08-10-06 Chapter 172 Employee Retiree Insurance and Benefits Board Meeting

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The statement was: "In consideration ofthe One- time deferral can the spouse be added if the retiree is allowed to re-enter the program?" Discussion Topic #1 Flexible Spending Account: Michael Dolby asked Neal Welch, "Can it be rolled over?" Neal answered," no it could not." Michael asked if there was a Cap on the amount? Neal indicated there was a range of $2,000 to $3,000. George van Dyke asked, "If we use Debit Cards, will it be passed on to the employees, or will the City pay the cost of $5.50. Also would there be an impact on Premium Cost? Who would absorb the $5.50 cost? Neal Welch answered, " The $5.50 cost would be something that would have to be decided by Council and there would not be an impact on Premium Cost. He also indicated there is a norm of about 15% participation in Flexible Spending Accounts by employees. There would be a requirement for re-enrollment each year, with a start date of January 1, 2007. To educate our employees we could start communicating with employees in October about FSA and how they work. Michael Dolby made a Motion that we recommend to City Council that Flexible Spending Accounts with the Debit Cards be added to our plan. Karen Beerman 2nd the motion. The Motion carried. Discussion Topic # 2 Spouse Eligibility: It is N/ A because Humana has no way of administering. Therefore, it is a moot point. Discussion Topic #3 Individual Child Premium Load: Because of the $126.00 average cost per child we do not recommend it. We could make a 5th tier in a 4 tier structure with specific language that says dependent children can remain on the insurance to age 25 if they are a student and not married. Discussion Topic #410% Cost Savings with Plan Design Changes: The severe increase in cost for deductibles in each of the four plans would be so significant that a 10% Cost Savings with Plan Design Changes could not be recommended by 172 Board Members. Discussion Topic #5 Deferred Retiree Coverage: Board members recommended a one-time deferral at the discretion of the Retiree with a spousal provision as outlined in COBRA. Which is: If a Retiree is carrying their spouse at retirement then the spouse could re-enter when the retiree re-enters. Currently there are no rules about spouses in the City's plan. George van Dyke made a Motion that we recommend this to Council. Clark Askins 2nd the Motion. The Motion carried.