HomeMy WebLinkAbout4.D.1. Acceptance of Renewal Offer for 2014 Employee Dental Insurance and Adoption of City Contribution Rates-Res. No. 7375 Consent Business 4. D. 1.
SHAKOPF
TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Kris Wilson, Assistant City Administrator
DATE: 11/06/2013
SUBJECT: Acceptance of Renewal Offer for 2014 Employee Dental Insurance and Adoption of
City Contribution Rates-Res. No. 7375 (E)
Action Sought
The City Council is asked to authorize the appropriate officials to enter into contracts with Delta
Dental for employees' 2014 dental insurance and to adopt Resolution No. 7375 establishing the
City's contribution levels for employee medical and dental insurance benefits for the year 2014.
Background
The City currently offers employees dental insurance through Delta Dental. We recently received
a renewal offer for 2014 that reflects a 2% increase in premiums. The proposed rates are as
follows:
— 2013 2014
Single ( $39.60 $40.40
2-Party_ $84.30._ $86.00 . ..
FM ily -- _ $120.35 ' $12275
For many years, the City's policy has been to pay the full monthly premium for single coverage
and an equal dollar amount toward the premium for two-party and family coverage. This results
in the following employer/ employee split:
E
l Employer t
Toa — m o
Total I Employee
p y
$40.
Single 40 I $40.40 $0.00,
2-Party $86.00 $40.40 $45.60 —�
Family $122.75 — $40.40 $82.35 wF,
_--.
Recommendation
I recommend that the City accept the renewal offer from Delta Dental and once again establish
the employer contribution at an amount equal to the monthly premium for single coverage.
Medical insurance offerings and employer contribution rates were discussed at a previous Council
meeting and are included for formal adoption in the attached resolution.
Budget Impact
The two percent increase in dental insurance premiums and corresponding impact on City
contribution levels will result in an added cost to the City of approximately $1,300 for calendar
year 2014.
Relationship to Vision
Providing employees with competitive medical and dental insurance helps the City attract and
retain well-qualified staff. It also allows staff to more easily meet their own medical needs and
those of their families; which allows employees to focus on their work. This contributes to Goal
E: Deliver effective and efficient public services by a staff of well-trained, caring and
professional employees.
Requested Action
If the Council concurs, it should offer a motion to authorize the appropriate officials to enter into
contracts with Delta Dental for employee dental insurance plans for 2014 at a 2% increase over
2013 rates.
Secondly, the Council is asked to offer Resolution No. 7375, a resolution adopting the City of
Shakopee's contribution levels for employee insurance benefits for the year 2014, and move its
adoption.
Attachments: Resolution No. 7375
RESOLUTION NO. 7375
A RESOLUTION ADOPTING THE CITY OF SHAKOPEE'S CONTRIBUTION
LEVELS FOR EMPLOYEE INSURANCE BENEFITS FOR THE YEAR 2014
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE,MINNESOTA
that the City's contribution toward group medical and dental insurance for qualified, full-time
employees shall be:
Single Coverage 2-Party Coverage Family Coverage
Traditional Plan $578.43 per mo. $1018.07 per mo. $1337.34 per mo.
High Deductible Plan $474.34 per mo. $834.83 per mo. $1096.65 per mo.
HSA Contribution $750.00 per year $1500.00 per year $1500.00 per year
Dental $40.40 per month $40.40 per month $40.40 per month
For individuals actively employed by the City on January 1, 2014 and subscribing to the High
Deductible Insurance Plan offered by the City,the City's Health Savings Account(HSA)
contribution shall be made in one lump sum on or about January 15, 2014. For employees hired
after January 1, as well as those that change their insurance selections mid-year due to a
qualifying event, the City contribution shall be pro-rated by month and deposited at the time the
employee becomes eligible for insurance or upon the effective date of the change.
The City's contribution for eligible part-time employees shall be pro-rated based on the above
contribution levels and the number of hours per week worked.
BE IT FURTHER RESOLVED that all Resolutions in conflict with this resolution are
hereby repealed and terminated effective January 1, 2014.
Adopted in regular session of the City of Shakopee, Minnesota held this 6t" day of
November, 2013.
Mayor of the City of Shakopee
ATTEST:
City Clerk