Agenda - Council - 01/25/2005 - Laserfiche WebLink

Home

itEALTH INSURANCECONTRIBUTION CONTRACT NEGOTIATIONS By: Heidi Nelson, Assistant City Administrator Background: The collective bargaining agreements with AFSCME and LELS require that the City almually negotiate the city contribution toward the cost of health insurance benefits. Negotiations on this issue began in late December and have been on-going for the past month. On January 20, 2005, the members of AFSCME voted to accep[ the City's offer for the health insurance contribution for calendar year 2005. : The City's representatives have been in negotiations with the newly organized LELS-Sergeants union as well as the LELS-Patrol union regarding the health insurance contribution, but as of the preparation of this report, have not :reached: agreement. As Council may recall, the Police Sergeants filed earlier this year to form a bargaining unit with LELS. The City's representatives have been in negotiations with the Sergeants since late fall regarding the contract provisions for the new contract. If staff is able to reach agreement with LELS-Patrol regarding the 2005 health insurance contribution and LELS-Sergeants regarding the new contract prior to the meeting on Janumy 25th, a report will be prepared :for council consideration that evening. The health insurance contribution offered by the city and accepted by the AFSCME unit represents full payment for single health insurance ($380.17-100% plan) or full payment for single health insurance ($352.19-90/10% plan) and a contribution of $630.00 for family coverage. The family contribution of $630.00 represents 63.3% city share of the 100% platt (premium cost-$995.38) and 68% city share of the 90/10% plan (premium cost $925.38). In 2004, the city's contribution to health insurance was full payment for single and 64.83% city share for family coverage. The addition of the 90/10% plan is a new offering this year, providing a reduced premium to employees with a 10% co-pay for various services. This proposed contribution requires approximately $18,000 in additional funds for the calendar year above what was budgeted for this expense. This additional cost, which reflects the potential additional cost if both LELS Patrol and Sergeants accepted this offer, may vary throughout the year as employee changes or additions can occur during the benefit year. It should be noted that premiums increased 13% for 2005; however Council will recall that the City experienced a significant decrease in premiums for 2004 ~hen the City left PEIP and began working with CBIZ as our employee benefits agent of record.: The 2005 rates bring us back roughly to where the prmniums were in 2003. Staff is also requesting that the city contribution outlined below be approved for benefit eligible non-union city staff. Insurance: Employer contribution to single coverage for AFSCME members will increase from $ 297.33 to $380.17 (100%) or $352.09 (90/10%) (depending on plan selected) effective January 1, 2005;