2.2.
CC Work Session
- Meeting Date:
- 09/26/2017
Information
Title:
Discussion Regarding an Amendment to the City's Personnel Policy
Purpose/Background:
The purpose of this discussion is to consider amending the City's Personnel Policy.
The City provides group health insurance benefits to employees working at least 30 hours per week. Staff would like to discuss amending eligibility to the City's group benefits, as follows: 1) consider permitting Council Members to participate in the City’s group health insurance plan without affecting Council Members’ total compensation from the City, and 2) consider amending the City's eligibility for group life insurance to include employees participating in PERA's phased retirement.
Councilmember Health Insurance Eligibility
Staff would like to discuss adding Council Members as eligible to enroll in the City's health insurance plan without increasing the Council Member's total compensation. Staff has consulted with the City's benefit's broker, the carrier and the City Attorney and have determined that changing the eligibility is allowed, with City Council approval.
Life Insurance for Phased Retirement Employees
Group benefits as a whole include health, dental and life insurance. Minnesota Statute 471.61, subd. 2b. Insurance continuation states "a unit of local government must allow a former employee and the employee's dependents to continue to participate indefinitely in the employer sponsored hospital, medical and dental insurance group that the employee participated in immediately before retirement" (under certain conditions). While the statute does address health and dental insurance, it does not address life insurance.
As the City Council is aware, PERA's phased retirement allows employees to participate for a maximum of 5 years. Currently, if a Phased Retirement employee wanted to continue their life insurance benefit they would be immediately required to elect COBRA which is limited to, in most cases, 18 months. In speaking with the City's benefits broker, staff learned the City of Hastings just received approval from Sun Life, the same carrier as Ramsey, to allow PERA Phased Retirement employees to stay on the plan. Staff would like to discuss this option for the City of Ramsey as well, pending approval by the carrier.
The City provides group health insurance benefits to employees working at least 30 hours per week. Staff would like to discuss amending eligibility to the City's group benefits, as follows: 1) consider permitting Council Members to participate in the City’s group health insurance plan without affecting Council Members’ total compensation from the City, and 2) consider amending the City's eligibility for group life insurance to include employees participating in PERA's phased retirement.
Councilmember Health Insurance Eligibility
Staff would like to discuss adding Council Members as eligible to enroll in the City's health insurance plan without increasing the Council Member's total compensation. Staff has consulted with the City's benefit's broker, the carrier and the City Attorney and have determined that changing the eligibility is allowed, with City Council approval.
Life Insurance for Phased Retirement Employees
Group benefits as a whole include health, dental and life insurance. Minnesota Statute 471.61, subd. 2b. Insurance continuation states "a unit of local government must allow a former employee and the employee's dependents to continue to participate indefinitely in the employer sponsored hospital, medical and dental insurance group that the employee participated in immediately before retirement" (under certain conditions). While the statute does address health and dental insurance, it does not address life insurance.
As the City Council is aware, PERA's phased retirement allows employees to participate for a maximum of 5 years. Currently, if a Phased Retirement employee wanted to continue their life insurance benefit they would be immediately required to elect COBRA which is limited to, in most cases, 18 months. In speaking with the City's benefits broker, staff learned the City of Hastings just received approval from Sun Life, the same carrier as Ramsey, to allow PERA Phased Retirement employees to stay on the plan. Staff would like to discuss this option for the City of Ramsey as well, pending approval by the carrier.
Timeframe:
Up to 10 minutes.
Funding Source:
There is no additional funding required.
Responsible Party(ies):
Colleen Lasher, Human Resources Manager
Outcome:
For the City Council to provide staff with direction regarding whether or not to bring a case forward at the next regular City Council meeting to amend the Personnel Policy.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Kurt Ulrich | Kurt Ulrich | 09/21/2017 03:51 PM |
- Form Started By:
- Colleen Lasher
- Started On:
- 09/11/2017 03:00 PM
- Final Approval Date:
- 09/21/2017