CCP 09-24-2001 - Laserfiche WebLink

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t j . . . CITY OF ARDEN HILLS MEMORANDUM DATE: September 18,2001 TO: Joe Lynch, City Administrator Terrance Post, City Accountant @ Bcnefit Parity Recommendation FROM: SUBJECT: Bac~round The city paid employee insurance benefit is available to be applied against employee health and dental insurance coverage. Employees currently electing family health coverage automatically utilize all ofthe maximum city benefit of $400 per month by virtue of the fact that this coverage alone costs $488.73 per month. However, employees electing single health and dental coverage (current total cost $255.13 per month) remain $144.87 per month under the maximum city insurance benefit. Issue The city currently provides higher benefits to employees electing family health coverage than to those electing single health and dental coverage. Discussion This item was discussed at the September 17, 2001 City Council Worksession, and staffwas directed to bring it forward to a subsequent Council meeting for further discussion and/or action. Staff has recommended that, effective October 1, 2001, the maximum city paid insurance benefit definition be expanded to include a city paid ICMA 457(b) deferred compensation contribution for those employees unable to utilize the maximum benefit for health and dental insurance coverage. Aoy other additional elective coverage (i.e., supplemental and/or dependent life) would remain the financial obligation of the employee. A "Benefit Parity" analysis schedule is attached, which ideotifies the 2001 financial impact of the recommendation at $3,615.33 and the estimated 2002 financial impact (assuming the city paid benefit maximum increases from $400 to $420 per month) at $12,716.16. Council should further note that non-bargaining unit employees cannot "opt out" of health and dental coverage and must elect single coverage for both as a minimum. Recommendation Staff recommeods that the Arden Hills City Council approve a personnel policy change by expanding the definition of city paid benefit to include not only health and dental insurance coverage, but also city paid contributions to the ICMA 457(b) deferred compensation plan, up to the maximum city benefit, effective October 1,2001.