4.25.
CC Regular Session
- Meeting Date:
- 01/11/2016
- By:
- Colleen Lasher, Administrative Services
Information
Title
Adopt Resolution #16-01-026 to Ratify the 2016 Budgeted Non-Union Health Insurance Contributions and Non-Union Cost of Living Adjustments
Purpose/Background:
The purpose of this case is to ask the City Council to ratify the non-union employee City health insurance contributions and cost of living adjustments (COLA) as accounted for in the approved 2016 City budget. The non-union health insurance contributions and COLA are the same amounts as previously approved for all other employee groups, including AFSCME, LELS Patrol and LELS Sergeants. The request is based on the discussions during the budgeting process and at the December 8th City Council meeting.
Health Insurance
The City is members with LOGIS (Local Government Information Systems) which is a consortium of Minnesota local government units. This consortium has many benefits including coverage by the group’s health plan; currently administered by BCBS. The City is benefiting by five years of rate caps; 2016 will mark the last year with rates caps.
Employees may choose a health plan that best meets their needs by selecting one of four tiers and choosing between three networks; or they may choose to waive the City’s health insurance. Note: The 2016 health insurance contributions are the same contributions already approved for all other employee groups; which has proven to be an effective way to maintain internal equity, minimize the complexity of the budget, keep the payroll process streamlined, and to mirror other city's business practices.
Employees that elect to waive health insurance in 2016 will receive credit in lieu of coverage in the amount of $370.00 and must agree to providing proof of other coverage; as well as agree to come back on the City's health plan if the City requires them to do so.
Note: See attachment for additional health plan details, including premiums. Employees are responsible for paying the difference between the premium and the City’s contribution, which can be up to $1576.50 per month.
Staff recommends the above listed City contributions. This contributions approach works to: 1) maintain 100% coverage by the City’s two the least expensive single premium (consistent with past practice and recommended by the City's benefits broker), 2) limit the City’s costs on the two middle tiers, and 3) holds the City's contribution on the Family plan at the 2014 amount, reducing the City’s costs and working toward more equitable contributions amongst the tiers, 4) allows employees the flexibility to waive coverage if waiving is the best option for their individual circumstances.
The City will continue to purchase $20,000 of basic life insurance for full-time regular employees working 30 hours per week or more.
Wages
As was previously approved for union employees, staff recommends a 2% COLA be authorized for the non-union employee for recruitment and retention purposes. As stated, the 2% COLA is the same amount offered to the other groups and is compared to other, similar-size cities.
Wage History
2016 (to-date) 2% COLA for union employees
2015 2% COLA for all groups
2014 2% COLA for all groups
2013 1% COLA for all groups
2012 2% for all employee groups, with the exception of Department Heads at 1%
2011 Zero % for all employee groups
2010 Zero % for all employee groups
2003 to 2009 3% each year for all employee groups
Health Insurance
The City is members with LOGIS (Local Government Information Systems) which is a consortium of Minnesota local government units. This consortium has many benefits including coverage by the group’s health plan; currently administered by BCBS. The City is benefiting by five years of rate caps; 2016 will mark the last year with rates caps.
Employees may choose a health plan that best meets their needs by selecting one of four tiers and choosing between three networks; or they may choose to waive the City’s health insurance. Note: The 2016 health insurance contributions are the same contributions already approved for all other employee groups; which has proven to be an effective way to maintain internal equity, minimize the complexity of the budget, keep the payroll process streamlined, and to mirror other city's business practices.
Employees that elect to waive health insurance in 2016 will receive credit in lieu of coverage in the amount of $370.00 and must agree to providing proof of other coverage; as well as agree to come back on the City's health plan if the City requires them to do so.
| Health Plan Tier (Per Month) | City Contribution to Premium |
City Contribution to *VEBA |
Total Monthly City Contribution |
| Single Plans Blue Print Network-$4000 Deduct. All other single plans |
$763.00 $827.00 |
$194.00 $130.00 |
$957.00 $957.00 |
| Employee + Spouse Plans | $1007.00 | $160.00 | $1,167.00 |
| Employee + Children Plans | $1,091.00 | $160.00 | $1,251.00 |
| Family Plans | $1,166.00 | $192.00 | $1,358.00 |
| * The above listed City VEBA contribution includes a $4.30 per month VEBA administration fee | |||
Note: See attachment for additional health plan details, including premiums. Employees are responsible for paying the difference between the premium and the City’s contribution, which can be up to $1576.50 per month.
Staff recommends the above listed City contributions. This contributions approach works to: 1) maintain 100% coverage by the City’s two the least expensive single premium (consistent with past practice and recommended by the City's benefits broker), 2) limit the City’s costs on the two middle tiers, and 3) holds the City's contribution on the Family plan at the 2014 amount, reducing the City’s costs and working toward more equitable contributions amongst the tiers, 4) allows employees the flexibility to waive coverage if waiving is the best option for their individual circumstances.
The City will continue to purchase $20,000 of basic life insurance for full-time regular employees working 30 hours per week or more.
Wages
As was previously approved for union employees, staff recommends a 2% COLA be authorized for the non-union employee for recruitment and retention purposes. As stated, the 2% COLA is the same amount offered to the other groups and is compared to other, similar-size cities.
Wage History
2016 (to-date) 2% COLA for union employees
2015 2% COLA for all groups
2014 2% COLA for all groups
2013 1% COLA for all groups
2012 2% for all employee groups, with the exception of Department Heads at 1%
2011 Zero % for all employee groups
2010 Zero % for all employee groups
2003 to 2009 3% each year for all employee groups
Notification:
Attachments:
1) Resolution
2) Health Plan Chart
1) Resolution
2) Health Plan Chart
Observations/Alternatives:
Observations/Alternatives:
Staff recommends moving forward with the City non-union health insurance contributions as listed and a two percent (2%) non-union COLA. This action is important in order to effectively maintain internal equity, minimize the complexity of the budget, keep the payroll process streamlined, mirror other city's business practices, compete in external hiring processes, and to retain the City's talent. Staff does not recommend an alternative action.
Staff recommends moving forward with the City non-union health insurance contributions as listed and a two percent (2%) non-union COLA. This action is important in order to effectively maintain internal equity, minimize the complexity of the budget, keep the payroll process streamlined, mirror other city's business practices, compete in external hiring processes, and to retain the City's talent. Staff does not recommend an alternative action.
Funding Source:
The funding required for this action is included in the approved 2016 City budget.
Recommendation:
Staff recommends authorizing the non-union City health insurance contributions as listed above and the non-union cost of living adjustment of two percent (2%).
Action:
Motion to adopt resolution # 16-01-026 to do the following:
1) Authorize the non-union City health insurance contributions as listed, and
2) Authorize increasing the non-union wage scale by two percent (2%) for a cost of living adjustment.
1) Authorize the non-union City health insurance contributions as listed, and
2) Authorize increasing the non-union wage scale by two percent (2%) for a cost of living adjustment.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Kurt Ulrich | Kurt Ulrich | 01/07/2016 10:52 AM |
- Form Started By:
- Colleen Lasher
- Started On:
- 12/21/2015 01:50 PM
- Final Approval Date:
- 01/07/2016