Difficult Dialog (Equity and/or Competitiveness)

Difficult Dialog(Equity and/or Competitiveness)

• Religious Beliefs• Cultural and Societal Values• Fear of Differences

Will addition of domestic partner benefits make the University of Missouri more competitive in a

national and international higher education markets?

History of DPB Requests to UM System Administration

>10 Yrs MU Faculty Council Resolution and Request2008 MU Status of Women Request with Chancellor Support2009 UMSL Resolution and Request2010 UMKC Resolution and Request2010 MU Resolution and Request2011 Intercampus Faculty Council Request

Developed Business Case Justification for InclusionAgenda for RSB CommitteeWrite-in Campaign

Competition for Faculty and Administrators

With Other Universities

Competition for Faculty/Administrators(with other schools)

Comparator Schools without DPB % With DPB

MU4/34 AAU Public (4/61 AAU)(Texas, Texas A&M, Kansas, Virginia)

92%

UMKC 7/25(2 VA, 1 TX) 72%

UMSL 9/31( 2 VA, 2 TX, 1 KS) 66%

MS&T2/16(New Mexico Mining, S. Dakota Mining)

81%

• 47/50 States have Universities/Colleges with DPB• Average length of time with DPB is 12 years (longest 22 yrs)• Not limited to secular schools (Marquette, U Denver, Furman, Elon, Pacific Lutheran, Southern Methodist, Univ. San Diego)

California Institute of Technology (Pasadena, CA)Yes (marriage)Clarkson University (Potsdam, NY) ? (marriage) Colorado School of Mines (Golden, CO)YesFlorida Institute of Technology (Melbourne, FL) YesGeorgia Institute of Technology-(Atlanta, GA) Yes (soft only)Illinois Institute of Technology (Chicago, IL) Yes (civil unions)Massachusetts Institute of Technology (Cambridge, MA) Yes - marriageMichigan Technological University (Houghton, MI)YesMissouri Institute of Science & Technology NONew Jersey Institute of Technology (Newark, NJ) Yes (civil unions)New Mexico Institute of Mining and Technology NORensselaer Polytechnic Institute (Troy, NY) Yes (marriage)South Dakota School of Mines and Technology NOStevens Institute of Technology (Hoboken, NJ) Yes (civil unions)University of Alabama in Huntsville Yes 2011-12Worcester Polytechnic Institute (Worcester, MA) Yes - marriage

Comparator Schools for MS&T

Missouri Higher Education Institutions

with Domestic Partner Benefits William Woods College (Fulton) (2011)Westminster College (Fulton) (2009)Stephens College (Columbia) (2010)Drury College (Springfield)Avila College (Kansas City, MO)Shawnee Mission Community College (Kansas City, KS)Webster University (St. Louis)Washington University (St. Louis) (1994)Metropolitan Community College (St. Louis)St. Louis College of Pharmacy (St. Louis)

Competition for Faculty, Administrators & Staff with Industry

2009 Employers Responding to the HRC with Domestic Partner Health Insurance

Corporate Equity Index

Fortune 100 83 (83%)Fortune 500 293 (59%)Fortune 1000 404 (40%)AMLAW 153 (77%)

>9300 Private Sector Companies with >500 Employees have DPB

AMC Entertainment IncAmeren CorpAnheuser-Busch Companies, IncBrown Shoe Company, IncBrian Cave, LLPCerner CorpCms CommunicationsData Research AssociatesDesign Consultants, IncEnterprise Rent-A-Car, IncExpress Scripts, IncFred Pryor Seminars/CareertrackGraybar Electric Company, IncH&R BlockHallmark Cards, IncHNTB CompaniesHusch Blackwell Sanders LLP

Jacobs Civil IncLoanscapes, LLCLoansurfer.comMidwest Library ServiceMonsanto CoNestle Purina PetCare CoPolsinelli Shughart PCProgressive Medical IncPulitzer IncShook, Hardy & Bacon LLPSizewise Rentals LlcSmithkline Beecham ConsumerSSM Health Care SystemSt. Louis Post-DispatchState Street Kansas CityStinson Morrison Hecker LLPThompson Coburn LLP

Companies Headquartered in Missouri with DPB

Competition by Business Sector

Technology/SoftwareIBM IncCisco Systems, IncDell IncApple IncBlackboard IncAdobe IncCorning IncHewlett-Packard CoIntuit IncLexmark InternationalMcAfee IncMicrosoft CorpMotorola IncXerox CorpPeoplesoft Inc

PharmaceuticalsAbbott LabsBaxter CorpBerlex IncBoehringer IngelheimCVS CaremarkEli LillyGlaxoSmithKlineJohnson & JohnsonMerck & CoNovartisPfizer IncWyeth

Aerospace IndustriesBoeing CoGoodrich CorpHoneywell InternationalLockheed MartinNorthrop GrummanRaytheonUnited Technology Cort

Competition for StaffFood Industry7-Eleven IncAramark CorpBerger King CorpCampbell Soup CoCargill IncCoca-Cola CoConAgra Foods IncDean FoodsDole Foods IncDunkin BrandsGeneral Mills

H.J. heinz CoHershey CoKellogg CoKraft FoodsKroger CoMcDonald’s CorpMillerCoors LLCPepsoCoSara LeeWalgreen Co

Locals (Columbia)Kraft FoodsFrito Lay/QuakerState FarmSprintCentury LinkAT&T3MLowesHome DepotJC PenneySearsMacy

IBMTIAA-CREFTargetWalgreensPostal SystemColumbia CitySt Louis CityKansas CityJackson CountyBoone Hospital

What About Cost?(to the employee)

Total Compensation PhilosophyStraight Employee makes $50,000 + $4722 = $54,722Gay Employee makes $50,000 + 0 = $50,000

You Pay UM PaysAnnual Loss

for DPBEmployee $120.34 $325.34Employee + Spouse $256.86 $718.80 $4721.52

Employee + Family $348.48 $942.22 $7402.56

Does not include cost of buying private insurance or pre-tax differential

Domestic Partner Benefits: Cost and Utilization After more than a decade of experience with employers offering domestic partner health benefits, the cost to most employers has been negligible.

Overall Impact on Benefits Cost A 2005 Hewitt Associates study found that the majority of employers — 64 percent — experience a total financial impact of less than 1 percent of total benefits cost, 88 percent experience financial impacts of 2 percent or less and only 5 percent experience financial impacts of 3 percent or greater of total benefits cost.

Utilization / Enrollment Rates of enrollment have not been particularly high. Possible explanations most commonly cited for this are that same-sex domestic partners are likely already covered by their own employer, or that the employee is simply unwilling to disclose their sexual orientation for fear of discrimination.

A 2005 study by Hewitt Associates found an average of 1 percent of eligible employees elected coverage for a domestic partner and that an average of 1 percent of employees elected coverage for dependents of a domestic partner.

What About Cost?(to the employer)

Premium Costs OnlySalary and Wage $1,000,000,000Benefits $100,000,000Adding SS DPB $1,000,000Adding SOS DPB $6,000,000

1% change in salary requires $10 million1% change in retirement contributions is $10 million

BY CampusMU ~55%, 15% each of the others

MS$T $150,000 for SS DPB

$900,000 for SOS DPB

Validation of “Relationship” in the absence of state laws on civil unions

OPEN – C&HR – INFO 4

Additional Questions: Domestic Partner Benefits

Does Lack of DPB Impact Hires?Faculty Lost Hires (2008-2010)

Assistant Professor, School of Social Work (Female, White/Caucasian, 40's)Tenure-track: Human Environmental Sciences; September 2007- August 2008The applicant said that she had a partner and wanted partner benefits. She obtained an offer from another university (University of Louisville) that has partner benefits so she accepted that position. We had not yet made an offer but she was our top candidate and we were about to make the offer. But she knew that we did not have partner benefits.

Assistant Professor, School of Social Work (Female; White/Caucasian, 30's)Tenure-track;; Human Environmental Sciences; September 2008 - August 2009Met candidate at national meeting for screening interviews. She said at that time that she had a partner and would need partner benefits or a job for partner. Partner has children. We brought candidate to campus for interview and made an offer. She brought partner to Columbia to look for a job but didn't find anything suitable. Candidate declined offer. In this case if we had partner benefits it might not have been enough unless partner benefits would also include partner's children.

Assistant professor, Women and gender studies (Female; Black/African American, 20’s)Tenure-track; September 2006 - August 2007All I recall is that the faculty member informed us that she no longer wanted to be considered because of the lack of partner benefit policy. I also have a faculty member who is currently looking for a job because of the lack of a policy. Withdrew after applying - before action on application

Professor, British Literature (Female, White/Caucasian, 40's)English, September 2009- August 2010Expressed interest in MU, but changed mind when I said there were no same-sex benefits here at this time. Refused to apply

Does Lack of DPB Impact Hires?Chair of a department in the College of Education

Tenured position, September 2006 - August 2007 (Female, White/Caucasian, 40's)Candidate did not apply for a position as a department chair in the College of Education. Candidate was successfully recruited to be Associate Dean of Education in a major Big Ten University. She did not apply because there were no partner benefits at the University of Missouri.

Director of Development ResearchAdministrator - department head or higher (Female, White/Caucasian, 40's)Development; September 2008 - August 2009During a trip the Association of Prospect Researchers for Advancement (APRA)in August 2008 I attended the conference to recruit for a new director of development research in the Office of Development. When I returned I started looking through some of the possible recruits that I had identified. One of the possible recruits was an associate director of development research at a Big 10 University. In September I started doing some background checks on her and determined that she was a very good recruit, somebody with the skills, talent and leadership I was looking for in a candidate. I started to pursue her with an initial telephone interview, which went well. After that discussion she became more interested and we had a follow-up discussion where she started asking about benefits, the university and the city of Columbia. During the conversation she mentioned that she had a partner and that it would be important that they have benefits because it may be a while before her partner could get a position and she inquired about domestic partnership benefits. Once I told her that we did not have domestic benefits she wanted to think about applying for the position. After some she thought she called back and said that because we didn't have domestic benefits that she couldn't consider the position because she couldn't risk moving here and not have benefits for her partner who may not be able to find a position immediately and that they had a child. Refused to apply

Vice Chair position at the School of MedicineNon-tenurable ranked faculty. September 2008 - August 2009 (Male, White/Caucasian, 40's)I took on the leadership of a department. I had anticipated bringing one of my strongest colleague from my previous institution to serve as vice chair of clinical services. He was very interested in pursuing the position and we discussed having him interview here. He asked me about domestic partnership benefits, which I assumed existed here, since they had been at my previous institutions for nearly 20 years. When I found out they did not apply here I told my colleague. He declined the interview for financial reasons (needing health insurance for his partner with a preexisting condition) but his partner also persuaded him not to apply to a "hostile" institution. Refused to apply