01-13-2021 Council Packet - Laserfiche WebLink

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STAFF REPORT TO:Mayor Keis and Members of the City Council FROM:Heidi Heller, City Clerk DATE:January 13, 2021 RE:Personnel Policy Amendment for Health Insurance ACTION TO BE CONSIDERED: Approve amendments to the Personnel Policy to make regular part-time employees working an average of at least 30 hours per week eligible for health insurance coverage, and specify that only full-time employees are eligible for the Opt-Out Program. BACKGROUND: The Personnel Policy states that health insurance coverage applies to regular full-time employees, which is defined as an employee who works a minimum of 40 hours per week. The City of Little Canada currently has three regular part-time employees who have traditionally worked fewer than 30-hours per week. The 2021 budget includes an increase in hours for the Recreation Coordinator position from 28 to 34 hours per week. During Council discussion on the 2021 budget, there was support for offering health insurance coverage for this position, and the approved budget includes funding for the health insurance premium and Health Savings Account (HSA) contribution for the Recreation Coordinator position. Under the Affordable Care Act (ACA), employers with 50 or more FTE’s are required to offer acceptable health insurance. A Full Time Employee is defined as any employee who work an average of at least 30 hours per week for more than 120 days in a year. The City of Little Canada has fewer than 50 FTE’s and is exempted from this requirement, but staff is proposing amendments to the Personnel Policy to make employees who are approved to work at least 30 hours per week eligible for health insurance coverage with a pro-rated city contribution. Full-time employees with single coverage currently receive a city contribution of 100% towards their premium, and employees with family coverage pay $355 per month towards the premium and the City contributes the remainder of the cost. Under the proposed language, the City would contribute a percentage towards the single coverage cost or the commensurate percentage of the employee cost for family coverage based on the number of hours allocated to that position. For example: a part-time employee who works 34 hours per week will receive 85% of the single- coverage premium cost or $408 per month towards family coverage ($355 + 15%). Employees who are enrolled in the City’s health insurance plan are also provided a Health Saving Account (HSA) with a city contribution of $3,000 per year. This amount is intended to cover the cost of the health insurance deductible for a single person. Staff proposes that both part-time and