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CC Regular Session
Colleen Lasher, Administrative Services
Adopt Resolution 17-10-262 to Amend the City's Personnel Policy
The City provides group health insurance benefits to employees working at least 30 hours per week. Staff recommends amending eligibility to the City's group benefits, as follows: 1) consider permitting Council Members to participate in the City’s group health insurance plan without affecting Council Members’ total compensation from the City, and 2) consider amending the City's eligibility for group life insurance to include employees participating in PERA's phased retirement.
Council Member Health Insurance Eligibility
Staff recommends adding Council Members as eligible to enroll in the City's health insurance plan without increasing the Council Member's total compensation. Staff has consulted with the City's benefit's broker, the carrier and the City Attorney and have determined that changing the eligibility is allowed, with City Council approval.
Life Insurance for Phased Retirement Employees
Group benefits as a whole include health, dental and life insurance. Minnesota Statute 471.61, subd. 2b. Insurance continuation states "a unit of local government must allow a former employee and the employee's dependents to continue to participate indefinitely in the employer sponsored hospital, medical and dental insurance group that the employee participated in immediately before retirement" (under certain conditions). While the statute does address health and dental insurance, it does not address life insurance.
As the City Council is aware, PERA's phased retirement allows employees to participate for a maximum of 5 years. Currently, if a Phased Retirement employee wanted to continue their life insurance benefit they would be immediately required to elect COBRA which is limited to, in most cases, 18 months. In speaking with the City's benefits broker, staff learned the another City recently received approval from Sun Life, the same carrier as Ramsey, to allow PERA Phased Retirement employees to stay on the plan. Staff recommends this option for the City of Ramsey as well, pending approval by the carrier.
There is no additional funding required.
To adopt resolution 17-10-262 amending the City Personnel Policy to do the following:
1) allow Council Members eligibly to the City's Group Health Insurance without increasing Council Member total compensation; and
2) allow employees participating in the PERA Phased Retirement Option eligibility to the City's group Life Insurance plan.
Motion to adopt resolution 17-10-262 to amending the City Personnel Policy to do the following:
1. Section 5.1 of the City’s Personnel Policy is hereby amended to include the following paragraph:
City Councilmembers may participate in the City’s group health insurance plan subject to the following conditions:
a. The City will contribute toward a City Councilmember’s group health insurance premiums at the minimum rate required by the City’s insurance carrier. If the City’s insurance carrier does not require a minimum contribution from the City, the City will not contribute any amount toward the Councilmember’s premiums.
b. The Councilmember will receive the contributions toward health insurance premiums described in Paragraph a, if any, in lieu of the same amount of the stipend paid to the City Councilmember for participating on the City Council. Before the City makes any contribution toward the Councilmember’s insurance premiums, the Councilmember will execute an agreement declining payment of an amount of his or her stipend equal to the amount of the City’s contribution toward the insurance premiums.
c. If the City’s group health insurance carrier requires the City to contribute an amount toward premiums that is greater than the amount of the stipend paid to City Councilmembers, no City Councilmember will be eligible to participate in the group health insurance plan until such time as the Councilmembers’ stipend equals or exceeds the amount of any required minimum City contribution toward the group health insurance premiums.
d. City employees participating in the PERA Phased Retirement option shall be eligible to stay on the City’s Life Insurance plan.
10/06/2017 04:26 PM
Form Started By:
10/06/2017 03:47 PM
Final Approval Date:
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