May 12, 2000

On the benefits of working at Loyola

_Most faculty and staff would agree that there are many advantages and intangible benefits to working at Loyola. Among these are the opportunity to contribute to the educational development of students, support received from colleagues, and the satisfaction of watching hard work result in a university with a growing national reputation. But as full-time employees, faculty and staff can enjoy tangible benefits as well.

These benefits are provided by the university to help make working life a little more comfortable and safe and to provide employees with a peace of mind. Benefits are not mandated or required by law. And while most employers make basic benefits available, they do little to ensure that those programs are acceptable or affordable to their employees.

At Loyola, faculty and staff have a voice through representation on the Fringe Benefits Committee. This committee is responsible for reviewing existing benefits, recommending new ideas, and making recommendations that reflect the needs and wants of the Loyola community.

Outlined below is a description of the tangible benefits available to Loyola employees. Loyola's benefit package includes a generous and stable retirement plan, supplemental retirement annuity, life insurance and accidental death and dismemberment, long term disability, health insurance, dental insurance, paid leaves, flexible spending accounts, holidays, and more

Investing for Retirement

Loyola's retirement plan is a defined contribution plan, which means there are specific percentages that are contributed to the retirement account for each individual enrolled and participating in the retirement plan. Loyola's retirement plan participants contribute 3.5 percent of their gross earnings to their retirement plan account on a pretaxed basis and the university contributes 8 percent, more than doubling the amount each employee contributes.

Once an individual enters the retirement plan, the individual is considered to be 100 percent vested which means all of the money that goes into the retirement plan is theirs, even if he/she leaves the university after a short period of employment. All of the monies going into the plan and the earnings that are generated are tax deferred until the money is withdrawn from the plan. Each individual decides where the money is invested within the options that the plan provides through TIAA/CREF.

The university also provides Supplemental Retirement Annuity (SRA) plans that complement the regular retirement plan by allowing individuals to make additional pretax contributions to a 403(b) SRA. Currently, there are four SRA companies available to Loyola employees, Fidelity Investments, VALIC, American Century, and TIAA-CREF.

Life Insurance and Accidental Death and Dismemberment

The university provides the option for individuals to enroll in life insurance coverage equating to two times their annual salary and will pay 56 percent of the life insurance premium cost. The university pays 100 percent of the premium cost of the Accidental Death and Dismemberment coverage for the life insurance participants.

Long Term Disability

Long term disability insurance is provided free of cost to all full-time faculty and staff. This coverage is automatic and begins the 1^st of the month immediately after an individual is hired. The coverage provides a benefit equal to 60 percent of the disabled individual's base monthly salary up to a maximum monthly benefit of $10,000. The benefit payments begin after a 90-calendar day elimination period starting from the first day of disability. The benefit continues until the individual is no longer disabled or to age 65, unless disability began at age 65 then benefits may go up to age 70.

Health Insurance

The university offers an excellent selection of health coverage provided by two different carriers. The plans are similar HMO/POS plans that collectively offer a broad panel of providers. The university pays more than 94 percent of the premium cost for single coverage and on average 73 percent of the premium cost for dependent/family coverage.

Dental Insurance

The university provides an optional dental insurance policy in which employees pay the premium cost for coverage. The plan provides two preventive examinations and cleanings per year at 100 percent of the reasonable and customary charges for these services. Both simple and complex restorations are covered as well as orthodontics. There is a $50 annual deductible on these services and then the plan will reimburse up to $1,500 per year, per covered participant.

Maternity Benefit

Paid maternity leave is provided for the delivery and birth of a child. The university provides up to eight continuous weeks of paid maternity leave for full-time female employees who have completed 90 days of active work before the birth of a child. An additional four weeks without pay also may be requested.

Paternity Leave

Paternity leave is available for fathers who have completed one year of service with Loyola. Leave may be granted for five consecutive work days with pay, but leave time must fall within the first four weeks of the birth.

Tuition Waiver

As an educational institution, Loyola University offers its employees a tax-free benefit that is generally not available from other employers. The university provides free tuition for its employees and members of their immediate family for education below the graduate level. The undergraduate tuition will not be included in the gross income of the employee. The university also offers graduate-level tuition remission. However, IRS regulations state that this is a taxable benefit; therefore, the graduate level tuition amount of reduction will be included in the gross income of the employee.

The university also participates in a Faculty and Staff Children Exchange Program (FACHEX) which is through the Conference of Association of Jesuit Colleges and Universities. This is an undergraduate tuition remission program for eligible dependent children of full-time employees of the participating Jesuit institutions. It permits children eligible for tuition reduction at the home institution to receive the same benefit from the other participating Jesuit schools.

Flexible Spending Accounts

Flexible Spending Accounts (FSA) allow employees to pay certain eligible health care and dependent care expenses with tax-free money. Each calendar year employees are allowed to put money into one or both of the FSAs through pre-tax payroll deductions. Then, throughout the calendar year, this money can be withdrawn, tax-free, to reimburse eligible out-of-pocket expenses incurred before December 31 of the same year. This benefit allows employees to pay for expenses with tax-free money set aside in an FSA account.

The value of benefits

Many faculty and staff do not realize the monetary value of Loyola's benefit package. Basic benefits add up to 28 percent of each employee's salary over the actual base salary. For example, the benefits package makes a $25,000 salary actually worth $32,000. It paysthrough tangible and intangible benefitsto work at Loyola.