03-09-2016 Council Packet - Laserfiche WebLink

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This alternative allows employees who are covered under another medical plan to "opt-out" of coverage and receive a cash payment in lieu of medical benefits. Employees choosing Opt-Out will receive approximately the equivalent of the average cost of single employee health insurance provided by metro cities per month for each full month; payment will be made on a bi- weekly basis and will be subject to ordinary income taxes. Participants in the Opt-Out Program must sign a release and show proof of medical benefits through another source. The City will have the right to refuse the Opt-Out option for an employee should the City's participation in its Health Insurance Program be jeopardized. Employees choosing to discontinue the Opt-Out program and enroll in the City’s Health Insurance Program must do so during enrollment periods as authorized by the City's Health Insurance Carrier. Enrollment may be subject to pre-qualification. COBRA On April 7, 1986, a new Federal Law was enacted requiring that most employers sponsoring group health and life insurance plans offer employees and their families the opportunity for a temporary extension of health coverage (called "Continuation Coverage") at group rates in certain instances where coverage under the plan would otherwise end. (The employee will pay 102% of the City's cost of providing coverage.) If you are an employee of the City of Little Canada covered by a group health plan or group life insurance plan, you have the right to choose this continuation coverage, at your own expense, if you lose your group health and life coverage because of a reduction in your hours of employment or the termination of your employment (for reasons other than gross misconduct on your part). If you want further information on COBRA, talk to the City Administrator. Long-Term Disability Coverage Regular full-time employees and regular part-time employees accruing benefits are required to purchase long-term disability coverage as provided by the City's insurance carrier. The cost of this coverage will be deducted from paychecks on a bi-weekly basis. Life Insurance Coverage Life insurance is provided for regular full-time employees by the City. Regular full-time employees have the option of purchasing additional coverage over the amount provided by the City as well as have the option of purchasing dependent coverage. For those employees purchasing additional coverage and/or dependent coverage, the cost of this coverage is deducted from paychecks on a bi-weekly basis. Continuation of Insurance Benefits Employees Terminating Employment – When an employee terminates employment, the cost of insurance benefits such as health, opt-out, and life insurance shall be paid by the City to the end of the month in which employment terminates. (Also see COBRA provision above.) 16