06/25/2012 Council Packet - Laserfiche WebLink

Home Search

• • • SECTION 5: EMPLOYEE BENEFITS 5.1 Health Care Benefits The City provides a combination of health care benefits, such as medical, dental, long -term disability, and life insurance. Regular full -time and part-time employees are eligible for the health care benefit package commencing on the first day of employment. Employees are responsible for participating in the cost of health care benefits pursuant to the City's annual review of participation levels. Employees who provide proof of insurance through an immediate family member, or who are eligible for Medicare, may waive insurance coverage and receive a monthly cash payment, which is established by the City Council annually. 5.2 Pre -Tax Benefits On the first day of the month following six months of employment, employees are eligible to participate in the City's Health Care and Dependent Day Care Expense Reimbursement Plan. Under this program, employees may authorize the City to deduct, before taxes, expenses associated with the following: 1. Premium Conversion. This plan allows you to automatically pay your portion of the premiums for the City's health and dental insurance program with pre -tax dollars. 2. Health Care Flex Account. The employee may pay eligible "uncovered" medical and dental expenses with pre -tax dollars (e.g. deductibles and eyewear). 3. Dependent Day Care Flex Account. The employee may pay day care expenses with pre- tax dollars. Employees will be reimbursed for expenses incurred during the plan year, which runs from January 1 to December 31. Employees will be advised that money not spent during the plan year will be forfeited according to federal law. 5.3 Health Insurance Continuation (COBRA) The federal Consolidated Omnibus Budget Reconciliation Act (COBRA) gives employees and their qualified beneficiaries the opportunity to continue health insurance coverage under the City's health plan when a "qualifying event" would normally result in the loss of eligibility. Qualifying events include resignation, termination of employment, death of an employee, a reduction in an employee's hours, a leave of absence, an employee's divorce or legal separation, and a dependent child no longer meeting eligibility requirements. Under COBRA, the employee or beneficiary pays the full cost of coverage at the City's group rates plus any additional administrative fee, if applicable. 12 P48