Sabbatical Leave. A faculty member eligible to participate in the Group Insurance Program immediately prior to taking a sabbatical leave continues that eligibility during the sabbatical leave.

Spouse and Same Sex Domestic Partner. The spouse or same sex domestic partner of an eligible faculty member (if not legally separated). For the purposes of health insurance coverage, if that spouse or same sex domestic partner works full-time for an organization employing more than one hundred (100) people and elects to receive either credits or cash: (1) in place of health insurance or health coverage, or (2) in addition to a health plan with a seven hundred and fifty dollar ($750) or greater deductible through his/her employing organization, he/she is not eligible to be a covered dependent for purposes of this Article. If both spouses or same sex domestic partners work for the State or another organization participating in the State’s Group Insurance Program, neither spouse or same sex domestic partner may be covered as a dependent by the other unless one spouse or same sex domestic partner is not eligible for a full Employer Contribution as defined in Subd. 3.a. Same sex domestic partnership is defined in Appendix D.

b. Children and Grandchildren. An eligible faculty member’s unmarried dependent children and unmarried dependent grandchildren: (1) through age eighteen (18); or (2) through age twenty-four (24) if the child or grandchild is a full-time student at an accredited educational institution; or (3) a child or grandchild, regardless of age or marital status who is incapable of self-sustaining employment by reason of mental retardation, mental illness or physical disability and if chiefly dependent on the faculty member for support. The handicapped dependent shall be eligible for coverage as long as she/he continues to be handicapped and dependent, unless coverage terminates under the contract.

Termination of employment (except for gross misconduct);

b. Layoff;

d. Dependent child becoming ineligible due to change in age, student status, marital status, or financial support (in the case of a foster child or stepchild);

Faculty Members on Layoff. An eligible tenured faculty member who receives an Employer contribution, who has three (3) or more years of continuous service, and who has been laid off pursuant to the provisions of Article 23 remains eligible for an Employer contribution and all other benefits provided under this Article for twelve (12) consecutive months from the date of layoff.

b. Work-Related Injury/Disability. A faculty member who receives an Employer contribution and who is off the State payroll due to a work-related injury or a work-related disability remains eligible for an Employer contribution as long as such faculty member receives workers’ compensation payments. If such faculty member ceases to receive workers’ compensation payments for the injury or disability and is granted a disability leave under Article 17, he/she shall be eligible for an Employer contribution during that leave.

Sabbatical Leave. A faculty member eligible for an Employer contribution immediately prior to taking a sabbatical leave continues to receive the Employer contribution during the sabbatical leave.

d. Faculty members participating in phased retirement shall be eligible for Employer-paid benefits in accordance with Minnesota Statutes 354.66 at the same rate as if they were employed full-time.

Faculty members participating in the annuitant employment program (AEP) shall be eligible for Employer-paid benefits in accordance with Minnesota Statutes §§136F and 354.445 at the same rate as if they were employed full-time.

General. A faculty member who is eligible for the Employer contribution maintains that eligibility as long as the faculty member meets the Employer determination eligibility requirements and appears on a State payroll for at least one (1) full working day during each payroll period. This requirement does not apply to faculty members who receive an Employer contribution while on layoff as described in Section C, Subd. 2.a., or while eligible for workers’ compensation payments as described in Section C, Subd. 2.b.

b. Unpaid Leave of Absence. If a faculty member is on an unpaid leave of absence, then sick leave cannot be used for the purpose of maintaining eligibility for an Employer contribution by keeping the faculty member on a State payroll for one working day per pay period.

A faculty member on an approved Family Medical Leave Act (FMLA) leave or on a Voluntary Reduction in Hours as provided elsewhere in this Agreement maintains eligibility.

a. Faculty Member Coverage. For faculty member health coverage, the Employer contributes an amount equal to one hundred percent (100%) of the faculty member premium of the Minnesota Advantage Health Plan (Advantage).

Dependent Coverage. For dependent health coverage, the Employer contributes an amount equal to one hundred percent (100%) of the dependent premium of Advantage.

c. Benefit Level One Health Care Network Determination. Issues regarding the health care networks for the 2003 insurance year shall be established in accordance with the following procedures:

Faculty Member Coverage. For faculty member dental coverage, the Employer contributes an amount equal to the lesser of one hundred percent (100%) of the faculty member premium of the State Dental Plan, or the actual faculty member premium of the dental plan chosen by the faculty member.

b. Dependent Coverage. For dependent dental coverage, the Employer contributes an amount equal to the lesser of fifty (50) percent of the dependent premium of the State Dental Plan, or the actual dependent premium of the dental plan chosen by the faculty member.

If a faculty member or a retiree becomes married, the faculty member or retiree may add his/her spouse or same sex domestic partner and any dependent children/grandchildren.

2. If the faculty member’s spouse or same sex domestic partner loses group health or dental coverage, the faculty member may add his/her spouse or same sex domestic partner and any dependent children/grandchildren.

If the retiree’s spouse or same sex domestic partner involuntarily loses group health or dental coverage, the retiree may add his/her spouse or same sex domestic partner and any dependent children/grandchildren. (Spouse’s/same sex domestic partner’s loss of coverage due to his/her retirement would be considered involuntary.)

1. Dependent coverage. An employee may cancel dependent health or dependent dental coverage outside the open enrollment only in the case of certain life events that are consistent with the request cancel coverage. The request to cancel coverage must be made within sixty (60) days of the event. Life events include, but are not limited to:

Dependent health or dependent dental coverage may also be canceled during the open enrollment period that applies to each type of plan for any reason.

Medical coverage termination will take effect on the first of the month following the end of the pay period coinciding with or next following the date of the application to cancel coverage, or the loss of eligible employee or dependent status. All other benefit coverage terminations will take effect on the first day of the month following the end of the pay period coinciding with or next following the date of the application to cancel coverage, or the loss of eligible employee or dependent status.

Employee Coverage. A part-time employee may also cancel employee coverage within sixty (60) days of when one of these same life events occurred.

Basic Life. If a faculty member is not actively at work on the initial effective date of coverage, coverage will be delayed until the first day of the pay period coinciding with or next following the faculty member’s return to work. The effective date of a change in coverage is not delayed in the event that, on the date the coverage change would be effective, a faculty member is on an unpaid leave of absence or layoff.

b. If a faculty member is not actively at work on the initial effective date of coverage due to a reason other than hospitalization or medical disability of the faculty member or dependent, medical and dental coverage will be delayed until the first day of the pay period coinciding with or next following the faculty member’s return to work.

The effective date of a change in coverage is not delayed in the event that, on the date the coverage change would be effective, a faculty member is on an unpaid leave of absence or layoff.

Optional Life and Disability Coverages. In order for coverage to become effective, the faculty member must be in active payroll status and not using sick leave on the first day of the pay period coinciding with or next following approval by the insurance company. If it is an open enrollment period, coverage may be applied for but will not become effective until the first day of the pay period coinciding with or next following the faculty member’s return to work.

a. Frequency and Duration. There shall be an open enrollment period for health coverage in each year of this Agreement, and for dental coverage in the first year of this Agreement. Open enrollment periods shall last a minimum of fourteen (14) calendar days in the first year of the Agreement and thirty (30) calendar days in the second year of the Agreement. Open enrollment changes become effective on January 2, 2002, in the first year of this Agreement, January 1, 2003 in the second year of this Agreement.

b. Eligibility to Participate. A faculty member eligible to participate in the Group Insurance Program, as described in Section B., Subd. 1. and Section B., Subd. 2., may participate in open enrollment. In addition, a person in the following categories may, as allowed in Section E., Subd. 5.a. above, make certain changes: (1) a former employee or dependent on continuation coverage, as described in Section B., Subd. 4., may change plans or add coverage for health and/or dental plans on the same basis as active employees; and (2) an early retiree, prior to becoming eligible for Medicare, may change health and/or dental plans as agreed to for active employees, but may not add dependent coverage.

c. Materials for Faculty Member Choice. Each year prior to open enrollment the Appointing Authority will give eligible faculty members the information necessary to make open enrollment selections. Employees will be provided a statement of their current coverage each year of the contract.

Coverage under the Minnesota Advantage Health Plan (Advantage). From July 1, 2001 through January 1, 2002, health coverage under the SEGIP will continue at the level in effect on June 30, 2001. Effective January 2, 2002, Advantage will cover eligible services subject to the copayments, deductibles and coinsurance coverage limits stated. Services provided through Advantage are subject to the managed care procedures and principles, including standards of medical necessity and appropriate practice of the plan administrators. Coverage details are provided in the Advantage Summary of Benefits.

Services received from, or authorized by, a primary care physician within the primary care clinic. Under Advantage, the health care services outlined in the benefits charts above shall be received from, or authorized by a primary care physician within the primary care clinic. Preventive care, as outlined in the Summary of Benefits, is covered at one hundred (100) percent for services received from or authorized by the primary care clinic. The primary care clinic shall be selected from approved clinics in accordance with the Advantage administrative procedures. Unless otherwise specified in paragraph 3 below, services not received from, or authorized by, a primary care physician within the primary care clinic may not be covered. Unless the individual has a referral from his/her primary care clinic, there are no benefits for services received from providers in Benefit Levels that are different from that of the primary care clinic in which the individual has enrolled.

Services not requiring authorization by a primary care physician within the primary care clinic.

IV. Ambulance. The deductible and coinsurance for services not subject to copays applies.

Special Service Networks. The following services must be received from special service network providers in order to be covered. All terms and conditions outlined in the Summary of Benefits apply.

. Mental health services - inpatient or outpatient.

. Chemical dependency services - inpatient or outpatient.

. Chiropractic services.

. Transplant coverage.

. Cardiac services.

. Home infusion therapy.

. Hospice.

Out-of-area (and State) services provided by the plan administrator’s national preferred provider organization. Except as outlined in paragraph 7 below, coverage under this paragraph is only available to individuals whose permanent residence is outside the State of Minnesota and outside of the service areas of health plans participating in Advantage. Eligible individuals who use the plan administrator’s national preferred provider organization will be covered at Benefit Level One benefits. All terms and conditions outlined in the Summary of Benefits apply.

Covered children living with former spouse out-of-area. Covered children living with former spouses outside the service area of the employee’s plan administrator will be covered at Benefit Level One benefits. If available, services must be provided by providers in the plan administrator’s national preferred provider organization.

Out-of-area (and State) services through out-of-network providers. Coverage under this paragraph is available only to individuals whose permanent resident is outside the State of Minnesota and outside of the service areas of the health plans participating in Advantage. All terms and conditions outlined in the Summary of Benefits apply.

Lifetime maximums and non-prescription out-of-pocket maximums. Coverage under Advantage is not subject to a per person lifetime maximum.

b. Coverage Under the State Dental Plan. The State Dental Plan will provide the following coverage:

Basic Life and Accidental Death and Dismemberment Coverage. The Employer agrees to provide and pay for the following term life coverage and accidental death and dismemberment coverage for all faculty members eligible for an Employer contribution as described in Section C. Any premium paid by the State in excess of fifty thousand dollars ($50,000) coverage is subject to a tax liability in accordance with Internal Revenue Service regulations. A faculty member may decline coverage in excess of fifty thousand dollars ($50,000) by filing a waiver in accordance with Department of Finance procedures (also see Appendix F). The basic life insurance policy will include an accelerated benefits agreement providing for payment of benefits prior to death if the insured has a terminal condition.

Extended Benefits. A faculty member who becomes totally disabled before age 70 shall be eligible for the extended benefit provisions of the life insurance policy until age 70. Employees who were disabled prior to July 1, 1983 and who have continuously received benefits shall continue to receive such benefits under the terms of the policy in effect prior to July 1, 1983.

c. Additional Death Benefit. Faculty members retiring on or after July 1, 1981, shall be entitled to a five hundred dollar ($500) death benefit payable to a beneficiary designated by the faculty member, if at the time of death the faculty member is entitled to an annuity under a State retirement program. A five hundred dollar ($500) cash death benefit shall also be payable to the designated beneficiary of a faculty member who becomes totally and permanently disabled on or after July 1, 1983, and who at the time of death is receiving a State disability benefit and is eligible for a deferred annuity under a State retirement program.

Faculty Member. A faculty member may purchase up to five hundred thousand dollars ($500,000) additional life insurance, in increments established by the Employer, subject to satisfactory evidence of insurability. A new faculty member may purchase up to two (2) times annual salary or two hundred thousand dollars ($200,000), whichever is less, in optional employee life coverage within sixty (60) calendar days of hire without evidence of insurability.

a. Spouse or Same Sex Domestic Partner. A faculty member may purchase up to five hundred thousand dollars ($500,000) of life insurance coverage for his/her spouse or same sex domestic partner, in increments established by the Employer, subject to satisfactory evidence of insurability. A new faculty member may purchase either five thousand dollars ($5,000) or ten thousand dollars ($10,000) in optional spouse or same sex domestic partner life coverage within sixty (60) calendar days of hire without evidence of insurability.

c. Children/Grandchildren. A faculty member may purchase life insurance in the amount of ten thousand dollars ($10,000) as a package for all eligible children/grandchildren (as defined in Section B., Subd. 3., of this Article). Child/grandchild coverage requires evidence of insurability if application is made after the first sixty (60) calendar days of employment. Child/grandchild coverage commences fourteen (14) calendar days after birth.

d. Accelerated Life. The additional employee, spouse or same sex domestic partner and child life insurance polices will include an accelerated benefits agreement providing for payment of benefits prior to death if the insured has a terminal condition.

Waiver of Premium. In the event a faculty member becomes totally disabled before age seventy (70), there shall be a waiver of premium for all life insurance coverage that the faculty member had at the time of disability.

f. Paid-up Life Policy. At age sixty-five (65) or the date of retirement, an employee who has carried optional employee life insurance for the five consecutive years immediately preceding the date of the employee's retirement or age sixty-five (65), whichever is later, shall receive a post-retirement paid-up life insurance policy in an amount equal to fifteen percent (15% ) of the smallest amount of optional employee life insurance in force during that five (5) year period. The employee's post-retirement death benefit shall be effective as of the date of the employee's retirement or the employee age sixty-five (65), whichever is later. Employees who retire prior to age sixty-five (65) must be immediately eligible to receive a state retirement annuity and must continue their optional employee life insurance to age sixty-five (65) in order to remain eligible for the employee post-retirement death benefit.

An employee who has carried optional spouse or same sex domestic partner life insurance for five (5) consecutive years immediately preceding the date of the employee's retirement or spouse age sixty-five (65), whichever is later, shall receive a post retirement paid-up life insurance policy in an amount equal to fifteen percent (15%) of the smallest amount of optional spouse life insurance in force during that five (5) year period. The spouse or same sex domestic partner post-retirement death benefit shall be effective as of the date of the employee's retirement or spouse age sixty-five (65), whichever is later. The employee must continue the full amount of optional spouse life insurance to the date of the employee's retirement or spouse or same sex domestic partner age sixty-five (65), whichever is later, in order to remain eligible for the spouse or same sex domestic partner post-retirement death benefit.

Each policy remains separate and distinct, and amounts may not be combined for the purpose of increasing the amount of a single policy.

Short-term Disability Coverage. A faculty member may purchase short-term disability coverage that provides benefits of from three hundred dollars ($300) to five thousand dollars ($5,000) per month, up to two-thirds (2/3) of a faculty member’s salary, for up to one hundred eighty (180) calendar days during total disability due to a non-occupational accident or a non-occupational sickness. Benefits are paid from the first day of a disabling injury or from the eighth day of a disabling sickness. Coverage applied for within sixty (60) calendar days of hire or becoming insurance eligible does not require evidence of insurability.

b. #9; Long-term Disability Coverage. New employees may enroll in long-term disability insurance within sixty (60) days of employment or insurance eligibility. The terms are the same as for employees who wish to add/increase during the annual open enrollment. During open enrollment only, a faculty member may purchase long-term disability coverage that provides benefits of from three hundred dollars ($300) to five thousand dollars ($5,000) per month, based on the faculty member’s salary, commencing on the one hundred eighty-one (181st) day of total disability, and not subject to evidence of insurability but with a limited pre-existing condition exclusion. Employees should be aware that other wage replacement benefits, as described in the certificate of coverage (i.e., Social Security Disability, Minnesota State Retirement Disability, etc,), may result in a reduction of the monthly benefit levels purchased. In any event, the minimum is the greater of three hundred dollars ($300) or fifteen percent (15%) of the amount purchased. The minimum benefit will not be reduced by any other wage replacement benefit. In the event that the faculty member becomes totally disabled before age seventy (70), the premiums on this benefit shall be waived.