B. Fringe Benefits
Salaries and Benefits
The following is an unofficial summary of the fringe benefits available to salaried employees at Knox College. The College reserves the right to amend or discontinue any of these benefits at any time. Full details of the insurance and retirement programs are provided in separate plan documents, available from the Director of Personnel. Knox College extends full benefits to both same and opposite sex domestic partners of its employees.
IV. B. 1. Retirement Program with TIAA-CREF
This program provides benefits eligible employees with the option to invest their retirement funds in TIAA-CREF, which offers numerous investment options. The College contributes 3% of basic annual salary. Regular employee contribution is 5% of annual salary. The total contributions (College and employee) are immediately vested.
Employees may enter into a tax-deferred annuity agreement with the College that is within the limits of Sections 403(b) and 415 of the Internal Revenue Code. Under this arrangement the employee may make contributions to TIAA-CREF on a before-tax basis, thereby lowering current taxable income.
Waiting period: two years and attainment of age 21; mandatory after 6 years and attainment of age 35.
IV. B. 2. Social Security/Medicare Tax
College employees are covered by the Social Security/Medicare Tax. For 2004, the contribution rate is 6.2% of the first $87,900 of earnings for Social Security tax, 1.45% on all earnings for Medicare tax. The employee contribution is matched by an equal contribution from the College. The base amount and the percentage rate are subject to revision by law annually.
IV. B. 3. Life Insurance
The College provides group life insurance for all benefits eligible employees. The amount of insurance is 250% of the basic annual salary with a $100,000 maximum. Accidental death and dismemberment benefits are provided. Spouses/partners and dependent children are covered for dependent life benefits: $2,000 for spouse/partner and each child age birth to 19 years or 24 years if a full-time student. Employees who were hired prior to January 1, 1992 and who retire after age 55 with ten years of service may continue coverage for themselves and their spouses/partners. The amount of insurance for eligible retirees is $5,000 and for spouses/partners of retirees it is $2,000.
The College pays the entire cost of the life insurance for employees, dependents and retirees. Waiting period: none.
IV. B. 4. Medical Insurance
The College offers a self-funded group health insurance plan that is administered by Benefit Administrative Systems. This plan is available to all benefits eligible employees. It is a major medical plan with a $750 deductible and 90% co-pay for in-network medical expenses and 70% co-pay for out-of-network expenses. Benefits include dental and vision, as well as a prescription drug card.
The cost of the health insurance is paid 73% by the College and 27% by the employee. There is no waiting period.
Employees who were hired prior to January 1, 1992, and who retire after age 55 with ten years of service may continue coverage for themselves and their spouses/partners. Coverage becomes a supplement to Medicare for qualified retired persons at age 65. The cost of retiree insurance is paid 50% by the College and 50% by the retiree.
IV. B. 5. Disability Insurance
The College offers group long-term total disability insurance through Standard Insurance. In case of permanent disability, after six months, this insurance provides income (including Social Security benefits) equal to 60% of the employee’s monthly salary with a maximum monthly benefit of $5,000. This insurance also continues to make all contributions, until normal retirement date, into the retirement plan at the rate prevailing when the employee became disabled.
Employees pay 1/4 of 1% of salary and the College pays the balance. Waiting period: two years of service.
IV. B. 6. Flexible Benefit Plan
Under Section 125 of the Internal Revenue Code, benefits eligible employees are allowed to pay for certain expenses with “before-tax” dollars. This means employees do not pay federal and state income tax or social security tax on dollars deducted from their pay for the Flexible Benefit Plan.
There are three options offered under the FBP. Employees may elect to participate in any one or all three options.
Option 1: Insurance Premiums may be tax sheltered. Employees must elect or decline this option.
Option 2: Medical Expense Reimbursement allows employees to set aside up to $5,000 per year to pay for medical, dental, and vision expenses on a “before-tax” basis. The amount elected is deposited into a personal account and reimbursement is made from that account for expenses that are not covered by insurance.
Option 3: Child Care Reimbursement allows employees who pay for child care while they work to have the cost of that care deducted from their pay on a “before-tax” basis. The dollars are deposited in an account and reimbursed upon request after the expense is incurred.
IV. B. 7. Unemployment Compensation
The College pays unemployment compensation for former employees under certain conditions regulated by state statutes. The entire cost of this program is paid by the College.
IV. B. 8. Worker’s Compensation
The College provides workers’ compensation insurance on all employees. This insurance, the details of which are established by state laws, provides for medical expenses and loss of earnings for employees who are injured on the job. All work related accidents must be reported promptly to the Personnel Office by the employee or the supervisor. The entire cost of this insurance is paid by the College.
IV. B. 9. Tuition Benefits
Eligible employees may take one course per term with tuition remission. Released time with pay is given to attend classes. Scheduled released time is subject to specific job requirements and requires supervisor approval. Spouses/partners and dependent children are eligible to receive tuition remission for attendance at Knox. Eligible employees and their dependent children who attend a college other than Knox may be awarded a grant of up to $500 per year for the tuition at the institution attended. Knox participates in the ACM tuition remission program (TREP) through which eligible children may attend any other participating ACM college under a tuition remission agreement if there are slots available and they qualify for admission. The tuition benefit at other ACM schools is not automatic. Waiting period: none
(A full description of the tuition benefits is provided in a separate document and available from the Personnel Office).
IV. B. 10. Travel Accident Insurance
All employees of the College are covered by a travel accident insurance policy while traveling on business for Knox College.
IV. B. 11. Employee Assistance Program
Employees and their family members may receive counseling for a wide range of personal problems, including marriage and family problems, alcoholism, drug abuse, financial problems, eating disorders, stress, depression, and anxiety. The EAP provides up to five hours of assessment and counseling with no cost to Knox employees. Services are completely confidential; no one at the College knows the identity of any employee who uses this program. Services are provided by Advanced Behavioral Health. A brochure on the EAP program is available from the Personnel Office. For additional information or to make an appointment, phone (309) 342-6852.
IV. B. 12. Services to Retired Faculty
Upon retirement a faculty member who held a tenured appointment retains these privileges: the use of office space and laboratory facilities when available; use of the library and recreational facilities and attendance at college-sponsored academic, social, and athletic events on the same basis as any other faculty member; attendance at faculty meetings but without vote; participation in academic ceremonies; listing in the directory section of the catalog; and, if requested, a campus mail box and a listing in the College Directory if living locally.
These benefits are in addition to specific provisions for retired faculty included in some of the fringe benefit programs of the College.