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Home My WebLink About156-08 RESOLUTIONRESOLUTION NO. 156-08 A RESOLUTION TO APPROVE THE SAME LEVEL AND COST OF EMPLOYEE BENEFITS IN 2009 AS ARE BEING PROVIDED IN 2008 WHEREAS, the City's health and insurance benefits brokers, Stephens, Inc., negotiated so well for the City that they were able to obtain substantially identical health and insurance coverages for the City employees at no cost increase for either the City or the employees. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves` the Human Resources Division's recommendation to award for 2009 all current employee health and insurance plan coverages to the same companies for the same level of benefits at the same premium cost that the City and the employees have be paying in 2008. PASSED and APPROVED this 5th day of August, 2008. APPROVED: ATTEST: By DA COODY, Mayor By: 4.-cen a, SO QRA E. SMITH, City Clerk/Treasurer `�.. \y5 K/TR ''f.„ kG •G\T Y p . G� s U• A3 'c ;FAYETTEVILLE; y,:9,9kANSPS J��° Missy Leflar, HR Division Mgr. Submitted By City of Fayetteville Staff Review Form City Council Agenda Items or Contracts 8/5/2008 City Council Meeting Date Human Resources Division Action Required: Operations Department Staff requests approval to renew City paid employee benefits for 2009, for the same cost as in 2008. Please refer to the attached memo. $3,461,417 (est. 2009) Cost of this request Account Number Project Number Budgeted Item Yes $3,461,417 (est. 2009) Category / Project Budget Funds Used to Date Remaining Balance Budget Adjustment Attached Personnel Services Program Category / Project Name Citywide Program / Project Category Name Citywide Fund Name r 1.21 o� Departmen Director City Attorney Date `I fb-o Date `P__Q G 7- 21 -aa Finance and Internal Service D rector Date 962/62 Date Mayor Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: Received in City Clerk's Office ENTERED Comments: ¢� evi le Y ARKANSAS CITY COUNCIL AGENDA MEMO For August 5, 2008 Council Meeting TO: THRU: FROM: DATE: SUBJECT: Mayor Dan Coody and the City Council Gary Dumas, Operations Director Missy Leflar, Human Resource Division Manager July 18, 2008 Approval of City paid employee benefits for 2009 RECOMMENDATION: Staff recommends approval of the proposed City paid employee benefits for 2009, the cost of which will be the same as in 2008. Specifically, Council approval is requested for renewal of the City's Blue Cross health insurance plan, ACE - USA Accidental Death & Dismemberment insurance, Datapath Flexible Spending Account/Summary Plan Description/COBRA Administration, and Delta Trust & Banking Corp.Health Savings Account services. Council approval is also requested for a continuation of the same ratio of employer/employee contributions to the health insurance and the same employer contributions to the health savings accounts as in 2008. Cost: Due to the City's Benefits Brokers' negotiations with our insurance companies, the costs for the health insurance, accidental death & dismemberment insurance, Flexible Spending Account/Summary Plan Description/COBRA Administration and Health Savings Account services will remain the same in 2009 as they were in 2008. This is especially welcome news with regard to the health insurance, given the national trend of annual increases averaging 8%-•10%. Changes in coverage: There would be no changes in offered coverage of the above, except that — at no extra cost - in 2009 the age for dependent children who are full time students will go up from age 23 to age 25 on the City paid health insurance, the employee paid dental insurance, and employee paid vision insurance. This will be helpful to employees. BACKGROUND: The entire 2009 employee benefits package, including the employee paid benefits as well as the City paid life and long term disability insurance (which is not up for renewal this year, having previously been approved for 2009 by Council) would consist of: • Blue Cross Blue Shield health insurance (both traditional and high deductible). • Delta Dental dental insurance. • Starmount/Always Care vision insurance. • Colonial supplemental medical insurance for cancer, critical illness, and accidents. • Reliance insurance for life and long term disability. • Reliance insurance for Short Term Disability. • ACE -USA Accidental Death and Dismemberment. • Flexible Spending Accounts for dependent care reimbursement and health care reimbursement. • Delta Trust & Banking Corp. Health Savings Accounts. • Retirement Plans. • In addition, Sam's Club has offered City employees a discount on its memberships. • Pending Fayetteville School Board approval: The School District may partner with the City in offering City employees (who are eligible for regular benefits) memberships to the Fayetteville Public Schools Fitness Center at a cost of $15 per month to the employee. This would fit into the City's wellness program efforts and would be handled by payroll deduction. Of the above, the City would financially contribute to: Health insurance, life insurance, long term disability insurance, accidental death & dismemberment, health savings accounts and the retirement plan. In addition, the City would continue to utilize the services of Datapath to provide its expertise at administering the legally required Section 125 Summary Plan Description and COBRA Administration services, as well as its Flexible Spending Accounts. DISCUSSION: Health insurance: Inasmuch as the health insurance rates have not changed, staff recommends that Council authorize a continuation of the same employer/employee contributions as the City had in 2008. Health savings accounts: Staff recommends that the City's contributions to employee health savings accounts remain the same as in 2008. This is an integral part of the overall High Deductible health insurance plan. Dental insurance: The employees eligible for benefits were surveyed by Human Resources to see if they preferred the dental insurance to continue to be "tied" to the purchase of health insurance, versus having the option of buying the health insurance and/or dental insurance as separate products (where one could be purchased without the other having to be purchased). It was explained that if they were offered as separate purchases, the cost of the Dental insurance might increase more than it might otherwise increase. A clear majority of the responding employees voted to keep the two products as one purchase. The renewal for the dental insurance is still pending. The City's Benefit Brokers are reviewing the market for competitive quotes. The cost of the dental insurance is fully paid by the employee. Life insurance: Last year was an "open enrollment" for life insurance involving a one time opportunity for large, guaranteed amounts of coverage with no questions asked. (The same will continue to be offered to brand new employees on an ongoing basis.) This one time opportunity on the guaranteed coverage was communicated to employees via benefits packet handouts, as well as at educational meetings which approximately 400 employees elected to attend. For 2009, and moving forward, employees who have already had the one time opportunity for the "guaranteed coverage" may increase their life insurance coverage in increments of $10,000, which may be subject to medical approval. Annual Enrollment: Pending Council approval, the proposed enrollment schedule is for employees to be sent their benefits packets in September, have the educational meetings in September, and — for those wishing to make benefits changes - have one on one meetings with the HR Benefits Administrator throughout October. BUDGET IMPACT: These planned items are being budgeted for in the City's 2009 budget. Staff is available to answer any questions you may have. 2 1 RESOLUTION NO. A RESOLUTION TO APPROVE THE SAME LEVEL AND COST OF EMPLOYEE BENEFITS IN 2009 AS ARE BEING PROVIDED IN 2008 WHEREAS, the City's health and insurance benefits brokers, Stephens, Inc., negotiated so well for the City that they were able to obtain substantially identical health and insurance coverages for the City employees at no cost increase for either the City or the employees. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the Human Resources Division's recommendation to award for 2009 all current employee health and insurance plan coverages to the same companies for the same level of benefits at the same premium cost that the City and the employees have be paying in 2008. PASSED and APPROVED this 5°i day of August, 2008. APPROVED: ATTEST: DAN COODY, Mayor SONDRA E. SMITH, City Clerk/Treasurer 7N,F --1Re 1(8.12.08) Clarice Pearman - Res 156-08 Page 1 From: To: Date: Subject: Attachments: Clarice Pearman t Leflar, Missy 8.12.08 1:29 PM Res. 156-08 156-08 Employee Benefits 2009.pdf CC: Audit Missy: Attached is a copy of the above resolution passed by City Council, August 5, 2008 regarding the 2009 employee benefits Please let me know if there is anything else needed for this item. Have a good day. Thanks. Clarice