11-28-2018 Council Packet - Laserfiche WebLink

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*Waiting periods are based on calendar days There are no changes proposed to the Long Term Disability plan which is currently through Unum and employee paid. Once an employee begins on LTD, the City no longer contributes towards health insurance or pay opt-out, and there is no PTO accrual or holiday pay. PTO Maximum Accumulation Amendment Currently the Personnel Policy states that employees may not have more than 30 days (240 hours) of PTO accrued at the end of the year. If the STD benefits start day is changed from day 15 to day 30, Staff suggests that the allowed PTO accrual be increased to 45 days in order for employees to be able to bridge the 30 day gap until STD benefits begin. By allowing more accrued PTO, it would also help employees have some extra PTO time to supplement the STD benefit (66.7% of their salary). When STD premiums are employer paid, taxes are taken out of benefit checks, which is not the case when the premiums are employee paid. The City would continue to pay health insurance or opt-out while the employee is on STD, but there would be no PTO accrual or holiday pay. Staff recommends that even if the Council chooses to stay with a 15 day waiting period for STD, that the PTO maximum accumulation amount still be raised. When the switch was made in 2014 to PTO, the 240 hour cap was decided on due to Council concern over the unfunded liability of having too many PTO hours on the books. Staff has no concerns over this as the City has a very Short Term Disability Plan # of days STD is paid Benefit amount Employee Cost per month City Cost per month Notes Current - 15 day waiting period* until benefits are paid 15-89 days 66.7% $10.00 $0 • Benefit is not taxed • STD account accumulates $10/mo x number employees participating (15-16 employees) • City pays wages during STD period • City staff administers STD claims • To maintain pay, employee is responsible to bank PTO for days 1-14 • Employee cannot supplement the 66.7% benefit amount with PTO/banked sick time Unum 15 – 15 day waiting period* until benefits are paid 15-89 days 66.7% $0 $252.10 • Benefit is taxable income • Benefit paid by Unum • Unum administers STD claims • To maintain pay, employee is responsible to bank PTO for days 1-14 • Employee can supplement the 66.7% benefit amount with PTO/banked sick time Unum 30 - 30 day waiting period* until benefits are paid 30-89 66.7% $0 $141.80 • Benefit is taxable income • Benefit paid by Unum • Unum administers STD claims • To maintain pay, employee is responsible to bank PTO for days 1-29 • Employee can supplement the 66.7% benefit amount with PTO/banked sick time