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STAFF REPORT <br />TO:Mayor Keis and Members of City Council <br />FROM:Brenda Malinowski, Finance Director <br />Heidi Heller, City Clerk <br />DATE:August 14, 2019 <br />RE:Partial Waiving of Health Insurance Reimbursement <br />BACKGROUND <br />An employee contacted the City Clerk last week to report that he discovered incorrect deductions <br />for health insurance on his payroll pay stub. In addition, there was additional income for the <br />health insurance opt-out. In researching the issue, it was discovered that the deduction and <br />income were not changed when the City went to MN PEIP, the City’s new health insurance, on <br />March 1st. The employee was able to more easily discover the incorrect deduction when the City <br />implemented a more detailed payroll pay stubs two weeks ago. The Opt-out income was listed <br />on both the old pay stub and the new pay stub. <br />Since the deduction error was not easily identifiable on the old pay stubs, we are recommending <br />that the employee not pay back this amount of $976.25. Since the additional income was listed <br />on both the old pay stub and the new pay stub, we are recommending that the employee pay back <br />the opt-out amount of $1,570.03. <br />There are sufficient health insurance savings in the budget to cover the cost of this proposal. <br />In the future, staff will be documenting payroll changes including health insurance deductions in <br />writing to the payroll department. <br />ACTION REQUESTED <br />Recommend approval of staff’s proposal for payback of the health insurance reimbursement.