AUS Self Directed Employee Benefits Plan

At its meeting on February 15, 2004 the Board of Trustees adopted a Self Directed Employee Benefits Plan for faculty and eligible staff hired by the university on or after that date.

The new plan revises the “take-it or leave-it” limitation contained in previous benefit offerings. The new approach empowers eligible employees to design their own benefits package and to apply their allowance in whole or in part to any benefit in the plan. To the extent that available Self Directed Employee Benefits in the package are not utilized by an employee to pay for mandatory (health insurance and life & disability insurance) and optional benefits provided by the plan, employees are eligible for cash withdrawal at the end of the academic year, up to a maximum of benefits and cash equal to a percent of annual base salary as specified below, subject to applicable tax withholdings.

The gross amount of the Self Directed Employee Benefits Plan allowance is calculated and set once per year, in September at the beginning of the academic school year. This amount will not change throughout the 12 month period. Any salary adjustments or merits that occur throughout the year, will not be reflected in the allowance until the following September.

The Board of Trustees at it’s meeting on May 31 2006 approved changes in the university’s fringe benefits policies for employees recruited prior to February 15, 2004, please see details below: 

Grades 1-6
Effective this year (academic year 2006-2007) employees in grades 1 to 6 qualify for a self-directed benefit of 15 percent of their annual salary or 3000 UAE dirham (whichever is greater up to a maximum benefit of 25 percent of salary).  The minimum percentage will increase to 20 percent for academic year 2007-2008 and 25 percent in 2008-2009.  As with other employees, selection of health insurance and life & disability for the employee is mandatory, unless proof of coverage from another carrier deemed acceptable by the university is provided. 
For eligible staff, not residing on campus, a 35 percent housing allowance is provided.

Grades 7-9
Effective this year (academic year 2006-2007) employees in grades 7 to 9 qualify for a self-directed benefit of 15 percent of their annual salary.  The allocation will increase to 20 percent in 2007-2008 and 25 percent in 2008-2009.  As with other employees, selection of health insurance and life & disability for the employee is mandatory, unless proof of coverage from another carrier deemed acceptable by the university is provided. 
For eligible staff, not residing on campus, a 35 percent housing allowance is provided.

Faculty and Staff Grades 10 and above
Faculty and staff grades 10 and above hired by the university after February 15, 2004 were eligible for 25 percent Self Directed Employee Benefits and after the last Board of Trustees Meeting held on May 31, 2006, all faculty and staff, Grades 10 and above, recruited prior to February 2004, were given the option in April 2006, to make an irrevocable election to join the 25 percent Self Directed Employee Benefits Plan.

The following benefits are available within the benefits pool maximum described above. The full annual premium for any coverage elected will be deducted from the benefits pool amount.

Medical insurance
(this election is mandatory unless proof of coverage from another carrier deemed acceptable by the university is provided);

Plan I Medical Insurance
Provides medical coverage in the UAE, Arab Countries and South East Asia. Also provides emergency treatment worldwide.
Scheduled benefits:

• Maximum limit per person per year - $200,000 (736,000 UAE dirham)
• Maximum outpatient limit per person per year - $15,000 (55,200 dirham)
• Inpatient treatment covered at 100 percent within the network providers in the UAE and with involvement of SOS outside of UAE (within geographical limits).
• Outpatient treatment is covered at 100 percent within the network providers in the UAE, but a co-insurance of 20 percent is applicable for outpatient treatment at Al Zahra hospital networks.
• Outside the network providers, outpatient treatment is covered at 80 percent based on “Reasonable and Customary” charges.
• Co-insurance: 15 percent for pharmaceuticals
• Insurance deductible for office visits and consultations: 50 dirham per visit for staff in grades 1 to 6; 60 dirham per visit for staff in grades 7 to 9 and 70 dirham per visit for faculty and staff in grades 10 and above

Plan II Medical Insurance
Offering for faculty and senior administrators of AUS
Provides worldwide medical coverage. For elective medical treatment or surgeries in the US, Canada or Europe a 20 percent co-insurance applies.
Scheduled benefits:

• Maximum limit per person per year - $300,000 (1,104,000 dirham)
• Maximum outpatient limit per person per year - $15,000 (55,200 dirham)
• Inpatient treatment is covered at 100 percent, within the network providers in the UAE but a co-insurance of 20 percent is applicable for bills at American Hospital in Dubai.
• Outpatient treatment is covered at 100 percent within the network providers in the UAE, but a co-insurance of 20 percent is applicable for outpatient treatment at American Hospital of Dubai and Al Zahra hospital networks.
• Outside the network providers, outpatient treatment is covered at 80 percent based on “Reasonable and Customary” charges.
• Co-insurance: 15 percent for pharmaceuticals
• Insurance deductible for office visits and consultations: 70 dirham per visit for faculty and staff in grades 10 and above

Both Plans mentioned above include maternity benefits.
MEDICAL INSURANCE PREMIUM RATES - PER ANNUM AS OF SEPTEMBER 1, 2008.

	Plan I		Plan II
	Coverage: U.A.E, Arab Countries and South East Asia & Emergency Worldwide		Coverage: Worldwide
	Regular Premium AED/USD		Total Premium Per Annum AED/USD
Male	1,756/477.17		3,239/880.16
Female	1,804/490.22		3,275/889.95
Married Female	2,502/679.89		3,973/1079.62
Child (below 18)	1,452/394.57		2,808/763.04

Medical insurance does not continue as per UAE government policy and the policy of UAE insurance carriers beyond the age of 70 years for faculty and 65 years for staff.

for further information on Medical Insurance, please check the Medical Insurance Handbook, and the Medical Insurance Policy Document.

Life Insurance (this election is mandatory unless proof of coverage from another carrier deemed acceptable by the university is provided);

• Death benefits:
• 2 times annual base salary in case of natural death
• 4 times annual base salary in case of accidental death
• Benefits are paid per beneficiary designation
• Provided to all full time permanent employees up to age 70 years for faculty and 65 years for staff.
• Coverage begins on the first day of employment

Long Term Disability Insurance (this election is mandatory unless proof of coverage from another carrier deemed acceptable by the university is provided);

• Applies to employees who are totally and permanently disabled
• Acceptance of a claim under this Rider will automatically terminate the life insurance
• In force from the first day of disability
• Disability must occur before age 65

LIFE AND DISABILITY INSURANCE PREMIUM RATES - PER ANNUM

Annual leave tickets
School tuition fees for dependent children
AUS Day Care Center fees
Benefits provided by AUS in addition to the Self Directed Employee Plan and not included in the 25 percent limitation mentioned above are:

• Faculty housing and utilities (except personal telephone and satellite charges)
• AUS contributions to Social Security and Medicare tax payments (for US citizens/residents only)
• Tuition for undergraduate study for up to two dependents at AUS
• Annual end of service payment in lieu of a retirement plan contribution equal to one month salary
• “Patriation”, airline tickets and unaccompanied baggage allowance
• Repatriation, airline tickets and unaccompanied baggage allowance

For further information on Life Insurance, please check the Life Insurance Policy Document.

For eligible staff, not residing on campus, a 45 percent housing allowance is provided, for grade 1 to 6, and 40 percent housing allowance is provided, for grade 7 to 9.

Any balance in an individual’s plan account will be paid after the academic year i.e. October.