Agenda - Council Work Session - 11/25/2025

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SECTION 4 BENEFITS 4.1 Group Insurance To be eligible for group health, dental, or life insurance benefits with the City, employees must be regular employees scheduled to work at least 30 hours per week. The City provides a contribution toward health insurance, single dental insurance and basic life insurance for full- time employees, as approved annually by the City Council. Members of the City Council are eligible for group health insurance in the City's group health insurance plan without affecting their total compensation from the City. Health insurance, health savings accounts/health reimbursement accounts, or credit in lieu of coverage (waivers), along with dental and vision insurance begin on the first of the month after the hire date. If an employee is hired on the first day of the month, said benefits are effective on day one. However, life insurance and long termlong-term disability insurance begins on the first day of employment. The City will continue to provide basic life insurance for employees participating in PERA's Phased Retirement program, as permitted by the insurance carrier. Employees wishing to remain on the City benefits, as permitted by the insurance carrier, may do so at their own cost based on the Minnesota Statute 471.61: "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 the conditions set by state law". In accordance with federal health care reform laws and regulations, the City will offer health insurance benefits to eligible employees and their dependents that work on average, or are expected to work, 30 or more hours per week or the equivalent of 130 hours or more per month. In order to comply with health care reform law and avoid penalties, part-time employees will be scheduled based on business needs and in manner that ensures positions retain the intended part- time status. 4.2 Long Term Disability ("LTD") Mandatory LTD: Long-term disability is a mandatory, employee -paid benefit, provided to sworn police personnel and other full-time, non -union employees. Voluntary LTD: Long-term disability is available to other employee groups as a voluntary employee -paid benefit. Terms of Coverage: The terms of long-term disability coverage, including the benefit calculation formula and the waiting period before eligibility, are established by the City. 18