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HomeMy WebLinkAbout4.05 AmendBenefitPlan ,$/...... ;0. e e CITY OF DUBLIN AGElfDA STATEI(p-T CITY COUNCIL MEETING DATE: September 21, 1993 SUBJECT: Amendment to Benefit Plan. EXHIBITS: / Resolution Amending the Benefit Plan RECOMMENDATION:~doPt Resolution I\U\;' FINANCIAL \ Delta Dental has proposed renewal rates which will STATEMENT: result in an increase of 9.4%. The approximate cost for Fiscal Year 1993-94 is $2,025. Sufficient funds have been included in the City's contingent Reserve. DESCRIPTION: The city's Personnel System Rules require the city Council to adopt a Benefit Plan. This plan provides a summary of the City's benefit program including medicaf, dental, life and disability insurance, retirement, holidays, car allowance and travel expenses, and participation in deferred compensation and credit union programs. The city currently contracts with Delta Dental for dental insurance benefits. The contract requires the City to pay the full family premium rate for eligible employees (and eligible dependents) including regular employees (who work 30+ hours per week). In addition, the city pays the premium for the employee only for those regular employees who work between 20 and 29 hours per week. The current family premium under the Delta Dental plan is $95.86 per month and for the employee only $30.80 per month. The City of Dublin has a two year agreement with Delta which expires on September 30, 1993. Delta has informed the City of a proposed renewal rate increase of 9.4% for a one year period October 1, 1993 through September 30, 1994. The proposed renewal rates are as follows: Current R,t~~ Benewal Rates ~enewal Change One Party Two Party Three Party+ $30.80 58.64 98.37 $33.70 64.15 107.62 +9.4% According to experience of each. Further, to be the most size. Based on will result in Delta Dental, renewal rates are based on the combined more than 700 groups employing less than 100 employees Delta Dental indicates that pooling experience has proven reliable method of forecasting costs for groups of this the City'S current enrollment, the proposed renewal rates an increase of approximately $2,025 for FY 1993-94. The attached resolution proposes amending the Benefit Plan to increase the City'S contribution to a maximum of $107.62 per month for family coverage and $33.70 for the employee only. Staff recommends that the City council review the proposed change and adopt the attached resolution. ITEM NO. 4. If COPIES TO: I 1J-fJ ,10 c I. T Y ~ ~~ ~I ~ ~~ _ I j .tfI ~ . e e RESOLUTION NO. - 93 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ******************** AMENDING THE BENEFIT PLAN WHEREAS, the Personnel system Rules require the City Council to adopt a Benefit Plan; and WHEREAS, the Benefit Plan prescribes the current benefits provided to employees by the city. NOW, THEREFORE, BE IT RESOLVED that the City council of the City of Dublin hereby amend Resolution No. 3-93 to include the following: section 3. Deptal Ipsu~~Qce: Beginning with the october 1993 premium, the City will contribute on behalf of each employee regularly scheduled to work at least 30 hours per week, a maximum of $107.62 per month to a dental insurance plan selected by the city. The City will contribute on behalf of each employee regularly scheduled to work between 20 and 29 hours per week, a maximum of $33.70 per month toa dental insurance plan selected by the city. PASSED, APPROVED and ADOPTED this 27th day of september, 1993. AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk