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2.24 Benefits - Health Insurance

Chapter Two: Personnel

Procedure Title: Benefits – Health Insurance
Based On: Board Policies 3, 4, and 8
Procedure Number: 2.24
Date Adopted/Revised: June 6, 2001; November 21, 2006; May 15, 2007; March 29, 2010

I. Health Insurance Benefits for Employees
South Arkansas Community College will, at its cost, provide health insurance for all full-time regular, benefits eligible employees of the institution. In addition:
A. Employees who are employed one-half time or greater will also be allowed to participate in the health insurance group on a pro-rata basis, i.e., is an employee that is employed one-half time in the institution, the institution will pay one-half the cost of participation of the individual and the individual will be responsible for the remaining portion of the cost of insurance.
B. Beginning October 1, 1997, the College will pay $125 per month for full-time employees and a proportionate amount for benefits eligible part-time employees toward full family coverage costs. This additional matching may be modified by the President as based on the annual budget review. The individual will, however, be responsible for paying any additional cost above the employee cost and the $125 contribution toward the family plan option.
C. A person under the age of eligibility for Medicare may exercise the option to continue membership in the institution’s health insurance plan after retirement.
D. The institution will pay for health insurance for an individual who leaves the institution in accordance with the years of service, ages, and percentages as outlined below. The institution will pay the same proportion of retirees’ insurance premium costs as it pays for employees who have not retired.
II. Health Insurance for Retirees
Under certain conditions, the College will pay for health insurance for retiring employees as outlined below:
A. The employee must be at least 55 years old.
B. The employee must have at least fifteen (15) years of full-time service with the College. Years employed by Oil Belt Vocational Technical School or Southern Arkansas University - El Dorado Branch will count toward the years of service.
C. South Arkansas Community College’s payment for health insurance will end when the retiree is eligible for Medicare.
D. The early retirement program is not available to an individual who is on leave-without-pay, receiving workers’ compensation, or engaged in litigation with the College.
E. The following chart indicates the percentage of an individual plan that South Arkansas Community College will pay as based on years of service and age at the point an individual exercises the retirement option.
Years of Service Plus Age Percentage of Health Insurance to be Paid by the College
70 25%
71 30%
72 35%
73 40%
74 45%
75 50%
76 55%
77 60%
78 65%
79 70%
80 75%
81 80%
82 85%
83 90%
84 95%
85 100%
F. With each of the above options, a retiree may continue to provide coverage for a spouse or other dependents at the retiree’s expense until the spouse reaches age 65 or the dependent ceases to be eligible for coverage.
G. The College reserves the right to alter or eliminate coverage.
H. This policy will be effective for persons retiring on or after December 31, 1998. All retirees currently on the South Arkansas Community College Health Insurance Policy may continue with the same benefits.
III. Definitions/Clarifications
A. The age to be used for determining initial eligibility is the age the person will be at the last day of employment.
B. Years of service for full-time personnel will be calculated based on full-time status as reflected by the contracts. Years of employment will not have to be consecutive in order to be counted. Time spent on leave without pay will not be counted.
C. The health insurance premium payment for faculty and staff with family coverage and for the pro rata share of part-time employees will be by payroll deduction. Individuals who are in a retired status and not receiving a paycheck will pay for insurance in the Business Office by the 10th day of each month.

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