2006-10-09 Regular Meeting and Workshop Meeting of La Porte City Council

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City Council Regular and Workshop Meeting —October 9, 2006 Page 5 Interim City Manager noted this was just an example with a spouse. Councilmember Clausen noted if the example would have been just an employee without a spouse that number would not be so big. Robert Swanagan noted no *. Councilmember Griffiths wanted clarification in looking at the charge there is a 39.18 subsidy for employee only. Robert Swanagan advised this was correct. Councilmember Griffiths noted there would be 8.71 difference in costs between retiree and active employee. He noted this causes confusion because in exhibits it notes annual contributions by retirees to the health plan will be based on current active employee dependent rates. He noted if it is based on their current active rates, he was getting different numbers. He noted he was getting one number $8.71 different cost between retiree and active and staff is advising the fund subsidy is $39.18 with one employee. He inquired as to what was the discrepancy. Robert Swanagan responded *. Councilmember Griffiths inquired if the retiree cost the City is still paying a certain amount. Robert Swanagan noted yes. Councilmember Griffiths noted this is where he needs additional clarification in looking at our premium and contribution projections. He noted he was looking at a $500.00 deductible for employee only. The total premium costs indicates $550.23. In exhibit C: PPO 500.00 deductible employee only $550.00 Total Cost City pays $500.00. He inquired if you area a retiree, the City still pays $500.00. Robert Swanagan noted yes. Councilmember Peter Griffiths inquired as to whether employee contributions would be $50.23. Robert Swanagan advised yes. Councilmember Peter Griffiths wanted confirmation that the retiree cost would be $58.94. Robert Swanagen responded *. Councilmember Griffiths noted he could not get the numbers to work out. If it is 10% of the $550.00 it should be $55.00.