Pepperdine Benefits Guide 2024

Deborah Crown, Pepperdine Graziadio Business School Dean

Dear Colleagues:

I am happy to present to you Pepperdine’s 2024 benefit offerings. The University has long prioritized offering competitive benefits to faculty and staff, understanding holistic care for employees and their families is of utmost importance. In addition to its comprehensive medical plans, Pepperdine also offers tuition remission programs, generous paid time off, access to world-class facilities and academic programs, opportunities for personal, professional, and spiritual development, a vibrant campus community, and meaningful work through our mission.

In its commitment to providing comprehensive medical insurance, Pepperdine is transitioning to a new medical carrier in 2024 – replacing Anthem with Aetna. The University will continue to offer an HMO plan through Kaiser Permanente, as well as two HMO plans and a high deductible plan through Aetna. Additionally, Pepperdine provides you with tax savings through before-tax contributions, a health savings account, multiple flexible spending accounts, and various complementary insurance options.

Please review this Benefits Guide to make informed selections for 2024 coverage:

• Medical

• Dental

• Vision

• Life

• Disability

• Behavioral health

Take advantage of many resources outlined on the Human Resources website to assist you in selecting the coverage that is best for you and your family, including: a step-bystep guide to selecting coverage, frequently asked questions, plan comparisons, town halls and information sessions, one-on-one personalized support, and more.

Benefits play an important role in the Pepperdine experience, and we remain grateful for the excellent resources available at the University. Thank you for the many ways you contribute to the Pepperdine community, and Human Resources is ready to assist you.

Sincerely,

Sean Michael Phillips Associate Vice President, Human Resources and Business Services

WHAT IS NEW IN 2024:

CARRIER CHANGE. To stabilize the rising costs of healthcare while continuing to provide employees and their families with quality medical coverage, Pepperdine’s Benefits Committee elected to end the University’s partnership with Anthem Blue Cross in 2023. During Open Enrollment, employees will have the opportunity to elect medical coverage through Aetna and Kaiser Permanente. While Aetna’s plans are not the same as Anthem’s, they are both comprehensive and comparable.

FREE JANUARY 2024 PREMIUM. As an added benefit to aid employees with the transition of medical carriers, the University will cover all costs for medical premiums for the month of January 2024. This benefit applies to any elected medical plan (Kaiser or Aetna) and any coverage tier.

HSA CONTRIBUTIONS. Beginning January 1, 2024, Health Savings Accounts (HSA) will transition to 100% employeefunded. Employer contributions will cease on December 31, 2023.

DENTAL BENEFITS. The Delta Dental PPO insurance is enhanced to remove the waiting period for major dental services and orthodontic treatment. This enhancement allows employees and their enrolled dependent(s) to seek these services as early as the first day of coverage.

VISION BENEFITS. VSP vision insurance benefits are realigned to a calendar year (January–December) model. This realignment allows employees and their enrolled dependent(s) to utilize their VSP benefits when it is most convenient each year.

CHILD CARE ASSISTANCE. In addition to the Child Care Subsidy Grant Program, Pepperdine has partnered with KinderCare Learning Companies to offer a 10% tuition discount to all employees. Those interested in learning more about this benefit and finding a KinderCare location should visit kindercare.com/pepperdine

2024 Open Enrollment

OPEN ENROLLMENT: OCTOBER 30–NOVEMBER 13, 2023

Open Enrollment is your annual opportunity to compare offered plans and enroll in the coverage best suited for you and your family in the new year. Keep these topics in mind when choosing a plan:

• Identify your specific healthcare needs

• Consider monthly premiums, deductibles, copayments

• Consider which providers and hospitals are in your area

• Consider out-of-pocket costs

You MUST elect coverage for benefits during Open Enrollment, or you will not have coverage in 2024.

2024 Benefits at a Glance

Pepperdine University provides a set of core benefits to faculty and staff at no cost to the employee. Employees are auto-enrolled in core benefits and are offered the opportunity to elect coverage in optional benefits.

CORE BENEFITS

• Accidental Death and Dismemberment Insurance equal to 2x your base annual salary1

• Business Travel Accidental Death Insurance equal to 5x your base annual salary

• Employee Assistance Program (EAP)

• Health Advocate Program

• Long-Term Disability Coverage for 66.67% of your base monthly salary to a maximum benefit of $10,000 per month

• Term Life Insurance equal to 2x your base annual salary1

1At age 70, the amount will be reduced to 65% of the original benefit; at age 80, it will be reduced to 50% of the original benefit. Note: Core benefits based on annual base salary are capped at $1,000,000.

OPTIONAL BENEFITS

• Medical

• Dental

• Vision

• Health Savings Account (HSA)

• Flexible Spending Accounts (FSA) covering health and dependent care expenses

• MetLife Accident Plan

• MetLife Critical Illness Plan

• MetLife Hospital Indemnity Plan

• MetLife Legal Plan

• Nationwide Pet Insurance

• Supplemental Term Life Insurance

If you do not enroll in insurance benefits within 30 days of initial eligibility and again during annual Open Enrollment, you will be automatically waived from all coverage options for the duration of the plan year.

Eligibility

You’re eligible to enroll in insurance benefits if:

• You are an active, regularly assigned full-time staff employee, working a minimum of 30 hours per week (except where applicable law requires a lesser number of hours).

• You are an active staff employee in an approved “9–12 month” position, working a minimum of 30 hours per week.

• You are an active full-time faculty member employed under a regular (non-adjunct) faculty contract, serving in at least a three-quarter time appointment (.75 FTE) each academic year.

ELIGIBLE DEPENDENTS

As an eligible employee, you are allowed to carry family members on your benefit plan with the following guidelines:*

• Your legally married spouse (unless in active service in the Armed Forces)

• Your domestic partner (legally registered with the State of California under AB205 and SB30)

• Your children under age 26

• Your children include your legally adopted children and children who are placed in your physical custody for adoption.

• Your children also include each of your stepchildren and children for whom you or your spouse have been appointed legal guardian by a court of law.

• Special rules apply for children with disabilities. Contact Human Resources at benefits@pepperdine.edu for more information.

SPOUSES WORKING AT PEPPERDINE

If you and your spouse are employed in a benefits-eligible position at Pepperdine, each of you will be offered insurance coverage individually. However, if you have eligible children to add as dependents on your insurance plan(s), all children must be enrolled under just one of you. Each of you may also choose your own coverage under different plans; however, eligible children may be covered by only one of you.

Enrolling as a single-family unit will allow you to take advantage of family deductible maximums and other out-of-pocket costs, though there may be insurance premium implications. Check with your tax advisor on tax implications.

*Note: Plan coverage is governed by more formal legal plan documents. Applicable laws and insurance contracts may also affect coverage. While every effort has been made to provide clear and accurate information, in the event of any discrepancy between these materials and the official plan documents and contracts, the plan documents or contracts will govern.

Please do not interpret any statement in this booklet to mean that your participation in the University’s benefits program is a guarantee of continued employment or is intended to be an employment contract of any form.

The University reserves the right to change, suspend, amend, or end the benefits program and the terms on which benefits, if any, will be available to its employees. The president and the executive vice president of the University, acting together, shall have the right to amend the plan at any time and to any extent they deem advisable, provided; however, that the Board of Regents shall retain the exclusive authority to terminate the plan.

Healthcare providers are not agents of Pepperdine University. Healthcare providers are solely responsible for the delivery of healthcare services. Pepperdine University is not liable for acts or omissions of any healthcare provider or plan you have chosen.

NEW EMPLOYEES

Benefits coverage begins the first day of the month, coinciding with or immediately following your date of full-time employment. Your benefits will remain in effect through December 31.*

CURRENT EMPLOYEES

When you elect benefits during Open Enrollment, your choices take effect on January 1, 2024. Your benefits will remain in effect through December 31, 2024.*

Please contact Human Resources for more information if you or your enrolled dependent(s) become hospital-confined on January 1, 2024.

*contingent on continued employment in a benefit-eligible position

HAVE A QUALIFYING LIFE EVENT?

Qualifying life events represent a significant change in an employee’s situation that could make them eligible for a Special Enrollment period. A Special Enrollment allows employees to enroll in health insurance outside the annual Open Enrollment period.

If you experience a qualifying life event, you may edit your current benefit elections on the benefits portal within 30 days of the event date. Otherwise, you will have to wait until the next Open Enrollment window to make changes to your benefits.

Qualifying events may include:

• Marriage or entry into a registered domestic partnership

• Birth, adoption, or legal placement of a child

• Divorce

• Death of an enrolled dependent

• Loss of existing health coverage, including job-based, self-funded, and student-held plans

• Permanent relocation of your residence to or outside of California

A complete list of qualifying life events can be found on the benefits portal, mybenefits.pepperdine.edu

Medical Plans

Pepperdine University is committed to providing affordable and comprehensive health coverage to employees and their families.

GLOSSARY

Primary Care Providers (PCP):

• Get to know you and your medical history;

• Guide you on important health decisions and direct your care; and

• Direct you to other doctors within the provider network if you need specialized care.

Failing to select a PCP during enrollment into an HMO will result in the auto-assignment of a primary care provider. However, you can change your PCP at any time by contacting the Member Benefits phone number located on the back of your medical card and on your Pepperdine benefits portal. PPO and High Deductible plans do not require selection of a PCP.

In-network refers to providers, such as primary care physicians, specialists, facilities, and hospitals, who are contracted to provide medical care to the insurance carrier’s members.

HOW THE PLANS COMPARE

Out-of-network refers to a healthcare provider, facility, or hospital you choose that is not contracted with your insurance carrier to provide services for your medical plan.

• The provider is not listed in the plan directory.

• For HMO plans, you are responsible for 100% of the cost. For the HDHP plan, you are responsible for a percentage of costs up to the out-of-pocket maximum.

Out-of-area medical benefits refers to employees or their enrolled dependents who live either outside or transferred from an HMO service area. The Aetna HDHP plan is available for employees residing outside the Southern California HMO service area. Employees residing in the State of Hawaii should contact Human Resources for more information on available plans.

With each of the 2024 medical plans, employees are responsible to pay some of their healthcare expenses, such as copayments, coinsurance, and deductibles, up to the out-of-pocket maximum for their elected medical plan and coverage tier.

KAISER PERMANENTE HMO

Kaiser Permanente is a unique medical network that operates as a one-stop shop for all medical services—routine, specialized, and emergent—as well as pharmacy, wellness, and behavioral health needs. Its interconnected support system allows providers to collaborate in real time with members and other medical professionals.

Plan Highlights:

• In-network coverage only (except emergency care)

• 100% preventive care coverage

• Employees enrolled in this plan must reside in the plan’s Southern California service area

• Members may self-refer for certain specialized care

• Claim forms are not required when using in-network providers and facilities.

AETNA VALUE NETWORK HMO

The Aetna Value Network HMO plan is ideal for employees who want simple, convenient care with fixed, predictable costs. Members and their enrolled dependent(s) must choose a primary care provider (PCP) to guide their treatment and coordinate all specialist care—which all takes place in a quality network to keep costs low.

Plan Highlights:

• In-network coverage only (except emergency care)

• 100% preventive care coverage

• PCP selection and referrals to specialists are required

• Employees enrolled in this plan must reside in the plan’s service area

• Claim forms are not required when using in-network providers and facilities.

AETNA BROAD HMO

The Aetna Broad HMO plan closely resembles the benefits and plan structure of the Value Network HMO. The key difference between these two HMO plans is the Broad HMO consists of a larger provider network.

Employees should note that UCLA Health and Cedar Sinai are in-network only with the Aetna Broad HMO plan.

Plan Highlights:

• In-network coverage only (except emergency care)

• 100% preventive care coverage

• PCP selection and referrals to specialists are required

• Employees enrolled in this plan must reside in the plan’s service area

• Claim forms are not required when using in-network providers and facilities.

AETNA OPEN ACCESS MANAGED CHOICE (HIGH DEDUCTIBLE) PLAN

Aetna’s High Deductible Health Plan (HDHP) does not require you to elect a PCP but utilizing in-network providers may result in lower out-of-pocket costs for you and your family.

How does the HDHP work?

• You will pay 100% of medical expenses until a relatively larger deductible is met.

• Once the deductible is met, your insurance will begin to pay the larger portion of your medical expenses, and you will continue to pay a smaller cost share until the out-of-pocket maximum is reached.

• After the out-of-pocket maximum is met, eligible medical expenses are paid at 100% for the remainder of that calendar year.

Preventive care services, as identified by the Affordable Care Act, are fully covered by insurance before the deductible is met.

Pepperdine University 2024 Medical

Coinsurance or Copays

• Primary Care

• Specialist

• Hospitalization

• Surgical (out-patient)

• Diagnostic (X-ray, blood work)

• Imaging (CT/ET scans, MRIs)

• Emergency Room

• Emergency Transport

• Urgent Care

• Mental health, behavioral health, or substance abuse

Prescription Drugs(1) (including dental Rx prescriptions through participating pharmacies only)

$20 copay

$20 copay

$500 copay

$250 copay

$0 copay

$0 copay

$250 copay

$0 copay

$20 copay

Outpatient = $20 copay

Inpatient = $500 copay

Generic - $15 Brand - $35 Specialty - 30% ($150 maximum)

$25 copay

$45 copay

$500 copay

$250 copay

$0 copay

$100 copay

$250 copay

$100 copay

$25 copay

Outpatient = $25 copay

Inpatient = $500 copay

Tier 1 - $15

Tier 2 - $35

Tier 3 - $60

Tier 4 - 30% ($150 maximum)

Out-of-Pocket Maximum (refers to the calendar-year limit of copayments and coinsurance paid toward eligible expenses)

Note: Employees who currently have a 2023 FSA account and enroll in the 2024 Aetna HDHP with an HSA election should make every effort to submit all 2023 Health FSA claims by December 31, 2023, or enrollment in an HSA account may be delayed. Participants with less than $610 in unclaimed funds in their FSA account as of December 31, 2023, will have their remaining 2023 Health FSA balance rolled to a Limited Purpose FSA (LPFSA) for 2024. A LPFSA may be used for the reimbursement of dental and vision expenses in 2024.

Plan Highlights

Aetna High Deductible Health Plan (HDHP)

After the in-network deductible is met, you pay:

After the out-of-network deductible is met, you pay:

Tier 1 - $15

Tier 2 - $35

Tier 3 - $60

Tier 4 - 30% ($150 maximum)

Tier 1 - $10*

Tier 2 - $30*

Tier 3 - $50*

Tier 4 - 30% ($250 maximum)*

After your out-of-pocket maximum is reached, the coverage pays 100% for the balance of the calendar year.

After your out-of-pocket maximum is reached, the coverage pays 100% for the balance of the calendar year.

*HDHP Rx copays do not apply until after the deductible is met.

(1) All medical plans use a standard pharmacy drug list of covered prescription drugs that is routinely reviewed and updated by the insurance carrier.

(2) Employees with dependents in the HDHP plan will have a per member deductible and per member out-of-pocket limit. No individual family member will be required to pay more than the per member limits, even if the full family deductible or full family out-of-pocket limit has not yet been satisfied. Claims incurred within an individual member limit will also concurrently accumulate against the overall family limit.

Health Savings Account (HSA)

You can set aside pretax money for eligible healthcare expenses with a Health Savings Account if you are enrolled in a high deductible health insurance plan (Aetna HDHP) and meet other IRS criteria.

With an HSA, you decide how many pretax dollars to contribute to your account each year, up to the IRS-mandated maximum, and use the money to cover eligible medical expenses like deductibles, copays, and coinsurance. Advantageously, your HSA balance will roll over from year to year. Check out the FAQs below to learn more.

Q. Is the Aetna HDHP right for me?

A. Only you can decide. However, it is important to understand that if you choose this coverage option, the plan will pay no benefits other than for preventive services until you meet the annual deductible of $1,600 if you have individual coverage or $3,200 if you have family coverage. This rule applies to the annual out-of-network deductible amounts as well.

Q. If I choose the HDHP, do I have to participate in a Health Savings Account (HSA)?

A. No. The decision to participate in an HSA is completely up to you. You may pay your medical expenses however you choose.

Q. If I choose the Aetna HDHP now, will I be able to elect coverage under a different medical option in the future?

A. Yes. You may change your election during any subsequent annual Open Enrollment. If you experience a qualified life event, you will be able to elect, change or waive coverage as permitted by IRS and HIPAA regulations.

Q. Why would I want to consider the Aetna HDHP coverage?

A. By choosing the Aetna HDHP coverage, you may be able to participate in a Health Savings Account, and you will only pay for the care that you receive. If you do not incur medical expenses, you will save and accumulate the money you contribute to the HSA annually.

Q. What will happen to the money in my HSA if I retire, separate from employment, or select a different plan option in the future?

A. The money in your HSA belongs to you and is portable upon retirement or separation. It will remain in your account until you elect to use it.

Q. What are the eligibility requirements for contributing to an HSA account?

A. To be eligible to contribute, the individual:

• Must be covered by a qualifying High Deductible Health Plan (i.e., the Aetna HDHP).

• Cannot be enrolled in Medicare, including automatic Part A coverage. This typically means that once participants turn age 65, they can no longer fund a Health Savings Account.

• Cannot be covered by other health insurance that is not an HDHP.

• Cannot be eligible to be claimed as a dependent on another person’s tax return.

Q. How much can I contribute to an HSA each year?

A. Each year you can contribute an amount equal to the annual IRS limit for HSA contributions. The 2024 limit is $4,150 for single coverage and $8,300 for family coverage. If you are age 55 or older, you can make an additional catch-up contribution of $1,000.

HSA CONTRIBUTION CHANGE IN 2024:

Q. How do I open an HSA?

A. If you elect the HDHP medical plan and HSA, your account will be established automatically with Pepperdine’s chosen HSA provider, Chard Snyder.

Q. Can I open an HSA with any HSA provider?

A. Pretax1 salary reduction contributions may only be made to Pepperdine’s chosen HSA provider.

Q. Will the funds in my account be tax-free?

A. Any funds in your account may be tax-free1 as long as you use this money to pay qualified healthcare expenses. If you use them for another type of expense, this money will become taxable income. You have an obligation to report this money to the IRS if you use it for purposes other than qualified medical expenses.

Q. My spouse and I turn 65 this year and will be enrolled in Medicare Part A. Will we still be able to use the money in our HSA?

A. Yes. Even though you cannot contribute to an HSA after you sign up for Medicare, you can keep the account and use the money for qualified healthcare expenses.

1 IMPORTANT TAX INFORMATION

Contributions to an HSA are currently tax-free for federal income tax purposes. Contributions to an HSA are subject to California state taxes. IRS regulations govern all HSAs and transaction rules are subject to change.

Beginning January 2024, Health Savings Account elections will be 100% employee funded. The University will cease its contribution on December 31, 2023.

Flexible Spending Account (FSA)

Your benefits package includes a lot more than medical insurance. Pepperdine’s Flexible Spending Accounts (FSA) allow employees to set aside pretax money for eligible healthcare expenses and dependent care costs.

You should know:

• Regardless of the medical plan you elect or if you waive coverage, you may enroll in a Healthcare FSA.

• Using pretax dollars means the deductions from your paycheck, which are set aside in your FSA, are not subject to federal income taxes, Social Security, Medicare taxes, and most state income taxes.

• Funds must be used for you or your eligible dependents for federal income tax purposes.

• What you pay out-of-pocket for eligible healthcare expenses (such as deductibles, copayments, coinsurance, eye exam fees, eyeglasses/contacts costs, prescription and over-the-counter drugs, and dental services) are typically reimbursable through a Healthcare FSA.

• Unused contributions in a Healthcare FSA and Limited Purpose FSA, up to $610, may roll over from 2023 to 2024 if you elect to contribute to a Healthcare or Limited Purpose FSA in 2024.

Note: Many retailers allow you to make eligible purchases with your FSA and HSA card in store and online.

HEALTHCARE, DEPENDENT CARE (DAY CARE), AND LIMITED PURPOSE SPENDING ACCOUNTS

We offer these Flexible Spending Accounts:

1. Healthcare: pretax dollars to cover out-of-pocket healthcare expenses.

2. Dependent Care (Day Care): pretax dollars to cover expenses incurred for the supervision of your child(ren) and elderly dependents.

3. Limited Purpose FSA: pretax dollars to cover out-of-pocket dental and vision care expenses. This type of flexible spending account is available to those who enroll in the Aetna HDHP with HSA election.

You must actively elect either a Healthcare, Limited Purpose, and/or Dependent Care FSA. Your 2023 election will not carry over into the new plan year.

Accounts will be effective January 1, 2024.

Dental

Dental insurance can help you afford many types of dental care. Pepperdine offers the following dental plans and the option to waive coverage.

DELTA DENTAL

Under this plan, you have the option of using a participating provider from Delta Dental’s PPO or Premier networks. By using a dentist from the PPO network, you will automatically receive a greater benefit than the Premier network, including a waived deductible. The maximum annual insurance benefit is $2,000 per insured individual. Orthodontia has a lifetime maximum that is separate from the annual insurance benefit.

DELTACARE USA HMO

This plan is a managed dental program that provides dental benefits through specific providers, and the service area is limited to Southern California. If you select this plan, you must use an in-network dentist to receive insurance benefits. Copayments range from $0 to $300 for certain procedures, and there is no annual deductible under the HMO plan.

To locate an in-network dentist for either plan, please visit deltadentalins.com.

Dental Coverage and Costs Table

Employee Monthly Contribution Rates

ENHANCED DENTAL BENEFIT AS OF 2024:

Beginning January 1, 2024, the waiting period for major dental services and orthodontic treatment have been removed. Employees and their enrolled dependent(s) can seek these services on the first day of coverage.

Vision

Vision insurance offers savings on routine vision exams, eyeglass frames and lenses, and contacts.

VSP CHOICE VISION CARE PLAN

This plan offers two ways for you to receive services and benefits. You have the option of receiving services at a participating in-network provider or an out-of-network provider.

Plan details include the following:

• Your benefits are paid at a higher rate by using an in-network VSP provider.

• Benefits for an eye exam and lenses are available every 12 months.

• Benefits for frames are available every 24 months.

• Claim forms are not required when using an in-network provider. For out-of-network services, you will need to submit a claim form.

• The VSP KidsCare benefit includes two eye exams each year, an additional set of lenses/contacts in the same plan year with a minimum prescription change, and Vision Therapy for enrolled dependents under age 26.

VSP vision care is not required to be coordinated through your medical insurance plan.

To locate an in-network provider for vision services, please visit vsp.com.

Vision Coverage and Costs Table

REALIGNED VISION BENEFITS IN 2024:

Beginning January 1, 2024, the VSP plan benefits have been realigned from a service-year to a calendar-year model. This modification allows employees and their enrolled dependent(s) the flexibility to seek vision care at any time during 2024, regardless of when they sought service in 2023.

Voluntary Benefits

We offer a suite of voluntary after-tax benefits to protect what is important to you.

Plan documents and age-based monthly rates are available to employees on the benefits portal at mybenefits.pepperdine.edu

MetLife Hospital Indemnity Plan

Plan Concept

Hospital Indemnity Insurance can complement your medical coverage by helping to ease the financial impact of a hospitalization. Coverage provides you with a payment to use as you see fit for hospital admission, accident-related inpatient rehabilitation, and hospital stays.

Hospital Indemnity Monthly Costs

Employee Only $15.07 (Low) $29.93 (High)

Employee + 1 $23.22 (Low) $46.53 (High)

Employee + 2 or More $36.84 (Low) $73.79 (High)

MetLife Accident Plan

Plan Concept

Accident Insurance complements your medical coverage by helping to ease the financial impact of an accident. Coverage provides you with a payment to use as you see fit and can help with any of the outof-pocket expenses you may incur as a result of an accident, such as insurance deductibles, copays, transportation to/from medical centers, and more.

Accident Plan Monthly Costs

Employee Only $9.27

Employee + 1 $17.98

Employee + 2 or More $24.01

MetLife Legal Plan

Plan Concept

MetLife Legal provides you, your spouse, and your dependents with fully covered legal services from experienced attorneys at a low monthly rate. When you use a Plan Attorney for covered services, there are:

• No deductibles • No copayments • No waiting periods

Monthly Cost $20.79

Plan Concept

MetLife Critical Illness Plan

Covered Conditions

• No claim forms

If you experience one of the covered conditions and meet all of the policy and certificate requirements, coverage provides you with a payment to use as you see fit. This payment can help you keep your family finances on track if you experience a covered condition.

MetLife Critical Illness Insurance covers the following medical conditions:

• Full Benefit Cancer

• Coronary Artery Bypass Graft

Alzheimer’s Disease

• Additional Listed Conditions

You will receive an additional lump-sum payment of 100% of your Selected Benefit Amount for a Major Organ Transplant. This coverage would be in addition to the Total Benefit Amount payable for the previously mentioned Covered Conditions.

Coverage Tiers Employee, Employee + Spouse, Employee + Child(ren), and Employee + Family

Coverage Amounts Available options for each tier include $10,000, $20,000, and $30,000. The Critical Illness monthly costs are dependent on the employee’s age, selected tier, and coverage amount.

Nationwide Pet Insurance

Plan Concept

Pet Insurance provides benefits for veterinary treatments related to accidents and illness, including cancer. For more information or to enroll, call 877.738.7874 or visit PetsNationwide.com

Supplemental Term Life Insurance

Plan Concept

Monthly Cost

You can elect supplemental term life insurance,* in addition to the life insurance benefit provided by Pepperdine, up to a total of 5x your annual base salary. Supplemental term life insurance is also available to elect for spouses and dependent children under age 26.

The monthly cost for employee and spouse coverage is dependent on the insured individual’s age at time of issue. A flat rate is available for child dependents.

*Supplemental term life insurance may be subject to an approved Evidence of Insurability form.

Benefits Highlight: Transamerica Retirement Plan

Transamerica serves as Pepperdine’s administrator for its 403(b) retirement savings plan.

EMPLOYEE CONTRIBUTIONS

Eligible employees can create an online account and may choose to contribute pretax and/or after-tax dollars to their retirement savings account after their first routine paycheck with the University. Employees should visit transamerica. com/portal/pepperdine and select the option to Create An Account or contact Transamerica at 800.755.5801 to establish their retirement savings elections.

AUTO-ENROLLMENT FEATURES

Auto-enrollment features are available to help with disciplined retirement savings.

• New Hires and Rehires. If an eligible new hire/rehire does not take action to elect their desired retirement savings contributions, they will be automatically enrolled in a 3% pretax contribution, per paycheck, after 90 days of continuous employment with the University.

• Annually. On August 1 of each year, employees who previously opted out of retirement contributions will be automatically enrolled in a 3% pretax contribution, per paycheck. Additionally, employees who did not disable the auto-increase feature will have their personal contributions increased by 1% on August 1 of each year.

Employees will receive a notice from Transamerica one month prior to August 1 as a reminder of the annual automatic enrollment and increase features.

EMPLOYER CONTRIBUTIONS

Employees become eligible to receive the base and match retirement savings contributions from Pepperdine on the first of the month following one year of creditable service with the University and attainment of age 26.*

Once an employee meets both criteria, Pepperdine will automatically begin depositing a 4% base contribution and up to a 6% match contribution into the employee’s Transamerica account. Employer contributions are offered on a pretax basis, and all funds are immediately vested.

To receive the maximum benefit, you only need to contribute 6% of your base earnings.

6% 6% 4% 16%

*Eligible employees must be employed in a qualified position directly through Pepperdine and work at least 1,000 hours within one year to meet the creditable service requirement.

RETIREMENT PLANNING SERVICES

Employees have year-round access to retirement planning resources, workshops, webinars, and one-on-one consultations with Transamerica professionals. To schedule a retirement savings consultation, please make your reservation at go.pepperdine.edu/hr-benefits

Benefits Highlight: Health Advocate

Pepperdine provides an advocacy service at no cost to benefit-eligible employees to assist with a variety of life’s challenges which include the following:

EMPLOYEE ASSISTANCE PROGRAM (EAP)

Our EAP provides eligible employees and their family members with confidential access to a licensed professional counselor to assist with short-term concerns impacting their life. The program provides 10 in-person, telehealth, or virtual counseling sessions, per situation, per person, each year.

Licensed professional counselors can help address:

• Anger, grief, loss, depression

• Job stress, burnout, work conflicts

• Marital relationships, family/parenting concerns

• Addiction, eating disorders, mental illness

BALANCING WORK AND PERSONAL TIME

Employees are encouraged to contact a Work/Life Specialist for assistance with balancing their professional and personal responsibilities.

Work/Life Specialists can help with:

• Locating childcare centers and preschools

• Researching/locating assisted living, nursing home, and adult day care services

• Support with personal/family/elder law and reconciling identify theft

• Assisting with time management, debt management, budgeting, and credit issues

Support is available to you, your spouse/domestic partner, your dependent children, parents, and parents-in-law at 866.799.2728. You or your family member will be connected with a professional who will assess the needs at issue and either provide the necessary help or make a cost-effective referral.

For a full list of available services through Health Advocate, visit myhealthadvocate.pepperdine.edu

Child Care Resources

CHILD CARE SUBSIDY GRANT PROGRAM

The Child Care Subsidy Grant Progam was established by Pepperdine to assist employees with meeting the demands of child care costs. Grants are awarded each fall based upon an annual application process and are funded by the University on a pretax basis through its Dependent Care Flexible Spending Account.

The program provides a grant of up to $5,000 a year to qualified employees with dependent children ages 12 and under. Program claims will be administered under the same rules and regulations governing Pepperdine’s Flexible Spending Account (FSA).

To review eligibility requirements and dates applicable to the program, please visit pepperdine.edu/childcareresources

KINDERCARE

Pepperdine has partnered with KinderCare Learning Companies to provide all employees with a 10% tuition discount on child care costs when utilizing a KinderCare Center or Champions site.

Children between the ages of 6 weeks and 12 years old are eligible to participate in this program, and employees only need to provide a recent check stub or their Pepperdine ID for the discount to be applied.

For more information on this benefit or to find a KinderCare Learning Center near you, please visit kindercare.com/pepperdine

Pepperdine does not endorse any external schools or programs, and parents should research their options to make the best choices for their family.

Engagement and Wellness

Pepperdine University is a special place to work. Just as we prepare students for meaningful and abundant lives, we also seek to provide faculty and staff with comprehensive and holistic opportunities to thrive personally, professionally, and spiritually. The influence of our distinctive mission, positive work environment, exceptional people of character, professional development opportunities, wellness programming, beautiful campus facilities, access to an outstanding academic community, and more, all compose the rich value of working at Pepperdine. Please review the many elements of total compensation offered to the faculty and staff dedicated to promoting the University’s mission.

STAFF PAID TIME OFF

Pepperdine staff employees accrue vacation and sick leave based on their status (full-time vs. part-time) and years of service to the University. Faculty may work with their school to coordinate time off and leave details.

Paid Holidays

13 days per year (including one full week at Christmas)

Paid Sick Leave

10 days per year

20 days after 5 years

Paid Vacation Leave

10 days per year

15 days after 5 years

20 days after 15 years

Paid Floating Holidays

2 days per year (after 6 months of service)

Paid Volunteer Leave

5 days (after 5 years of service)

Paid Jury/Witness Duty

10 days per service requirement

Paid Bereavement Leave

5 days off (3 days paid) per eligible family member

LEARNING AND CAREER DEVELOPMENT

Pepperdine University invests itself fully in the personal, professional, and spiritual development of all faculty and staff members. Human Resources offers facilitated workshops, self-directed resources, and more to support your professional development at Pepperdine.

• Career Development Opportunities

• Leadership Development Program

• Learning and Career Growth Library

• Mentorship Resources

• Personal and Professional Development Workshops and Webinars

• Spiritual Development Opportunities

HOLISTIC WELLNESS

Pepperdine approaches employee wellness holistically, acknowledging all components of an employee’s well-being—physical, psychological, spiritual, social, and financial—are interconnected.

Physical Wellness

Farm Fresh To You (Organic Produce Delivery)

Group Fitness Classes

On-Site Vaccine Clinics

Wellness Fairs

Webinars by Local Doctors

Psychological Wellness

Employee Assistance Program (EAP)

Support Groups

Mindfulness Workshops

Spiritual Wellness

Bible Studies and Workshops

Chaplain and Prayer Services

Harbor Bible Lectures

Advent and Good Friday Services

Financial Wellness

Workshops

Webinars

One-on-One Retirement Consultations

Social Wellness

Athletic Events

Community Garden

Deans’ Lecture Series

Family Movie Night

Holiday Parties

Pepperdine Family Picnic

Pepperdine Honors

President’s Briefings

Service Drives and Events

Step Forward Day

Theatrical and Musical Performances

Vanpool Program

So much more!

Founder’s Day

Step Forward Day

Pepperdine Honors

Pepperdine Family Picnic

Tuition Remission and Exchange Programs

TUITION REMISSION PROGRAM

Pepperdine University is pleased to extend to qualified employees and their dependents one of its most generous benefits of continued education through the faculty/staff tuition remission program.

Pepperdine encourages the persistent growth and development of its employees and offers a substantial reduction in cost to those who pursue a degree from one of its five schools. Should employees choose to continue their professional development by working toward a degree, the University hopes faculty and staff members will use that opportunity to enhance their contributions at Pepperdine by applying their learning to the workplace.

Am I eligible?

• Either be a regular full-time member of the faculty who has been assigned a full load of teaching or equivalent service during two or more trimesters/semesters of the academic year or be a regular full-time staff member who is continuously employed in a regular full-time position requiring at least forty (40) hours of work per week.

• Be actively employed (not on a formal leave status).

What is my benefit?

• Fifty percent (50%) tuition remission on courses taken in the University’s undergraduate programs with an additional 5% per year of service (in an eligible position) to a maximum of 100%.

• Twenty-five percent (25%) tuition remission on courses taken in the University’s graduate programs with an additional 5% per year of service (in an eligible position) to a maximum of 75%.

• For employees only, 100% tuition remission in the “space available program” in the Graziadio Business School’s part-time MBA and BSM programs. This benefit is limited to one course per trimester provided all program enrollment and participation requirements are met.

Please Note: Fees (such as registration, course fees, and room and board) are not covered by the tuition remission program. Taxes on graduate courses apply; please speak with a payroll representative to learn of possible tax implications.

RECIPROCAL TUITION REMISSION PROGRAM

The University has entered into an agreement with the following Church of Christ colleges and universities whereby qualifying children of eligible Pepperdine employees may receive a 50% tuition discount:

• Abilene Christian University (Abilene, Texas)

• David Lipscomb University (Nashville, Tennessee)

• Faulkner University (Montgomery, Alabama)

• Freed-Hardeman College (Henderson, Tennessee)

• Harding University (Searcy, Arkansas)

• Lubbock Christian University (Lubbock, Texas)

• Oklahoma Christian University (Oklahoma City, Oklahoma)

Regular employees with assignments of thirty (30) or more hours per week are eligible upon completion of one (1) year of employment. Interested employees may contact Human Resources for a complete list of student eligibility requirements, procedures, and participating institutions. Please consult the complete text of the reciprocal agreement for statements of qualifications, benefits, and limitations. Copies of the agreement are available in Human Resources or Financial Aid.

TUITION EXCHANGE PROGRAM

The Tuition Exchange is a reciprocal scholarship program for children of eligible faculty and staff employed at more than 560 participating institutions. The program is based on participating employees at other universities and at Pepperdine relinquishing their tuition remission benefit at the school where they work to attend other colleges. The scholarships are not guaranteed, and each university limits the number of tuition exchange scholarships awarded each year. Tuition Exchange preliminary applications should be submitted no later than December of the student’s high school senior year. For complete information on this program, please visit tuitionexchange.org

Legal and Notice Requirements

HUMAN RESOURCES SUMMARY NOTICE OF PRIVACY PRACTICES

This summary of the Human Resources notice of privacy practices describes how the department may use and disclose your protected health information (PHI) and how you can access that information. Please review it carefully. For a complete, detailed account of the University’s notice of privacy practices, please refer to “Pepperdine University’s Notice of Privacy Practices,” available upon request or on Pepperdine University’s Intranet website at pepperdine.edu/about/administration/provost/content/ hipaamanual.pdf

The main objective of the Health Insurance Portability and Accountability Act (HIPAA) privacy rule is to provide a uniform and simplified minimum standard for the privacy of individually identifiable health information. As such, health plan members have certain rights regarding their protected health information.

• The right to receive notice of the group health plan’s privacy practices

• The right to access, inspect, or copy any PHI in your file

• The right to request amendment of erroneous or incomplete information

• The right to obtain an accounting made of disclosures of PHI

• The right to request restrictions of use or disclosure

• The right to request confidential communications

• The right to provide consent or authorization for the Benefits Department to assist you with understanding documents containing PHI

• The right to make a complaint to the Department of Health and Human Services and to the Group Health Plan whenever you feel as though your HIPAA rights have been violated.

The University will tolerate no retaliatory acts against an employee who exercises his/her HIPAA rights by filing a complaint.

Privacy Practices of the Plan Sponsor

• If you believe your HIPAA rights have been violated and for all other concerns, please contact Human Resources at 310.506.4397

• Staff members in the Human Resources department participate in ongoing training of privacy policies and procedures for handling PHI.

• A review of the physical area will be completed annually to ensure there is limited access to both computer and paper files containing any protected health information.

• The University has a system of written disciplinary policies for workforce members who violate the privacy rules.

• Business associates of Pepperdine University who may handle your PHI are required to provide a written statement confirming they are in compliance with HIPAA regulations.

• A written log sheet will be utilized to track access to files containing PHI.

• Individual Employee files will not contain PHI.

The Human Resources staff, accountable to the associate vice president, Human Resources and Business Services, is committed to serving the Pepperdine community with the utmost respect for PHI.

NOTICE REQUIREMENT

Women’s Health and Cancer Rights Act of 1998

Beginning in 1999, federal law requires a group health plan to provide coverage for the following services to an individual receiving plan benefits in connection with a mastectomy:

• Reconstruction of the breast on which the mastectomy has been performed

• Surgery and reconstruction of the other breast to produce a symmetrical appearance

• Prostheses and physical complications for all stages of a mastectomy, including lymphedemas (swelling associated with the removal of lymph nodes)

The group health plan must determine the manner of coverage in consultation with the attending physician and patient. Coverage for breast reconstruction and related services will be subject to deductibles and coinsurance amounts that are consistent with those that apply to other benefits under the plan.

Insured plans and HMOs are subject to any applicable state laws mandating mastectomy and related benefits in addition to the Federal Act’s requirements.

SPECIAL ENROLLMENT CIRCUMSTANCES Notice of Special Enrollment Rights and Waiver of Health Plan:

If you are declining enrollment for yourself or your dependents (including spouse) because of other health insurance coverage, you may in the future be able to enroll yourself and eligible dependents in the Pepperdine health insurance plan, provided that you request enrollment within 30 days after the other coverage ends. If you waive spouse health insurance (if you are already married) and do not have other health insurance and then have a new dependent as a result of birth, adoption, or placement for adoption, you may be able to enroll your spouse, provided that you request enrollment within 30 days after the date of the marriage, birth, adoption, or placement for adoption.

Conditions of Special Enrollment

• When coverage was declined or waived, employee or dependent stated in writing that other coverage was the reason for waiver.

• If the other coverage was COBRA coverage, then the COBRA coverage must be exhausted for the special enrollment to apply.

• If the other coverage was not COBRA coverage, then the other coverage must terminate because of one of the following: Employer contributions toward the coverage have been terminated, or

Loss of eligibility under the other coverage, such as:

• Termination of employment or eligibility, or reduction in work hours

• Divorce

• Death

Loss of eligibility does not include:

• Loss of coverage due to the failure of the individuals to pay premiums on a timely basis

• Termination of coverage for cause, such as fraudulent claims and/ or intentional misrepresentation of material fact in connection with the plan

IMPORTANT NOTICE About Your Prescription Drug Coverage and Medicare

Please read this notice carefully and keep it where you can find it. This notice has information about your current prescription drug coverage with Pepperdine University and prescription drug coverage available for people with Medicare. It also explains the options you have under Medicare prescription drug coverage and can help you decide whether you want to enroll. At the end of this notice is information about where you can get help to make decisions about your prescription drug coverage.

1. Medicare prescription drug coverage became available in 2006 to everyone with Medicare through Medicare prescription drug plans and Medicare Advantage Plans that offer prescription drug coverage. All Medicare prescription drug plans provide at least a standard level of coverage set by Medicare. Some plans may also offer more coverage for a higher monthly premium.

2. Pepperdine University has determined that the prescription drug coverage offered by the Aetna and Kaiser plans are, on average for all plan participants, expected to pay out as much as the standard Medicare prescription drug coverage will pay and is considered Creditable Coverage.

Because your existing coverage is on average at least as good as standard Medicare prescription drug coverage, you can keep this coverage and not pay extra if you later decide to enroll in Medicare prescription drug coverage.

Individuals can enroll in a Medicare prescription drug plan when they first become eligible for Medicare and each year from October 15 through December 7. Beneficiaries leaving employer/ union coverage may be eligible for a Special Enrollment Period to sign up for a Medicare prescription drug plan.

You should compare your current coverage, including which drugs are covered, with the coverage and cost of the plans offering Medicare prescription drug coverage in your area.

If you do decide to enroll in a Medicare prescription drug plan and drop your Pepperdine University prescription drug coverage, be aware that you and your dependents may not be able to get this coverage back until the next Open Enrollment period or other qualifying event period.

Contact us for more information about what happens to your coverage if you enroll in a Medicare prescription drug plan.

You should also know that if you drop or lose your coverage with Pepperdine University and do not enroll in Medicare prescription drug coverage after your current coverage ends, you may pay more (a penalty) to enroll in Medicare prescription drug coverage later.

If you go 63 days or longer without prescription drug coverage that is at least as good as Medicare’s prescription drug coverage, your monthly premium will go up at least 1% per month for every month that you did not have that coverage. For example, if you go nineteen months without coverage, your premium will always be at least 19% higher than what many other people pay. You will have to pay this higher premium as long as you have Medicare prescription drug coverage. In addition, you may have to wait until the following October to enroll.

For More Information About This Notice or Your Current Prescription Drug Coverage

Contact Human Resources for further information. NOTE: You will receive this notice annually and at other times in the future, such as before the next period you can enroll in Medicare prescription drug coverage, and if this coverage through Pepperdine University changes. You also may request a copy.

For More Information About Your Options Under Medicare Prescription Drug Coverage

More detailed information about Medicare plans that offer prescription drug coverage is in the “Medicare & You” handbook. You’ll get a copy of the handbook in the mail every year from Medicare. You may also be contacted directly by Medicare prescription drug plans. For more information about Medicare prescription drug plans:

• Visit medicare.gov

• Call your State Health Insurance Assistance Program (see your copy of the “Medicare & You” handbook for their telephone number) for personalized help.

• Call 800.MEDICARE (800.633.4227). TTY users should call 877.486.2048

For people with limited income and resources, extra help paying for Medicare prescription drug coverage is available. Information about this extra help is available from the Social Security Administration (SSA) at ssa.gov, or 800.772.1213 (TTY 800.325.0778)

Remember: keep this notice. If you enroll in one of the new plans approved by Medicare, which offer prescription drug coverage, you may be required to provide a copy of this notice when you join to show that you are not required to pay a higher premium amount.

Open Enrollment Deadline

Review all the material you have received or which is available from Human Resources upon request before making your decision. Share this information with your family. Your completed online enrollment must be done by November 13, 2023. The effective date for coverage is January 1, 2024.

New employees

Generally, newly eligible employees must complete the appropriate online enrollment within 30 days of their initial eligibility date.

Failure to enroll by the specified deadlines for a New Hire/ Rehire’s initial enrollment window and during the annual Open Enrollment will result in default benefits only. Default benefits are limited to Pepperdine’s core benefit offering. All other benefits will be waived.

Default Benefits

If you do not complete your online enrollment before the enrollment deadline, the University will provide you with core benefits only.

Core benefits include:

• Long-term disability coverage for 66.67% of your base monthly salary to a maximum benefit of $10,000 per month

• Term life insurance equal to two times your base annual salary1

• Accidental death and dismemberment insurance equal to two times your base annual salary1

• Business travel accident insurance equal to five times your base annual salary

• Health Advocate programs

• Employee Assistance Program (EAP) services

Newly hired employees who fail to enroll in benefit(s) within 30 days of their date of hire will be defaulted into the “opt out” option and will not have an opportunity to enroll in insurance benefits until the next Open Enrollment period.

During Open Enrollment, it is to your advantage to take an active role in the enrollment process so that you receive the benefits you need. Remember, you will not have an opportunity to make any plan changes until the Open Enrollment period next year.

1At age 70, the amount will be reduced to 65% of the original benefit; at age 80, it will be reduced to 50% of the original benefit.