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Personnel Committee Date: 01/11/2011 By: Colleen Lasher Administrative Services Information Item #: 4. 3. Title: Consider a Resolution Approving the 2011 Health Insurance Contributions and Wages with AFSCME as it Relates to the 2010 / 2011 Labor Agreement Background: On Wednesday, December 29, 2010, City staff and AFSCME reached a tentative agreement for the city's contribution toward health insurance and wages for 2011. Observations: ARTICLE XII INSURANCE Effective January 1, 2011, the chart below shows the City of Ramsey's EMPLOYEE health insurance premiums. The EMPLOYER will make the following contributions toward group single or family health insurance coverage for EMPLOYEES enrolled in the City's plan. In addition, the City will purchase $20,000 of basic life insurance for full-time regular EMPLOYEES. Total Premium City City Total EE Contnbution Contnbution COR Contribution to Premium to VEBA** Contnbution to Premium Three for Free* Single ($2000 ded/$3000 OOP) $536 87 $536 87 $130 00 $066 87 $0 00 Family ($4000 ded/$5000 OOP) $1344 tiff $846 94 $192 00 $1038 94 $497 72 $1500 Deductible Single ($1500 ded/$3000 OOP) $554 65 $469 91 $130 00 $599 91 $84 75 Family ($3000ded/$600000P) $138914 $820 17 $19200 $101217 $56897 $25 Co-pay/100°a Hosp Single ($2500 OOP) $762 77 $517 1a $517 1a $245 63 Family ($5000 00P) $1909 59 $831 56 $831 56 $1078 03 *Each plan member receives three free office visits (physician services) annually m addition to the free preventive care visit **The City's 2011 VEBA contnbution includes the $4 30 monthly claims fee ARTICLE XX WAGES Effective January 1, 2011, EMPLOYEES shall be compensated in accordance with the 2010 wage schedule, appendix A2 of the 2010-2011 labor agreement: hence settling on a zero percent wage increase for 2011. Employees eligible for step increases in 2011 shall advance to the next step per the 2010 wage scale. Recommendation: