HR Liaisons Town Hall - December 2017

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Office of Human Resources HR Liaisons Town Hall

HR Conference Center December 14, 2017

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OHR Website

Nichole Dwyer

New OHR Website!

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Employee Resources Via SharePoint

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HR Liaisons Via SharePoint: www.hr.pitt.edu/hr-liaisons

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OHR Website

Website feedback?

Email: ohrcomms@pitt.edu

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Staff Climate & Engagement Survey

Robert Hartman

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Pilot Program for Background Checks Cheryl Johnson

Pilot Program for Background Checks Overview: At Pitt, we value the quality, expertise, and skills that all of our staff employees bring to the University, representing diverse perspectives and experiences that contribute to our reputation as a world-class institution.

Due to our commitment to fair and legal recruiting and employment practices, we are implementing a pilot program that provides a more thorough review of applicant histories that ends the practice of automatically eliminating job candidates based on prior criminal records. This change to the University staff employment application ensures that we are making fair, equitable hiring decisions, and that we find the best applicants suited for available positions.

• The new Background Check Program removes the criminal history box from employment applications • The program allows for a focus on a candidate’s qualifications first, without the stigma of a criminal record • This program will reduce discrimination risk and adverse impact; the program prevents hiring managers from asking inappropriate questions during the interview process • Pitt will review criminal history after a conditional employment offer is made and will make educated decisions whether or not a criminal history is relevant to the job • This effort will increase the candidate pool, support diversity and inclusion, and support the Plan for Pitt to promote equal employment opportunity • Pitt join’s other organizations that have adopted these background check processes including over 34 states, 150 cities/counties including employers such as Penn State, Carlow, CCAC, Pittsburgh Technical College, City of Pittsburgh, and Allegheny County

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Current State vs. Future State Current

Future

Criminal history question on application

Eliminate criminal history question from the application

20 departments conduct background check

Conduct background checks on all new hires (University-wide: Staff/Union/Temporary)

623 background checks conducted: $70 (average) per new hire (2016)

Project conducting 1500 background checks in FY18 at a negotiated flat rate of $41.28

Currently only Athletics conducts education verification

Education verification for all jobs requiring a degree

Vendor Turnaround Time: 97% completed in ~ 48 hours

Vendor Turnaround Time: 97% completed in ~ 48 hours

Background checks charged back to individual departments. Cost $44,000 annually

Centralized budget with projected cost of $68,000 annually (includes

Adverse actions reviewed by OHR

anticipated increase in new hire volume by 10%)

Misdemeanor Adverse Actions reviewed by OHR as they have in the past. Felony Adverse Actions will be reviewed by the Dispositioning Committee comprised of Public Safety, OHR (TA & ER), and ODI

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What is the new process?

• Remove criminal conviction question from application • Nothing changes for hiring managers—they still review applicants and interview as they always have.

• Once the finalist has been selected, a contingent offer will be made and we will request that the finalist complete a confidential online questionnaire and authorization to conduct background checks • Conduct background checks on all finalists for staff, union, and temporary positions at University campuses • If no criminal history exists, proceed with hire as usual • If a misdemeanor is found, this will be reviewed in OHR as it always has and a decision will be made whether to hire or not – (this process has always been in place and is not changing) • If there is a felony conviction, the applicant’s history will be thoroughly reviewed and evaluated by a University Committee that will take into account various factors, such as but not limited to: • • • • •

The nature of the offense The time that has passed since the offense The particular duties of the available position The applicant’s prior employment history Evidence of rehabilitation

As always, the University is dedicated and committed to the safety and well-being of all of its employees and students first and foremost.

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Retirement Savings Plan Updates John Kozar & Lori Carnvale

Retirement Oversight Committee

Retirement Savings Plan Updates dasdfgfsd

December 14, 2017

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Executive Summary •

The Defined Contribution Plan, the University’s Retirement Savings Program, will have a great new look that conveys our goal to help participants improve financial literacy and achieve their financial goals.

•

The University will take part in a relaunch of the program and reeducation of all Plan participants.

•

The University of Pittsburgh has continually worked to streamline administration, increase efficiencies, and lower overall Plan costs.

•

In 2016 Cammack Retirement Group was engaged to assist in the ongoing enhancement of the Plan and negotiation of Plan fees.

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Proposed future enhancements include a streamlined fund array, the addition of a brokerage window, and the introduction of a 457(b) Plan.

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An Exciting New Look The Retirement Savings Program will have a great new look. Upcoming communications will feature the new theme: Write Your Own Financial Story.

This theme conveys the University’s goal to: •Recognize that the financial goals of our faculty and staff are as diverse as our workforce •Provide greater access to the investments, resources and education to help employees achieve their financial goals •Give participants the tools and support to increase their financial literacy and to write their own financial story O F F I C E O OVERSIGHT F HUMAN R ESOURCES RETIREMENT COMMITTEE

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Retirement Oversight Committee • Cheryl Johnson – Human Resources (Chair) • Alan Garfinkel – Office of General Counsel (Advisor) • Lori Carnvale – Benefits • Aynsley Jimenez – Benefits • John Kaye – Office of Finance • John Kozar – Benefits • Tom Spanedda – MHSF • Jay Sukits – Katz School of Business Faculty Member

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Actions Undertaken by the ROC to Add Value for Participants 1. Streamlined Portfolio 2. Addition of Brokerage Window 3. Reduced Fees 4. Process to ensure plans continue to be fully compliant 5. Addition of 457(b) 6. Comprehensive plan rollout and continued enhanced communications plan O F F I C E O OVERSIGHT F HUMAN R ESOURCES RETIREMENT COMMITTEE

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1. Streamlined Portfolio •

Working with Cammack Retirement Group, a more focused fund array has been developed.

•

50 funds will be available effective March 16, 2018: a.

Target Date Investments (TIAA Lifecycle and Vanguard Target Date)

b.

A broad mix of core investment funds including: a.

Capital preservation (TIAA Traditional, Stable Value, Money Markets, short-term bonds)

b.

Core and Diversifying Fixed Income (Long-term Bonds)

c.

Domestic Equity (Large, Mid, and Small Value, Blends, Growth and Social Choice)

d.

International/Global Equity

e.

Inflation Hedge (Inflation Protected Securities, Real Estate)

•

Funds are classified in a manageable way to assist participants in making appropriate allocation decisions

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Fund lineup consists of 25% TIAA, 50% Vanguard and 25% Other O F F I C E O OVERSIGHT F HUMAN R ESOURCES RETIREMENT COMMITTEE

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INVESTMENT ARRAY: TIER 1 – TARGET DATE, RISK ALLOCATION, MANAGED ACCOUNTS TIAA CREF Lifecycle Vanguard Target Retirement TIER 2 – CORE INVESTMENT FUNDS CAPITAL PRESERVATION FIXED/STABLE

MONEY MARKET

CREF Money Market TIAA Traditional TIAA Stable Value Vanguard Federal Money Market CORE AND DIVERSIFYING FIXED INCOME INTERMEDIATE WORLD BOND Templeton Global Bond Vanguard Total Bond Market Index* Vanguard GNMA LONG-TERM BOND CREF Bond Market Vanguard Long-Term Bond Index* TIAA-CREF Social Choice Bond Western Asset Core Plus DOMESTIC EQUITY LARGE VALUE LARGE BLEND Vanguard Equity Income Vanguard Institutional Index * Vanguard Windsor CREF Stock Vanguard Value Index*

SHORT-TERM BOND Vanguard Short-Term Investment-Grade I

HIGH YIELD Vanguard High-Yield Corporate

EMERGING MARKETS Vanguard Emerg Mkts Govt Bd Idx*

LARGE GROWTH Vanguard PRIMECAP CREF Growth Vanguard Growth Index* Vanguard Capital Opportunity MID GROWTH MassMutual Select Mid Cap Gr Eq Vanguard Mid-Cap Growth Index*

SOCIALLY RESPONSIBLE EQUITY CREF Social Choice TIAA-CREF Social Choice Eq Instl

MID VALUE Wells Fargo Special Mid Cap Value Vanguard Mid-Cap Value Index*

MID BLEND Vanguard Mid Cap Index* Vanguard Extended Market Idx*

SMALL VALUE JPMorgan US Small Cap Value Vanguard Small Cap Value Index*

SMALL BLEND Vanguard Small Cap Index*

SMALL GROWTH TIAA-CREF Small-Cap Equity Vanguard Small Cap Growth Index*

FOREIGN SMID Victory Trivalent International Sm-Cp

EMERGING MARKETS STOCK American Funds New World Vanguard Emerging Mkts Stock Idx*

REAL ESTATE/REIT TIAA Real Estate Vanguard REIT Index*

COMMODITY

HYBRID Vanguard Wellington CREF Social Choice

INTERNATIONAL/GLOBAL EQUITY FOREIGN LARGE CAP Vanguard Total Intl Stock Index* Vanguard International Growth Vanguard FTSE All-Wld ex-US Idx* INFLATION HEDGE INFLATION PROTECTED BOND Vanguard Inflation Protected Secs

WORLD STOCK CREF Global Equities Vanguard Global Equity

Funds in green = new additions * Indicates passive investment options

RETIREMENT OVERSIGHT COMMITTEE

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OFFICE OF HUMAN RESOURCES

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Streamlined Portfolio Addition of seven new funds: • Western Asset Core Plus – Fixed Income • Templeton Global Bond – Fixed Income • Wells Fargo Special Mid Cap Value – Domestic Equity • JP Morgan U.S. Small Cap Value – Domestic Equity • MassMutual Select Mid Cap Growth Equity – Domestic Eq. • Victory Trivalent International Small Cap – International • American Funds New World – International

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Streamlined Portfolio

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2. Addition of a brokerage window to retain choice • The brokerage window provides the opportunity to exercise personal preference outside of the funds that the University monitors.

• The majority of current funds not included in the new menu will be available through the brokerage window. If the fund is transferred between February 15, 2018 and June 15, 2018, any transaction fees are waived.

• Funds not moved by June 15th may remain available but at the retail fee level.

• At other institutions, the use of the brokerage window has been very limited, however, the 90-day fee waiver is a new offering that the University negotiated with TIAA on behalf of participants.

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3.

Reduced Fees

Fees are being reduced for several reasons • • • • • •

Continued success with sole recordkeeping Elimination of small balances Streamlining loan administration Creating a much more manageable platform Competitive market conditions Increased value of the University’s account. It has increased significantly due to: • Market value • University and participant contributions • Influx of cash from rollovers

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Basis Points What a Fee Reduction Means A basis point is equal to 1/100 of 1%. In other words, 100 basis points 2016 equal 1%.

Investment Amount

Basis Points

Investment Amount

Basis Points

Investment Amount

Basis Points

$1,000 $10,000 $100,000

10 10 10

Expense $1000x.001 $10000 x .001 $100000 x .001

Expense $1.00 $10.00 $100.00

2017

$1,000 $10,000 $100,000

4 4 4

Expense $1000x.0004 $10000 x .0004 $100000 x .0004

Expense $0.40 $4.00 $41.00

2019

$1,000 $10,000 $100,000

2.5 2.5 2.5

OFFICE OF HUMAN RESOURCES

Expense $1000x.00025 $10000 x .00025 $100000 x .00025

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Expense $0.25 $2.50 $25.00

BENEFITS DEPARTMENT

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4.

Ensure plans continue to be fully compliant

• Worked with Cammack Retirement Group to review plan documents and the effectiveness of the plan’s menu • Cammack conducts a regular quarterly analysis of fund performance.

– Recommendations will be made to keep, remove, or place certain funds on a watch list.

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5. Addition of a 457(b) Plan • Available to all eligible faculty and staff • Allows for deferral of additional pre-tax income on a voluntary basis (no match/cost to the University).

• Current IRS limits for 2017 are: • $18,000/year – under age 50 • $24,000/year – age 50 and over

• Provides participants with an opportunity to double these IRS limits.

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6. Communications and Education - Roll out Plan • Pre-announcement via Read Green • Detailed communications to homes to include letter and transition guide the week of January 16 • Social media messaging • Article in University Times • TIAA counseling sessions and workshops • Live and On-Demand Webinars

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Campaigns and Events

Helpful Tax Tips

Executive Speaker Event

November Meetings and Education*

Charitable Giving Toolkit

Healthy U Ongoing Financial Literacy focusing on Segmentation and Multigenerational Needs

Onsite Workshops: Gaining Insight Halfway There Online Tools/ Resources Square Up Your Savings Gamification 1:1 Counseling TIAA Webinars

Financial Foundations Campaign

PACWCSponsored Workshop

Women’s HERstory Month

America Saves Week

December

Leadership Meetings

January General Meetings: Pittsburgh Campus w/ Help Desk Regional Campuses Union Groups Children’s Hospital UCDC MHSF Live Webinar On-Demand Webinar (through March)

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February General Meetings (Continued) 457(b) Meeting 457(b) OnDemand Webinar (through March) 1:1 Counseling TIAA Webinars

March General Meetings (Continued) 457(b) Meeting 1:1 Counseling TIAA Webinars

* Early Engagement / Stay Smart (Ongoing)

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Targeted Outcomes Understanding the benefits of the plan changes Review current asset allocation Increase contribution percentage or start saving Broaden awareness of TIAA services Financial literacy engagement Meet near-term obligations Maximize longer-term financial well-being Retirement readiness planning Metrics to monitor outcomes

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Q&A Open Forum

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