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AGENDA ITEM REVIEW FORM
3.F.
Special Employee Benefit Trust Board Meeting
Meeting Date:
05/04/2023
Department Head:
Adela Cortez
Submitted By:
Maria Barajas Gutierrez, Human Resources Coordinator, Human Resources Department

ITEM:

Discussion and possible action on any and all matters regarding newly hired employees' benefits eligibility date. (Mary Barajas, Human Resources Coordinator)
 

SUMMARY:

The City of San Luis has established the City of San Luis Employee Benefit Trust in order to provide comprehensive healthcare benefits for employees and their eligible dependents.

In our current benefit plan, the initial enrollment is defined as follows:
  • For benefits-eligible City employees, coverage becomes effective the 1st of the month following the date of hire.
  • Coverage of enrolled spouse and/or dependents becomes effective the 1st of the month following the employee’s effective date.
Having different eligibility dates for Employees and their dependents on initial enrollment of benefits is not the usual practice.  Since systems do not support the automation of different dates, this practice requires manual intervention on the TPA side, which may lead to errors in our enrollment system.

After conducting research with other municipalities, we have found that the common practice is to allow new employees and dependents to be eligible for coverage on the same date, which is usually the 1st of the month following one month of employment.

This change does not have an impact on current employees as it only applies to the initial enrollment of new hires.  By approving this change in our Plan, we can minimize any human errors and optimize the enrollment process.
 

RECOMMENDATION / SUGGESTED MOTION:

I MOVE TO APPROVE THE BENEFITS COVERAGE ELIGIBILITY DATE TO BECOME EFFECTIVE THE FIRST OF THE MONTH FOLLOWING ONE MONTH OF EMPLOYMENT FOR NEW EMPLOYEES AND THEIR DEPENDENTS.
 

Fiscal Impact

Fiscal Impact:

The fiscal impact may save the trust a minimal amount delaying the newly hired employees' enrollment date to the first of the month following the date of hire.