Agenda - Council - 10/10/2017 - Laserfiche WebLink

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CC Regular Session 4. 12. Meeting Date: 10/10/2017 By: Colleen Lasher, Administrative Services Information Title Adopt Resolution 17-10-262 to Amend the City's Personnel Policy Purpose/Background: The City provides group health insurance benefits to employees working at least 30 hours per week. Staff recommends amending eligibility to the City's group benefits, as follows: 1) consider permitting Council Members to participate in the City's group health insurance plan without affecting Council Members' total compensation from the City, and 2) consider amending the City's eligibility for group life insurance to include employees participating in PERA's phased retirement. Council Member Health Insurance Eligibility Staff recommends adding Council Members as eligible to enroll in the City's health insurance plan without increasing the Council Member's total compensation. Staff has consulted with the City's benefit's broker, the carrier and the City Attorney and have determined that changing the eligibility is allowed, with City Council approval. Life Insurance for Phased Retirement Employees Group benefits as a whole include health, dental and life insurance. Minnesota Statute 471.61, subd. 2b. Insurance continuation states "a unit of local government must allow a former employee and the employee's dependents to continue to participate indefinitely in the employer sponsored hospital, medical and dental insurance group that the employee participated in immediately before retirement" (under certain conditions). While the statute does address health and dental insurance, it does not address life insurance. As the City Council is aware, PERA's phased retirement allows employees to participate for a maximum of 5 years. Currently, if a Phased Retirement employee wanted to continue their life insurance benefit they would be immediately required to elect COBRA which is limited to, in most cases, 18 months. In speaking with the City's benefits broker, staff learned the another City recently received approval from Sun Life, the same carrier as Ramsey, to allow PERA Phased Retirement employees to stay on the plan. Staff recommends this option for the City of Ramsey as well, pending approval by the carrier. Notification: N/A Funding Source: There is no additional funding required. Recommendation: To adopt resolution 17-10-262 amending the City Personnel Policy to do the following: 1) allow Council Members eligibly to the City's Group Health Insurance without increasing Council Member total compensation; and 2) allow employees participating in the PERA Phased Retirement Option eligibility to the City's group Life Insurance plan.