2002-10-09 CC Packet - Laserfiche WebLink

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" City of Centerville City Council Meeting October 9, 2002 To: Ms. Kim Moore-Sykes Honorable Mayor and Members of the City Council From: Ellen Paulseth, Finance Director Re: Cafeteria Plan The city council met in committee to review the proposal from Stanton Group for the administration of a benefits plan for city employees. The committee proposed criteriaJor the core plan, optional employee benefits, flexible spending components, and a provision for deferred compensation contributions. Two issues have arisen since the committee adjourned: 1. Deferred Compensation Provision: The employee can be given the option to contribute a portion of the cafeteria allowance to a deferred compensation plan. However, the benefits consultant has informed us that if there is a deferred compensation provision, tbere must also be a cash provision. The employee must be given the choice to utilize deferred compensation or take the remaining contribution in the paycheck. 2. Long-Term Disability Core Requirement: For groups numbering under ten employees, the League's long-tcrm disability program can only be implemented with full participation. It was the wish of the council to include the minimum amount ofLTD ($500 benefit) as part of the required core benefits. This raises an issue with the bargaining unit iithe city does not raise the cafeteria contribution to cover the cost of the premium. Since union employees virtually already receive the contribution amount as health and dental benefits ($618.20), requiring them to pay for LTD will reduce the benefits they currently receive. LTD premium is based upon age. For members of the bargaining unit, the current premium would be $9/mo. We recommend increasing the contribution amount by $10/mo. per employee to eliminate this concern. Attached is a resolution accepting the proposal and establishing the parameters for the cafeteria plan. The changes noted above are included in the resolution.