HomeMy WebLinkAbout4.E.3. 2013 Employee Dental Insurance-Res. No. 7240 1.11 • 3,
City of Shakopee
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MEMORANDUM s A
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TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Kris Wilson, Assistant City Administrator
SUBJECT: 2013 Employee Dental Insurance
DATE: October 11, 2012
Action Sought
The City Council is asked to authorize the appropriate officials to enter into contracts with Delta
Dental and to adopt Resolution No. 7240 establishing the City's contribution levels for employee
insurance benefits for the year 2013.
Background
The City currently offers employees dental insurance through Delta Dental, which has provided a
renewal offer for 2013 that reflects a 3.5% increase in premiums for the same two plans that we
currently offer employees.
The proposed rates for 2013 are as follows:
Dental Insurance - Monthly Premiums
2012 2013
Single $38.25 $39.60
2 -Party $81.45 $84.30
Family $116.30 $120.35
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.
Employer / Employee Split
Total Employer Employee
Single $39.60 $39.60 $0.00
2 -Party $84.30 $39.60 $44.70
Family $120.35 $39.60 $80.75
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. Please note that
the dollar amounts listed for the Traditional health insurance plan were wrong in the previous
memo (they were the current, 2012 amounts). The attached resolution reflects the correct 2013
dollar amounts discussed — i.e. a 5% increase in premiums for 2013, and employer contributions
set at 100 percent of the cost of single coverage, 88 percent of two -party and 72.5 percent of
family coverage under the Elect network.
Budget Impact
The City currently pays approximately $57,000 for its share of employee dental insurance. With
the proposed rate increase for 2013, this cost would increase by approximately $2,000.
Sufficient funds were included in the preliminary 2013 budget to pay for this increase.
Relationship to Visioning
Providing City 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 Actions
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 2013 at a 3.5% increase over
2012 rates.
Secondly, the Council is asked to offer Resolution No. 7240, a resolution adopting the City of
Shakopee's contribution levels for employee insurance benefits for the year 2013, and move its
adoption.
is Wilson
Wilson
- Assistant City Administrator
RESOLUTION NO. 7240
A RESOLUTION ADOPTING THE CITY OF SHAKOPEE'S CONTRIBUTION
LEVELS FOR EMPLOYEE INSURANCE BENEFITS FOR THE YEAR 2013
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 $39.60 per month $39.60 per month $39.60 per month
For individuals actively employed by the City on January 1, 2013 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, 2013. 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, 2013.
Adopted in adjourned regular session of the City of Shakopee, Minnesota held this 16
day of October, 2012.
Mayor of the City of Shakopee
ATTEST:
City Clerk