Agenda - Council - 02/14/1989 - Laserfiche WebLink

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!. REDUCED COST CF ~'~v~c ~.~,~u COVEPJ%GE In the past, LMCIT has calculated workers compensation premiums for elected officials coverage using the fo.~m,.ula prescribed by the ratin~ association for private insurance companies. Under this foI-m, ula, prer. iums were based on an imputed minimum sa!ar]' ~e rate for the 'Municipal employees' class cf $108 per week. ~ cf ~5.88 per $I00 cf pa~'rcil was then applied. This resulted in prer. iums cf over $1650 to cover a five-r, erLoer council. For 1989, kMCIT will use a lower rate of $2.~! per $i00 of payroll for elected officials. This rate will be applied %o an impute~ salary ~f $70 per wee}:, rather thmn ~!08 as in the past. These two changes wi!! reduce the cost of covering a five-mer~er council to $530 in !9£9 - a reduction of over two-thirds, in the opinion of the LMCiT Board of T~ustees, this revised rating approach %'ili more a~curate!y reflect the actual risk. · A~C~D-L~ OPTION 2 ~ ~ ='~ POLICY ~MCIT has also arranged with CIGNA to offer a second even !ess expensive option tkrough which cities can provide some protection for their council mer~ers against the risk of being injured or killed in the course of perfo~'-~ing their duties. For a cost of $12.75 per person per year, the city can purchase an accident pc!icy which provides benefits for death or a disabling injury arising out cf an accident which occurs while the council me~er is traveling to, parsicipating in, or travelling from a regularly scheduled council meeting, or while conductin~ official council business on behalf and at the request cf the council. The policy provides a death benefit of $100,000. It also provides a schedule cf lump sum benefits for loss of a hand, foot, or eye. The policy also provides a short-term disability benefit cf $400 per week. ~: ~: ~ :- ' o~s= ..... 5 benefits are payable for a ~aximum cf 26 weeks, after a tkree-day w~i~in~ period. Disability benefits would be paid if as %he result cf a covered injury the inCividua! cannot do a% ali the substantial an~ material duties cf kis t}~e of work. it is important to understand that this coverage differs sicnificant!v in many ways fr~.,m the benefits that would be ~rovide~ by workers compensation. Some cf the ~ore impo_-tant differences are: - The a=sident.PoLicY. does n-t~ pay ==o-_ medical_ _ costs. ~ ....