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HomeMy WebLinkAbout4.09 Employee Benefit Plan o CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: September 14, 1987 SUBJECT : Employee Benefit Plan EXHIBITS ATTACHED o Resolution Adopting a Benefit Plan o Resolution fixing Employer's Contribution under the Public Employees' Medical and Hospital Care Act RECOMMENDATION (Adopt Resolutions; Authorize Transfer from Contingent Reserve to Various Benefit Accounts FINANCIAL STATEMENT: The maximum annual cost is $4,176; Transfer from Contingent Reserve required. DESCRIPTION The City Manager has completed a review of employee benefits and discussions with City employees regarding the current personnel system. The review included a survey of other public agencies to determine whether, benefits offered are competitive with other agencies. The following discussion will outline changes to the current Benefit Plan. Medical Insurance The City currently contributes a maximum of $224 per month towards health insurance. The City contracts with the Public Employees' Retirement System, which offers 18 plans in the Bay Area. The current contribution level was established in July of 1984 and has not been adjusted since that time. The proposed Benefit Plan provides for a City contribution of $230. 51 per month. This represents a 2.9% increase over the past three years. The maximum additional annual cost for this benefit is approximately $2,190. Dental Insurance The City of Dublin currently provides Dental Insurance as a member of the self-insured ABAG Benefits Trust. The City currently contributes a maximum of $43. 67. This was established in September of 1985. In 1986, the ABAG Benefits Trust did not impose a premium increase. However, the family coverage beginning July 1, 1987 has been increased to $49.17. The proposed Benefit Plan provides for a maximum contribution of $49.17. This represents a 12. 6% increase over the past two years. The maximum additional annual cost for this benefit is approximately $1,386. Trust Fund In 1985, the City established a trust fund to pay uninsured dental costs incurred by employees. Each employee has a maximum limit of $600 per year. The employee may also submit reimbursements for employee optical costs. However, unspent funds are NOT carried over to the following year. This program has been a succes Thl method of providing benefits in a cost effective manner. The proposed Benefit Plan would allow employees to utilize the Trust Fund for PERS Health Insurance Premiums which exceed the City's contribution. The second change involves the establishment of a second tier which would provide a Trust Fund of $300 per year to employees scheduled to work between 20 hours and 40 hours per week. The maximum annual cost of this change is $600. COPIES TO: ITEM NO. • 9 0 AGENDA STATEMENT: Employee Benefit Plan Page 2 Credit Union/Deferred Compensation The City has not participated in a Credit Union or a Deferred Compensation Plan. The proposed Benefit Plan would authorize these programs to be offered to City employees. The provision of a Deferred Compensation Plan will require the City Council to adopt a separate resolution at a later date. Neither of these programs include the provision of City funds on behalf of the employee. The City may incur minimal costs for the administration of these programs. Holidays The designation of City holidays was previously shown in the Personnel Rules. In an attempt to consolidate all employee benefits in a single document, the list is now shown in the Benefit Plan. The proposed list of holidays has NOT been changed from the current policy. Car Allowance The City Council recently approved a new classification of Public Works Inspector. This position will require a great deal of work in the field and the individual selected will need to use his/her personal automobile. Based on estimated use, the proposed Benefit Plan provides a monthly car allowance for the Public Works Inspector of $100 per month. The Benefit Plan has also been amended to include the new position of Public Works Director/City Engineer. The costs associated with these changes have been included in the adopted City Budget. Recommendation In 1984, the City established the employer's contribution rate for Health Insurance as a separate resolution. This procedure is consistent with the requirements of the PERS Program. Staff would recommend that the City Council adopt the Resolution adopting a Benefit Plan, the Resolution fixing the Health Insurance Contribution, and authorize a budget transfer from the Contingent Reserve to cover the increased benefit amounts. RESOLUTION NO. -` 87 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ************************** ADOPTING A BENEFIT PLAN IN ACCORDANCE WITH PERSONNEL RULES WHEREAS, the City Council adopts Personnel System Rules for employees of the City; and WHEREAS, the provision of employee benefits assists the City in attracting and retaining quality employees; and WHEREAS, the Personnel System Rules require the City Council to adopt a Benefit Plan; and WHEREAS, the identification of benefits in a single document will assist with the administration of the personnel system; and. WHEREAS, the following benefit provisions shall be established in accordance with the City of Dublin Personnel Rules. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby adopt the following benefits as a Benefit Plan: Section 1. Eligible Employees: All benefits shall apply to full-time employees of the City of Dublin, unless otherwise stated. The provision of benefits outlined in this plan shall not apply to temporary employees. Section 2. Medical Insurance: All City employees who are members of the Public Employees Retirement System (PERS) shall be eligible to select from plans administered by the Public Employees Medical and Hospital Care Act. Beginning with the August, 1987 premium, the City will contribute a maximum of $230.51 per month exclusive of administrative charges towards medical insurance. If the cost of coverage exceeds the amount of the City contribution, the additional cost will be paid by the employee through payroll deductions or to the extent allowed by Section 4 of the Benefit Plan. Section 3. Dental Insurance: Beginning with the July, 1987 premium, the City will contribute on behalf of each employee scheduled to regularly work at least 30 hours per week, a maximum of $49.17 per month to a dental insurance plan selected by the City. Section 4. Supplemental Dental/Vision/Health Care Reimbursement Trust Fund: a. Plan Limits: Full-time employees shall have a limit of $600 per "plan year" for eligible reimbursements. Employees regularly scheduled to work between 20 and 40 hours shall have a limit of $300 per "plan year" for eligible reimbursements. b. Plan Year: The plan year shall cover reimbursements for eligible expenses incurred between September 1st and August 31st of each year. c. Eligible Claims: Employees eligible for this benefit may request reimbursement for the following expenses provided that they have not exceeded their Plan limit for the corresponding "plan year" . i. Qualified dental expenses and co-payments incurred by an employee or any of the employee's dependents, provided expenses are not paid either by the City provided dental insurance, or any dual coverage provided by an employee's spouse. ii. Reimbursement to an employee for optical exams and appliances. Eligibility for this expense shall be limited to expenses incurred for care or treatment of the employee only and will not cover expenses incurred by an employee's dependents. iii. Co-payment of a health insurance premium under a City offered program which exceeds the City contribution identified in Section 2. d. Administrative Rules: The reimbursement of any expenses pursuant to this section shall be contingent upon the fulfillment of requirements established by the City's accounting procedures and other rules or policies established by the City Manager. Section 5. Disability Insurance: The City will contribute on behalf of each regular employee scheduled to regularly work at least 30 hours per week, the total premium cost of a Long Term Disability Plan selected by the City. Section 6. Life Insurance: The City will contribute on behalf of each full-time employee scheduled to regularly work at least 40 hours per week, the total premium cost of a $50, 000 Term Life Insurance Policy selected by the City. In addition, the City Manager shall be authorized to implement a supplemental life insurance program, which would allow full-time employees to purchase additional term life insurance through payroll deductions, if such a plan is available. Section 7. Retirement: The City will provide the California Public Employees Retirement System 2% at age 60 plan to all eligible employees. The employee and the City shall make contributions to the plan, as determined by the City Council. The City Council shall have the authority to amend the plan to include benefit options offered by the Public Employees Retirement System. Section 8. Credit Union: The City Manager shall have the authority to arrange with an appropriate credit union for membership to be offered to eligible employees. The credit union shall retain the right to define an eligible employee. Section 9. Deferred Compensation Plan: The City Manager shall make a recommendation to the City Council on Deferred compensation Plan(s) to be offered. The City Council shall approve participation in any plan(s) by separate resolution. This shall be a voluntary program and the City will not contribute any funds on behalf of an employee. Section 10. Holidays: The following days shall be deemed holidays in accordance with the Personnel System Rules: a) New Year's Day January 1 b) Washington's Birthday Third Monday in February c) Memorial Day Last Monday in May d) Independence Day July 4 e) Labor Day First Monday in September f) Veteran' s Day November 11 g) Thanksgiving Day Fourth Thursday in November h) Day following Thanksgiving Day following above i) Day preceeding Christmas December 24 j ) Christmas Day December 25 k) Day preceeding New Year's Day December 31 Section 11. Education Reimbursement: Full-time employees shall be eligible to participate in an education reimbursement program. The City shall only reimburse the employee for courses undertaken which are job related. The employee must obtain prior authorization from the City Manager and reimbursement will only be provided upon submittal of proof of satisfactory completion of the courses undertaken with a passing grade when applicable. The City will reimburse an amount equal to one-half of the employees tuition and/or fees, (including books) however, the amount reimbursed shall not exceed $500 per fiscal year. The payment of any reimbursements shall be contingent upon the fulfillment of reporting requirements established by the City Manager. Section 12. Car Allowance: The following positions shall be eligible to receive the designated monthly allowance: a. Monthly Allowance Eligible Positions Monthly Allowance Administrative Services/Finance Director $175 Planning Director $175 Public Works Director/City Engineer $175 Public Works Inspector $100 Recreation Director $175 b. Operating Allowance All employees eligible for a monthly allowance shall be entitled to a 10 (ten cents) per mile driven on City business as an operating cost. c. Out of Area Travel Reimbursement When traveling out of the area on City business, the City will reimburse 25 (twenty-five cents) per mile for the use of a private vehicle or air transportation costs, whichever is less. d. Administrative Requirements The payment of any mileage reimbursements or car allowance shall be contingent upon the fulfillment of requirements established by the City's accounting procedures and other rules and policies. Section 13. This resolution shall supersede Resolution No. 107-86 and any previous resolutions adopted by the City Council which are in conflict. PASSED, APPROVED AND ADOPTED this 14th day of September, 1987, by the following vote: AYES: NOES: ABSENT: Mayor ATTEST: City Clerk RESOLUTION NO. -' 87 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ************************** FIXING EMPLOYER'S CONTRIBUTION UNDER THE PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT AND RESCINDING RESOLUTION NO. 78-84 WHEREAS, Government Code Section 22825.6 provides that a local agency contracting with the Public Employees' Medical and Hospital Care Act shall fix the amount of the employer contribu- tion at an amount not less than the amount required under Section 22825 of the Act; and WHEREAS, the City of Dublin is a local agency contracting under the Act; and WHEREAS, on July 23, 1984, the City Council adopted Resolution No. 78-84 fixing the contribution at $224 per month; and WHEREAS, the various health plans offered by the Act have increased premiums over the past three years. NOW, THEREFORE, BE IT RESOLVED that the employer's contribution for each employee or annuitant shall be the amount necessary to pay the cost of his/her enrollment, including the enrollment of his/her family members, in a health benefit plan or plans, up to a maximum of $230.51 per month, plus administrative fees and Contingency Reserve Fund assessments. BE IT FURTHER RESOLVED that this contribution shall begin with the August 1987 premium and that Resolution No. 78-84 shall be rescinded. PASSED, APPROVED AND ADOPTED this 14th day of September, 1987, by the following vote: AYES: NOES: ABSENT: Mayor ATTEST: City Clerk