5.4 ERMUSR 10-10-2017 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Theresa Slominski—Finance & Office Manager
MEETING DATE: AGENDA ITEM NUMBER:
October 10, 2017 5.4
SUBJECT:
Wage and Benefits Committee Update
ACTION REQUESTED:
Approval of dental insurance provider, ancillary insurances provider, health insurance renewal,
and H.S.A. contribution amounts.
BACKGROUND:
The Wage and Benefits Committee meets at least annually to discuss issues of insurance, staff
projections,wages, and benefits to bring recommendations to the full Commission for approval.
This meeting focused on the insurance renewals, and also discussed some considerations for
future meetings.
DISCUSSION:
Our dental insurance, and ancillary insurances of long term disability and life insurances, are up
for renewal with the expiration of a two year rate guarantee when we switched to Assurant in
2015. Assurant was purchased by SunLife shortly after we switched and so the renewal is with
SunLife. The SunLife renewal proposed 18.47% increase for all services, or 13.6%for dental
and 26.63%for life and long term disability.
In anticipation of a sizeable rate increase with the rate guarantee expiration, our broker went out
for bid on the dental and ancillary services. Upon review of the bids, our broker recommended
splitting off the dental from the ancillary services (having two separate providers) for the greatest
savings. Additionally,the long term disability insurance benefit of 67%tax-free was no longer a
viable option, as 60% is the norm in the industry and was what was submitted with the returned
bids.
The committee reviewed summaries of the five bids received, along with the broker
recommendations. The committee determined that separating the dental from the ancillary
services was the best option.For dental insurance, Delta provided the best rate option with a 5%
decrease from our current rates that also includes an increase in the annual maximum benefit
from $1,500 to $2,000, and a two year rate guarantee. Also, Delta has had very modest rate
increases over the past several years so we should see more stability in our future rates,which
should eliminate the need to switch providers every few years just to keep the rates manageable.
For ancillary insurances of life and long term disability,the committee determined that Principal
provided the best rate option with at 19.06%decrease from our current rates and a two year
guarantee.
Page 1 of 2
79
The health insurance renewal was very favorable this year, only a 5%increase for both the
H.S.A and co-pay plans. We currently only have one participant in the co-pay plan and as this
plan will eventually no longer be offered,we suggest not offering the plan in 2018. Also,per
commission direction in prior years,the employer H.S.A. contribution amount was discussed and
consensus was to offer the same dollar amounts for 2018: $650 for the single plan, and $1,985
for the single+1 and family plans.
The current and future organizational chart was reviewed for discussion and long term planning.
Other items discussed for consideration at a future meeting was COLA criterion, contributing
unused vacation to the HCSP at retirement, General Manger compensation benchmarking,pay
group benchmarking, and executive compensation options. These items require further research
before reconvening. The Committee will meet again yet in October to review these items and
determine recommendations to present to the Commission in November.
ATTACHMENTS:
• Dental renewal/bid information
• Ancillary insurance renewal/bid information
• Health insurance renewal information
Page 2 of 2
80
Uq
N
Q
iu m c 4
p Wb
vo a a1 O o ilk'
e'•q.ee > m GOO 2,0b6n c 0 6 ?1 m)
oW c g vaaC
CCC co N1 « yt OA
G O:2 NQv Qm-aU 0 m O O OQ c pgv mcI u.D:9 yyr -- 100. ZZZZ 0 W \ 2D 2 N it N y m NCN t D ,0 NN y w d Qc ❑ rv C w E b
0 . o ,c e .o0 0 U m aa,— g N �mmSrn w w a
v c'm g a
m A «w c
c .- 0 O
m y10 ,'c
OZ o a�'�2�'o e .. ❑ c Oro d
O o �coogmro -..a.. O m in''
c v
w
N
•
C Q y o L ~ c `p mC14 E o uC o g
•E Su82§§ ggggeeE gill
c a .� ca �a°in8N-oHe o wa, 2e
C d - O FJ000 d 0 0 0 0 O m O A L y� 0(9
E yy}Ny 000Nd ZZZZ d C n 2C mMnO NNj a « GQWF
n a 6 m 0 w Nv' ❑ yyy ° o A b C
rn d S T 21, c
d O B Ti a 'OCEc
a _) ❑ ro d
e e e e c
a o a w d g Z f,
O. N 02888
Z O e 0=.?
O r
''' V C .Q v0i E CO
O a C 4 U a Q S
e e e e 50O N N O �! b
W O O p 000 O d OtOig'° N D c 0
?? co N co co C O).-� W D O d 0
3 G y N O may 10 c, m c 0 C- N
4 d Z .c c yc 0: w-, iw�• m� dZri,
m o ppO m 2 l •c l ��. N C Q.
N C ez C 0 t0} O •• §1 §1
C C 'c N O j O CO Q%-`,;F4'
^, l y H 2a zzzz , O rn 2U p, e a1mE
W H ❑ t l ° CA T m N Q ro y�•G
�J 7 {0 QQ 0 Q �i V.O N R,51 _ pOO m F.f.l•�a.
m NQa
6...;34,,,0;k--..,at o u °
o++ gmernrnw aU
w uww ;� vm o ye.,
ro Vy �.a 8.7-.U v
azo
uoe'
-- D N 2 E m O o Nl7 t0 NM a ,Fo• 4d L
_ O co SI
11��m Z Z` v R g En • m c" `Q
G J = 0. g� U•.iC� w 2 *8 0 0 o O
m
I... I¢- -� d Z.c"- E d co g o w u h 'I'v e RI E c ro
11.1 m .. v m` roA2 a ' g ..... >
a
0Em01«c l llo >.8- -1l aat a, .Rc 3c!��> a N n tt0 uIX ° > 'cnULECA Eooi0 c ._ 0 g >
LN Cl- N N u u E V m .. 80 am `. o E Vo o accm Ol . + `maOl o+r0C a y 0'N 0Nn > ca C > OcOCG Q 2cNUmWc l TTi� a E t5N❑ 04= r '0Z T, ; dE 00 O p p 3^2_..w . N Cd 40 C G C ' C22v -8 c 2� d > iVof;, aa m Cl a 1 n nEymnn n E= e., .-4
iii W a z omOmnmgwaOz =amgOLLEOEw a (3aiamEEwELLoo:A EEEwLagt _ -0
_N
U
} C
CL
u CO
W V. U1
v o� 3 a
`c LLI c Iry - °) OD�
C 0co 03 ,0CCOM (00 C L
(0p o Ncd- coN In y Q, a
C C
N 0•
•CZ
C w U
cb
� C►. � � � CSti -aL1 •c 000) 41 ••?.. O
uJ co n i U1 .- tq V �'
Ti d � O � M � -U d •:4- -ci(0CO N r..to = to ' a
cpm o � `rp00 mpm (0v. So° N ro
a � to 69 691N+s co t0 a IN
c aro v
to
U
mEt0a
co 44 0 cu
.. a o •C
W a CO0co 0 - a o iOW m oco0 � o c roaa
oI C .- \ Cs C o cc CO ca U
M1m o (.0 `- ti `c• "6" pm v o c vii
p�jC �� 3 R � T.O. ¢ p F»yN � C •O •-- Q
CO tR COC) d3 O r. a) 0
Li
')
O
+ U-, 4.... Uz OE _h
CO 0
.ro
VQm C p O
C
to to W ~ coMp ; N o W _ Mpp00 j cb Q� w
(9 >+ co r (9u.I >,w N-;COI m v 4 = a) a.
_JI CI C N COo "." p C � N CO to ` ro -C cu `n
C)
m ER 69 m �ER 40 u* CO C C v*., p o CO
+.,• ro y 0
ns
�+ I- y v) 2 9. Q N
CO t0 d 4-'CU ,a) O
4' L C d • r
•
O Li ro .• N
r 6) •• 6) .... C L h C''
0 0 a) M .. 0 16 6) M o O
cd - CO T � (D N c j CU O .ti 0 O
C C(O N ,- 1 � C Nci 00 CD a) 'r - . a w GC) N
ce tfa N N C U d -
Ew E » L co � La •a)
'. w C - w c k- C O ro u) 4
C cow c F'CO O O cu U O
.� tn � o � o • 4 4.,, b
cooto coot o ami 3 0
CO CO �-" c o f% 'a Q : co a.
.— co � v �? C � � " � ro c
d Lo 0 1Q N co • N 4 v '
O'o � �a v_ 3 6 rik, " o ro
U 'T0� ti 0 c43 r- N t w . =
MEM filk efl i, S h
a3 ca O
C
CO E 4
.— c- O O a)
ON V O y
I- o a
acsa) 'CV U .
CD {I) ai .n a 15;' < E o 0
E
c)' V ro3 roa> W a � 0).—
L_ t Ela •
m o
co
a.
Y U E - ~ Z O ,,C co
F i= To •
UQ > cwc = cam > � � c ro
W a. W c°� o � � 1.1 a4 0 Q : a
00
, 0
00
N
O
N To
AA0 0 0 t101 V01 co 0 00000 O co O 00
-I J m N 0 m M 0 0 O 000 l0Cri M 3
M M
vI ., LD CD 00 00 O r'1 N N in to d' Dt O N
Y ^ to in M M ^ 00 n lD LD V c! N criN h O a' c
to .V} r-1 ri N N ill co
ih : : : :
ihAil0 0 0 0 O N J
CO~` 0in v1 O O V) to to Ill O D1 N
Lo tr.
m • in u, m M m co V1
*' V CO CCOO ttDD tCD CO Co Cr Cr Cr m m m O ~ CD' C
0 cf N N Q7 m m v1 CD M M �j W N lD O
vnj N rf N N i j •--1 e-1' N N tn. V? O 7
7 ill ill ih {h ill ih ih Vl Vl
co V l/)
w N m
Q� '-I CoC
++ E E c c oN ,�
++ 0 E E 0 c m m r_
n C * = E _= E E 'E E E m v
Y 'E E .' v m VI VI N
c0 ai E a a` .1 0
0. co
111 '-1 N N N d N O O O O .-1 a ,1 T f0 Q Q C 0
t/) X67 m c >' n. >- a > > a
t (0 C is m O
Z '= w V Y CO O CO C D c
O O C C Q c
C L
A Y
1— -.1 2 2 Q 2 a Q a o
O >r c w
J O W a, 0.
O 0-Lo
> CO
Qf W Y .0 c
v 0
11,1 ro m
Z_ Z = o
Z W v c v c w CO
CO
Q > al -0 = v m 0 ( v a)
CC 0v E. 'E v 0. t 'E L°
03
V V u n n nCC 0 v) 'n n
D J
O3
V) Iv c
LUm
> tD mo
c °° m0
ai
ai
ar
v
a
E
0
u
n.
CU
0 3 N
ri 0
O
0 4
f0
CO C
a a,
O 0 c -�
U m `_
¢ O E
�' � m
V.d • = iNil 5 0 v
O• O O a O 0
-1 C
U:a Mro
'1•4'6. B i iii* ¢ f
tDO t ri N Q C C
G Zy C C C H 0 a!
Q- a o• H
..„,.‘"•-)Et