Benefits Report Finally Released

The University yesterday released the final report of its year-long review of employee benefits.

The report is the basis for significant changes in how Harvard structures benefits.

It was due in May, but administration officials have continually said since late August that the report would be published in a matter of weeks. The University is midway through the enrollment period for the 1995 health plans, some of which are affected by the changes.

The report details the process Harvard used in reviewing its benefits offerings. And, for the first time, it explains the options the task force considered and rejected.

Among other proposals, the task force considered basing "the faculty and staff share of family health premiums on family size or situation,...enter[ing] into a purchasing collective with other universities and/or hospitals [and offering] a financial incentive for faculty and staff to secure health coverage elsewhere," the report said.

In the final recommendations, the amount Harvard contributes to health insurance premiums will be pegged to a percentage of the lowest-cost health plan. Additionally, co-payments for office visits will uniformly be $10 and the University will do some pro-rating of health benefits for part-time employees.

The report describes changes to exempt staff pensions, retiree medical benefits, self-insured benefits, miscellaneous fringe benefits and the benefits administration.

All faculty, non-union staff and members of the Service Employees International Union and the Hotel Restaurant Institutional Employees and Bartenders Union will be affected by the reforms.

Former Provost Jerry R. Green, who left the administration in June under a flurry of speculation and questions about chaos in Massachusetts Hall, chaired the task force from October 1993 to early in the spring of 1994.

His name is not mentioned in the report, however.

Faculty

The Faculty of Arts and Sciences (FAS) will discuss the reforms at a full Faculty meeting on November 15.

Several professors have complained about the changes, which include a one percent decrease in the amount Harvard contributes to faculty pensions.

The task force considered reducing Harvard's pension contribution by two percent, decreasing the contribution for faculty over age 40 or requiring instructors to make pension contributions, the report says. But the committee ultimately rejected these proposals.

Late last month, McKay Professor of Mechanical Engineering Frederick H. Abernathy and Gund Professor of Economics and Business Administration Richard E. Caves were appointed by Dean of the Faculty Jeremy R. Knowles to investigate whether faculty concerns were adequately considered during the benefits review.

Abernathy and Caves will present the findings of their investigation at a meeting of the faculty. And Mallinckrodt Professor of Applied Physics William Paul may ask faculty members to recommend that Harvard rescind the one percent deduction.

Information about changes in health plans and pensions has been released to faculty and staff in newsletters over the last several months

All faculty, non-union staff and members of the Service Employees International Union and the Hotel Restaurant Institutional Employees and Bartenders Union will be affected by the reforms.

Former Provost Jerry R. Green, who left the administration in June under a flurry of speculation and questions about chaos in Massachusetts Hall, chaired the task force from October 1993 to early in the spring of 1994.

His name is not mentioned in the report, however.

Faculty

The Faculty of Arts and Sciences (FAS) will discuss the reforms at a full Faculty meeting on November 15.

Several professors have complained about the changes, which include a one percent decrease in the amount Harvard contributes to faculty pensions.

The task force considered reducing Harvard's pension contribution by two percent, decreasing the contribution for faculty over age 40 or requiring instructors to make pension contributions, the report says. But the committee ultimately rejected these proposals.

Late last month, McKay Professor of Mechanical Engineering Frederick H. Abernathy and Gund Professor of Economics and Business Administration Richard E. Caves were appointed by Dean of the Faculty Jeremy R. Knowles to investigate whether faculty concerns were adequately considered during the benefits review.

Abernathy and Caves will present the findings of their investigation at a meeting of the faculty. And Mallinckrodt Professor of Applied Physics William Paul may ask faculty members to recommend that Harvard rescind the one percent deduction.

Information about changes in health plans and pensions has been released to faculty and staff in newsletters over the last several months