Agenda Packets - 1988/04/18 - Laserfiche WebLink

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MAYOR AND COUNCILMEMBERS EMPLOYEE RELATIONS COMMITTEE CAFETERIA/FLEXIBLE BENEFITS The MounJs View Employee Relations Committee has looked into a cafeteria/flexible benefits program offered by many -other communities. Cities that offer such a plan are New Brighton, White Bear Lake, Maple Grove, Northfield, Robbinsdale, Crystal, Coon Rapids, Hopkins, and Fridley. The cafeteria plan gives an opportunity for employees to make full use of the allotted amount of money for health and life insurance that the City offers each employee. If the employee does not use the full amount allotted, he or she may choose additional benefits to include supplemental medical benefits, life insurance, disability income insurance, etc. There are two instances which may give opportunity to this benefit plan. If both an employee and his or her spouse are employed, both may take employee coverage even though there is no need for double coverage. One employee could _nstead choose to use his or her benefit amounts for something more beneficial. Another group that this program would benefit is the single employee. H or she does not use the full amount allotted. With this plan, he or she could choose additional benefita with the allotted amount. The benefits program budget is estimated on every employee receiving the full allottment since it is m,reliable to determine marital status. inerclu:e, tL= budget would not increase, but the expenses would be greater by approximately $1,078.40/year. This plan would provide more equity for the twelve single employees. They would be able to use the full amount to their benefit similar to employees with family benefits. The Flexible Benefits plan allows the employee to realize tax savings through payroll deductions for items permitted by current IRS regulations. These items may include: Medical reimbursement such as insurance premiums paid oy the employee in excess of the City's contribution, and medical expenses not covered by the employees health benefit plan, i.e. dental work, eyeglasses, etc. Group life insurance. Some employees may wish to purchase insurance beyond the $10,000 that the City provides.