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C <br />Wet a , ' P`i/ Wanda <br />515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(651) 766 -4029 / FAX: (651) 766 -4048 <br />www.eLlittle-eanada.mn.us <br />MEMORANDUM <br />TO: Mayor Blesener and Members of the City Council <br />FROM: Shelly Rueckert, Finance Director <br />DATE: December 30, 2011 <br />RE: 2012 Health Insurance Opt Out Payments <br />MAYOR <br />13111 nlesencr <br />COUNCIL <br />Rick MonLour <br />John Keis <br />Michael McGraw <br />Shelly Boss <br />ADMINISTRATOR <br />Joel I:. Hanson <br />2011 opt out payments for health insurance were $525 for staff and $876 for the City <br />Administrator (based on contract provision that the City pays the cost of family coverage for the <br />City Administrator or opt out amount equal to 80% of that cost. This provision was revised from <br />early contracts whereby the City Administrator was provided family coverage at no cost to him.) <br />The payment had been historically based on a calculation of average single premium cost using <br />an aged -based plan. As the comparison of health plans available have changed, it has made this <br />type of calculation less defined. Therefore, the City Administrator's change in opt out <br />percentage increase has mirrored the staff opt out percentage increase. <br />As part of the 2012 Budget discussions, benefit increases were discussed. The increase in the <br />2012 opt out payment and insurance cap was set at 2% and 5% respectively. <br />Therefore, the 2012 monthly opt out payments and City contribution toward insurance coverage <br />would be as follows: <br />Opt Out — <br />City Administrator $894 <br />Staff $535 <br />Insurance Contribution — <br />Family Coverage $980 <br />Single Coverage $0 <br />Staff recommends confirming these specific amounts for 2012. Wording has been revised in the <br />City Administrator's contract reflecting the modifications to this calculation. <br />