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Home My WebLink About181-19 RESOLUTION 6 T O � -'• _ ItY j 9RkANSP') 113 West Mountain Street l Fayetteville,AR 72701 (479) 575-8323 Resolution: 181-19 File Number: 2019-0446 2020 EMPLOYEE BENEFITS PACKAGE: A RESOLUTION TO APPROVE THE 2020 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 2020 employee benefits package as recommended in the staff memorandum attached to this Resolution. PASSED and APPROVED on 8/6/2019 Approves. Attest: Adell.. .....i:fof/ LCJIL /La o• 111111///// ionel• Jordan, ayor Sondra E. Smith, City Clerk Treagl r�1-ERKiTO, •, ., 0-n•cn� ".=. : -4> . :c •,2•.qNS As �� "i�0N/'0 'N` ``�� Page 1 Printed on 8/7/19 ,oF��YFTrFi., City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville,AR 72701 (479)575-8323 j' Text File File Number: 2019-0446 Agenda Date:8/6/2019 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number:C. 1 2020 EMPLOYEE BENEFITS PACKAGE: A RESOLUTION TO APPROVE THE 2020 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 2020 employee benefits package as recommended in the staff memorandum attached to this Resolution. City of Fayetteville,Arkansas Page 1 Printed on 8/7/2019 City of Fayetteville Staff Review Form 2019-0446 Legistar File ID 8/6/2019 City Council Meeting Date-Agenda Item Only N/A for Non-Agenda Item Michele Bechhold 7/17/2019 HUMAN RESOURCES (120) Submitted By Submitted Date Division/Department Action Recommendation: Staff recommends Council approve the proposed 2020 employee benefits renewals as proposed in the staff memo. Budget Impact: xxxx.xxx.xxxx-5108.xx Citywide Account Number Fund Project Number Project Title Budgeted Item? Yes Current Budget $ 5,983,363.00 Funds Obligated $ 3,369,791.18 Current Balance $ 2,613,571.82 Does item have a cost? NA Item Cost Budget Adjustment Attached? No Budget Adjustment Remaining Budget $ 2,613,571.82 V20180321 Purchase Order Number: Previous Ordinance or Resolution# Change Order Number: Approval Date: Original Contract Number: Comments: CITY OF FAYETTEVILLE CITY COUNCIL MEMO 4Pillier ARKANSAS MEETING OF AUGUST 6, 2019 TO: Mayor and City Council THRU: Don Marr, Chief of Staff FROM: Michele Bechhold, Interim HR Director DATE: July 17, 2019 SUBJECT: 2020 Employee Benefits Renewals RECOMMENDATION: Staff recommends Council approve the employee benefits package for 2020 as outlined below and in the attached spreadsheets. DISCUSSION: 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 at this time to ensure the annual open enrollment may proceed according to schedule. Health Insurance The one year look back period of the City's health claims shows an 83% utilization rate of claims paid versus premium paid. Under the City's current renewal rate guarantee with Arkansas Blue Cross Blue Shield, this utilization rate results in a 0% premium increase for 2020. Please refer to the attached spreadsheets for the recommended 2020 tier rates which reflect no changes to cost sharing with employees or premium amounts from 2019. Staff and the broker recommend renewing with Arkansas Blue Cross Blue Shield for 2020 with no changes to the premiums or cost share amounts. COBRA Staff recommends renewing with WageWorks as the administrator for COBRA/Retirees billing and administration. City Paid Life and LTD Benefits Staff recommends One America continue to provide City Paid Life Insurance and Long Term Disability insurance for employees with no price changes. These policies are not due for renewal this year. 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 Superior Vision continue with no price increase. Voluntary Employee Paid Benefits Staff recommends continuing to offer optional, employee paid Short Term Disability coverage and Employee Paid Life Insurance through One America 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 Life Insurance Accident Only Insurance AF Term Life Insurance Cancer Insurance AF Permanent Life Insurance Critical Illness Insurance Hospital Gap Insurance BUDGET/STAFF IMPACT: The cost of these planned insurance/benefit items are being budgeted in the City's 2020 budget. Attachments: • 2019 & 2020 Health Insurance Costs • 2020 Health Insurance Annualized Cost • 2019 & 2020 Dental Insurance Cost Comparison 2 kjeaat M: '�' `�� 1.*a. 020 .mt..a. :« ,..O+t eo ---,-40404-A.. .. Traditional PPO-1000 Deductible_ Monthly Monthly Employee/ Total Monthly Employee Employer Employer Cost- PPO Rate Tier Premium Contribution Contribution Share% 2019 and 2020 Employee Only $643.26 $163.94 $479.32 25 49%/74.51% 2019 and 2020 Employee+Spouse $1,402.60 _ $529.44 $873.16 37 75%/62.25% 2019 and 2020 Employee+Child(ren) $1,157.84 $437.04 $720.80 37.75%/62.25% 2019 and 2020 Family $1.909.00 $720.60 $1,188.40 37.75°//62 25% Traditional PPO -2000 Deductible Monthly Monthly Employee/ Total Monthly Employee Employer Employer Cost- PPO Rate Tier Premium Contribution Contribution Share% 2019 and 2020 Employee Only $594.92 $151.62 $443.30 25.49°//74.51°% 2019 and 2020 Employee+Spouse $1,297.18 $489.66 $807.52 37.75%/62.25% 2019 and 2020 Employee+Child(ren) $1,070.84 $404.20 $666.64 37.75%/62 25% 2019 and 2020 Family $1,765.56 $666.44 $1,099.12 37.75%/62 25% Traditional PPO-4000 Deductible Monthly Monthly Employee/ Total Monthly Employee Employer Employer Cost- PPO Rate Tier Premium Contribution Contribution Share% 2019 and 2020 Employee Only $602.20 $153.48 $448.72 25.49%/74.51% 2019 and 2020 Employee+Spouse $1,313 02 $495.64 $817.38 37.75%/62.25% 2019 and 2020 Employee+Child(ren) $1,083.92 $409.14 $674.78 37.75%/62.25% 2019 and 2020 Family $1,787.12 $674.58 $1,112.54 37.75%/62.25% High Deductible Health Plan -3000 Deductible Employer's Monthly Total Employer Monthly Monthly Monthly Employee! Health Savings Contribution(Premium+ Total Monthly Employee Employer Employer Cost- Account Health Savings Account HDHP Rate Tier Premium Contribution Contribution Share% Contribution Contribution) 2019 and 2020 Employee Only $339.34 $47.70 $291.64 14 06%/85.94% $70.80 $362.44 2019 and 2020 Employee+Spouse $731 88 $108.88 $623.00 14.88%/85.12% $106.66 $729.66 2019 and 2020 Employee+Child(ren) $554.42_ $82.48 $471.94 14.88%/85.12% $132.50 $604.44 2019 and 2020 Family 51.027.76 $152.90 $874.86 14.88%/85.12% $156.66 $1,031.52 High Deductible Health Plan-4000 Deductible Employer's Monthly Total Employer Monthly Monthly Monthly Employee! Health Savings Contribution(Premium+ Total Monthly Employee Employer Employer Cost- Account Health Savings Account HDHP Rate Tier Premium Contribution Contribution Share% Contribution Contribution) 2019 and 2020 Employee Only $314.70 $44.24 $270.46 14 06%/85 94% $70.80 $341.26 2019 and 2020 Employee+Spouse $678.72 $100.98 $577.74 14.88%/85.12% $106.66 $684.40 2019 and 2020 Employee+Child(ren) $514.12 $76.48 $437.64 14.88%/85.12% $132.50 $570.14 2019 and 2020 Family $953.08 $141.80 $811.28 14.88%/85.12% $156.66 $967.94 O N O 'a ....aO t N O (II _ C ) 4-' N 0CZ (a rr a) O > ca , a _ 2 c N ,zr O V 0. U 0 - .a c o o Cfl v C o v O o 00 o r U U 7t O p O O 0 0 0 r co co 0 N ., p c-, O C ` '0 Q c _ 1- O) O O 00 O O O O O N O 00 (6 O ti M +. O fa = N ;Q - co N co O CO O O O O O L” "' N O CO p 7r (rj 13 o 0 e- X a� v co e3 Ea ER e» N" O O co Ea rn CO V/ U W > O 6N4 (1} 69 64 EA CO ta N (» Efl (9 CA- Ea .— 2 a) a m Z m EEL Z a w Q 0 m `L° Q J0 o s > o c a com G)�\ 0 E a 0 U L (D CO ,,) () to 0 J w •v U C 3 ,cr r- N O N O O O O O N co in CO N O N C.)W < 441= i N4, N N cD 0 L. W W cu o N Cn < • . . Zc Z c — c a) a) a) a) mC 1 = 73 >, at >, aIC >, a � c v) 0 c v) 0 RS c (n 0 c u) O c v) U O + + O + + a O + + O + + O + + m 0..) CD CL) a� m m m C) 0.) C.) C.) CL) C) m CD C) a) a) C) a.) a) a. a) >, >, >, >, >, >, >, >, >, >, >, >, >, >, >, 0 0 0 >, 0 0 0 >, 0 0 0 >-% 0 0 0 0 0 0 ?, a a Q E a a E-' a ? 2019 & 2020 Dental Cost Comparison Employee Premium (per Employee Premium Plan Tier payroll) (per month) 2019 Employee Only $13.63 $27.26 2019 Employee + Spouse $27.25 $54.50 2019 Employee + Child(ren) $31.34 $62.68 2019 Family $48.62 $97.24 2020 Employee Only $14.18 $28.36 2020 Employee + Spouse $28.34 $56.68 2020 Employee + Child(ren) $32.60 $65.20 2020 Family $50.57 $101.14