4.3. SR 10-23-2000
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Item # 4 _ 3 .
MEMORANDUM
TO:
Mayor & City Council
FROM:
Lori Johnson, Finance Director
DATE:
October 23, 2000
SUBJECT: Benefits Committee Update
.
In April the Benefits Committee met with the City Council to discuss it
findings on employee benefits and to get input and direction from the Council
before proceeding with a benefit proposal. After discussing the four options
presented by the Committee, Council consensus was "to consider a cafeteria
plan with different contribution levels depending upon the type of coverage
selected." The Committee has been working to provide such a cafeteria
proposal to the Council and had hoped to have that information for discussion
on Monday.
The Committee needs insurance premium information before proceeding with
any cafeteria plan proposal. Unfortunately, the insurance companies do not
usually provide that information until shortly before renewal. Although
Medica did help by providing the information in September, we are still
waiting for a proposal from HealthPartners. HealthPartners has a new
"Custom Choice Approach" program that is finally being offered after several
months of waiting. We have requested rates, but will not have them until
Monday, at the very earliest. We do not want to proceed without
HealthPartners' rates because this program can offer employees up to nine
insurance plan options.
I will provide a brief update on Monday with the intention of bringing a final
proposal to the Council on November 13, at the latest. If a cafeteria plan is
approved by the Council in early November, there will still be time to
implement the plan.
Action Reauested
.
No action is requested.
13065 Orono Parkway. P.O. Box 490. Elk River, MN 55330. TDD & Phone (763) 441-7420. Fax (763) 441-7425