MEMORANDUM

TO: Faculty and SPS Employees on Academic Year Contracts

FROM: Steve Cunningham
Associate Vice President
Administration and Human Resource Services

DATE: May 9, 2008

RE: Insurance Benefits During Academic Break

Human Resource Services would like to remind employees of recent policy changes instituted by Central Management Services (CMS). These changes will effect those employees who have elected not to utilize the 9/12 payment option. Effective May 1, 2007, full-time employees may no longer waive coverage while on Academic Break. Additionally, CMS will no longer terminate coverage for non-payment of premiums. While on direct billing from CMS, premium payments must be received by the due date indicated on the statement. CMS has indicated that failure to submit timely payments may result in other premium collection measures including involuntary withholding.

We would also like to remind employees that being off payroll during the upcoming academic break constitutes a qualifying event and allows certain optional changes to be made to insurance benefits. For example, the following changes (although not a comprehensive list) can be made if requested prior to or within 60 days after the start of your academic break:

Drop dependent coverage (re-enrollment of dependent coverage is NOT automatic upon return to work)
Reduce or drop optional life insurance coverage (a statement of health will be required to re-enroll in optional life)
Opt Out of Health, Dental, Vision coverage (for full-time employees who have other comprehensive coverage)

Note that insurance recertification procedures may apply should optional benefits be discontinued. If you would like to make changes as a result of your qualifying event, please contact the Insurance and Employee Benefits Office at 753-6000. Please note, the effective date of the change will be the date the form is received in Human Resource Services or the date the employee is off payroll, whichever is later.

Details regarding benefit options, payment of direct billed insurance premiums, and the required form to request benefit changes can be found on the Human Resource Service (HRS) website at http://www.hr.niu.edu. When visiting the HRS Web site, please reference the news article ‘Faculty and SPS Employees on Academic Year Contracts’ in the HRS News section of the home page. This article will link you to the following three documents:

Benefits Billing Frequently Asked Questions
CMS Qualifying Event Change Form
CMS Group Insurance Change Form

Employees who cannot access this information on the Internet may obtain a copy of this information by visiting the Insurance and Employee Benefits Office or contacting Liz Guess at (815) 753-6000 or eguess@niu.edu.