Appendix A, Benefits and Cost Containment

Collective Bargaining Agreement between the University of Delaware and American Association of University Professors, University of Delaware Chapter

July 1, 1994 - June 30, 1996

1. Committee Purpose
   
   The purpose of the Benefits and Cost Containment Committee (B&CCC) is to evaluate the cost and utilization of the various benefit programs offered to faculty, professional, staff and hourly employees within the University Community and to make recommendations regarding methods by which benefit costs may be reduced or controlled. In order to accomplish this purpose, the University shall:
   1. obtain from BC/BS of Delaware and other benefit providers analyses of claims paid, usage, experience and comparative data regarding experience of the entire state group.

   2. obtain relevant data for all participating University personnel for the purposes of comparative cost analysis.

   The University shall attempt to obtain this data within sixty (60) days after agreement on a new contract has been reached.

2. Committee Authority
   
   The B&CCC shall have authority to undertake the following actions in seeking to accomplish its purpose:
   1. Meet with other benefit providers, insurers and third party administrators to analyze how benefit cost reductions can be achieved for both the short and long term.

   2. Evaluate the utilization of benefits to determine whether benefit dollars are being spent on benefits considered valuable and essential by University personnel.

   3. Contract for the services of an outside consultant or other professionals to provide advice regarding benefit plan comparisons or other issues relating to the purposes of the Committee, if such expertise is not available within the University Community.

   4. Make recommendations to the President suggesting benefit changes, alternative carriers or providers, or consideration of self-funding of one or more benefit programs. Such recommendations shall, with the advice of the Vice President for Employee Relations and the Senior Vice President for Administration, be presented to the President if such recommendations are consistent with the stated purpose of the Committee and do not contravene any University policy, applicable law or collective bargaining agreement.

3. Committee Structure
   
   2 Representatives Faculty (designated by the AAUP)
   2 Representatives Staff (designated by SSAC)
   2 Representatives Hourly (designated by AFSCME)
   2 Representatives Professional (designated by PAC)
   3 Representatives Administration
   
   Representatives on the Committee shall have full authority to represent the group by whom they have been designated. Additionally, University-wide groups or subcommittees, which may include members who are not the designated representatives, shall be appointed as needed to deal with specific issues arising under the Committee's authority.

4. Funding
   
   Reasonable funds necessary to accomplish the items set forth in paragraph 2 and to accomplish the Committee's purpose shall be provided by the University.