Report Prepared by: Rosa M. Kindred-Winzer, Insurance Coordinator
Title
SUBJECT: Approval of 2020 Cafeteria Plan Renewal Regarding Employees' and Retirees' Health and Welfare Benefits Including Medical, Dental, Vision, Disability, Life and Flexible Spending
REPORT IN BRIEF
Considers approving the renewal of the 2020 Cafeteria Plan regarding employees' and retirees' health and welfare benefits.
RECOMMENDATION
City Council - Adopt a motion approving the employees' health and welfare benefits cafeteria plan renewal for calendar year 2020 and authorizing the City Manager or the Assistant City Manager to execute the necessary documents.
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ALTERNATIVES
1. Approve, as recommended by staff and Employee Benefits Committee; or,
2. Direct staff to develop other options; or,
3. Deny; or,
4. Take no action.
AUTHORITY
Charter of the City of Merced, Article XI, Fiscal Administration. Memoranda of Understanding (MOU) with recognized labor bargaining units and Management Compensation Plan. "The plans shall be selected solely by the City following review of proposals by the Employee Benefits Committee, whose role is advisory to the City Council."
CITY COUNCIL PRIORITIES
As provided for in the 2019-20 Adopted Budget.
DISCUSSION
The City of Merced provides five (5) forms of core insurance coverage as benefits to City employees: medical, dental, vision, disability and life insurance. These are provided through an implemented IRS Section 125 Cafeteria Plan where employees can select from two (2) options in each coverage category. The insurance plans are selected solely by the City (City Council) upon review and recommendation of the proposal by the Employee Benefits Committee. The MOUs stated that the role of the Employee Benefits Committee is advisory to the City Council.
History and Past Actions
The Employee Benefits Committee (Committee) met with Alliant Insurance Services (broker of record) on August 19, 2019 to review group benefits. The informational...
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