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Active Employee Insurance
16.1 The insurance plans, premiums for coverage, and benefits contained in the insurance plans offered by the Employer shall be solely controlled by the contracts negotiated by the Employer and the benefit providers. The Employer will attempt to prevent any changes in the benefits offered by the benefit providers. However, the employees selecting the offered plans agree to accept any changes in benefits which a specific provider implements. If in either year the number of plans increases, the increase will be based on the average premium.
a. Effective January 2021, for each eligible employee covered by this Agreement who is employed full-time and who selects City-provided employee health insurance coverage, the Employer agrees to contribute the following amounts per month:
Choice Passport Plan:
2020 contributions plus eighty-two and one-half percent (82.5%) of the premium increase for 2021, after any plan design changes; employees shall be responsible for the 2020 employee contribution, plus seventeen and one-half percent (17.5%) of the premium increase for 2021, after any plan design changes.
Based on a 3.5% premium increase, this results in the following Employer contributions:
Single: $671.62, plus $225 per quarter to be deposited in a VEBA account (plus an additional $225 per quarter in a VEBA for completion of 2020 Wellness Program). Employee share: $16.88/month.
Family: $1,580.76, plus $135 per quarter to be deposited in a VEBA account (plus an additional $225 per in a VEBA for completion of 2020 Wellness Program). Employee share: $216. 72/month.
Elect Plan:
The lesser of the Employer's contribution for the Choice Passport P Ian for 2021; or the actual cost of the Elect Plan premium. Employees shall be responsible for the difference between the monthly premium and the Employer's monthly contribution.
Based on a 3.5% premium increase for the Choice Passport Plan, this results in the following Employer contributions:
Single: $640.84, plus $225 per quarter to be deposited in a VEBA account (plus an additional $225 per quarter in a VEBA for completion of 2020 Wellness Program). Employee share: $0.00/month.
Family: $1,580.76, plus $135 per quarter to be deposited in a VEBA account (plus an additional $225 per quarter in a VEBA for completion of 2020 Wellness Program). Employee share: $92.92/month.
ACO Plan:
The lesser of the Employer's contribution for the Choice Passport Plan for 2021; or the actual cost of the ACO Plan premium. Employees shall be responsible for the difference between the monthly premium and the Employer's monthly contribution.
Based on a 3.5% premium increase for the Choice Passport Plan, this results in the following Employer contributions:
Single: $642.26, plus $225 per quarter to be deposited in a VEBA account (plus an additional $225 per quarter in a VEBA for completion of 2021 Wellness Program). Employee share: $0.00/month.
Family: $1,632.66, plus $135 quarter to be deposited in a VEBA account (plus an additional $225 per quarter in a VEBA for completion of 2021 Wellness Program). Employee share: $44.70/month.
Passport Copay Plan:
Single: $398.88 (Employee share: $511.88/month)
Family: $748.22 (Employee share: $1,640.80/month)
c. Effective January 2023, for each eligible employee covered by this Agreement who is employed full-time and who selects City-provided employee health insurance coverage, the Employer agrees to contribute the following amounts per month:
Choice Passport Plan:
2022 contributions plus eighty-two and one-half percent (82.5%) of the premium increase for 2023, after any plan design changes; employees shall be responsible for the 2022 employee contribution, plus seventeen and one-half percent (17 .5%) of the premium increase for 2023, after any plan design changes.
Based on the proposed Medica RFP quotes, this results in the following Employer
Contributions:
Single: $683.22, plus $225 per quarter to be deposited in a VEBA account (plus an additional $225 per quarter in a VEBA for completion of 2022 Wellness Program). Employee share: $19.34/month.
Family: $1,611.16, plus $135 per quarter to be deposited in a VEBA account (plus an additional $225 per quarter in a VEBA for completion of 2022 Wellness Program). Employee share: $223 .16/month.
Elect PlanNantage Plus ACO Plan:
The lesser of the Employer's contribution for the Choice Passport Plan for 2023; or the actual cost of the Elect Plan/Vantage Plus ACO Plan premium. Employees shall be responsible for the difference between the monthly premium and the Employer's monthly contribution.
Based on the proposed Medica RFP quotes for the Choice Passport Plan, this results in the following Employer contributions:
Single: $632.74, plus $225 per quarter to be deposited in a VEBA account (plus an additional $225 per quarter in a VEBA for completion of 2022 Wellness Program). Employee share: $0.00/month.
Family: $1,611.16 plus $135 per quarter to be deposited in a VEBA account (plus an additional $225 per quarter in a VEBA for completion of 2022 Wellness Program). Employee share: $41 .40/month.
Park Nicollet ACO Plan:
The lesser of the Employer's contribution for the Choice Passport Plan for 2023; or the actual cost of the Park Nicollet ACO Plan premium. Employees shall be responsible for the difference between the monthly premium and the Employer's monthly contribution.
Based on the proposed Medica RFP quotes for the Choice Passport Plan, this results in the following Employer contributions:
Single: $628.90, plus $225 per quarter to be deposited in a VEBA account (plus an additional $225 per quarter in a VEBA for completion of 2022 Wellness Program). Employee share: $0.00/month.
Family: $1,611.16, plus $135 per quarter to be deposited in a VEBA account (plus an additional $225 per quarter in a VEBA for completion of 2022 Wellness Program). Employee share: $31 .40/month.
Passport Copay Plan:
Single: $398.88 (Employee share: $499.12/month)
Family: $748.22 (Employee share:$ I ,607.36/month)
If the actual premiums for 2023 differ from the estimate upon which these contributions are based, the employer and employee contributions will be adjusted to reflect the negotiated cost sharing percentages as applied to the actual premiums for all plan options other than ·the Passport Copay Plan.
16.3 The City will contribute the cost of a $10,000 life insurance policy. However, an employee covered by this agreement whose spouse is also employed by the City of Saint Paul, and is eligible to participate in the City's health insurance plan, will not be required to select mandatory health insurance coverage as long as one of the spouses is participating in the City's insurance plan with family coverage.
The mandatory life insurance continues to apply. In this event, two hundred and twenty five dollars ($225.00 per month) shall be eligible for payment as unused benefit dollars. Such payment shall be made during the month of January for the previous insurance year. Effective January 1, 2019, only employees who received this payment in 2018 shall be eligible for the payment in 2019 and beyond. Once employees currently waiving health insurance no longer elect to waive coverage, they also shall not be eligible for the $225.00 monthly contribution. Eligible employees include the following: J. Adamek, J. Giampolo, L. Horvath, R. Kruse, J. O'Donnell, N. Peterson, B. Sandquist and M. St. Sauver.
16.4 Under the 'Cafeteria Plan', employees covered by this agreement will be eligible to participate in the Flexible Spending Accounts offered by the Employer. The service fee charged for employees participating in the Dependent Care Account will be paid by the Employer. The service fee for employees participating in the Medical Expense Account will be paid by the Employer.
Survivor Insurance
16.5 In the event of the death of an active employee, the dependents of the employee shall have the option, within thirty (30) days, to continue the current hospitalization and medical benefits, including such plan improvements as may be made from time to time, which said dependents previously had, at the premium and Employer contribution applicable to eligible early retirees. The date of death shall be considered to be the date of retirement.
In the event of the death of an early retiree or a regular retiree, the dependents of the retiree shall have the option, within thirty (30) days, to continue the current hospitalization and medical benefits which said dependents previously had, at the premium and Employer contribution accorded to the eligible deceased retiree.
In the event of the death of an employee killed in the line of duty, the Employer will contribute 100% of the premium for either single or family health insurance coverage for eligible dependents. An eligible dependent who is not enrolled in the City's health insurance program at the time of the employee's death will have an option to enroll at the next annual open enrollment period.
It is further understood that coverage shall cease in the event of:
- 16.5 (1) Subsequent remarriage of the surviving spouse of the deceased employee or retiree.
- 16.5 (2) The employment of the surviving spouse or dependent where health insurance is obtained through a group program provided by said Employer. In this event, however, the surviving spouse or dependent shall have the right to maintain City health insurance for the first ninety (90) days of said employment.
Retiree Insurance
16.6 Employees who retire must meet the following conditions in order to be eligible for the Employer contributions listed in Articles 16. 7 through 16.10 below toward a health insurance plan offered by the Employer:
- 16.6 (1) Be receiving benefits from a public employee retirement act covering employees of the City of Saint Paul at the time of retirement, and
- 16.6(2) Have severed his/her relationship with the City of Saint Paul under one of the retiree plans, and
- 16.6(3) Have completed at least 20 years of service (20 consecutive years of service for any employee hired or separating and returning to the City after January 1, 2006) with the City of Saint Paul or be receiving a disability pension, and
- 16.6(4) Have severed his/her relationship with the City of Saint Paul for reasons other than an involuntary termination for misconduct.
Employees in the job classification of Police Trainee, Police Officer, Sergeant, Lieutenant and Commander, hired after July 1, 2005, shall not be eligible to receive the Employer contributions described in Articles 16. 7 through 16.10. In lieu of such contributions for retiree insurance, the Employer shall pay $375 per year into the employee's account in a Post Employment Health Plan (PEHP) maintained by the Employer. Such contributions shall be made on or before March 1, and shall be credited for the previous calendar year. Only employees in the job classification of Police Trainee, Police Officer, Sergeant, Lieutenant and Commander who are on the department payroll on January l of the previous calendar year shall qualify for the PEHP contribution; except that such employees who are separated from employment during the previous year and who have at least ten (10) years of service will receive a pro-rated contribution. Neither employees who have separated their employment with the City by reason of involuntary termination for misconduct nor employees with less than ten (10) years of service shall be eligible for any pro-rated contribution.
Early Retirees
16. 7 This Article shall apply to employees who:
- 16.7 (1) Retire on or after January 1, 1996, and
- 16.7 (2) Were appointed on or before December 31, l 995, and
- 16.7 (3) Have not attained age 65 at retirement, and
- 16.7 (4) Meet the terms set forth in Article l 6.6 above, and
- 16.8 (5) Select a health insurance plan offered by the Employer.
Until such retirees reach sixty-five (65) years of age, the Employer agrees to contribute a maximum of $350.00 per month toward the premium for single or family health insurance coverage. Any unused portion of the Employer's contribution shall not be paid to the retiree.
When such early retiree attains age 65, the provisions of Article 16.9 shall apply.
16.8 This Article shall apply to employees who:
- 16.8 (1) Retire on or after January 1, 1996, and
- 16.8 (2) Were appointed on or before December 31, l 995, and
- 16.8 (3) Have not attained age 65 at retirement, and
- 16.8 (4) Meet the terms set forth in Article l 6.6 above, and
- 16.8 (5) Select a health insurance plan offered by the Employer.
Until such retirees reach sixty-five years (65) of age, the Employer agrees to contribute a maximum of $300.00 per month toward the cost of single or family health insurance coverage. Any unused portion of the Employer's contribution shall not be paid to the retiree.
When such early retiree attains age 65, the provisions of Article 16.10 shall apply.
Regular Retirees (Age 65 and over)
16.9 This Article shall apply to employees who:
- 16.9 (1) Retire on or after January 1, 1996, and
- 16.9 (2) Were appointed on or before December 31, l 995, and
- 16.9 (3) Have not attained age 65 at retirement, and
- 16.9 (4) Meet the terms set forth in Article l 6.6 above, and
- 16.9 (5) Select a health insurance plan offered by the Employer.
The Employer agrees to contribute a maximum of $550.00 per month toward the premium for single or family health insurance coverage offered to regular retirees and their dependents. Any unused portion of the Employer's contribution shall not be paid to the retiree.
This Article shall also apply to early retirees who retired under the provisions of Article 16.7 when such early retiree attains age 65.
16.10 This Article shall apply to employees who:
- 16.10 (1) Retire on or after January 1, 1996, and
- 16.10 (2) Were appointed on or before December 31, l 995, and
- 16.10 (3) Have not attained age 65 at retirement, and
- 16.10 (4) Meet the terms set forth in Article l 6.6 above, and
- 16.10 (5) Select a health insurance plan offered by the Employer.
The Employer agrees to contribute a maximum of $300.00 per month toward the premium for single or family health insurance coverage offered to regular retirees and their dependents. Any unused portion of the Employer's contribution shall not be paid to the retiree.
This Article shall also apply to early retirees who retired under the provisions of Article 16.8 when such early retiree attains age 65.
16.11 The contributions indicated in Article 16 shall be paid to the Employer's third-party administrator or designated representative.
16.12 A retiree's participation in the City's health insurance plan must be continuous. The retiree must be participating in a City health insurance plan at the time of retirement. If a retiree chooses not to participate at the time of his/her retirement or if a retiree discontinues his/her participation at a later date, such retiree will not be eligible for any future participation or for any Employer contribution.
16.13 Effective for employees who retire on or after July I, 2003, additional dependents beyond those of record at the time of retirement may not be added to the retiree's health insurance plan at City expense after retirement.[2]
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