CCP 02-17-1998 - Laserfiche WebLink

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- . CITY OF ARDEN HILLS MEMORANDUM DATE: February 13, 1998 TO: Mayor and City Council FROM: B,'" Fd"'"". City Adm""""@ SUBJECT: Insurance Benefits Back~round Over the past few months, the City Council has discussed a variety of issues related to the Personnel Policy. During this period of time, staff has investigated how to integrate the various life and health insurance, and STD and L TD coverages with the Personnel Policy. At that time, the City Council directed staff to investigate the specific costs for these coverages and present them to the City Council. Due to the delay in receiving the health insurance quotes, staff would like to proceed on the Life, STD and LTD coverages before the rate guarantee explres. . Insurance Contrihutions The City currently provides each employee with $310 per month that is used to offset the costs of life, health and dental insurances, along with short-term disability. In the case of the Local 49 employees, the bargaining agreement requires them to only use the monthly contribution for life, health and dental insurance. They pay all STD costs out-of-pocket. 1. Group Life Insurance a. Current The City currently provides life insurance through Minnesota Mutual. The total cost for $10,000 of coverage for each employee is $672 per year. b. Proposed Staff has solicited proposals, based on the direction of City Council, which would provide each employee with a life benefit amount of I x salary to a maximum of$50,000. The decision to limit the benefit to $50,000 is due to tax purposes. Employees would still have the option to purchase additional coverage at their cost. This coverage would be a defined benefit provided at the cost of the City. The total cost for providing this coverage through Fortis Benefits Insurance Company is $1,970 per year. This rate is guaranteed for 27 months. .