POST-RETIREMENT & SURVIVOR BENEFITS

(PRSB) PROGRAM

Process Streamlining ProjectJuly 8 – July 17, 2003

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TABLE OF CONTENTS

1.0 Executive Summary .........................................................................................................1

2.0 Project Case for Action, End Results, Bounds, and Structure ......................................22.1 Case for Action ............................................................................................................................22.2 Project End Results ....................................................................................................................22.3 Project Bounds ............................................................................................................................32.4 Project Structure..........................................................................................................................3

3.0 Project Approach .............................................................................................................43.1 Process Mapping.........................................................................................................................43.2 Brainstorming...............................................................................................................................43.3 External Research.......................................................................................................................43.4 Redesign .....................................................................................................................................4

4.0 Process Mapping and Current Problems .......................................................................54.1. Manual and time consuming processes ....................................................................................54.2 Duplication of activities................................................................................................................54.3 Wasted resources ......................................................................................................................54.4 Lack of client understanding of benefits options........................................................................54.5 Client confusion on benefits and form completion.....................................................................54.6 Excessive and redundant paperwork .........................................................................................54.7 Incomplete applications ..............................................................................................................54.8 Unnecessary process and procedures; no deadlines................................................................54.9 Duplicate data entry/Idiosyncratic and complex systems..........................................................64.10 Multiple service providers ..........................................................................................................64.11 Duplication and manual processes.............................................................................................64.12 Rules are either absent or inconsistent .....................................................................................64.13 Manual & time consuming balancing systems...........................................................................64.14 Multiple payment methods ..........................................................................................................6

5.0 Process Streamlining Recommendations ......................................................................75.1 Expand employee notification.....................................................................................................75.2 Implement general marketing .....................................................................................................75.3 Promote e-business but support those without web access .....................................................85.4 Clearly stated eligibility rules and electronic eligibility determination........................................85.5 Expanded website and tools.......................................................................................................85.6 Consolidate application forms from five to one..........................................................................85.7 24/7 Application form availability ................................................................................................95.8 Determine and communicate cut-off dates. ...............................................................................95.9 Develop a database ...................................................................................................................95.10 Reporting capability.....................................................................................................................95.11 Completed application routing ...................................................................................................95.12 Electronic interface with Sun Life and HSBC.............................................................................95.13 No signature required for changes .............................................................................................95.14 Pay providers according to invoices generated by PRSB database ........................................95.15 Combine four premium payment reports into one ................................................................... 105.16 Change EFAP Billing from quarterly to monthly ...................................................................... 105.17 Mandated direct deposit............................................................................................................ 105.18 Personal cheques and Royal Trust deposited to an HSBC account ...................................... 10

6.0 Ideas for the Future ....................................................................................................... 116.1 Create one stop shopping......................................................................................................... 116.2 Eliminate the paper application form (self-service).................................................................. 116.3 Create electronic interfaces with service providers. ................................................................ 116.4 Self-administered MSP ............................................................................................................. 116.5 Revisit the objectives of the PRSB Program............................................................................ 11

7.0 Implementation ............................................................................................................. 127.1 Database design........................................................................................................................ 127.2 Database maintenance ............................................................................................................. 127.3 Mandatory direct deposit........................................................................................................... 12

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7.4 Deadline dates ............................................................................................................................127.5 Move forward with PRSB website ..............................................................................................127.6 No signatures required for changes ...........................................................................................127.7 Eliminate the waiver section on the election form......................................................................127.8 Implementation team and plan ...................................................................................................12

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APPENDICES

Appendix 1 Case For Action ..........................................................................................................................14Appendix 2 Current Processes ......................................................................................................................15Appendix 3 Streamlined Process ...................................................................................................................16Appendix 4 Consolidation of Forms ...............................................................................................................17Appendix 5 Sample Generic Application Forms............................................................................................18Appendix 6 Sample Access Database Screens ...........................................................................................19

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1.0 EXECUTIVE SUMMARY

The current UBC Post-Retirement and Survivor Benefits (PRSB) Program is anticipatedto grow in the next years as more employees retire from the University and sign up forthese benefits. The Program’s processes have to this point been able to support currentand small increments to the client base. It is expected that the future demand and clientneeds will not be met using the current processes and approach. In addition theprocesses are not easy to maintain and new processes have been incrementally addedwithout the benefit of being fully integrated and streamlined.

A process streamlining team was brought together to improve this process, increaseclient satisfaction, and enable future growth in the Program.

The team’s redesign can be summarized as follows:

1. AwarenessIt is the goal of the institution to ensure that employees are aware of these benefits andunderstand their impact on retirement planning and at retirement. Various channels arenow used to provide this awareness or marketing. The internal process “tracks” downemployees prior to their retirement and is time consuming. The recommendation of thePS team is to provide early, simple, and consistent communications to employeesstarting 12 years prior to their retirement. This will eliminate the need to make sure theyhave heard of the Program and provide better, client focused, integrated informationearly (for planning purposes), thereby increasing client satisfaction and time available tothe Program Administrator.

2. Application and ChangesThe current process requires several complex forms, which must be requested andmailed. These forms duplicate information and are difficult to understand. This processcan create errors, delays and additional work for the clients and the PRSB ProgramAdministrator. The new process vastly decreases the amount of paperwork, simplifiesthe process and makes information available on the web.

3. Processing Application and ChangesThe internal processes and tools being used have been developed over time and arenot integrated to provide a single data record with easy access and reporting. The lackof this integration causes the internal processes to be complex, time consuming,inflexible and at times inefficient and not effective. The new streamlined process isbased on a single, integrated database with automated feeds from IHRIS and providers.The development of this database will eliminate the time spent on processingapplications and changes, increase the accuracy and audit to allow for increasedparticipation and more time with clients.

4. ReconciliationThe new processes, system and changes in procedures (due dates and datelines forprocessing) will vastly simplify the reconciliation process by providing error free dataand rich reporting capabilities.

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2.0 PROJECT CASE FOR ACTION, END RESULTS, BOUNDS, AND STRUCTURE

2.1 CASE FOR ACTION

The PRSB Program provides benefits to UBC employees who have retired1 and chosen tocontinue their group benefits with the institution’s benefit providers (Sun Life, Interlock, and MSP).The PRSB Program currently has 1,450 members and the projected growth of Programparticipants is expected to increase dramatically over the next few years, given the ageingworkforce and the high cost of obtaining benefits coverage on a individual basis.

Age 65 is the mandatory retirement age at UBC, however employees are eligible for earlyretirement at age 55. The following diagram shows the number of staff and faculty between ages55-65 who are enrolled in the University’s mandatory Pension Plan.

0

50

100

150

200

250

300

55 57 59 61 63 65

Age

Enrollments

Source: UBC Pension Administration Office, June 2003

As of June 2003, there are 2,352 employees enrolled in the Pension Plan between the ages of 55-65. Over the next 10 years, we expect a large increase of these employees (including hourlyworkers who are not eligible for the Pension Plan) will apply to the PRSB Program upon retirement.

The current PRSB Program processes are manual, complex, cumbersome, labour intensive, andtime consuming for both those administering the Program and clients of the Program. Theseprocesses include employee and retiree communication, reporting, customer service, data entry,reconciliation and balancing, as well as plan selection and updating. Current resources arestretched thin with the present level of activity, and as the number of plan members grow, it will bea challenge to maintain and improve service levels for plan members without increasing resources(at a substantial cost).

2.2 PROJECT END RESULTS

• The streamlined PRSB processes (including employee and retiree communication,reporting, customer service, data entry, reconciliation and balancing, as well as planselection and updating) should be simple and efficient for both the client and internaladministrators.

1 Employees who are age 55 or over are also eligible to join the PRSB Program upon leaving UBC or ending

their salary continuance arrangement. Survivors of members of the UBC Active Plan are eligible to join andsurvivors of members of the PRSB Plan may choose to continue their benefits with the Program.

3

• With little or no support from the Program Administrator, clients should be able to easilylearn about retirement options, understand their impact, indicate selections and changes,and monitor their status at any time prior to or during retirement.

• The internal processes to administer the PRSB Program should be intuitive, reducing oreliminating required effort.

2.3 Project Bounds

Process Start

• Retiring employee is notified of the PRSB Program or current employee requestsinformation for pre-retirement planning.

Process End

• Retiree or survivor withdraws from the PRSB Program.

Process Constraints

• The benefits delivered through the PRSB Program cannot be modified.• The implementation cannot require changes to IHRIS.• There can be no additional costs to plan participants.• Plan participants must always have the option of human support.• Streamlining results that can be implemented within 90 days.

2.4 Project Structure

Project SponsorsLisa Castle, Human ResourcesNatasha Malloff, Human Resources

Team Members RoleJohn Marrazzo Team LeaderPeter Godman, Human Resources Team LeaderPat Alder, Human Resources Process OwnerStephanie Mah, Human Resources ScribeMarie Laure Michaux, Human Resources ExternalRob Wahl, Human Resources TechnologistDr. John Stager Client (End User)Ms. Anne Grierson Client (End User)

Individuals InterviewedAs part of our external research, the following individuals were interviewed:

Anita Norman, Pensions Administration Office, UBCWendy Brooks, Pensions Administration Office, UBCRosanne Hood, Faculty Association, UBCRuth Ore, Medical Services Plan (MSP)Jean Palazzo, HSBC Bank CanadaWendy Cline, Sun Life of CanadaAllan Black, Simon Fraser UniversityPeggy Walker, BC Hydro

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3.0 PROJECT APPROACH

Our team met over a period of eight days, from July 8 – 11 and July 14 – 17, 2003 and followed astructured, process streamlining methodology:

3.1 Process Mapping (3 days)

The current process was divided into three major steps and mapped (see Appendix 2). Each stepwas divided into individual steps and attributes were identified2.

• Adding a New Member to the PRSB Program (Figure 2.1)• Updating Changes to Existing Members of the PRSB Program (Figure 2.2 – 2.4)• Reconciliation and Balancing (Figure 2.5)

3.2 Brainstorming (1 _ days)

With the end result of the streamlining project in mind, we explored alternative approaches toachieve this result.

3.3 External Research (1 day)

During the external research day, we investigated the feasibility of some of our brainstormingideas. We approached internal contacts from the Pension Administration Office and externalprovider contacts.

3.4 Redesign (2 _ days)

The three major steps of the PRSB Program were redesigned and mapped (see Appendix 3). Ourredesign was verified by ensuring our process streamlining goal of improving the overall processby improving the individual steps of the process (reducing time, complexity, and bureaucracy,increasing adaptability and meeting client expectations) was met.

2 Step attributes include: information collected, form(s) used, direct cost(s), equipment, hardware & software

used, time to complete the step, time flow between each step, unacceptable service level(s) for client, clientcomplaints(s), backlog, duplication of tasks, error(s) in output, adaptability to exceptions, etc.

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4.0 PROCESS MAPPING AND CURRENT PROBLEMS

STEP 1: ADDING A NEW MEMBER TO THE PRSB PROGRAM

The current process for adding a new member to the Program is diagramed Figure 2.1 of Appendix2. Areas for improvement identified during our review of this step include:

4.1. Manual and time consuming processes

Tracking down retiring employees who qualify for the PRSB Program, informing them of thebenefits available, and mailing out PRSB application packages is a manual and time consumingand not always accurate.

4.2 Duplication of activities

The Pensions Administration Office mails out PRSB application packages to retiring employeesonly one year before their 65th birthday. No information is made available prior unless theemployee contacts the PRSB office. The PRSB Administrator must verify with Pensions if packagehave been sent. The process is not coordinated with other benefit information programs which canlead to confusing messages and even some employees not being aware of their benefits.

4.3 Wasted resources

Packages that are sent to retiring employees who choose not to enroll in the Program are“wasted”. For instance, each Sun Life benefit booklet costs $0.48.

Application

4.4 Lack of client understanding of benefits optionsThe PRSB Program does not provide the tools for retiring employees, or those planning retirement,to decide whether the benefits offered by the Program are of value to them. Some may not fullyunderstand the impact of the benefit choices they make. The PRSB office does not always havethe time necessary to fully answer and advise employees.

4.5 Client confusion on benefits and form completion

The application process is not user friendly. It requires the employee to contact the PRSBProgram Administrator; it depends upon completing numerous complex forms that must be mailedto the Program Administrator. Retiring employees often call the PRSB Program Administrator toconfirm their understanding of the benefits available or to ask questions on how to complete forms.

4.6 Excessive and redundant paperwork

There are five application forms. These forms each request similar information, making theapplication process confusing, overwhelming, and time consuming for retiring employees.

4.7 Incomplete applications

Since the application process is complex and requires knowledge on how to complete theapplications, it normally requires the Program Administrator to follow-up with new applicants.

4.8 Unnecessary process and procedures; no deadlines• The requirement to complete the waiver section of the election form for those who do

not wish to participate in the PRSB Program is not consistently applied and whencompleted does not verify other group coverage.

• There are no deadlines for when new applications must be received in order forcoverage to become effective.

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• Manual processes are required to copy the entire application package (PRSB fact

sheet, application forms) and add provider brochures.

Processing Applications

4.9 Duplicate data entry/Idiosyncratic and complex systems

There is no central database that maintains all the information required to administer the PRSBProgram. Currently, this information is maintained on twelve different excel spreadsheets.

4.10 Multiple service providers

Service providers and financial institutions such as HSBC, MSP and Sun Life each have differentmethods of accepting member information, resulting in multiple data entry and procedures.

STEP 2: UPDATING CHANGES TO EXISTING MEMBERS OF THE PRSB PROGRAM

The current process for updating changes to existing members of the PRSB Program isdiagrammed in Figures 2.2 – 2.4 of Appendix 2. Major areas for improvement identified during ourreview of this step include:

4.11 Duplication and manual processes

PRSB plan members with change requests who advise the Program Administrator by telephonemust also do so in writing in order to initiate the change. Often this means the ProgramAdministrator mails a form to the member to complete, which increases internal bureaucracy.

4.12 Rules are either absent or inconsistentThere is no clear deadline for when change requests must be submitted in order to be effective atthe requested time.

STEP 3: RECONCILIATION AND BALANCING

The current process for reconciling and balancing the plan premiums is diagrammed in Figure 2.5of Appendix 2. Major areas for improvement identified during our review of this step include:

4.13 Manual & time consuming balancing systemsBalancing billed premiums is difficult and time consuming. The Program Administrator must keep alog of adjustments and audit future bills manually.

4.14 Multiple payment methodsReconciling paid premiums is a time consuming and labour intensive process, as the PRSBProgram currently accommodates four premium payment methods (personal cheques, deductionsfrom both Staff and Faculty Pension Plans and automatic debit).

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5.0 PROCESS STREAMLINING RECOMMENDATIONS

This report contains specific recommendations for improving UBC’s PRSB Program. Therecommendations are the result of a process streamlining project conducted between July 8 – 11and July 14 – 17, 2003, and when implemented will provide a process that is simple and efficient,increases client contact and awareness, and simplifies internal processes. The chart below showshow the new design will meet the end results given to the team by the project sponsors.

Simple and Efficient Client Awareness Internal Process• Reduced the number of

steps/tasks• Reduced the number of

checks and decisionpoints

• Reduced the time toprocess steps and theoverall process

• Reduced the cost ofproviding the service

• Eliminated the potential oferrors from the client andthe process itself

• Reduced the number offorms and the datacollected

• Improved accuracy of thedata

• Eliminated the duplicationof effort in data entry andinterfaces

• Anytime, anywhere and inlanguages that enableaccess to accurate andtimely information ofPRSB

• Expanded and simplifiedthe way to requestenrolment and changes

• Expanded the informationto include awareness oftopics of interest toretirees

• Allowed for self service inanswering quest ionspreviously only availableby calling

• Integrated into otherinformation access points(other websites etc)

• Enabled the retiree toconfirm changes that aremade

• Simplified the process andautomated the collectionof storage of information

• Enhanced data entry anddata accuracy

• Created a cent ra lrepository of the data thatis easy to update androbust in features

• Created new automatedprocesses, ie. annualpremium changes

• Collected data once• Allowed for advanced

features to further futureenhancements process

• Increased reporting andeliminated paper (logbooks)

• Increased and simplifiedthe audit process

The diagram of the new, streamlined process is located in Appendix 3. The recommendations thatcorrespond to the new process are as follows:

Awareness

5.1 Expand employee notification

We recommend that active employees be notified four times of the PRSB Program: at age 53, 58,63 and 64. Communication may be by e-mail or written correspondence. Other means ofcommunication may include employee pay stubs and annual Pension statements. This action willensure that active employees who are approaching retirement and retiring employees will beinformed of the PRSB Program well in advance of their retirement date, eliminating the process oftracking down eligible employees, and thus saving valuable time and effort.

5.2 Implement general marketing with outside providersWe recommend that a general marketing program be undertaken to raise the level of awareness ofthe benefits available to employees upon retirement or termination from UBC (if over age 55).Marketing the Program will allow employees to understand the value of the Program and will alsosave valuable time and effort that is dedicated to identifying eligible employees in the currentprocess. We recommend that the following existing channels be used for marketing the Program:

• Department HR Managers & Administrators

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• Department Newsletters and Events• Union/Association Offices• Union/Association Events, such as the Faculty Association Luncheon for Retirees• Faculty Association/Continuing Studies Five Part Series on Retirement• Continuing Studies “Preparing for Retirement Seminars”• Other Associations for Retirees, including the Professor Emeritus Association• “Benefits Coverage Upon Leaving UBC” brochure for Staff and Faculty.

We also recommend the development of new marketing channels for use with existing channels.New marketing channels include:

• A “Retirement Information” website. The website will include information on the PRSBProgram as well as links to resources for other retiree privileges such as Library Use,Parking, Internet Access, and e-mail accounts. There will be a link to the Pensionswebsite. This “Retirement Information” website would be maintained by the ProgramAdministrator. The website will create a sense of a “UBC Retirement Community”,which was important to one of our end-users. This website should also be linked withother websites.

• A seminar for employees interested in the PRSB Program with outside providers suchas Sun Life and Interlock. Retiring employees will also view this service positively, andas another retirement benefit offered by UBC.

Eligibility/Application/Requesting Changes

5.3 Promote e-business but support those without web access

We recommend that all PRSB Program communication materials continue to be available in hardcopy upon request for those who do not have access to the Internet. Plan members must alwayshave the option of human support, however at every opportunity the website will be promoted andits use encouraged.

5.4 Clearly stated eligibility rules and electronic eligibility determination

We recommend that the website and communication materials clearly state eligibility rules for thePRSB Program. We recommend that the website includes an applet that will allow users todetermine if they are eligible for the Program. There also will be a disclaimer to state thatindividuals must apply for the PRSB Program upon retirement, otherwise they are unable to applyat a later date unless their coverage under their spouse or partner’s plan has terminated (proofmust be submitted).

5.5 Expanded website and tools

We recommend that the website include tools to help retirees determine if the PRSB Program is ofvalue to them. Such tools include a Premium Calculator, Cost-Benefit Analysis, and Answers toFrequently Asked Questions. One of our end users mentioned the importance of ensuring that theUniversity helps retiring employees make informed choices about benefits.

5.6 Consolidate application forms from five to one

We recommend that the current application forms (five) be consolidated into a single generic formand the waiver section of the election form be eliminated (see Appendix 5 for sample genericform). The five forms asked for 55 pieces of information; the single generic form now asks for 16(see Appendix 4). The generic application form will be user-friendly and available in multiplelanguages, simplifying the application process for retiring employees.

5.7 24/7 Application form availability

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We recommend that application forms be available in hard copy and PDF format on the website sothat they may be downloaded/printed 24 hours, 7 days a week, increasing the convenience factorfor potential plan members. This will save time and money associated with photocopying. Retiringemployees who are interested in applying for the PRSB Program will complete and sign the formand mail it to the Program Administrator.

5.8 Determine and communicate cut-off dates.

We recommend that time frames (monthly cut-off dates) for submitting new application forms beset and communicated on the central website and communication materials. We recommend thatany applications received after the deadline not be processed until the next month. Deadlines forrequesting changes for existing plan members will also be set and enforced. This will reduceinternal bureaucracy and will also save time and effort in reconciling paid and billed amounts.

Processing Applications

5.9 Develop a database

We recommend the development of a new PRSB database that will have all the necessary tools toadminister the PRSB Program, including the capability to enroll new members, make changes tomember and coverage information, incorporate information from IHRIS, and generate aconfirmation notice once new member information has been entered into the database. This newdatabase will eliminate the duplicate entry of data on multiple spreadsheets, saving valuable timeand effort and increasing data integrity. The confirmation letter will be mailed to the member toinform them that their application has been received, allowing them to monitor their status.

5.10 Reporting capabilityWe recommend that the PRSB database have report generating capability, such as the reports onthe total number of enrollments and enrollments by faculty/staff. Annual communication tomembers will also be streamlined with the implementation of the new database.

5.11 Completed application routing

We recommend that all completed applications go to the Program Administrator for entry into thedatabase. Any discrepancies with the IHRIS information may be updated and communicated toPayroll and Pensions if there is a larger effort to improve IHRIS data integrity.

5.12 Electronic interface with Sun Life and HSBCWe recommend electronically interfacing our PRSB database with Sun Life’s and HSBC’s system.This will alleviate time and effort entering member information onto another on-line system.

5.13 No signature required for changesWe recommend that any changes to member information or coverage requested by an existingmember should be communicated to the PRSB Program by telephone or e-mail, and that aconfirmation letter be generated and mailed to the member once the change(s) has been enteredinto the database.

Reconciliation & Balancing - Bill Payment

5.14 Pay providers according to invoices generated by PRSB database

We recommend that the cumbersome Carrier Reconciliation (Billed) process outlined in Figure 2.5of Appendix 2 be eliminated, and that the PRSB database have the capability to extract billedpremium monthly totals for MSP, Sun Life and Interlock. Invoices will be paid according to thisamount. As a result, we will not have to wait for the individual provider to debit or credit us for anyadjustments from prior months, since we pay according to the database amount instead of theinvoiced amount. This change will save time in balancing billed premiums.

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The streamlined process is consistent with the current process, however the effort required toproduce the reconciliation report to provide carry forward adjustments has been significantlyreduced, if not eliminated, as we pay bills based on the database monthly total rather than theprovider billed amount.

5.15 Combine four premium payment reports into one.

We recommend that the four separate reports (those organized by method of payment) currently inuse for monthly premium payments be consolidated into a single report generated by the newdatabase.

5.16 Change EFAP Billing from quarterly to monthlyWe also recommend that EFAP premiums be transferred to the EFAP account on a monthly basisfor consistency with other service provider billing procedures.

Reconciliation & Balancing - Premium Reconciliation (Paid)

5.17 Mandated direct depositThe PRSB Program currently accommodates four premium payment methods: personal cheques,deductions from both the Staff and Faculty Pension Plan and automatic debit. To make this stepmore efficient and consistent, we recommend mandating direct deposit for all PRSB members.When we approached our end-user about our recommendation, the feedback given was that UBCmay want to want to “bite the bullet”.

5.18 Personal cheques and Royal Trust deposited to an HSBC accountWe recommend that the current method of premium collection be streamlined by having individualsand Royal Trust deposit their cheques into the HSBC collection account. This will eliminate thepersonal cheque handling by the Program Administrator.

Customer HSBCFiinancial

Services

Auto-debit

PRSB

Account

5 individualCheques

2 Royal Trust

Cheques

PAT

MSP EFAP Sun Life

New Flow

Old Flow

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6.0 IDEAS FOR THE FUTURE

During the course of our project we discussed ideas that were out of scope because of the lengthof time and/or required resources we estimated for implementation. We include those ideas herefor consideration for possible future implementation.

6.1 Create one stop shopping

Employees would benefit from a coordinated approach between Human Resources and otherdepartments, such as Pensions, Faculty Relations, Library, Parking and ITServices for retirementinformation.

6.2 Eliminate the paper application form (self-service)

By creating an application form in typeable PDF format, which can be completed on-line andelectronically interfaced to the PRSB database, we can eliminate the use of paper forms andmanual processing.

6.3 Create electronic interfaces with service providers.

Manual processing can be further reduced by electronically interfacing with MSP so that memberinformation is not entered manually into individual systems.

6.4 Self-administered MSPWe think there is a potential to remove MSP as a benefit from the UBC PRSB plan. The MSPbenefit does not have the same flavour as the other group benefits. However, members still mayperceive UBC administering MSP as a benefit – one stop shopping for financial transactions.

6.5 Revisit the objectives of the PRSB Program

Retiring employees, terminated employees aged 55 and over, and survivors of both UBC activeplan and PRSB members are eligible for the PRSB Program. We suggest that the objectives ofthe PRSB plan be revisited. If the University wants the PRSB Plan to be a truly retirement plan,revising the eligibility rules should be considered.

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7.0 IMPLEMENTATION

This final section of our report outlines some thoughts for implementing our recommendations.Based on our recommendations, there are a number of decisions that our sponsors must make tomove forward:

7.1 Database designOne of our key recommendations is for the development of a central database (section 5.9). Adecision as to whether or not to proceed with this recommendation will have major impact on thenature and scope of any implementation efforts.

7.2 Database maintenance

If the recommendation 5.9 (develop a database) is accepted, it must be accompanied by adecision on the source of the financial and human resources required to maintain the system.

7.3 Mandatory direct deposit

Will we mandate direct deposit, or continue to grandfather those that pay premiums with personalcheques and deductions from Staff and Faculty Pension Plans. At the present time 5 planmembers send personal cheques and approximately 130 members (less than 9% of totalmembership) use the Pension Plan deduction method.

7.4 Deadline dates

We would like to establish and communicate cut-off dates for changes. These dates would becommunicated to plan members.

7.5 Move forward with PRSB website

We have made a number of recommendations regarding the development of web pages. Ifaccepted, we would like these developments to proceed in accordance with other webdevelopment initiatives in the department.

7.6 No signatures required for changesWe recommend in section 5.13 that changes be allowed by telephone, as well as in writing.Written confirmation will ensure clients’ needs are met.

7.7 Eliminate the waiver section on the election form

We identified that the completion of the waiver form, where clients waived coverage and indicatedthat they were covered under a spouse or partner’s plan, was not done consistently. If eliminated,this section would be replaced by a clearly stated rule on the new website, and enrolment to theplan upon leaving a spouse or partner’s plan would require proof of termination.

7.8 Implementation team and planIn addition to the above decisions, decisions must be made on the composition and mandate of theimplementation team. We also suggest the following guidelines for any implementation plans:

• Timebox approach –deadlines/delivery• Good enough approach• In accordance with other HR Projects• Phased approach• Start immediately• Dedicated Team Leader• PS Team being part of implementation• Database development a full-time job

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APPENDICES

APPENDIX 1: CASE FOR ACTION

University of British ColumbiaProcess StreamliningPost-Retirement and Survivor Benefits

(Updated July 2, 2003)

Case for Action

The Post Retirement & Survivor Benefits (PRSB) program provides benefits toUBC employees who have retired and choose to continue their benefits with theinstitution’s benefits providers (Sun Life, Interlock, and MSP).

The institution projects increased growth in program participants, especially giventhe high rate of retirements expected in the next five years and the high cost ofnon-UBC benefits programs. Demand for customer support will increase as aresult. Over the last four years, the customer contact rate has increased from 171per month to 262 per month.

The current PRSB program processes are manual, complex, cumbersome,labour intensive, and time consuming for both those administering the programand clients of the program. These processes include employee and retireecommunication, reporting, customer service, data entry, reconciliation, andbalancing, as well as plan selection and updating.

Current resources are stretched thin with the present level of activity, and as thenumber of plan members grow, it will be a challenge to maintain and improveservice levels for plan members without increasing resources (at a substantialcost).

By streamlining the PRSB process, the institution could release valuable humanresources for personal interaction with, and counseling of, potential and currentplan participants.

End Results

The streamlined PRSB processes, for both the client and internal administrators,should be simple and efficient.

With little or no support from the program administrator, clients should be able toeasily learn about retirement options, understand their impact, indicate selectionsand changes, and monitor the status at any time prior to or during retirement.

The internal processes to administer the PRSB program should be intuitive,reducing or eliminating required effort.

APPENDIX 1: CASE FOR ACTION

Constraints

• The benefits delivered through the plan cannot be modified.• The implementation cannot require changes to IHRIS.• There can be no additional costs to plan participants.• Plan participants must always have the option of human support.

Start and End of Process

• Process Start: Retiring employee is notified of the program or currentemployee requests information for pre-retirement planning

• Process End: Retiree or survivor withdraws from program

Team Membership

• Team Leadero Peter Godmano John Marrazzo

• Process Owner, Start of Process, Internal to Process, End of Processo Pat Alder

• Cliento John Stager (7/9/2003 & 7/16/2003)o Anne Grierson (7/14/2003)

• Technologisto Rob Wahl

• Externalo Marie-Laure Michaux

• Scribeo Stephanie Mah

Team Room

• Health, Safety, and the Environment Board Room (GSAB)

Banking

information of new

member added to

Pat's transmittal

form

New member

added to official

UBC spreadsheet

New member

added to MSP

Direct each month

New member

added to Sun Life

on-line system

each month

New member

added to EFAP list

Identify employees

who qualify for

UBC's PRSB

Program

IHRIS Report

extracts

employees age

55 - 65 who

have terminated

a job

PRSB forms sent to

employee

Retiree elects

benefits coverage

and mails forms

back to HR

Retiree requires

assistance

completing forms

and calls Pat

Retiree makes an

appointment with

Pat

Forms are

checked by Pat

Retiree elects not

to apply for PRSB

benefits and

completes the

Election Form

Employee calls Pat

enquiring about

PRSB Program

Has employee

already signed

up for PRSB

plan?

Has employee

already waived

PRSB

coverage?

Have PRSB

forms already

been sent by Pat

or PAO?

No

Do not send out

forms

Election Form is

kept and filed by

Pat

Does employee

have another

active job on

IHRIS?

Yes

No

Pat processes

forms that are

completed and

accurate

Yes

Yes

No

Figure 1.1

Adding a New Member to the PRSB Program

Page 1

Yes

Does employee

have current

coverage on

IHRIS?

Is employee

interested in PRSB

Program?

No

Yes

Pat calls employee

Yes

APPENDIX 2: MAPS OF THE CURRENT

PROCESS

No

No

Yes

Does the

member have

dependent

children?

Add the children to

a separate excel

spreadsheet

Does the

member qualify

for MSP

premium

assistance?

Mail form to

member

Member

completes form

and returns to HR

Completed forms

are sent to MSP

Pat adds to

separate excel

spreadsheet

Pat confirms to

member changes

to MSP premium

once changes

appear on MSP bill

Information sent to

HSBC on-line

HSBC faxes back

confirmation

Special requests

are processed by

Sun Life

Once added,

confirmation is

printed and

reconciled to

billing

Yes

Confirmation letter sent

and end of process

Figure 1.1 con't....

Adding a New Member to the PRSB Program

Page 2

Yes

No

Figure 1.2

Changes - Death of a PRSB Member or Surviving Dependent

Pat receives call or

e-mail notifying her

of death

Pat provides

support/

consultation

Is the

deceased a

PRSB member

or dependent?

Deceased is

dependent of

PRSB member

Deceased is

PRSB member

Pat removes

dependent from

the individual

benefits they were

previously enrolled

in

Pat updates

coverage status of

PRB member and

adjusts/refunds

premiums as

necessary

Pat terminates the

member from the

PRSB plan

Pat notifies PAO office of

death

Are there

surviving

dependent(s)?

Pat issues refund

of premiums if

necessary

No

Pat advises

surviving

dependent(s)

about option to

maintain coverage

on PRSB plan

Yes

Pat sends PRSB

forms to surviving

dependent(s)

Surviving

dependent(s)

chooses to

continue on PRSB

plan as member

Surviving

dependent(s)

chooses not to

continue on PRSB

plan

Yes Make appropriate

changes to

spreadsheets

Terminate

surviving

dependent(s) from

all spreadsheets

and refund if

necessary

Added to PRSB

Termination List

Figure 1.3

Changes - Demographic Changes

Pat receives call/e-mail

notifying her of

demographic

change(s)/cancelling

benefit(s)/death of a

surviving dependent

Pat provides

support/

consultation

Pat updates official

UBC spreadsheet

Pat updates

information on

MSP Direct

Pat updates

premium

deduction method

Pat updates Sun

Life system

Pat updates EFAP

spreadsheet

Pat receives

something in

writing from

member or sends

out form for

member to

complete

Change form is sent to

member and process is

complete

Pat notifies PAO

office of death

Figure 1.4

Changes - Terminating from the PRSB Program

Pat receives call

advising her that

member wishes to

terminate all

benefits from the

PRSB plan

Pat provides

support/

consultation

Pat receives

something in

writing from

member or sends

out cancellation

form

Pat removes

member from

official UBC

spreadsheet

Pat removes

member's banking

details on HSBC

system or

whichever system

they're on

Pat removes

member from MSP

Direct, if applicable

Pat removes

member from Sun

Life system, if

applicable

Pat removes

member from

EFAP

spreadsheet, if

applicable

Pat adds individual

to terminated

PRSB terminations

list

Refund of

premiums issued

to terminated

member, if

applicable

Payment of Bills

Pat receives MSP

bill (5)Pat downloads Sun

Life bill (6)

Pat prepares

cheque requisition

- bills are paid

Pat prepares carrier

reconciliation (12)

Does billed

total from

carrier match

total from Pat's

spreadsheets?

Premium Reconciliation (Paid)

Pat receives and

deposits Royal Trust

Report with 2 cheques:

(2) SPP premiums and

(3) FPP premiums

Pat collects and

deposits

remittance

cheques (1)

Pat receives HSBC

Report with a listing of

all debits deposited

into holding account

(4)

Carrier Reconciliation (Billed)

Pat reconciles

Yes

No

Pat produces

adjustment report

(13)

Financial Services Reconciliation

Pat receives

transaction report

and balance sheet

from Financial

Services(11)

Pat verifies

amounts

Pat produces

reconciliation report

(14)

-balance is brought

forward for following

month

EFAP premiums

are extracted from

(14,7,8,9)

Pat prepares

journal voucher

- money is

transferred to

EFAP account

Does paid

premiums match

total from Pat's

spreadsheets?

Pat compares:

(1) with (10) Remittance Report

(2) with (8) SPP Deduction Report

(3) with (9) FPP Deduction Report

(4) with (7) Automatic Debit Report

Yes

Pat compares with

changes/

adjustments made

for the current

month and fixes

No

Pat compares:

(5) & (6) to (10)

(5) & (6) to (8)

(5) & (6) to (9)

(5) & (6) to (7)

Figure 1.5

Reconciliation

(1) Remittance Cheques

(2) SPP Report & Premiums

(3) FPP Report & Premiums

(4) HSBC Reports

(5) MSP Bill

(6) Sun Life Bill

*(7) Automatic Debit Report

*(8) SPP Deduction Report

*(9) FPP Deduction Report

*(10) Remittance Report

(11) FS Reports

*(12) Carrier Reconciliation

*(13) Adjustment Report

*(14) Reconciliation Report

SPREADSHEETS

APPENDIX 3:MAP OF THE STREAMLINED PROCESS - OVERVIEW

Enrollment

Awareness

! E-mail/letter to employees at age 53, 58, 63 and 64 notifyingthem of the PRSB Program. Other means of communicationmay include employee pay stubs and annual Pensionstatements.

! Marketing the PRSB Program to create a general awareness ofbenefits available to employees upon retirement.

Some existing marketing channels include:o Department HR Managers & Administratorso Department Newsletters & Eventso Union/Association Officeso Union/Association Newsletterso Union/Association Events, such as the Faculty

Association Luncheon for Retireeso Faculty Association/Continuing Studies Five Part Series

on Retiremento Continuing Studies “Preparing for Retirement Seminars”o Other Associations for Retirees, including the Professor

Emeritus Associationo “Benefits Coverage Upon Leaving UBC” brochure for

Staff & Faculty

New marketing channels include:o Design and implementation of a “Retirement Information”

website. We envision that the website will includeinformation on the PRSB Program as well as otherretiree privileges such as Library Use, Parking, InternetAccess, E-mail Accounts, etc. Website to be maintainedby the PRSB Program and will be linked to Pensionswebsite and other related websites.

o Design and development of seminars for retirees withoutside providers such as Sun Life and Interlock.

Marketing the PRSB Program will promote awareness of thePRSB Program as well as other privileges available to retirees.This eliminates the process of tracking down individuals whoqualify for the Program, saving valuable time and effort. Thewebsite will provide current and complete information that isavailable 24 hours, 7 days a week for both retirees and activeemployees.

Eligibility/Application/Changes

! All PRSB communication materials will be available in hard copyupon request for those who do not have access to the Internet.

! The website and communication materials will clearly stateeligibility rules for PRSB Program. The website will include anapplet that will allow users to determine if they are eligible for thePRSB Program. There also will be a disclaimer to state thatindividuals must apply for the PRB Program upon retirement,otherwise they are unable to apply at a later date unless theircoverage under a spouse/partner’s plan has terminated (proofmust be submitted).

! The central website will also include tools to help retireesdetermine if the PRSB Program is of value to them. Such toolsinclude a Premium Calculator, Cost-Benefit Analysis, andAnswers to Frequently Asked Questions.

! The current application forms (five) will be consolidated into asingle generic application form and the waiver section of theelection form has been eliminated.

! The application form will be available in hard copy and PDFformat on the website and may be downloaded/printed. Retireeswho are interested in applying for the PRSB Program willcomplete and sign the form and mail it to the ProgramAdministrator.

! Time frames for submitting new application forms will be set andcommunicated on the website and communication materials.Any applications received after the deadline will not beprocessed until the next month. Deadlines for requestingchanges for existing members will also be set and enforced.

Creating a generic enrollment form (we have consolidated theMSP, Sun Life Extended Health/Dental, Employee FamilyAssistance Program (EFAP), HSBC, and Election Form into one)has simplified the application process. Setting deadlines tosubmit changes will also decrease internal bureaucracy andsave time and effort in reconciling paid and billed amounts.

Processing

Update PRSB Database

! The new PRSB database will have all the necessary tools toadminister the PRSB Program. The PRSB database will havethe capability to enroll new members and make changes tomember and coverage information. Information from IHRISwill be incorporated into the database.

! The PRSB Administrator receives the completed applicationform and information on the new member is entered into thedatabase. Any discrepancies with the IHRIS information willbe updated. The PRSB Administrator will report discrepanciesto Payroll and Pensions.

! PRSB database will also generate a confirmation notice onceinformation on the new member has been entered into thedatabase. This confirmation letter will be mailed to the retireeto inform them that their application has been received.

! Information entered into the database will be communicated toproviders MSP and Sun Life through their on-line systems.The PRSB database will generate another confirmation noticeto advise the retiree once their information has been sent.

! Any changes to member information or coverage requested byan existing member should be communicated to the PRSBAdministrator by telephone or e-mail. Once the change(s) hasbeen entered into the database, a confirmation letter will begenerated and mailed to the retiree.

! In addition to confirmation letters, the PRSB database will alsobe able to generate reports on total number of enrollments andenrollments by faculty/staff.

The new PRSB database has eliminated entering duplicateinformation on multiple spreadsheets, which has savedvaluable time and effort. The accuracy of the information hasincreased as it is entered only once. Reporting capabilities andannual communication to members (such as rate changes) willbe streamlined with implementation of the new database.

APPENDIX 3:MAP OF THE STREAMLINED PROCESS – OVERVIEW

RECONCILIATION – Payment of Bills

The PRSB database is able to extract billed premium monthly totals for MSP, Sun Life and Interlock and the invoiceis paid according to this amount. As a result, the cumbersome Carrier Reconciliation (Billed) process outlined inFigure 1.5 of Appendix 1 has been eliminated. The following has been streamlined:

! The PRSB database will allow us to extract total monthly premiums on a single report and is moreefficient than the previous process, which involved four separate reports.

! We no longer have to wait for the individual provider to debit or credit us for any adjustments from priormonths since we pay according to the database amount instead of the invoiced amount. Settingdeadlines for requesting changes has also reduced adjustments;

! The EFAP premiums will be transferred to the EFAP account on a monthly basis for consistency.

Total Sun Life monthly MSP invoice is Total EFAP monthly premiums for EHB & DEN received premiums extracted extracted from PRSB (hard copy) from PRSB database database report

Invoice amount is Journal voucher Cheque requisition is compared to MSP is prepared

prepared premium total extracted from PRSB database

report

Sun Life monthly bill is Invoice adjustments EFAP monthly premiums paid are determined for PRSB transferred

to EFAP account

Cheque requisition is prepared

MSP monthly bill is Paid

APPENDIX 3:MAP OF THE STREAMLINED PROCESS – OVERVIEW

RECONCILIATION – Premium Reconciliation (Paid)

The PRSB program currently accommodates four premium payment methods: personal cheques, deductions fromboth Staff Pension Plan (SPP) and Faculty Pension Plan (FPP) and automatic debit. The following has beenstreamlined:

! The current method of premium collection may be streamlined by depositing personal cheques into asingle account with HSBC. Every month this account will be debited like the rest. This will save timeand effort over the previous process.

! The PRSB database will allow us to extract total monthly paid premiums by deduction method on asingle report and is more efficient than the previous process, which involved four separate reports.

Remittance cheques are collected & deposited into single HSBC account

HSBC Report with a listing of all debits deposited into

holding account is received

Total premiums are extracted from the PRSB database

Does the paid premium match the total?

YES NO

Outstanding balance is compared to adjust- ment report and fixed

APPENDIX 3:

MAP OF THE STREAMLINED PROCESS – OVERVIEW

RECONCILIATION – Financial Services Reconciliation

The Financial Services Reconciliation process is similar to the process outlined in Figure 1.5 of Appendix 1,however the time taken to reconcile to Financial Services has been significantly reduced as we pay bills based onthe database monthly total rather than the provider billed amount.

Transaction report &

balance sheet is

received from

Financial Services

Amounts are verified

and should balance

APPENDIX 4: CONSOLIDATION OF APPLICATION FORMS

Forms Em

plo

yee (

EE

) N

am

e

Ho

me A

dd

ress

Ho

me T

ele

ph

on

e N

o.

SIN

EE

ID

Pers

on

al H

ealt

h N

um

ber

DO

B

Dep

art

men

et

EE

Gro

up

Sp

ou

se (

SP

) In

form

ati

on

Dep

en

den

t (D

EP

) In

form

ati

on

Dis

ab

led

DE

P?

EE

Sig

natu

re

SP

Sig

natu

re

Resid

en

cy

Sch

oo

l L

ocati

on

(D

EP

)

Dif

fere

nt

Ad

dre

ss (

oth

er

than

ho

me?

)

Dis

cla

imer

Su

n L

ife G

rou

p N

o.

New

M

em

ber/

Rein

sta

tem

en

t

Sp

ou

sal C

overa

ge

Nam

e &

Ad

dre

ss o

f B

an

k

Acco

un

t N

o.

Tra

nsit

No

.

Fre

qu

en

cy o

f P

aym

en

ts

Am

ou

nt

of

Deb

it

Vo

id C

heq

ue

Ben

efi

t O

pti

on

s

Reti

rem

en

t D

ate

1) Election Form

2) Medical Services Plan (MSP)

3) Sun Life

4) Employee & Family Assistance Program

5) HSBC Form

NEW FORM

APPENDIX 5: SAMPLE GENERIC APPLICATION FORM

*Please note: If you qualify for Premium Assistance, your monthly payment for MSP will be the PremiumAssistance amount only.

THE UNIVERSITY OF BRITISH COLUMBIAAPPLICATION FORMPOST-RETIREE & SURVIVOR (PRSB) PROGRAM

Section A – Member Information Staff FacultyPLEASE PRINT CLEARLY

first name middle initial last name

Name:

number street city province postal code

Home Address:

Home Telephone: ( )

E-mail Address:

Social Insurance Number:

UBC Employee ID:

month day year

Date of Birth:

month day year

Retirement Date:

Section B – Dependent InformationPlease complete the following section if you are enrolling dependents under your plan. Eligible dependentsinclude your spouse, common-law spouse, partner of the same sex, and/or dependent children up to age 19 orage 25 if in full time attendance at a school or University (or any age if disabled). If your dependent is disabled,they may qualify for MSP premium assistance.

NameFirst name, last name

Relationship ofDependent to

You

GenderM/F

Date of Birthmonth/day/year

Indicate ifStudentYes/No

Indicate ifDisabledYes/No

Section C – Benefit Plan ElectionPlease note the following:

1. You are not required to enroll in all four of the benefit plans (MSP, Extended Health, Dental Care,Employee Family Assistance Program), but if you choose to enroll in Extended Health you must ensurethat you have MSP coverage. UBC’s PRSB Program, a group MSP plan with your spouse/partner ORdirectly with MSP, can administer MSP coverage.

2. If you wish to enroll in MSP only, please contact MSP directly for information on individual coverage.

Please make your benefit plan elections by ticking off the appropriate box.

1) Medical Services Plan coverage monthly premium

single $54.00

couple $96.00

family $108.00

-ATTACH VOID CHEQUE HERE-

Please mail completed forms to: Pat Alder UBC Human Resources, 350 – 2075 Wesbrook Mall Vancouver, BC V6T 1Z1

THE UNIVERSITY OF BRITISH COLUMBIAAPPLICATION FORM – Page 2POST-RETIREE & SURVIVOR (PRSB) PROGRAM

2) Extended Health (EHB)You have a one-time choice of coverage; either a lifetime maximum of $15,000 or $50,000 for each personcovered under the plan.

OPTION 1: $15,000 (LTM) OPTION 2: $50,000 (LTM)coverage monthly premium coverage monthly premium

single $23.36 single $53.10

couple/family $46.73 couple/family $107.26

3) Dental Care (DEN)You have a one-time choice of direct pay or reimbursement of your claim. Under the direct pay plan, youpay your portion of the bill only. Under the reimbursement plan, you pay your dentist the total bill amountand submit the claim to the carrier.

OPTION 1: Direct Pay OPTION 2: Reimbursementcoverage monthly premium coverage monthly premium

single $41.86 single $33.58

couple $82.30 couple $68.02

family $125.06 family $103.30

4) Employee & Family Assistance Program (EFAP)Provides confidential counseling services to individuals and their family members by our service provider,Interlock. Coverage is also extended to your dependents at one flat premium per month.

coverage monthly premium

single/couple/family $4.00

*Your total monthly premium will be the sum of your individual benefit elections (from 1 – 4)above.

Section D – Method of PaymentPre-Authorizing payment method (direct debiting) is the only method of payment available. Please attach ablank cheque marked “VOID” to the top of this application form. Your bank account will be debited for theamount of your total monthly premium on the first business day of the month.

Section E – Member AuthorizationYou must be authorized to disclose information about your spouse and dependents in order to enroll them in the plan. By enrolling in thePRSB plan, you authorize the following:

o Sun Life Assurance Company of Canada, its agents and service providers to use and exchange information collected in this form to underwrite, administer benefits and payclaims.

o The Ministry may verify this information with immigration authorities, law enforcement authorities and other public authorities, agencies and persons as appropriate.

o The University of British Columbia to use the information collected in this form for benefits administration and to make any necessary deductions.

I agree all information in this form is true and complete. A photocopy or an electronic version of this authorization is as valid as the original.

Member Signature: Date: month day year