Agenda - Council - 03/28/1989 - Laserfiche WebLink

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Councilmember introduced the following resolution and moved for its adoption: RESOLUTION #89-03- RESOLUTION AUTHORIZING A TWO PERCENT (2%) ADMINISTRATIVE FEE TO BE APPLIED TO HEALTH AND LIFE INSURANCE PREMIUMS FOR EMPLOYEES WHO ELECT CONTINUED COVERAGE AFTER VOLUNTARY OR INVOLUNTARY TERMINATION WHEREAS, State legislation requires every group insurance policy issued or renewed within the State of Minnesota after August 1, 1987 to contain a provision that permits covered employees who voluntarily or involuntarily terminate employment or are laid off from their employment, if the policy remains in force for any active employee of the employer, to elect extended coverage for themselves and/or their covered dependents; and WHEREAS, an employee is considered to be laid off from employment if there is a reduction in hours to the point where the employee is no longer eligible for coverage under the group insurance policy. Termination does not include discharge for gross misconduct; and WHEREAS, this extended coverage must be available for a period of 18 months after the termination or layoff or until the employee obtains coverage under another group policy, whichever is shorter; and WHEREAS, any covered employee electing to continue coverage shall pay the employee's former employer (the City of Ramsey), on a monthly basis, the cost of the continued coverage. In no event shall the amount of premium charged exceed 102% of the cost of the plan; and WHEREAS, the City of Ramsey incurs administrative costs in processing such extended benefits. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF RAMSEY, ANOKA COUNTY, STATE OF MINNESOTA, as follows: I ) That the City Council of Ramsey hereby approves a two percent (2%) administrative fee to be added to the cost of the plan(s) for extended coverage of health and life insurance as elected by covered employees that are terminated or laid off. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: and the following abstained: and the following were absent: whereupon said resolution was declared duly passed and adopted by the Ramsey City Council this the 28th day of March, 1989.