HR News – July/August 2006

HR news archives

Systemwide

August, September is benefit transition period

Now that you've made your benefit enrollment decisions for the 2006–07 plan year, here are some important tips as you transition into the new plan year:

Plan ID cards

  • BlueCross BlueShield of Texas (BCBSTX) will issue ID cards only to new A&M Care participants.
  • PharmaCare will issue prescription drug ID cards to new and current A&M Care health plan participants.
  • FirstCare will issue ID cards to new and current participants.
  • Humana will issue ID cards to new and current participants.
  • Mercy will issue ID cards only to new participants.
  • Scott & White will issue ID cards to new and current participants.
  • The Graduate Student Health Plan will issue ID cards to new and current participants.
  • All vision and dental plan participants will receive new ID cards.
  • You should keep your old plan ID card until you receive your new one.
  • Regardless of whether you receive a new ID card, your plan will send you information about your coverage.
  • If you changed health or dental plans, you may want to wait until you receive your new ID card(s) before you schedule a routine checkup. This will ensure that your health or dental plan has your eligibility information and that you will receive benefits.

Dental HMO network general dentist
If you enrolled in the dental HMO (DeltaCare USA), you will be assigned a dentist, and it may be a different dentist than you had under CIGNA. If you wish to change dentists, contact Delta Dental at (800) 422-4234. To find a network dentist in Texas, refer to the online directory. For available dentists outside of Texas, go to www.deltadentalins.com or refer to the plan’s provider directory, available from your Human Resources office. Once you select your new dentist, you will receive a new ID card.

Dental HMO orthodontia benefits
If you enrolled in the dental HMO (DeltaCare USA) and are currently receiving orthodontic treatment under either of the current CIGNA dental plans, you can continue using your orthodontist if banding has occurred. You must complete a Continuous Orthodontic Coverage Form. You will receive the same benefits you would have received under CIGNA. If banding has not occurred, you must switch to a DeltaCare USA orthodontist. In this case, you will receive DeltaCare USA benefits.

Flexible Spending Accounts
Beginning Aug. 29:

  • You can no longer use your Health Care Spending Account debit card.
  • Any claims you have from this year that you have not submitted to Tax Saver Plan should be sent to PayFlex instead.

With either type of spending account, you can receive your first reimbursement check after you mail in your first claim of the new plan year and after you have received your first paycheck reflecting your new benefit elections and contributions.

Payroll deductions
Payroll deductions for your new benefit elections will begin Sept. 15 if you are paid biweekly and Oct. 2 if you are paid monthly. Be sure to check your pay stub to make sure your deductions match your Annual Enrollment choices.

Bills and bank drafts
If you are billed directly for your premiums or pay them through bank draft, bills and bank draft notices for September will be mailed around Sept. 5. Payment will be due and bank drafts will be deducted Sept. 15.

Total Compensation Statements
If you are an employee, you will receive a Total Compensation Statement in late fall. This letter will summarize your total compensation package for the 2006-07 fiscal year. Your total compensation includes your salary, insurance benefits, retirement plans and other employment-related programs that are available to you as an A&M System employee.

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Achieving your financial goals

We all have financial goals, and a smart way to reach them is by developing a sensible plan. If you are already an avid saver, congratulations; keep doing what you are doing. But if you know you need to improve your money management skills, take heart: They will improve with a little discipline.

Consider the following tips for creating a successful financial plan:

Keep a journal
Changing your mindset from a spender to a saver is the first step, and recording your financial dreams in a journal can show you what and how you think financially, which is key to changing behavior. A journal helps crystallize your real wants and needs, and it may also reveal personal disappointments or doubts that might be interfering with your financial discipline. As your writing reveals these influences, you will steadily gain more control over unhealthy spending urges, and you will become more determined about your goals.

Set goals and create a budget
Define your financial goals using clear, personal words rather than abstract definitions.  For example, say “I want to eliminate credit card debt within three years,” “I want to build a $10,000 emergency fund,” or “I want to retire in 12 years.”

If sorting out your goals becomes difficult, try distinguishing your wants from your needs. Also try prioritizing your goals by time horizon. For example, you can place your goals in three broad time horizons: short-term (one to three years), intermediate (three to 10 years), or long-term (10 or more years). You may shift your priorities later, because goals and their importance vary with circumstances.

Once you identify your goals, look ahead, set a deadline for making them happen, and mark them on a calendar.

Now you can begin “making them real,” and this is where budgeting comes in. You will need to find a way of allocating your limited dollars among several competing goals. To get started, track your earnings and expenses by doing a cash-flow analysis. Several A&M System ORP and TDA vendors have online savings calculators to assist you in this process. You can also find financial calculators on the Securities and Exchange Commission (SEC) web site. If you notice that too much of your budget goes to eating out, entertainment, clothing, traveling or electronic toys, simply cut back in those areas.

Once you’ve developed a strategy for increasing your savings, invest as much as you can for retirement. A good way to do this is to contribute as much as you can to a supplemental retirement program, independent retirement account (IRA) or other savings vehicle. For a description of A&M System-offered supplemental retirement programs, as well as IRAs, see sidebar.

Focus on asset allocation
When you are investing for retirement, you want to contribute as much as you can. You also want to ensure that your asset allocation—the percentage of money you place in stocks, bonds, mutual funds, real estate and money market—is appropriate for your risk tolerance, or the extent to which you can tolerate volatility in your portfolio. Asset allocation plays an important role in determining the risks and returns of your portfolio.

Understanding the three common types of behavior that disrupt asset allocation—overconfidence, loss aversion and present-biased preferences (see sidebar)—can help you avoid them, or at least avoid engaging in them excessively.

Stick with your plan
As you commit to your financial plan, you’ll start to realize that achieving and maintaining financial success is a process. You will learn to become more focused, and you will realize that planning is not a one-time exercise. You might even adopt the philosophical view, “since it took time to develop these unhealthy habits, it will take some time to acquire the healthier ones too.” Just know that the changes you make can pay off.

This article is part of an ongoing series of articles regarding retirement savings. The information has been provided by various A&M System ORP and TDA vendors.

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Supplemental retirement programs
As an A&M System employee, you are eligible to contribute to the two supplemental retirement programs offered by the A&M System: the Tax-Deferred Account (TDA) and Texa$aver Deferred Compensation Plan (DCP).

Because your contributions come directly from your paycheck before you pay taxes, investing in these plans can help reduce your current taxable income. Also, the funds grow tax-deferred, which means you don’t owe taxes on the money until you withdraw it in retirement.

A Roth TDA opens up even more options for your retirement funds. Because Roth TDA contributions come out of your paycheck after you pay taxes, the contributions, income, and earnings from your Roth TDA can be withdrawn tax-free when you retire. This makes the Roth TDA an attractive option for many investors. (Note: Withdrawals before age 59½ from supplemental retirement programs are generally subject to a 10% IRS early withdrawal penalty.)

You will find maximum contributions limits for the TDA and DCP programs online.

IRAs
Like the supplemental plans, both traditional and Roth IRA earnings can grow tax-deferred. Roth IRAs offer a significant tax advantage since qualified withdrawals are completely tax free. If you have an emergency fund and can afford to max out on your supplemental retirement programs, IRAs give you another retirement investment vehicle.

Overconfidence
How to recognize it: Overconfidence can be noticeable in frequent trading or in switching between investment accounts in an attempt to increase returns. It can result in a tendency to sell “losers” at low prices and buy “winners” at high prices, failing to produce the desired effect and actually moving you farther away from achieving your goals.

Overconfidence increases your transaction costs, the potential for higher tax liabilities, and the possibility of selling your securities just when the market rises. Generally, investors who overtrade tend to make more mistakes than those who stay the course.

How to cure it: Develop realistic expectations and try to curb skewed performance assumptions by studying historical returns for specific investments and asset classes. Research will show that certain investments offer potentially higher returns because they carry more risk, which may be fine if you understand and accept the higher risk of losing money with these securities. This awareness can help you establish an appropriate asset allocation strategy that is realistic for your goals.

Loss Aversion
How to recognize it: Loss aversion has to do with how you feel about losing money. Essentially, one’s disappointment over losing money is stronger than one’s joy over making it. While it’s perfectly normal to want to avoid losses, excessive fear of loss can hurt investment prospects. For example, some investors react to immediate stock fund losses by pulling money out of their accounts or funds with the idea of reinvesting it when stocks become less volatile. The problem is that this can result in a systematic “buy high and sell low” strategy that can lead to lower returns and greater risk.

How to cure it: Make sure your investment decisions are in line with your long-term goals. For example, if you reduce your exposure to stocks because the market goes from bull to bear, make sure your adjustment is part of your financial strategy and not just a reaction to the market.

Present-Biased Preferences
How to recognize it: Present-biased preferences has to do with focusing on short-term financial events at the expense of your long-term needs. For example, if you give people the choice between receiving $100 today or $110 next week, some will take the $100 now. But if you offer the same people $100 in a year or $110 in a year and a week, they almost all opt for the $110. This illustrates that we often put too much emphasis on getting something now, even when it’s not always the best choice. You can identify this behavior by a lack of commitment to saving regularly and by acts that interfere with good budgeting. Another sign of this behavior is procrastination.

How to cure it: Create a savings/investment plan and periodically check to see if you’re saving enough for your goals. To strengthen your commitment, you should use “forced savings” tactics, such as enrolling in employer-sponsored programs like the TDA or DCP plans, where contributions will be a specified percentage or amount of your salary every month. For your IRA, after-tax annuities, individual investment accounts and savings accounts, set up an automatic investment plan where a fixed amount is withdrawn from your checking account and deposited into your product account on a selected date.

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Any Questions?

How soon after enrolling in a health, dental or vision plan can I begin using my benefits?

Ideally, you should wait until you have your plan ID card, which should arrive before your coverage takes effect or within 10 to 14 days after. Your card serves as evidence that you’ve enrolled in the plan. If you haven’t received your ID card, you can use your Insurance Enrollment/Contact Summary Sheet as proof of coverage if you need to see your doctor or have a prescription filled. You can access and print this sheet by clicking on the Benefits tab within the HRConnect online system (sso.tamu.edu). Your Human Resources office can also provide this information for you. In addition, temporary ID cards for some plans are available from plan web sites or from the System Human Resources web site.

Your doctor or pharmacy may contact your insurance carrier to verify your coverage. The carrier will be able to verify your coverage only if it has received your coverage information from the A&M System. If the carrier hasn’t yet received the information, you should contact your Human Resources office for assistance.

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You, your diet and your oral health

We are faced with a mind-boggling array of food choices, from fresh produce to sugar-laden convenience meals and snack foods. To complicate things, what we eat and when we eat it may affect not only our general health, but also our chances of developing tooth decay.

Tooth decay remains a problem because plaque (a sticky film of bacteria) constantly forms on our teeth. When we eat foods or drink beverages that contain sugar or starch, the bacteria in the plaque produce acids that attack tooth enamel. The stickiness of plaque then keeps the harmful acids against your teeth. This can contribute to tooth decay.

To maintain your smile:

Snack wisely. Focus on eating healthy, nutritious and satisfying meals. If you must snack, choose fresh fruits and vegetables and whole-grain products. Avoid hard candy, mints and sticky sweets that stay in your mouth for a long time. After treats, drink plenty of water to dilute the acid attacks.

Limit sugar and starch. Sugary and starchy foods cause the bacteria in plaque to produce acids that break down tooth enamel, which may eventually cause decay. Eating a bit of cheddar, Monterey Jack or Swiss cheese stimulates saliva production, which helps neutralize these acids.

Protect your teeth. Don’t chew ice or popcorn kernels. Don’t use your teeth as tools. Also, avoid tobacco. Studies suggest it may cause gum disease.

This information is provided as a service by CIGNA. If you have questions or would like more information, talk to your dentist.

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Canoeing a fun, rewarding family activity

Texas has no shortage of lakes and rivers, making canoeing a practical and fun summer activity for you and your family.

“Canoeing can be tremendously rewarding,” said Martha Muckleroy, senior lecturer with Texas A&M University’s Department of Health and Kinesiology. “It’s a noncompetitive sport that can help relieve stress, and it provides a great opportunity to appreciate nature and learn to work as a team with your family and friends.”

What people may not realize is how inexpensive the hobby can be.

“You don’t have to own a canoe to take up the sport,” Muckleroy said. “Many communities, particularly larger cities, have canoe clubs that you can join for a nominal annual fee. The clubs coordinate trips, provide education materials and give you a network of experienced people to paddle with. They can also help you find inexpensive equipment to rent.”

Muckleroy said many universities, including some within the A&M System, have sports and recreation departments that rent out gear and provide training to the community.

Whichever organization you select, Muckleroy said proper training beforehand is a must.

“Anytime you participate in a water-related activity, the consequences are extremely elevated,” she said. “Receiving proper canoe training will help you learn how to prevent accidents and injuries. It teaches things like the importance of wearing personal flotation devices regardless of your age or swimming capabilities, and it teaches how to wear them properly.”

If you have friends or family members who have disabilities but would like to participate, a canoe club can help you find Adaptive Paddling workshops in your area. Adaptive Paddling training is designed to teach people how to make canoeing a fun and safe experience for people who have special needs.

For more information, visit the American Canoe Association online at www.acanet.org/. For a paddler’s guide to Texas rivers and creeks, check out Texas Whitewater (Texas A&M University Press), by Texas A&M University philosophy professor Steve Daniel.

This information is provided as a service by Texas A&M University’s Department of Health and Kinesiology.

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The good, the bad and the trans

Heart disease continues to be the leading cause of death in the United States. While a number of risk factors for heart disease have been identified, some recent research suggests that up to 30,000 heart disease deaths may be due to the consumption of trans fatty acids, also known as trans fats.

According to Dr. Jenna Anding, a registered dietitian and nutrition specialist with Texas Cooperative Extension, trans fats are a type of uniquely-shaped, unsaturated fatty acid. They are naturally found in small amounts in beef and dairy foods, but the majority of the trans fats we eat comes from foods made from hydrogenated or partially hydrogenated fats. These include fried foods, potato chips, crackers, baked goods, sweets, margarine and vegetable shortening.

“Hydrogenated or partially hydrogenated fats are formed when hydrogen is added to unsaturated vegetable oils to make them more solid,” Anding said.

For food manufacturers and consumers, hydrogenated fats have two advantages. First, the shelf life of foods made with hydrogenated fats is increased, keeping foods fresher longer. Second, foods made with hydrogenated fats have textures that consumers like. Margarine becomes easy to spread, and vegetable shortening adds flakiness to pie crusts. The down side of hydrogenation is that it often results in the creation of trans fats.

The effect that trans fats may have on blood lipid levels has some health and nutrition experts concerned. Research suggests that high intakes of trans fats can increase blood levels of LDL cholesterol (the “bad” cholesterol) and decrease levels of HDL cholesterol (the “good” cholesterol). In addition, high intakes of trans fats may raise blood levels of lipoprotein (a), a compound similar to LDL cholesterol.

“All of these changes may increase one’s risk for developing heart disease,” Anding said.

While the damaging effects of trans fats are real, Anding says that consumers should not forget about saturated fat. Americans consume about 13% of their calories from saturated fat, which is higher than the 10% recommended. About 3% of their calories come from trans fat.

“Research suggests that foods high in saturated fat also have an adverse effect on blood cholesterol levels,” Anding said. “It is important that people limit their consumption of both saturated and trans fats.”

To identify foods that contain trans fat, Anding advises consumers to look at the ingredient list on the food package.

“If the ingredient list contains words like hydrogenated or partially hydrogenated, that food contains trans fats,” Anding said. “Since there is no way to determine the exact amount, you should consume those foods in moderation.”

Anding also advises consumers to be aware of the other risk factors for heart disease, which include elevated LDL cholesterol, decreased HDL cholesterol, obesity, cigarette smoking, hypertension, diabetes, gender, age and family history. Individuals who are concerned about their risk for heart disease should check with their physicians.

This information is provided as a service by Texas A&M Agriculture. If you have questions or would like more information, talk to your physician or registered dietitian.

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