[Vpaaetal] Insurance Merger with ERS

[vpaaetal@TAMU-Commerce.edu]

November 1, 2004

MEMORANDUM

TO:		Human Resources Officers
		SEBAC Members

SUBJECT:	Decision Regarding Merger with Employees Retirement System (ERS)
Insurance Plans

	During the last Legislative regular session, The Texas A&M University
System was faced with a potential reduction in its state insurance
contribution funding.  This adverse situation led to a compromise in which
we were given until November 1, 2004, to decide if we would eliminate our
group insurance plans and move our employees and retirees into the plans
administered by the ERS for all state and higher education employees,
(expect the University of Texas System.)  The A&M System has informed the
ERS that it has conditionally elected to merge its insurance plans into
those of the ERS.  

	Attached is a copy of Dr. Benton Cocanougher's letter to Ms. Ann Fuelberg
of the ERS informing them of this decision.  As noted in the letter, the
conditional election to merge with the ERS was done at this time in order
to preserve our option to join the ERS under the Legislature's window of
opportunity.  With the imminent transition of leadership, it became clear
as our time ran out on making this decision that more time was needed in
order to allow for a complete review and approval of this decision by the
Board of Regents, Chancellor and component CEOs.  According to the current
System leadership, a final decision on this matter has not been reached and
the intent is to keep our options open rather than forcing a final decision
at this time.      

Also attached for your review are copies of the actuarial study that was
conducted by the ERS's actuaries at Rudd and Wisdom, along with an analysis
of that study completed by our health plan consultants at Towers Perrin.
In addition, we have scheduled a TTVN meeting for this Friday, November 5,
from 2:30 to 3:30 p.m. to discuss this material and address any questions
you may have.

	I look forward to seeing you on Friday.  If you have any questions or need
additional information, please let me know.  



							Steven W. Hassel
							Associate Vice Chancellor 
							     for Human Resources
Enclosures

cc:	Mr. James A. Fletcher
	Mr. Tom Kale
	Dr. Stanton Calvert



Scott Downing, Interlibrary Loan/Distance Education Librarian
Texas A&M University-Commerce
ph  903 886-5741
fax 903 886-5723
scott_downing at tamu-commerce.edu