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AI# 10578
Regular City Council Meeting
7.9.
03/22/2022:
Information
Agenda Item
Resolution - Risk Management:
Consider a resolution authorizing and directing the City Manager to purchase, for and on behalf of the City of Lubbock, workers’ compensation coverage from Texas Municipal League Intergovernmental Risk Pool (TMLIRP), for which the total amount shall not exceed $1,573,208.00.
Item Summary
The City is required by the Labor Code to provide workers' compensation benefits to all municipal employees. The City extends workers' compensation benefits to elected officials, board members, and volunteers to limit liability exposure. Workers' compensation provides medical care and lost wages, on a no-fault basis.
The City currently purchases workers' compensation coverage from TMLIRP on a deductible plan in which the City paid a discounted premium of $1,036,465 for a one-time payment plus a $100,000 deductible deposit. At the end of each month, the City would reimburse TMLIRP for any claims that do not meet the deductible of $25,000. The current year contribution for workers' compensation insurance is $1,643,028.51.
Staff recommends TMLIRP continuing this plan of a $25,000 deductible plan with a single annual payment of $1,036,465, $100,000 deductible deposit and monthly reconciliation for claims which do not meet the $25,000 threshold.
Carriers bind coverage April 1, 2022, after notification of City Council approval. The inter-local agreement will be issued after premiums are received from the City. Current insurance policies are available in Risk Management.
Fiscal Impact
Funds are budgeted in the FY 2021-22 Risk Management Fund.
Staff/Board Recommending
D. Blu Kostelich, Chief Financial Officer
Attachments
Work Comp Resolution
Work Comp Coverage
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