clint Demetriou, Barbara Henry, Matthew McDowell, Teresa Snow
Absent: Dale Atkins, Chuck Donbaugh, Barry Sharp, Lee Montana;
Bettina Cothran pointed out that with respect to change in 403B Vendors, it is important for the committee to understand the specific role it will serve in the decision to restructure current GT 403B options.
Clint Demetriou updated committee on 403B plans.
o Restructuring will take place over the next year so that by January 2009, GT can ensure compliance with IRS regulations. Decision does not have to be immediate, but needs to be made in the coming months.
o Currently, GT has seventeen 403B vendors. Of those, five are “active” (allow new GT employees in). Others serve only employees currently enrolled in plan.
o Beginning in Jan 2009, GT must maintain compliance on all plans. With seventeen vendors, this would be unwieldy. It is also a cost factor, as GT may need to hire additional staff, or outside administrators, to help monitor compliance.
o To begin the process, the following was proposed:
§ Hire Jay Schmidt (independent consultant) to help advise and assist with transition
§ Select an advisory group (individuals with strong administrative and financial backgrounds) to oversee change
o Transition would consist of three phases.
§ Phase I—request vendor information and interact with active vendors to see what they propose. Summarize results and present recommendations in February. Following advisory committee approval, plan would be made public for examination and final approval.
§ Phase II—contract negotiation with vendor(s) and communication with employees
§ Phase III—reprocess and implement plan. Target date for implementation is August.
o Committee agreed that this seemed like a reasonable plan.
o Bettina Cothran pointed out that a likely advantage of the restructuring would be to have financial advisors dedicated to help employees decide maximizing of benefits.
o Barbara Henry stated that once a plan is in place, it will be very important for employees to understand costs of changing plans and receive help to determine what the best choice is for them, given their unique situation.
o Blair Funderburk agreed education is essential. Current employees would feel much more comfortable with the change if they understand the potential benefits associated with restructuring.
o Action Item –Committee will continue to be updated on process as new developments occur.
· Tuesday, January 22 – Procurement Office Admin. Conference Room
· Tuesday, February 19 – OHR Conference Room
· Tuesday, April 1 – Procurement Office Admin. Conference Room
· Tuesday, April 22 – OHR Conference Room