Laserfiche WebLink
AGENDA ITEM 6 <br />STAFF ORIGINATOR: Dan Tesch <br />DATE: November 9, 1995 <br />TOPIC: Amending the Flexible Health Care and Dependent Care <br />Plan <br />BACKGROUND <br />The City's plan was adopted November 13, 1990 with January 1, 1991 being the <br />effective date. The plan allows employees to pre-tax health insurance and day care <br />costs. Since 1991, Family Medical Leave and Military Leave acts have been voted <br />upon. The City's plan does not include these new laws. As it costs $390 to update the <br />plan, there is another section to add to include those employees who opt out of the <br />health care coverage that the City provides. <br />The City can add the option to pay the employee who opts out of the health coverage, <br />cash payment of a City contribution to 1.C.M.A. The cash option contribution would be <br />equal to the higher insurance single premium less Social Security, Medicare and <br />P.E.R.A. The deferred compensation contribution would be equal to the higher <br />insurance single premium. <br />An employee on family coverage could save the City $2,000 per year by opting out of <br />the City's insurance. Proof of insurance is needed to be eligible for this option. <br />There is no additional cost to the City. If anything, the City will see a savings. <br />OPTIONS <br />1. Amend the Flexible Health Care and Day Care Plan to include Family Medical <br />Leave and Military Leave Acts. <br />2. Amend the Flexible Health Care and Dependent Day Care Plan to include <br />Option 1 and also amend the Plan to include a section allowing for cash or deferred <br />compensation City contribution. <br />3. Do not amend the Plan. <br />RECOMMENDATION <br />Option#2 Resolution 95-156 <br />