HomeMy WebLinkAbout6.h. VEBA Grant AdministationAGENDA ITEM: VEBA Grant Administration
AGENDA SECTION:
Consent
PREPARED BY: Emmy Foster, Assistant City
Administrator
AGENDA NO. b.h.
ATTACHMENTS: None
APPROVED BY:
RECOMMENDED ACTION: Motion to approve a one -time grant
not eligible for the 2007 Appletree Institute grant program.
match for all a loyees
4 ROSEMOUNT
CITY COUNCIL
City Council Meeting: January 16, 2007
EXECUTIVE SUMMARY
ISSUE
Staff has been working with Appletree Institute (our insurance service coop) and CBIZ (our insurance
broker) to understand the terms of the grant to determine which employees will be ehgible to receive the
VEBA grant from Appletree. It appears that employees covered by our VEBA plan in 2004 and
employees who will be hired in 2007 are eligible for a grant of $275 for single health insurance participants
and $675 for family health msurance participants However, that leaves full-time employees hired in 2005
and 2006 without of the benefit of receiving grant dollars in 2007
In order for all full time employees to experience the same out of pocket risk for medical expenses, we
would like the Council to consider authorizing a one -tune grant match to the full -tune employees hired m
2005 and 2006. This would cost the City an additional $5450 in 2007 for the four family contracts and ten
single contracts involved. The affected employees are evenly distributed across departments, so actual hne
item impact to departmental budgets will be minimal.
We are still negotiating with the service coop to consider providing funds to these employees yet this year.
In the event that Appletree agrees to provide the grant dollars to the employees hired in 2005 and 2006,
the money requested in this memo would be returned to the appropriate city departmental budgets.
SUMMARY
It is requested that the City Council approve the above mentioned motion.