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Personnel Committee
<br />Meeting Date: 12/13/2011
<br />By:
<br />Colleen Lasher, Administrative Services
<br />Information
<br />4. 4.
<br />Title:
<br />Consider a Resolution to Approve 2012 Non -Union Health Insurance Contributions and 2012 Non -Union Cost of Living Adjustments (COLA)
<br />Background:
<br />Health Insurance for 2012:
<br />On October 11, 2011, the City Council approved the City to change health insurance carriers from HealthPartners to Blue Cross and Blue
<br />Shield as part of the LOGIS Consortium. The City benefits joining the LOGIS group and BCBS, as follows: opportunity ity to join a larger
<br />group, tiered plan options which includes single, single plus child(ren), single plus spouse, and family; which will better meet employees'
<br />actual coverage needs (as compared to only single and family plan options under HealthPartners), options for higher deductible plans; $4000
<br />Single & $8000 Family (as compared to the current maximum deductible of $2000 Single & $4000 Family under HealthPartners), four years
<br />of rate caps as follows: 9% in 2013, 10% in 2014, 11% in 2015, and 12% in 2016--which are not contingent upon a service contract, two
<br />networks for employees to choose from based on their healthcare needs (as compared to one under HealthPartners), 100% coverage (in most
<br />plans) after the deductible is satisfied (as compared to 80% under HealthPartners), less expensive basic life insurance, approximately $500.00
<br />contribution per year toward the OPEP GASB Statement No. 45 valuation fee, and more plan options.
<br />The City health insurance contributions listed below are the same contributions that have been negotiated with all other employee groups
<br />(AFSCME, LELS-Patrol and LELS-Sergeants). Note: in order to ease administration of the benefits and to maintain consistency (aside from
<br />the funding toward the co -pay plan) all contributions are set at an equal amount for each tier level (Family, Employee only,
<br />Employee+Spouse, Employee+Children).
<br />Cost of Living Adjustment (COLA) for 2012:
<br />Wages for all City staff have been frozen for two years with the last increase authorized as of January 1, 2009 (no increases were given for
<br />2010 or 2011). The City Council authorized a two percent (2%) increase as part both the LELS Patrol and LELS Sergeants 2011 - 2012
<br />contracts effective January 1, 2012. Earlier this evening, the Personnel Committee considered a case to settle the AFSCME contract, which
<br />also included a 2% increase to wages. The non -union wage scale, at this time, reflects 2009 wages. Staff has surveyed other comparable
<br />cities in the area and a 2% increase is within the trend for 2012.
<br />Observations:
<br />Family
<br />100% $30.00 co -pay
<br />$1500/$3000 Ded. Plan w/VEBA
<br />$2500/$5000 Ded. Plan w/VEBA
<br />$4000/$8000 Ded. Plan w/VEBA
<br />Employee Only
<br />100% $30.00 co -pay
<br />$1500/$3000 Ded. Plan w/VEBA
<br />$2500/$5000 Ded. Plan w/VEBA
<br />$4000/8000 Ded. Plan w/VEBA
<br />Employee Plus Spouse
<br />100% $30.00 co -pay
<br />$1500/$3000 Ded. Plan w/VEBA
<br />$2500/$5000 Ded. Plan w/VEBA
<br />$4000/$8000 Ded. Plan w/VEBA
<br />Employee Plus Child(ren)
<br />100% $30.00 co -pay
<br />$1500/$3000 Ded. Plan w/VEBA
<br />$2500/$5000 Ded. Plan w/VEBA
<br />$4000/$8000 Ded. Plan w/VEBA
<br />Monthly
<br />Premium
<br />City Cont. to Prem. Employee Cost for City Cont. to
<br />Per Month Premium per Month VEBA
<br />Total City Contribution
<br />$2,057.00 $831.56 $1,225.44 NA $831.56
<br />$1,745.00 $1,048.00 $697.00 $192.00 $1,240.00
<br />$1,608.00 $1,048.00 $560.00 $192.00 $1,240.00
<br />$1,418.00 $1,048.00 $370.00 $192.00 $1,240.00
<br />$791.00 $517.14
<br />$671.00 $570.00
<br />$618.50 $570.00
<br />$545.00 $545.00
<br />$1,661.00 $831.56
<br />$1,409.50 $815.00
<br />$1,298.50 $815.00
<br />$1,145.00 $815.00
<br />$1,582.00 $831.56
<br />$1,342.00 $890.00
<br />$1,236.50 $890.00
<br />$1,090.50 $890.00
<br />*The City's 2012 VEBA contnbution mcludes the $4 30 monthly claims fee
<br />$273.86 NA $517.14
<br />$101.00 $130.00 $700.00
<br />$48.50 $130.00 $700.00
<br />$0.00 $155.00 $700.00
<br />$829.44 NA $831.56
<br />$594.50 $160.00 $975.00
<br />$483.50 $160.00 $975.00
<br />$330.00 $160.00 $975.00
<br />$750.44 NA $831.56
<br />$452.00 $160.00 $1,050.00
<br />$346.50 $160.00 $1,050.00
<br />$200.50 $160.00 $1,050.00
<br />Recommendation:
<br />Make a motion to approve the above listed city health insurance contributions and to increase the non -union wage scale by two percent (2%).
<br />Funding Source:
<br />Funding for both city contributions to health insurance and cost of living adjustment are included in the 2012 general fund budget.
<br />Council Action:
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