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UC DAVIS: VICE CHANCELLOR-ADMINISTRATION

October 26, 2001

DEANS, DIRECTORS, DEPARTMENT CHAIRS, AND CAMPUS ADMINISTRATIVE OFFICERS

Re: Open Enrollment 2001

The Benefits Open Enrollment period, which allows employees the annual
opportunity to make certain changes to their group insurance plans, will
begin on Thursday, November 1, and will end at midnight (PST) on Friday,
November 30, 2001.

During this period, employees may transfer to a different medical and/or
dental plan or add eligible family members to their current plans.  They
may also enroll in or de-enroll from UC-sponsored medical, dental, and
vision plans, as well as change participation in the Dependent Care
Assistance Program (DepCare) and the Tax Savings on Insurance Premiums
(TIP) program. 

Employees who are eligible for full or mid-level benefits can make Open
Enrollment changes through the Open Enrollment Action Line and transactions
must be completed by midnight (PST) on November 30. Core employees must use
forms to make their changes, and the forms must be received in their
Benefits or Payroll Office by 5:00 p.m. on November 30. There will be no
exceptions to these deadlines.

All Open Enrollment changes will be effective January 1, 2002.

Benefits Information
In late October, Open Enrollment announcements, along with personalized
benefits statements showing current coverage, were mailed to employees.
The announcement, greatly streamlined from years past, included highlights
and premium costs for 2002.

If employees wish to make a change, or wish to learn more about Open
Enrollment, more detailed information is available on a special HR/Benefits
Open Enrollment website: (http://www.ucop.edu/bencom/oe.).  This website
includes general Open Enrollment information, as well as descriptions of
plan changes for 2002, side-by-side comparisons of plan benefits,
prescription drug formularies, and instructions and worksheets for making
changes by telephone.

Employees who do not have Internet access may have printed materials sent
to them by returning the postcard included in the Open Enrollment
announcement mailing.  Requests for additional printed materials should be
sent in as early as possible to allow for timely delivery and review before
making Open Enrollment changes prior to November 30.  To guarantee timely
delivery, UC Office of the President will accept postcard requests through
November 23.

The campus Benefits and Wellness Faire, which will be held on Wednesday,
November 7, at Freeborn Hall from 10:00 a.m. to 3:00 p.m., is another
excellent source of benefits information. It provides a great opportunity
to ask questions of plan representatives and to take advantage of the
various wellness activities offered.

Year 2002 Health Plan and Insurance Highlights 
Here are some highlights of this year's Open Enrollment:

*In the face of skyrocketing costs throughout the health care industry, UC
has had to make some difficult choices in order to keep costs as low as
possible.  In 2002, employees will see increased medical plan copayments
and other changes that were made in order to contain employee monthly
premiums. 

*UC is extending indefinitely its 2001 pilot program that allows transfers
among California HMO's at any time during the year.  This program has
helped to address concerns about medical plan provider/network disruptions.

*There are some benefit improvements in the dental and vision plans, as
well as a 2% rate reduction for the Supplemental Life Plan (previously
known as Employee-Paid Life Insurance.) 

Salary Reduction Programs
The Dependent Care Assistance Program (DepCare) allows employees to pay
eligible dependent care expenses on a pretax, salary reduction basis.
During Open Enrollment, employees may enroll in DepCare or change or cancel
their DepCare salary reduction amount. 

Tax Savings on Insurance Premiums (TIP) allows employees to pay their
health plan premiums, if any, on a pretax, salary reduction basis.
Participation in TIP is automatic. During Open Enrollment employees may
reenroll in or opt out of TIP. 

For Further Information
To provide additional Open Enrollment information to employees, the campus
Benefits Office will offer the following on-campus presentations:

Tuesday, November 6, 2:00 - 3:30 p.m., Memorial Union, Garrison Room
Friday, November 9, 9:00 - 10:30 a.m., Memorial Union, Mee Room
Wednesday, November 14, 1:45 - 3:15 p.m., Memorial Union, Mee Room
Thursday, November 15, 2:00 - 3:30 p.m., Memorial Union, Mee Room Tuesday,
November 20, 9:00 - 10:30 a.m., Memorial Union, Mee Room Monday, November
26, 2:00 - 3:30 p.m., Memorial Union, Mee Room

Additional Open Enrollment information may be obtained by calling Employee
Benefits at (530) 752-1774.

Dennis Shimek
Associate Vice Chancellor -
Human Resources

01-159



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