Let’s Fix Flex Benefits Together!
It’s now or never. FRIC is meeting on 11/13 to decide on their recommendations. There are two options:
1. The 2011 FRIC proposal
2. The Spencer plan
There’s no more room for new ideas.
If you have a preference for one of these two plans, speak up by Wednesday.
WHAT ARE YOU WAITING FOR?
Then pass this email on to a friend. We have one week to be vocal.
John
The Funded Retirement Insurance Committee (FRIC) has scheduled four
meetings in September and October. The primary purpose of these
meetings is to compare, contrast, and discuss two alternative
proposals for the future of health care at UI.
The first proposal is the FRIC 2008 proposal.
The second proposal is the Spencer 2008 proposal.
As the country debates the future of health care, I encourage you to
do your part locally. ATTEND THE UP-COMING FRIC MEETINGS and EMAIL
YOUR VIEWS on these two proposals to your FRIC representatives.
IT IS TIME TO RE-ENGAGE IN THIS ISSUE. THE FUTURE OF OUR FLEXIBLE
BENEFITS SYSTEM IS AT STAKE.
The meetings will be held at the following dates/times:
9/11 11:30-1pm USB 302
9/18 11:30-1pm USB 302
10/2 11:30-1pm USB 302
10/23 11:30-1pm USB 302
Dear President Mason,
I am writing today to make two requests:
1. That you ask Richard Saunders to circulate the following information to members of FRIC prior to their May 1st meeting: (a) the cost of the current benefits plan projected out 5 years, (b) the cost of the FRIC 2011 plan projected out 5 years, and (c) the cost of the so-called “Spencer Plan” projected out 5 years. This information was requested by FRIC on 2/6/09.
2. That you ask the co-chairs of FRIC to place a discussion of the FRIC 2011 Plan vs. the Spencer Plan at the top of their May agenda.
I am writing you directly about this because I believe that UI could save over $600K by implementing the benefits plan I have proposed in January, 2010. Although such a move would require coordinated action over the coming months, these are dire times that demand open-minded and rational decision making coupled with swift action.
If FRIC were to move forward with my plan, I believe the UI community would embrace this effort because (a) UI would save money, (b) it would show that FRIC was receptive to feedback stemming from the summer of 2008, and (c) my plan represents a strong compromise between the current benefits system and the FRIC 2011 proposal.
In this context, let me note that the Spencer Plan has been endorsed by the Family Issues Charter Committee. Let me also note that implementation of my plan would be straightforward since it is a modification of the existing benefits system.
Although there is the possibility for savings in the next fiscal year, nothing can happen without full consideration by FRIC. The Spencer Plan has received roughly 20 minutes of discussion since November 7, 2008 when I delivered a formal presentation to FRIC, and it has repeatedly been near the bottom of the FRIC agenda.
I am well aware that HR and FRIC are busy right now. I am well aware that we are facing an economic crisis. But I would expect that a plan that could save UI over $600K next year would merit discussion when people’s jobs and family security are on the line.
Let me also note that conducting 5-year projections for the Spencer Plan should be straightforward. My plan is a modification of the current flex benefits system; thus, making these projections should simply require modifying the parameters of the existing economic forecast models used when HR made projections last year.
Finally, I want to emphasize that I am not trying to force FRIC to adopt the Spencer Plan. I simply want FRIC to engage in a thoughtful discussion of my plan at the May meeting guided by the projections that they themselves requested.
Thank you for your consideration. I wish you well during these trying times. You are doing an excellent job holding this community together right now. Keep up the good work.
Sincerely,
John Spencer
As you know, in July, 2008, President Mason delayed implementation of the FRIC recommendations. This was a major victory for the FixFlex community. The final statement in President Mason’s email, however, laid out the challenges for the future. She stated:
“On January 1, 2011, [UI will] implement the May 2008 FRIC recommendations. The University of Iowa administration may modify these recommendations if financial circumstances warrant or if the University governance process produces additional modifications that improve upon the 2008 FRIC recommendations while still achieving the goals of financial sustainability and competitive fringe benefits.”
Since August, 2008, John Spencer has been in touch with members of FRIC, encouraging them to be open to new ideas regarding the future of the Flex System. They have been receptive, and have been working hard to consider suggestions from FixFlex, suggestions they received in 2008 via the HR website, as well as suggestions from other charter committees on campus.
In November, 2008, John Spencer made a presentation to FRIC outlining a new benefits plan which has been dubbed “The Spencer Plan”. A copy of this presentation is available at www.FixFlex.org.
The Spencer Plan is motivated by 5 central principles: (1) to maintain the Flex System and, therefore, maintain employee choice, (2) to treat ALL employees equitably, (3) to maintain a family-friendly work environment, (4) to be financially sustainable, and (5) to protect employees from rising health-care costs.
At the February FRIC meeting, Richard Saunders presented a cost analysis of the Spencer Plan. The bottom-line: this plan saves money relative to the current Flex system, but costs 1.6 million more than the proposed FRIC plan.
John Spencer suggested that much of this 1.6 million difference could be made up by implementing the Spencer Plan in 2010 (instead of 2011). The Spencer Plan is cheaper to implement because it does not require a re-tooling of the benefits system. And given that this plan saves money relative to the current benefits system, implementation in 2010 would save UI money.
An analysis is currently underway to project three plans out for a 5-year window: the current Flex system, the proposed FRIC plan, and the Spencer plan. This analysis will be presented at the FRIC meeting on 3/6.
The Spencer presentation to FRIC listed 8 advantages of the Spencer Plan over the FRIC plan. The one disadvantage: the 1.6 million difference in cost (and, by definition, lower projected savings over time). Some of this can be overcome through cheaper implementation and greater stability during the transition. But, clearly, the FRIC plan will save more money over time. Given this, there may be strong momentum to move in this direction.
Within this context, two things are critical:
1. BOTH PLANS SAVE MONEY.
2. AS WE MAKE THE HARD ECONOMIC DECISIONS AHEAD, WE MUST HAVE MORE THAN THE BOTTOM-LINE IN MIND.
To quote Provost Loh: “A national economic crisis provides a chance to re-examine, more closely than ever, our institutional priorities. It’s a call to measure everything we do against our fundamental values.”
The Spencer Plan achieves the goals of financial sustainability and competitive fringe benefits, but keeps the fundamental values of the UI Community in focus. It achieves cost savings, but maintains choice, equity, a family-friendly environment, and greater employee satisfaction.
As you all know, these are dire economic times. This week, a group has started to examine possible ways for UI to save money by changing the benefits system (see story in the 2/18 Press Citizen available at www.FixFlex.org). One suggestion is to implement the FRIC proposal a year early, although multiple options are on the table.
In this context, IT IS NOW TIME TO RE-ENERGIZE THE FIXFLEX COMMUNITY. It is time for members of FRIC to hear from us. It is time for Faculty Senate and Staff Council to hear from us.
It is time to act.
1. Read the Spencer Plan at www.FixFlex.org and re-acquaint yourself with the issues.
2. Attend the FRIC Meetings on 3/6 and 4/3 from 11:30-1pm in Room 302 USB
3. Vote for candidates in the up-coming faculty and staff committee elections who take a stand on the benefits issue.
4. Voice your opinion by emailing members of FRIC, Faculty Senate President, and Staff Council President.
NOTE: THESE PEOPLE ARE NOT OUR ADVERSARIES, THEY ARE OUR REPRESENTATIVES!!! THEY ARE OPEN TO INPUT. THEY WANT FEEDBACK.
So tell them where you stand and why you have adopted this position.
>> Contact FRIC - Tell them your story.
FixFlex has always tried to encourage discussion and dialogue with a sense of shared purpose, and the time has come to take up this charge once again. We look forward to being a POSITIVE INFLUENCE in the coming months as challenging economic decisions are weighed and made. We can weather this storm, but we MUST do this while maintaining our commitment to one another and to the future of this great university.
Sincerely, John Spencer
On July 29, 2008, President Mason announced that she will delay implementation of all major changes to the UI flexible benefits system until January 1, 2011. FixFlex would like to thank President Mason for her leadership on this issue, and for listening to all members of the UI community over the past three months.
Although this is VERY welcome news, the work of our grassroots community is not done. FixFlex and its members will work over the coming years to ensure that FRIC, Faculty Senate, and Staff Council work toward a more equitable solution to the problems facing the UI benefits system.
President Mason has opened up a two year window where respectful and thoughtful dialogue can ensue among members of the UI community, our faculty and staff representatives, and the UI central administration. The members of FixFlex look forward to contributing to this dialogue as we work to Fix Flex together.
FixFlex is a grassroots movement that emerged on May 17, 2008 in reaction to proposed changes to the Flex Benefits system at the UI by the Funded Retirement and Insurance Committee (FRIC).
In our view, the proposed changes are ANTI-FAMILY.
1. FREEZE the FRIC proposal that places such a heavy burden on families with young children;
2. Encourage the central administration to FRAME the benefits discussion in a context that clearly communicates the FRIC proposal and the financial challenges facing our University;
3. Work with the central administration to FIX the benefits system together using the greatest strength of our fine institution-its people.
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