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HomeMy WebLinkAboutO-2006-2781-B (original in 2004) 20 REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: 9-5-06 Appropriation Requested By: Rohert Swanagan Source of Funds: Medical Fund Department: HumaJl Reiourc:ei Account Number: 014-6144-515-6061 Report: Resolution: Ordinance: x Amount Budgeted: Ordinance 2004-2781 Amount Requested: Exhibits: Exhibits: Chapter 172 ERIBB Recommendations Budgeted Item: YES NO Exhibits: Memo Dehra B. FeazelJe SUMMARY & RECOMMENDATION 'I.. This amendment to Ordinance 2004-2781 would update the language to Exhibit A-5 Premiums to read: The Total Premium Cost is the Total annual dollar allocated each year by budget as approved by City Council for the City of La Porte for Health Insurance for each employee, including employee and employer contributions Action Required bv Council: Amend Ordinance 2004-2781 authorizing change in language which defines Premium cost allocated by the City of La Porte each year. . Also, City Council action requires action on Chapter 172 ERIBB recommendations from 8-10-06 Meeting. /()d~ ~ q- 5-00 Date ORDINANCE NO. 2004-2781-B AN ORDINANCE ADOPTING AN AMENDMENT TO THE CITY OF LA PORTE EMPLOYEE POLICIES HANDBOOK BY AMENDING SECTION 9A, DRETIREE MEDICAL COVERAGED, PROVIDING FOR THE TERMS AND CONDITIONS OF RETIREE MEDICAL COVERAGE, PROVIDING AN EFFECTIVE DATE OF SAID AMENDMENT, PROVIDING A SEVERABILITY CLAUSE, FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW, AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The city of La Porte Employee Policies Handbook is hereby amended, by amending Section 9A, "Retiree Medical Coverage" in form attached hereto as Exhibit "A", incorporated by reference herein, and made a part hereof for all purposes. Section 2. If any section, sentence, phrase, clause, or any part of any section, sentence, phrase, or clause, of this ordinance or amendment of the City of La Porte Employee Policies Handbook hereby adopted, shall, for any reason, be held invalid, such invalidity shall not affect the remaining portions of this ordinance, or said Employee Policies Handbook, and it is hereby declared to be the intention of this city Council to have passed each section, sentence, phrase, or clause, or part thereof, irrespective of the fact that any other section, sentence, phrase, or clause, or part thereof, may be declared invalid. Section 3. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 4. This Ordinance shall be effective as of October 1, 2006, and it is to ordered. PASSED AND APPROVED, this 11th day of September, 2006. By: ~y OF LA;l:)'E ~L~\~ Alton E. Porter Mayor ATTEST: llMt!. 11 (7/-d(/ Ma ha A. Gillett City Secretary A~' . ~ 'l/-~ Clar . Askins Assistant City Attorney 2 Exhibit A 9 A Retiree Medical Coverage 1. The following persons are eligible for retiree medical coverage: A. Present retirees of the City of La Porte receiving retirement annuities as a qualified annuitant under the Texas Municipal Retirement System, who have retired in accordance with the City of La Porte Employee Policies Handbook; and were employed by the City of La Porte at the time of their retirement. Retirees re-employed after retirement from the City of La Porte that have employer sponsored health care coverage available through the new employer.may not continue health coverage with the City of La Porte unless re-employed with the City of La Porte. Retirees who are self-employed are eligible for medical coverage, but occupational illnesses or injuries shall not be covered. Annual contributions by retirees to the health plan will be based on current active employee/dependent rates. B. City employees who retire from the City of La Porte employment on or before December 31, 2005, as a qualified annuitant under the Texas Municipal Retirement System; who retire in accordance with the City of La Porte Employee Policies Handbook; who complete at least 10 years of service with the City of La Porte, and are currently employed by the City of La Porte at the time of their retirement. Retirees re- employed after retirement from the City of La Porte that have employer sponsored health care coverage available through the new employer may not continue health coverage with the City of La Porte, unless re-employed with the City of La Porte. Retirees who are self- employed are eligible for medical coverage, but occupational illnesses or injuries shall not be covered. Annual contributions by retirees to the health plan will be based on current active employee/dependent rates. C. City employees who retire from City of La Porte employment on or after January 01,2006 and (1) who have a combination of years of service with the City of La Porte, plus age, totaling 80; and (2) who retire as a qualified annuitant under the Texas Municipal Retirement System; who retire in accordance with the City of La Porte Employee Policies Handbook; who complete at least 20 years of service with the City of La Porte, and are currently employed by the City of La Porte at the time of their retirement. Retirees re-employed after retirement from the City of La Porte that have employer sponsored health care coverage available through the new employer may not continue health coverage with the City of La Porte, except for those with 30 years or more tenure with the City of La Porte, or for retirees re-employed with the City of La Porte. If an employee works 30 years or more with the City of La Porte they may maintain the City of La Porte sponsored * {~6ert health plan as secondary, while working for a new employer offering a health plan option. All applicable costs of the Plan will still apply. For those retirees who are self-employed, occupational illnesses or injuries shall not be covered. Annual contributions by retirees to the health plan will be based on a cost schedule determined by years of service, as established under Section 5, "Premiums", of this chapter. D. City employees meeting the eligibility requirements for (1) disability retirement under the Texas Municipal Retirement System Act and (2) have been declared permanently disabled under the Social Security Act, and have elected to receive Medicare, Parts A and B, shall be eligible for medical benefits, which shall be secondary to Medicare benefits, provided they have worked for the City of La Porte for ten (10) continuous years at the time of disability determination. Costs associated with retirement under this tier shall be 75% of the city cost. 2. The retiree and dependent coverage will be primary for those participants not yet qualified for Medicare. The coverage will be secondary for those retirees and retirees' dependents who are Medicare eligible. If a covered retiree dies, dependents may continue coverage until the earlier of the date the surviving spouse remarries, obtains group insurance, or becomes entitled to Medicare, or until any unmarried children financially dependent upon the covered retiree is 25 years of age. Surviving dependents shall pay the appropriate contribution toward dependent coverage as established in this chapter.:. 3. Retirees who work for another employer offering health coverage shall not be eligible for retiree health coverage from the City after their subsequent employment ends, regardless of the length of service with the subsequent employer. 4. Retirees who delay their retirement annuity shall not be eligible for retiree health coverage from the City. 5. Premiums: The City of La Porte utilizes a self-funded medical plan so there are no formal premiums paid for health coverage. Each year, during the budget process, an amount is determined for each employee to cover claims and administration of the medical fund. ~osts to the retiree, retiring on or after January 0 I, 2006, shall be based on a cost schedule determined by years of service: At least 20 years of service Retiree pays 60% of city cost + Dependent premiums At least 21 years of service Retiree pays 55% of city cost + Dependent premiums At least 22 years of service Retiree pays 50% of city cost + Dependent premiums At least 23 years of service Retiree pays 45% of city cost + Dependent premiums At least 24 years of service Retiree pays 40% of city cost + Dependent premiums At least 25 years of service Retiree pays 35% of city cost + Dependent premiums At least 26 years of service Retiree pays 30% of city cost + Dependent premiums At least 27 years of service Retiree pays 25% of city cost + Dependent premiums At least 28 years of service Retiree pays 20% of city cost + Dependent premiums At least 29 years of service Retiree pays 15% of city cost + Dependent premiums At least 30 years of service Retiree pays 10% of city cost + Dependent premiums Eligible dependents include: Your lawful spouse who is legally married to and living with you; natural children; stepchildren; children who, before reaching the age of 18, are either adopted by you; or other children for whom you have care, custody and control under court decree. A dependent child must be unmarried and rely on you for primary support and maintenance. Dependent children remain eligible until age 25. 6. Retirees may not add dependents once retired. There are no qualifying events to add dependents. Dependents may be dropped by written request at any time. 7. Retirees shall pay all required contributions to the City by the 15th of the month of coverage. One annual statement will be mailed to retirees for selection of payment plan: annual, bi-annual, quarterly or monthly. Failure to pay the required contribution will result in termination of the member's participation in the City of La Porte sponsored health plan. Payment delayed beyond 60 days will initiate COBRA notification for continuation of health coverage once the member is terminated from the Plan. CHAPTER 172 EMPLOYEE RETIREE INSURANCE AND BENEFITS BOARD RECOMMENDATIONS TO CITY COUNCIL FROM THURSDAY, AUGUST 10, 2006 MEETING: 1. Recommends that Flexible Spending Accounts with the Debit Cards be added to our plan. 2. We do not recommend the Individual Child Premium Load. 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. 3. We do not recommend the 10% Cost Savings with Plan Design Changes 4. Recommends a one-time deferral at the discretion ofthe 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. 5. Recommends that Retiree Over/Under 65 Calculation not be used and remain as it is. 6. Recommends both Incentive Plans as potential Recruitment Incentives with the City Council determining which one it wants to adopt, or a combination of both. 7. Recommends the current method of making the Retiree Calculations continue with clarification of language regarding City budgeted cost and that the coverage % discount amount applies only for retirees, not dependents. Also, the proposed Calculator that Neal is developing be implemented to allow any employee to be able to get an estimate of their insurance cost and their dependents cost at the current year budgeted City cost and for one additional year. City of La Porte Interoffice Memorandum TO: Mayor and Council FROM: Debra Brooks FeazeIIe, City Manager DATE: August 31, 2006 SUBJECT: Insurance Information Please find attached additional information regarding insurance. The information is outlined as follows: 1. Employee Health Services Reconciliation - Spreadsheet and narrative reconciling the City's budgeted amounts to the amounts presented by Neal Welch. 2. Employee Benefits Graph and Explanation - Comparative graph showing merit increases in association to insurance contributions by departments and subsidies from the General Fund. 3. Enhanced Employee Benefits Proposal- Excerpt from the Budget Workshop presentation. 4. Statement of Revenues for the Insurance Fund - Projected 2006-07 revenues reflect increase of 15% to both City side and employees and retirees, in which the budget was built around. 5. Clarification of Insurance Costs Memo 6. Insurance Charts from Neal Welch regarding Premium and Contribution Projections a. Chart #1 - FY 2005 b. Chart #2 - FY 2006 Original - Increase only to City Contribution c. Chart #3 - FY 2006 Revised with Subsidy Column from General Fund d. Chart #4 - Proposed FY 2007 - Increase in both City Contribution and Employee Contribution Explanation of Reconciliation of the Employee Health Services Budget The attached reconciliation shows how the City's budgeted revenues and expenditures vary from Neal Welch's premium and contribution projections. On the revenue side, the amount sent over for the City's contributions is based on budgeted positions (425 employees and retirees); whereas, on Neal's schedule the amount shown for the City contributions is only for participants in the insurance plans (374 employees and retirees participating). This variance is the non-participatory revenue and amounts to approximately $234,959. The other variance regarding revenues is that Neal does not include an amount for interest earnings. This brings the total variance in revenues to approximately $257,459. On the expenditure side, the City's budget includes Y4 of the salary of the Human Resources Manager, consulting costs, and the special programs (Short-Term and Long- Term Disability). These expenditures total $110,098. Neal's spreadsheet includes only the claims administration costs, claims paid and re-insurance premiums. In addition, we have added another $100,000 to the projected insurance claims. Initially, these were budgeted at the midpoint, but the $100,000 was added to reduce the City's potential exposure. This brings the total variance between the City's budgeted expenditures and Neal's numbers to approximately $210,098. The non-participatory revenue is used to cover the costs of the expenditures that are not included in Neal's schedules. Additionally, these revenues are used to contribute to the fund balance. We are projecting that the Insurance Fund will have approximately 60 days of working capital at the end of FY 2007, which is 30 days below the minimum. Lastly, the non-participatory revenues are helping to lower the cost to the employees. Without the inclusion of these revenues, the proposed increases to employees would be much higher. \ Employee Health Services Reconciliation Revenues Revenue per City Department Contributions per Employee ($6900/Budgeted Full-time Position) Employee Contribution Retiree Contribution Interest $ 2,935,800 581,908 57,500 22,500 $ 3,597,708 Reconciling Items: Non-Participatory Revenue (Net of amount used for Employer Supplement)** Interest Revenue 234,959 22,500 Revenues per Neal Welch 3,340,249 **Contributions City sends for positions where employees are not participating in City's Insurance Plan (425 FIT & Retirees less 51 non-participants = 374 employees participating in plan per Neal Welch) Expenditures Expenditures per City Personal Services (1/4 ofHR Manager) Consulting Claims Administration Claims Paid Re-Insurance Premiums (Stop Loss) Special Programs (SIT & LIT Disability, merit) $ 19,356 20,000 135,000 3,093,600 213,000 70,742 3,551,698 Reconciling Items: Personal Services (1/4 ofHR Manager) Consulting Special Programs (SIT & LIT Disability, merit) Additional amount added by City for Claims 19,356 20,000 70,742 100,000 Expenditures per Neal Welch 3,341,600 Summary Explanation for Employee Benefits Graph The graph is broken down into 3 categories: 1) the average budgeted merit increase (includes benefits) per employee, 2) the additional insurance subsidies sent from the General Fund to the Insurance Fund - converted to a per employee amount and 3) the department contributions per employee that the City sends over per budgeted position. In FY 2002 and FY 2003, the merit per employee was based on a funding pool of 5% - employees were eligible to receive up to 7.5%. In FY 2004, the merit plan was condensed and the funding pool was reduced to 3% - employees eligible for 0-5%. FY 2004 through FY 2007 is based on a 3% funding pool. In FY 2002, FY 2003 and FY 2006, there were additional subsidies sent over from the General Fund. The total subsidies were $1,500,000, $1,250,000 and $500,000 respectively. In FY 2002 this is equitable to approximately a 15% pay increase; 12% for FY 2003 and 5% in FY 2006. The last category on the graph shows the contribution sent over per budgeted position per year. The City contribution has increased each year as follows: Fiscal Year 2003 2004 2005 2006 2007 Increase over Prior Year 29% 11% 3% 16.5% 15% Dollar Increase per Employee $ 1000 500 150 850 900 Raise Equivalent 3.6% 1.9% 0.5% 3.0% 2.2% 2 Employee Benefits Provided by City (Insurance and Merit) 10,000 9,000 8,000 7,000 3,500 4,500 6,000 5,000 4,000 3,000 2,000 1,000 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 . Average Budgeted Merit per Employee . Insurance Supplements from General Fund o Dept Contribution per Employee FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 Personnel (Full-Time) 377 379 384 376 377 380 Budgeted Merit 498,863 523,806 301,969 311,028 320,359 470,012 Average Budgeted Merit per Employee 1,323 1,382 786 827 850 1,237 Insurance Supplements from General Fund Total 1,500,000 1,250,000 500,000 Per Employee 3,979 3,298 1,326 Dept Contribution per Employee 3,500 4,500 5,000 5,150 6,000 6,900 Enhanced Employee Benefits Proposal r-- . Fund Merit Plan - cost $470,012 citywide . Increase to employees medical contribution - proposed 15% . Increased city contribution to health fund by 15% - cost $ ($6900/yr/ee) . Expanding Longevity - 25 years to 30 years - cost $2,320 . Sick Buy Back - cost $220,000 . Provide Short-term and Long-term Disability (Insurance Fund) - cost $70,000 . Five-Year Vesting - cost $6,168 . Expanding Safety Program . Expanding Wellness Program . Enhancing Service Awards Program . Evaluation of all positions to market - compensation plan - 8/31/2006 1 :09 PM 27 G~ City of La Porte Insurance Fund (014) Statement of Revenues Actual Budget Revised Projected Object Description 2004-05 2005-06 2005-06 2006-07 Employee Health Services 408.04-01 Charges to Departments 2,159,338 2,539,214 2,539,214 2,935,800 408.04-02 Employee Contributions 415,518 531,716 506,007 581,908 408.04-03 COBRA Contributions 88 408.04-04 Retiree Contributions 59,030 50,000 50,000 57,500 Employee Health Services Subtotal 2,633,974 3,120,930 3,095,221 3,575,208 Administrative Transfers: 480.01-01 Transfer from General Fund 788,591 677,438 1,177,438 681,549 480.01-02 Transfer from Utility Fund 90,137 77,530 77,530 78,001 480.01-08 Transfer from Sylvan Beach Fund 4,204 3,616 3,616 3,638 480.01-10 Transfer from Airport Fund 980 843 843 848 480.01-16 Transfer from LP A W A Fund 2,465 2,120 2,120 2,133 480.01-23 Transfer from Computer Fund 801 689 689 693 480.01-24 Transfer from Vehicle Maintenance Fund 25,005 21,508 21,508 21,638 480.01-28 Transfer from Golf Course Fund 33,451 28,773 28,773 28,947 Administrative Transfers Subtotal 945,634 812,517 1,312,517 817,447 Miscelleneous: 410.01-00 Miscellaneous Revenue 36,030 36,030 Miscellaneous Revenue Subtotal 36,030 36,030 Interest: 483.01-00 Interest Income 22,508 18,000 44,500 45,000 Interest Subtotal 22,508 18,000 44,500 45,000 Total Insurance Fund 3,602,116 3,987,477 4,488,268 4,437,655 i City of La Porte Interoffice Memorandum TO: Mayor and Council FROM: Debra Brooks Feazelle, City Manager DATE: August 31, 2006 SUBJECT: Clarification of Insurance Cost Depending on where you get your information, msurance costs can have different definitions. 1. Ask the Budget Office (Shelley) the cost of insurance - She knows the cost to the budget and she will tell you the "City's contribution" to the Insurance Fund. We also graph this cost each year for City Council. 2. Ask the Insurance Fund Manager (Robert) the cost of insurance - He knows the total cost (The "City's contribution" + the "employee's contribution"). This cost is defined as how much money is needed to provide insurance to employees and retirees. 3. The formula - Any confusion regarding the calculation from the schedules can be resolved utilizing the following attached example. r; Retiree Summary Reports "00'" 50"" t Employee 4 DOB: 12/15/1946 Age: 59 Years Date of Hire: 12/10/1979 Years of service: 29 Years Previous service: 0 Years City of LaPorte Total: 29 Years Age of 59 + 29 years of service = 89 points Test 1: 80 points met Test 2: 20 + years of service met If Employee retires after 08/31/06, he would qualify for the retiree health premium discount. The employee has 29 years service. Per the table, he would fall into the 15% discount provision at City cost per each year as calculated by budget + Dependent Coverage if any. What would be the cost to this employee if he retired after 08/31 /06? The total cost of his plan as an active employee is: Employee: Dependents: $540.41 $ 191 .60 15% of Employee premium $81.06 + $191.60 = $272.66/Month tHRH . hilb rogal & 1obbs" Schedule B 25% Coverage 1st - $1,500 Deductible Employee Only Employee & Spouse Employee and Children Employee and Family Coverage 1st - $1,000 Deductible Employee Only Employee & Spouse Employee and Children Employee and Family PPO - $500 Deductible Employee Only Employee & Spouse Employee and Children Employee and Family PPO - $300 Deductible Employee Only Employee & Spouse Employee and Children Employee and Family Total Monthly Funding Total Annual Funding Employee/Employer % Subs 360 City of La Porte Premium and Contribution Projection Effective January 1, 2005 23 8 8 22 Proposed Premiums and Contributions Current Total Employer Employee Employee Premium Contribution Contributions Contribution Change $452.20 $429.17 $18.04 $0.00 $18.04 $581.64 $429.17 $132.47 $104.00 $28.47 $530.40 $429.17 $101.24 $86,67 $14.57 $632.86 $429.17 $190.69 $112.67 $78.02 $487.88 $429.17 $33.70 $0.00 $33.70 $627.51 $429.17 $174.34 $104.00 $70.34 $572.24 $429.17 $138.07 $86.67 $51 .40 $682.77 $429.17 $200.60 $112.67 $87.93 $508.39 $429.17 $54.23 $0.00 $54.23 $653.91 $429,17 $200.74 $104.00 $96.74 $596.31 $429.17 $162.15 $86.67 $75.48 $711.49 $429.17 $225.32 $112.67 $112.65 $554.31 $429.17 $100.14 $0.00 $100.14 $712.95 $429.17 $258.79 $104.00 $154.79 $650.16 $429.17 $215.99 $86.67 $129.32 $775.73 $429.17 $316.56 $112.67 $203.89 $219,551 $154,500 $55,444 $23,929 $31,515 $2,634,610 $1,854,001 $665,328 $287,151 $378,176 100% 70% 25% , 54 6 6 16 22 23 24 58 33 13 13 31 Assumptions: 1. Humana Smart Suite plan design. 2. Rate differentials based on Humana book of business. 3. Enrollment assumptions based on Humana plan experience. 4. Employee and total premiums are based on previously stated projections of expected costs. ~ The Welch Company Per Check $8.33 $61.14 $46.72 $88.01 $15.55 $80.46 $63.72 $92.58 $25.03 $92.65 $74.84 $103.99 $46.22 $119.44 $99.69 $146.10 A Exhibit 2 City of La Porte Proposed Premium and Contribution Worksheet Effective October 1, 2006 Expected Claims Subs Coverage 1st - $1,500 Deductible Employee Only 24 Employee & Spouse 13 Employee and Children 17 Employee and Family 24 Coverage 1st - $1,000 Deductible Employee Only 50 Employee & Spouse 23 Employee and Children 20 Employee and Family 35 PPo - $500 Deductible Employee Only 26 Employee & Spouse 19 Employee and Children 10 Employee and Family 21 PPo - $300 Deductible Employee Only 22 Employee & Spouse 14 Employee and Children 4 Employee and Family 52 374 Total Monthly Funding Total Annual Funding Employee/Employer % * Employee contributions plus subsidy Proposed Premium and Contributions Employer Employee Contribution Contributions* $500.00 $25.78 $500.00 $184.74 $500.00 $167.57 $500.00 $212.34 $500.00 $39.94 $500.00 $229.32 $500.00 $211.24 $500.00 $273.76 $500.00 $88.37 $500.00 $291.60 $500.00 $272.97 $500.00 $326.05 $500.00 $139.24 $500.00 $397.26 $500.00 $380.01 $500.00 $421.48 $187,000 $81,520 $2,244,000 $978,240 70% 30% Total Premium wi Contributions & Subsidy $525.78 $684.74 $667.57 $712.34 $539.94 $729.32 $711.24 $773.76 $588.37 $791.60 $772.97 $826.05 $639.24 $897.26 $880.01 $921.48 $268,520 $3,222,240 100% 13 Subs Coverage 1st. $1,500 Deductible Employee Only 27 Employee & Spouse 9 Employee and Children 16 Employee and Family 24 Coverage 1st. $1,000 Deductible Employee Only 50 Employee & Spouse 23 Employee and Children 19 Employee and Fami~y 35 PPO . $500 Deductible Employee Only 29 Employee & Spouse 16 Employee and Children 11 Employee and Family 16 PPo . $300 Deductible Employee Only 25 Employee & Spouse 17 Employee and Children 6 Employee and Family 49 Total Monthly Funding Total Annual Funding Employee/Employer % 372 City of La Porte Premium and Contribution Projection Effective January 1, 2006 Proposed Premiums and Contributions Total Employer Employee Premium Contribution Contributions : $514.65 $500.00 $14.65 $605.00 $500.00 $105.00 $595.24 $500.00 $95.24 $620.69 $500.00 $120.69 $522.70 $500.00 $22.70 $630.34 $500.00 $130.34 $620.07 $500.00 $120.07 $655.60 $500.00 $155.60 $550.23 $500.00 $50.23 $665.74 $500.00 $165.74 $655.15 $500.00 $155.15 $685.32 $500.00 $185.32 $579.14 $500.00 $79.14 $725.79 $500.00 $225.79 $715.99 $500.00 $215.99 $739.56 $500.00 $239.56 $231,253 $186,000 $45,253 $3,200,000 $2,232,000 $543,032 100% 70% 17% The Welch COmpany l=und Subsidy $11.43 $81.90 $74.29 $94.14 $17.71 $101.67 $93.65 $121.37 $39.18 $129.28 $121.02 $144.55 $61.73 $176.12 $168.47 $186.86 $35,298 $423,575 13% Total EE Contribution ....:.'" $26.08 $186.90 $169.53 $214.83 $40.41 $232.01 $213.72 $276.97 $89.41 $295.02 $276.17 $329.87 $140.87 $401.91 $384.46 $426.42 $80,551 $966,607 30% Total Premium wi Contributions & SubsidY $526.08 $686.90 $669.53 $714.83 $540.41 $732.01 $713.72 $776.97 $589.41 $795.02 $776.17 $829.87 $640.87 $901.91 $884.46 $926.42 $266 551 $3,198,607 c City of La Porte Premium and Contribution Worksheet Effective January 1, 2007 Subs Coverage 1st - $1,500 Deductible Employee Only 24 Employee & Spouse 13 Employee and Children 17 Employee and Family 24 Coverage 1st - $1,000 Deductible Employee Only 50 Employee & Spouse 23 Employee and Children 20 Employee and Family 35 PPO - $500 Deductible Employee Only 26 Employee & Spouse 19 Employee and Children 10 Employee and Family 21 PPO - $300 Deductible Employee Only 22 Employee & Spouse 14 Employee and Children 4 Employee and Family 52 Total Monthly Funding Total Annual Funding Employer/Employee % 374 - . 15% increase from 2006 EE Contribution .. Employer Supplement equates to: - Non-participatory revenue - Allocated expenses - One-time revenues + expenses - Fund balance contribution 2007 Employer Contribution $575.00 $575.00 $575.00 $575.00 $575.00 $575.00 $575.00 $575.00 $575.00 $575.00 $575.00 $575.00 $575.00 $575.00 $575.00 $575.00 $215,050 $2,580,600 77% 2007 Employe Supplement" $3.17 $22.71 $20.60 $26.10 $4.91 $28.19 $25.97 $33.65 $10.86 $35.84 $33.55 $40.08 $17.11 $48.83 $46.71 $51.81 $10,020 $120,240 4% 2007 Employee Contribution' $16.85 $120.75 $109.53 $138.79 $26.11 $149.89 $138.08 $178.94 $57.76 $190.60 $178.42 $213.12 $91.01 $259.66 $248.39 $275.49 $53,284 $639,408 19% Exhibit II Total 2007 Premium $595.02 $718.46 $705.12 $739.89 $606.01 $753.08 $739.05 $787.59 $643.63 $801.44 $786.97 $828.19 $683.13 $883.49 $870.10 $902.30 $278,354 $3,340,249 100% D