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<br />. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />~ <br />~IDtLS <br /> <br />MEMORANDUM <br /> <br />DATE: <br /> <br />Agenda Item 2.c. <br /> <br />October 12, 2005 <br /> <br />TO: <br /> <br />Honorable Mayor and City Council Members <br />Michelle Wolfe, City Administrator <br /> <br />FROM: <br /> <br />Schawn Johnson, Assistant to the City Administrator <br /> <br />SUBJECT: <br /> <br />Discussion Regarding Employee Insurance Benefits <br /> <br />Backl!round <br />Mr. James Sarcyh and Ms. Shari Woodarck of Financial Concepts, Inc. will be attending the <br />October 17th work session to review the City's current and proposed employee insurance benefit <br />packages with the City Council. <br /> <br />After the City Council approved the appointment of Financial Concepts, Inc. in May, City staff <br />requested their assistance in reviewing the City's current short term disability, long term <br />disability, group life insurance, and supplemental life insurance policies. After completing there <br />review of our existing policies, Financial Concepts and City staff noticed that the City had <br />overlapping short term disability and long term disability insurance policies. The City's current <br />short term disability policy is a weekly benefit of $200.00 per week for a period of 26 weeks. <br />The City's long term disability policy is a benefit that pays 60% of a disabled employee's salary. <br />The long term disability insurance would be enacted after three months. Financial Concepts and <br />City staff have been reviewing different short term disability plan options that are available to <br />the City in order to eliminate this overlap in disability coverage. The intent of this change is to <br />review potential ways in which the City could increase the benefit value to city staff and possibly <br />maintain or reduce premium costs for the City. Financial Concepts, Inc. has been working <br />closely with our current short term and long term disability policy holder and was able to obtain <br />a price quote for a 13 week short term disability benefit with a maximum weekly benefit of <br />$1,000. The projected cost for this increased benefit would be $147.00 per month ($1,764.00 <br />annually). At this time, the City currently pays $220.50 per month ($2646.00 annual fee) for a <br />26 week short term disability insurance benefit. Through the elimination of the overlap in the <br />short term and long term disability policies, the City will be able to save approximately $882_00 <br />per year in premium costs and increase the value of the short term disability benefit to staff <br />members_ <br /> <br />\IMetro-inetuslArdenHills\AdminlAssistant City AdministratorlMemo's and Letters\200S\FinanciaJ Concepts, Inc. <br />CC Memo-Oct 200S.DOC <br />