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Home My WebLink About172-18 RESOLUTION�t fAYF77i�' 4 r r -0Rk.A145P4 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 172-18 File Number: 2018-0355 2019 EMPLOYEE BENEFITS PACKAGE: A RESOLUTION TO APPROVE THE 2019 EMPLOYEE BENEFITS PACKAGE 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 2019 employee benefits package as recommended in the staff memorandum attached to this Resolution. PASSED and APPROVED on 8/7/2018 Attest: ZnXi�a 6 LA-�_ Sondra E. Smith, City Clerk ; r��"mj»i.,,to �� SIP r : FAYETTE ,� f,� `� ++ WA .',♦♦ Page 1 Printed on 818118 City of Fayetteville Arkansas 113 West Mountain Street r i Fayetteville, AR 72701 j�o �,u� � (479)575-8323 1 Text File File Number: 2018-0355 Agenda Date: 8/7/2018 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: D. 6 2019 EMPLOYEE BENEFITS PACKAGE: A RESOLUTION TO APPROVE THE 2019 EMPLOYEE BENEFITS PACKAGE 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 2019 employee benefits package as recommended in the staff memorandum attached to this Resolution. City of Fayetteville, Arkansas Page 1 Printed on 81812018 Brenda Reed Submitted By City of Fayetteville Staff Review Form 2018-0355 Legistar File ID 8/7/2018 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 7/16/2018 HUMAN RESOURCES (120) Submitted Date Division / Department Action Recommendation: Staff recommends Council approve the proposed 2019 employee benefits renewals as discussed in the staff memo. xxxx. xxx. xxxx-5108. xx Account Number Project Number Budgeted Item? Yes Does item have a cost? NA Budget Adjustment Attached? No Purchase Order Number: Change Order Number: Original Contract Number: Comments: Budget Impact: Current Budget Funds Obligated Current Balance Item Cost Budget Adjustment Remaining Budget Citywide Fund Project Title �a Previous Ordinance or Resolution # Approval Date: 5, 896, 050.00 2,696,556.32 3,199,493.68 3,199,493.68 V20180321 CITY OF FAYETTEVILLE ARKANSAS MEETING OF AUGUST 7, 2018 TO: Mayor and City Council THRU: Don Marr, Chief of Staff FROM: Brenda Reed, HR Director DATE: July 16, 2018 SUBJECT: 2019 Employee Benefits Renewals CITY COUNCIL MEMO RECOMMENDATION: Staff recommends Council approve the employee benefits package for 2019 as outlined below and in the attached spreadsheets. DtQ1-Llcc�r��. Staff and Gallagher Benefit Services, the City's benefits broker, have reviewed the annual renewals for employee insurance plans. Employee benefit renewals are brought forward now to ensure the annual open enrollment may proceed according to schedule. Health Insurance The look back period of the City's health claims shows a 115% utilization rate of claims paid versus premium paid. A utilization rate above 100% has contributed to a 15% premium increase for 2019. Please refer to the attached spreadsheets for the recommended tier rates and cost sharing percent changes. The City will split the 15% premium cost increase 50/50 with employees. Staff and the broker recommend renewing with Arkansas Blue Cross Blue Shield in 2019 since other health insurance bids for the City were higher. COBRA Staff recommends renewing with WageWorks as the administrator for COBRA/Retirees billing and administration. City Paid Life and LTD Benefits Staff recommends renewing with One America to provide City Paid Life Insurance and Long Term Disability insurance for employees with no price increase. Flexible Spending Accounts Staff recommends American Fidelity continue as the administrator of Flexible Spending Accounts with no cost for services. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 Health Savings Accounts Staff recommends First Security Bank continue as the administrator of Health Savings Accounts with no cost for services. Employee Paid Dental Insurance Staff recommends renewing with Delta Dental. The renewal includes a 4% increase in rates. Please refer to the attached spreadsheet for tier rates. Employee Paid Vision Insurance Staff recommends renewing with Superior Vision with no price increase. Volunta Em to ee Paid Benefits Staff recommends renewing with One America for optional, employee paid Short Term Disability coverage and Employee Paid Life Insurance with no price increase. Supplemental Benefits Paid by Employees Staff recommends continuing to offer additional supplemental benefits to employees through American Fidelity. Disability Income Insurance Accident Only Insurance Cancer Insurance Critical Illness Insurance Life Insurance AF Term Life Insurance AF Permanent Life Insurance Hospital Gap Insurance BUDGET/STAFF IMPACT: These planned insurance/benefit items are being budgeted for in the City's 2019 budget. Attachments: • 2018 & 2019 Health Insurance Cost Comparison • 2019 Health Insurance Annualized Cost ■ 2018 & 2019 Dental Insurance Cost Comparison 2018 & 2019 Health Insurance Cost Comparison iPPO Rate Tier Traditional PPO - 1000 Deductible PPO Rate Tier Total Monthly Premium Monthly Employee Contribution Monthly Employee/ Employer Employer Cost - Contribution Share % 2018 Employee Only $559.36 $122.00 $437.36 21.81% / 78.19% 2018Employee +Spouse $1,219.64 $437.96 $781.6835.91°%164,09°% 2018 Employee + Child(ren) $1,006.82 $361.54 $645.28 35.91% / 64.09% 2018 Family $1,660.00 $596.10 $1,063.90 35.91% 164. 9°% 2019 Employee Only $643.26 $163.94 $479.32 25.49%174.51% 2019 Employee + Spouse $1,402.60 $529.44 $873.16 37.75% / 62.25% 2019 Employee + Child(ren) $1.157.84 $437.04 $720.80 37.75°% 162.25% 2019 Family $1,909.00 $720.60 $1,188.40 37.75% 162.25% iPPO Rate Tier Traditional PPO - 2000 Deductible Monthly Monthly Employee/ Total Monthly I Employee Employer Employer Cost- Premium :_ Contribution i Contribution Share % .2018 Employee Only $517.32 $112.82 $404.50 21.81%178.19% .2018Employee +Spouse $1,127.98 $405.06 $722.9235.91%164.09% .2018 Employee + Child(ren) $931.16 $334.38 $596.78 35.91°% 164.09°% 2018 Family $1,535.26 $551.30 $983.96 35.91% 9°% 2019 Employee Only $594.92 $151.62 $443.30 25.49°% 174.51 % .2019 Employee + Spouse $1,297.18 $489.66 $807.52 37.75°% 162.25% 2019 Employee + Child ren $1,070. 84 $404.20 $666.64 37.75% 162.25 °% 2019 Family $1,765.56 $666.44 $1,099.12 37.75°%162,25°% Traditional PPO - 4000 Deductible PPO Rate Tier Total Monthly Premium Monthly Employee Contribution Monthly ! mplayael Employer Employer Cost - Contribution Share °% 2018 Employee Only $523.x,: $114.20 $4u9.44 L i.n 1'/- 1 xu. is /o 2018 Employee +%ouse. $1,141.76 $410.02 5731.74 35.91°x6164.09°% 2018 Employee + Child(ren) $942.54 $338.46 $604.08 35.91% 164.09% 2018 Family $1,554.02 $558.04 $995.98135.91% 164.09% 2019 Employee Only $602.20 $153.48 $448.72 25.49% / 74.51% 2019 Employee + Spouse $1,313.02 5495.64 $817.38 37,75% 162,25% 2019 Em to ee + Child(ren) $1,083.92 $409.14 $674.78 37.75°% 162,25%. 20}9F=ami/ $1.787.121 $674.581 $1,112.5437.75°%162.25°% High Deductible Health Plan - 3000 Deductible HDHP Rate Tier Total Monthly Premium Monthly Employee Contribution Monthly Employer Contribution Employee/ Employer Cost- Share % Employer's Monthly Health Savings Account Contribution Total Employer Monthly Contribution (Premium + Health Savings Account Contribution) 2018 Employee Only $295,08 $25.58 $269.50 8.67% 191.33 % $70.80 $340.30 :2018 Employee + Spouse $636.42 $61.16 $575.26 9.61% 190.39% $106.66 $681.92 2018 Employee + Child(ren) $482.10 $46.32 $435.78 9.61% / 90,39% $132.50 $568.28 :2018 Family $893.70 $85.88 $807.82 9.61% 190,39% $156.66 $964,48 20119 Employee Only $339.34 $47.70 $291.64 14.06°% 85.94% $70.80 $362.44 2019 Employee + Spouse $731.88 $108.88 $623.00 14.88°% 85.12% $106.66 $729.66 2019 Employee + Child(ren) $554.42 $82.48 $471.94 14.88°% 185.12% $132.50 $604.44 7019 Family $1.027.76 $152.90 $874.86 14.88%185.12% $156.66 $1,031.52 High Deductible Health Plan - 4000 Deductible HDHP Rate Tier 2018 Employee Only Total Monthly Premium $27364 Monthly Employee Contribution $23.72 Monthly Employer Contribution $249.92 Employee/ Employer Cost- Share % 8.67°% 191.33% Employer's Monthly Health Savings Account Contribution $70.80 Total Employer Monthly Contribution (Premium + Health Savings Account Contribution) $320.72 2018 Employee + Spouse $590 18 $56.72 $533.46 9.61% 190.39% $106.66 $640.12 2018 Employee + Child(ren) $447.06 $42.96 $404.10 9.61% 190.39% $132.50 $536.60 2018 Family $828.76 $79.64 $749.12 9.61%190.39°% $156.66 $905.78 2019 Employee Only $314.70 $44.24 $270.46 14.06%185,94% $70.80 $341.26 2019 Employee + Spouse $678.72 $100.98 $577.74 14.88% 185.12% $106.66 $684.40 2019 Employee + Child(ren) $514.12 $76.48 $437.64 14.88°% 185.12% $132.50 $570.14 2019 Family $953.08 $141.80 $811.28 14.88% 185.12% $156.66 $967.94 High Deductible Health Plan - 3000 Deductible Health Plan - 4000 Deductible HDHP Rate Tier Total Monthly Premium Monthly Employee Contribution Monthly Employer Contribution Employee/ Employer Cost- Share % Employer's Monthly Health Savings Account Contribution Total Employer Monthly Contribution (Premium + Health Savings Account Contribution) 2018 Employee Only $295.08 $25.58 $269.50 8.67% / 91.33% $70.80 $340.30 2018 Employee + Spouse $636.42 $61.16 $575.26 9.61% / 90.39% $106.66 $681.92 2018 Employee + Child(ren) $482.10 $46.32 $435.78 9.61% / 90.39% $132.50 $568.28 2018 Family $893.70 $85.88 $807.82 9,61% 190.39% $156.66 $964.48 2019 Employee Only $339.34 $47.70 $291.64 14.06% / 85.94% $70.80 $362.44 2019 Employee + Spouse $731.88 $108.88 $623.00 14.88% / 85.12% $106.66 $729.66 2019 Employee + Child(ren) $554.42 $82.48 $471.941 14.88% / 85.12% $132.50 $604.44 2019 Family $1,027.761 $152.90 $874.861 14.88% / 85.12% $156.661 $1,031.52 High Deductible Health Plan - 4000 Deductible HDHP Rate Tier Total Monthly Premium Monthly Employee Contribution Monthly Employer Contribution Employee/ Employer Cost- Share % Employer's Monthly Health Savings Account Contribution Total Employer Monthly Contribution (Premium + Health Savings Account Contribution) 2018 Employee Only $273.64 $23.72 $249.92 8.67% / 91.33% $70.80 $320.72 2018 Employee + Spouse $590.18 $56.72 $533.46 9.61% / 90.39% $106.66 $640.12 2018 Employee + Child(ren) $447.06 $42.961 $404.10 9.61% / 90.39% $132.50 $536.60 2018 Family $828.76 $79.641 $749.12 9.61% / 90.39% $156.66 $905.78 2019 Employee Only $314.69 $44.241 $270.45 14.06% / 85.94% $70.80 $34125 2019 Employee + Spouse $678.71 $100.981 $577.73 14.88% / 85.12% $106.66 $684.39 2019 Employee + Child(ren) $514.12 $76.481 $437.641 14.88% / 85.12% $132.501 $570.14 2019 Family $953.07 $141.801 $811.271 14.88% 85.12% $156.661 $967.93 2019 Health Insurance Annualized cost ANNUALIZED CALCL LATIONS Current Employee Participants (Excludes COBRA and Retirees, since they pay 100% for their coverage) Current ANNUAL Cost to City at 2018 rates (Excluding Health Savings Account Contributions, which would not increase in 2019) ANNUAL Cost to City at 2019 rates based on Current 2018 Employee Participants and Plans (Excluding Health Savings Account Contributions) PPO 1000 Employee Only 55 $288,657.60 $316,351.20 PPO 1000 Employee + Spouse 9 $84,421.44 $94,301.28 PPO 1000 Employee + Child(ren) 1 $7,743.36 $8,649.60 PPO 1000 Family 7 $89,367.60 $99,825.60 PPO 2000 Employee Only 0 $0.00 $0.00 PPO 2000 Employee + Spouse 1 $8,675.04 $9,690.24 PPO 2000 Employee + Child(ren) 0 $0.00 $0.00 PPO 2000 Family 0 $0.00 $0.00 PPO 4000 Employee Only 1 $4,913.28 $5,384.64 PPO 4000 Employee + Spouse 0 $0.00 $0.00 PPO 4000 Employee + Child(ren) 0 $0.00 $0.00 PPO 4000 Family 0 $0.00 $0.00 HDHP 3000 Employee Only 214 $692,076.00 $748,931.52 HDHP 3000 Employee + Spouse 84 $579,862.08 $627,984.00 HDHP 3000 Employee + Child(ren) 50 $261,468.00 $283,164.00 HDHP 3000 Family 231 $2,239,277.04 $2,425,111.92 HDHP 4000 Employee Only 5 $14,995.20 $16,227.60 HDHP 4000 Employee + Spouse 2 $12,803.04 $13,865.76 HDHP 4000 Employee + Child(ren) 1 $4,849.20 $5,251.68 HDHP 4000 Family 2 $17,978.88 $19,470.72 TOTAL 663 $4,307,087.76 $4,674,209.76 Additional Cost to City for 2019 $367,122.00 Plan Tier Employee Premium (per payroll) Employee Premium (per month) 2018 Employee Only $13.10 $26.20 2018 Employee + Spouse $26.20 $52.40 2018 Employee + Child(ren) $30.13 $60.26 2018 Family $46.75 $93.50 2019 Employee Only $13.63 $27.26 2019 Employee + Spouse $27.25 $54.50 2019 Employee + Child(ren) $31.34 $62.68 2019 Family 1 $48.62 $97.24