HomeMy WebLinkAboutAgenda Report - August 16, 1989 (72).I -
COUNCIL C0MMUNICA1,0N
TO: THE CITY COUNCIL
FROM THE CITY MANAGER'S OFFICE
COUNCIL MEETING DATE
AUGUST 16, 1989
SUBJECT: SELF-INSURANCE OF THE CITY'S LONG-TERM DISABILITY PLAN EXTENDED TO 24 MONTHS
PREPARED BY: Assistant City Manager
RECOMMENDED ACTION: The City authorize self-insurance of the City's
long-term disability plan up to 24 months.
BACKGROUND INFORMATION: The City's present long-term disability plan has an
180 -day waiting period before the insurance plan
takes effect. The cost for this plan was .98% of
payroll. Vt have been notified the premium will
increase to 1.34% effective July 1, 1989. Based upon
the July 23, 1989 payroll, the additional premium
cost is $1,990.44 per month.
The City can reduce the premium to .98% i f we increase the waiting period to 24
months. 1116 would be assuming an additional risk of 18 months. With an average
per person I i a b i I i ty of approximately $1,500 per month, we w i l l save money i f
there is no more than 15 person months of paid claims per year. At the present
time we have no one off work i n the waiting period; therefore, we w i I I have an
immediate savings of $11,940. Vlb have discussed this with our agent of record,
William McCormack of Delta Benefit Plan who feels this is a prudent move.
Council is requested to authorize staff to self -insure our long-term disability
up to 24 months.
Respectfully submitted ,
erry L. Glenn
Assistant City Manager
JLG: br
Attachment
COUNC613
RFSOLLMOH N0. 89-103
4 RESOLUTION OF THE LODI CITY COUNCIL.
AUTHORIZING SELF-INSURANCE OF THE CITY OF LODI'S
LONG-TERM DISABILITY PLAN UP TO 24
BE IT RESOLVED, that the Lodi City Council does hereby authorize
self-insurance of the City of Lodi's long-term disability plan up to 24
months.
Dated: August 16, 1989
I hereby certify that Resolution No. 89-103 was passed and
adopted by the City Council of the City of Lodi in a regular
meeting held August 16, 1989 by the following vote:
Ayes : Council Membi:es - H i nchman, Olson, Pinkerton, Reid and
Snider (Mayor)
Noes: Council Members - None
Absent: Council Members - None
Alice M. Rei.che
C ity Clerk
F9-103
RES89103jTXTA.02J