HomeMy WebLinkAbout153-00 RESOLUTIONRESOLUTION NO. 153-00
0
MICROFILMED
A RESOLUTION APPROVING THE RENEWAL OF THE
EMPLOYEE GROUP POLICIES FROM US ABLE LIFE TO
PROVIDE, LIFE, AD&D, LTD COVERAGE AND SEC. 125
CAFETERIA PLAN ADMINISTRATION AND AUTHORIZES
THE MAYOR AND CITY CLERK TO EXECUTE AN
AGREEMENT FOR SERVICES.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section 1. That the City Council hereby approves renewing of the Employee Group
Policies from US Able Life to provide, Life, AD&D, LTD coverage and Sec. 125 Cafeteria Plan
Administration; and authorizes the Mayor and City Clerk to execute an agreement for services. A
copy of the agreement is attached hereto marked Exhibit "A" and made a part hereof.
PASSED AND APPROVED this7t° day of November , 2000.
AT'1♦
By:
Heather Woodruff, City Cler
APPROVED:
By:
Fre Hanna, Mayor
NAME OF FILE:
4110
X4,467,uP-,L 0 . / —DD
•
CROSS REFERENCE:
Date
Contents of File Initials
//700
_ 1. 7A .
/��//'3� -D.os
/ th l
/O/gOO
s&Zi1
/ ,
��t ni
v 2
.67
// 700
IA, t,
//-/3--al
Ste? o
fieri3
•
•
•
Arkansas
BlueCross BlueShield
October 9, 2000
Don Bailey
The City of Fayetteville
113 West Mountain
Fayetteville, Arkansas 72701
RE: City of Fayetteville & Fayetteville Public Library
R-2467-100 Long Term Disability
R-2467 Group Life/AD&D; Voluntary AD&D
•
237 Millsap Road — Suite #1
Fayetteville, Arkansas 72703
Phone: (501) 527-2310
FAX: (501) 527-2323
Dear Mr. Bailey:
This letter serves as an offer of renewal and confirmation of the Group Life/AD&D,
Voluntary AD&D (VAD&D) and Long Term Disability (LTD) Insurance rates for the City of
Fayetteville and Fayetteville Public Library effective as of Ol/01/2000:
Group Life:
AD&D:
LTD:
VAD&D Employee Plan:
VAD&D Family Plan
$0.21 per thousand of coverage
$0.05 per thousand of coverage
$0.46 per $100 of Monthly Covered Payroll
$1.50 per $25,000 Benefit Amount
$2.00 per $25,000 Benefit Amount
The above rates are guaranteed until January 1, 2002.
USAble Life is pleased to serve the City of Fayetteville and Fayetteville Public Library in this
capacity.
Respectfully,
•
William F. Dickover, CLU, ChFC
Manager, Acquisition Services, Medical Underwriting & Product Development
Cc:
Beff Kent
Mel Blackwood
Together. For A State Of Better Health.
Arkansas Blue Cross and Blue Shield, A Mutual Insurance Company
An Independent Licensee of the Blue Cross and Blue Shield Association
E
Group Policyholder:
Group Policy Number:
Group Effective Date:
Waiting Period:
Stheduleof Benefits
Employee Life InsuYancekr.
City of Fayetteville
10002467
July 1, 1999*
Employees enrolled on the effective date:
Employees enrolledafter the effective date:
30 days
30 days
Benefits for eligible employees shall be determined in accordance with the following schedule:
CLASSIFICATION
LIFE AND
AD&D
Class 2: All Full-time Employees customarily
working at least 40 hours per week.
1 Yz Times Annual Salary
Maximum $150,000*
*Insurance amounts will be rounded to the next higher thousand. Evidence of Insurability is required on amounts in
excess of $140,000
Reductions, Terminations, and Special Provisions
Employee Life and Accidental Death & Dismemberment: Benefits reduce 33 1/3% of the pre -age 67
amount at ages 67 and 70, and terminates at retirement.
*This certificate replaces any certificate issued before the date shown.
GCRT (11-99)
1.146.
Section V -'Benefits
Employee Accidental,Deatht& Dismeniberment.Inaurance
If you suffer a loss described below, we will pay the amount of insurance that applies. You or your
beneficiary must give us proof that:
I. injury occurred while the insurance was in force under this section;
2. loss occurred within 365 days after the injury; and
3. loss was due to injury independent of all other causes.
Amount of Insurance
We will pay the full AD&D amount shown in the Schedule of Benefits for loss of:
1. life;
2. both hands or both feet;
3. one hand and one foot;
4. sight of both eyes;
5. one hand and sight of one eye; or
6. one foot and sight of one eye.
We will pay one-half the AD&D amount shown in the Schedule of Benefits for loss of:
I. one hand;
2. one foot; or
3. sight of one eye.
Loss of sight means total and irrecoverable loss of sight. Loss of hands or feet means severance at or
above the wrist or ankle, unless the State in which this policy is issued defines the loss differently.
In paying this benefit, we will consider only losses sustained while insured under this section of the
policy. We will pay no more than the full amount shown in the Schedule of Benefits for losses resulting
from any one injury.
Limitations
We will not pay a benefit for a loss caused directly or indirectly by:
1. disease, bodily or mental infirmity, or infection (except bacterial infection of a visible injury);
2. suicide or intentionally self-inflicted injury, whether sane or insane;
3. your participation in a riot or insurrection, or commission of an assault or felony;
4. war or any act of war, declared or undeclared;
5. your use of any drug, hallucinogen, controlled substance, or narcotic unless prescribed by a
physician;
6. travel or flight in, or descent from, any aircraft unless as a fare paying passenger on a
commercial airline flying between established airports on: (a) a scheduled route, or (b) a charter
flight;
7. participation in parachute or hang gliding sports, or an organized race or speed contest; or
8. your being intoxicated as defined by the laws of the jurisdiction in which the accident occurred.
Conviction is not necessary for a determination of being intoxicated.
GCRT (11-99)
CLASSES TO BE COVERED
All Full Time Employees
AMOUNT OF INSURANCE
a.
•
DISABILITY BENEFIT
60% (benefit percentage) of basic monthly earnings not
monthly benefit, less other income benefits.
b. The maximum monthly benefit is $6,000.
c. The minimum monthly benefit is $50.00.
MAXIMUM BENEFIT PERIOD
Age At Disability
Less than age 60
60
61
62
63
64
Benefit Period
To
60
48
42
36
30
Age 65
months
months
months
months
months
to exceed the maximum
Age At Disability
65
66
67
68
69 and over
ELIMINATION PERIOD 180 days
MINIMUM REQUIREMENT FOR ACTIVE EMPLOYMENT
30 regularly scheduled hours per week.
WAITING PERIOD: If you were hired on or before the
If you were hired after the policy effective date:
CONTRIBUTIONS
You are not required to contribute to the cost of your insurance.
Benefit Period
24 months
21 months
18 months
15 months
12 months
policy effective date: 00 days
90 days
• •
Employees of the City of Fayetteville
Representatives of USAble Life will be here November 6 — November 10 and
November 13"' & 14th to enroll your annual Cafeteria Plan. During this time you will be
allowed to:
• Enroll in or adjust your current Flexible Spending accounts: Medical reimbursement
& Dependent Care reimbursement.
• Review and/or add supplemental benefits: Cancer Care and Accidental Death &
Dismemberment.
Explanation:
Medical Reimbursement and Dependent Care Reimbursement allow you to pay for your
portion of medical related costs and dependent care costs with tax free dollars. Simply
estimate what you will spend From January 1, 2001 through December 31, 2001 on your
and your families medical and dependent care expenses and a proportionate amount will
be held from each paycheck completely tax free. When you incur an expense you can file
a voucher and have the money reimbursed to you. The maximum annual amount
allowed is $3000 for Medical reimbursement and $5000 for Dependent Care.
Be conservative with these estimates, what you don't use, volt lose.
Qualifying Medical Expenses
• Insurance plan deductibles and co -pays.
• Prescription drug card co -pays, (including birth control pills).
• Medical aids such as heanng aid (and batteries), false teeth, eye glasses & contact
lenses, braces, orthopedic shoes, crutches, wheel chairs, etc.
• Dental work, including orthodontia, not paid for by insurance.
Medical Expenses not eligible for reimbursement
• Drugs for weight loss
• Drugs for smoking cessation.
• Over-the-counter drugs, such as aspirin or Tylenol.
Qualifying Dependent Care Expenses
To be eligible for reimbursement:
• The care is necessary for you and spouse Of married) to work or go to school.
• The care is for a qualified dependent, (those who you claim as exemptions on your
income taxes). This also includes:
* A disabled spouse or someone of any age who's unable to care for themselves.
• The care can be provided in your home, in someone else's home or in a dependent
care center as long as the caregiver is not your dependent.
• •
2001 Budget Summary By Fund - Estimated
- Long Term Disability (LTD)
- Accidental Death & Dismemberment (AD&D)
- Life Insurance
Fund
LTD AD&D Life Insurance
Budget Budget Budget
General (1010) $ 59,014 $ 7,262 $ 60,040
Street (2100) 3,964 630 4,033
Community Development (2180) 696 68 708
Parks Development (2250) 1,576 221 1,603
Drug Law Enforcement (2930) 459 59 467
Water & Sewer (5400) 7,645 1,170 7,778
Solid Waste (5500) 5,216 810 5,307
Airport (5550) 702 135 712
Shop (9700) 1,893 270 1,925
C:\DATA\123-DATA\01 ADDLTD. WK4
$ 81,165 $ 10,625 $ 82,573
• •
2001 Budget Summary By Fund - Estimated
- Long Term Disability (LTD)
- Accidental Death & Dismemberment (AD&D)
- Life Insurance
Fund
VOL.
LTD AD&D
Budget Budget
Life Insurance Z. AD a D
Budget
General (1010) $ 59,014 $ 7,262 $ 60,040
Street (2100) 3,964 630 4,033
Community Development (2180) 696 68 708
Parks Development (2250) 1,576 221 1,603
Drug Law Enforcement (2930) 459 59 467
Water & Sewer (5400) 7,645 1,170 7,778
Solid Waste (5500) 5,216 810 5,307
Airport (5550) 702 135 712
Shop (9700) 1,893 270 1,925
Yz. 20oo AOC, YTD
1,40. AUG
C:\DATA\ 123-DATA\01 ADDLTD. WK4
$ 81,165 $
47, P3s.94
( 9/, 00I AN)
4136.93
('73/ 641 AN)
10,625 $ 82,573
4401,50
(9ft02 AN)
4.911019.77
(74� 43 0 RAJ)
4408,18
(74898 IMO
FAYETTEVALE
THE CITY OF FAYETTEVILLE. ARKANSAS
DEPARTMENTAL CORRESPONDENCE
i
TO: Mayor Fred Hanna
FROM: John Maguire, Administration Se ces'Director
Don Bailey, Personnel Director
DATE: October 18, 2000
SUBJECT: Employee Group Life, AD&D, LTD, Voluntary AD&D and
Cancer policies, and Cafeteria Plan Administration
renewal for calender year 2001.
The expiration date for each of the policies and Cafeteria Plan
Administration is 12-31-00. Internal Revenue Service regulations
require that Sec 125 Cafeteria Plans and an employee election to
pre-tax any eligible expense category must coincide with a
calender tax year. It is therefore necessary to present these
plans for approval at this time in order to permit timely
enrollment during the month of November for calender year 2001.
The rates for these coverages were set through competitive
bidding for plan year 2000. We received a two year rate
guarantee which continues these same rates'through the plan year
2001.
Life
AD&D
LTD
VOL AD&D*
VOL AD&D*
Cancer*
Cafeteria
(Per $1,000 coverage)
(Per $1,000 coverage)
(Per $100 of covered payroll)
(Per $25,000 coverage)
(Per $25,000 coverage)
Plan
. 21
. 05
. 46
1.50 Employee only
2.00 Family
Various
No cost
* Employer pays for $25,000 of voluntary AD&D coverage on each
employee. The employee pays 100% of premium for coverage above
$25,000 or for Family coverage. The employee pays 100% of premium
for Cancer coverage he or she may elect.
U.S. Able, in consideration of employee participation
in two of their Voluntary Group Plans (Cancer and Voluntary
AD&D), serves at no cost as a third party administrator for our
Section 125 Cafeteria Plan. Internal Revenue regulations permit
Group premiums, employee and dependent unreimbursed medical care,
• •
deductible and co -payment expense and dependent care cost for
eligible children and other dependents to be incurred on a pre-
tax basis through payroll contributions to a flexible spending
account. These expenses are reimbursed to the employee as
projected expense occurs.
The estimated cost to be incorporated in the 2001 Budget has been
calculated by the Budget & Research Division and is attached as a
schedule. An annualized cost forecast of these plans is
relatively simple and we are confident the projected costs will
not be exceeded.
XX AGENDA REQUEST
CONTRACT REVIEW
GRANT REVIEW
For the Fayetteville
•
STAFF REVIEW FORM
City Council meeting
•
of November 7, 2000
FROM:
Don Bailey
Name
Personnel
Division
Admin. Services
Department
ACTION REQUIRED:
Renew employee group policies from U S ABLE LIFE
and Sec. 125 cafeteria plan administration
to provide life, AD & D, LTD coverage
COST TO CITY:
$ 174.363 Esr. Yr
Cost of this Request
Various
Account Number
2001 $ 174.363 Fst. Yr 9001
Category/Project Budget
Project Number
$ 0
Funds Used To Date
$ 174.363
Remaining Balance
Life/An & p, LTD Ins.
Category/Project Name
City Wide
Program Name
City Wide
Fund
BUDGET REVIEW:
3u aet t naaer
Budgeted Item
Budget Adjustment Attached
Administrative Services Director
CONTRACT/GRANT/LEASE REVIEW:
c'•
Purchasing Officer
Date
GRANTING AGENCY:
SIL,>
Lai /072
Internal Aeditor
tail ea)
Date ADA Coordinator
Io -20-00
Date
Date
Date
STAFF RECOMMENDATION:
Approve
D:.vssio-f -
•
•
Departmen
/0-113-00
Date
Date
strat.ve
ices Director Da
Mayor
C:\DATA\BLANFFOR\AGENDA.BLA
Date
Cross Reference
New Item: Yes No
Prev Ord/Res #:
Orig Contract Date:
Orig Contract Number:
FAYETTEVPLLE
THE CITY OF FAYETTEVILLE, ARKANSAS
DEPARTMENTAL CORRESPONDENCE
•
To: Don Bailey, Personnel Division
From: Heather Woodruff, City Clerk
Date: November 13, 2000
Attached is a copy of Resolution No. 153-00 approving the renewal of the Employee Group
Policies from US Able Life to provide, Life, AD&D, LTD coverage and Sec. 125 Cafeteria Plan
Administration. The original will be microfilmed and filed with the City Clerk.
cc: Nancy Smith
4
RESOLUTION NO.153-00
A RESOLUTION APPROVING THE RENEWAL OF THE
EMPLOYEE GROUP POLICIES FROM US ABLE LIFE TO
PROVIDE, LIFE, AD&D, LTD COVERAGE AND SEC. 125
CAFETERIA PLAN ADMINISTRATION AND AUTHORIZES
THE MAYOR AND CITY CLERK TO EXECUTE AN
AGREEMENT FOR SERVICES.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS'
Section 1. That the City Council hereby approves renewing of the Employee Group
Policies from US Able Life to provide, Life, AD&D, LTD coverage and Sec. 125 Cafeteria Plan
Administration; and authorizes the Mayor and City Clerk to execute an agreement for services. A
copy of the agreement is attached hereto marked Exhibit "A" and made a part hereof.
PASSED AND APPROVED this 71" day of November , 2000.
eather Woodruff; City Cler
•