HomeMy WebLinkAboutWORK SESSION SUMMARY-05/24/2022-Work Session (4)
Human Resources Department
215 N. Mason, 2nd Floor
Fort Collins, CO 80522
970.221.6535
Date: May 27, 2022
To: Mayor and City Councilmembers
From: Teresa Roche, Human Resources
Thru: Kelly DiMartino, Interim City Manager
RE: Work Session Summary May 24, 2022 re Council Pay
___________________________________________________________________
All Councilmembers were present via Zoom for the work session. Staff and hrQ provided
external benchmark information on Council pay and benefits compared to peer and Front Range
cities and choices on external indices and a base reset.
There appears to be general support for bringing forward charter amendment ballot language to
modify Council compensation for consideration by Council on June 21.
Based on the ideas that were shared, Council discussed and generally seemed most supportive
of the following possible options for Council to consider sending to the voters:
Option One:
Amend the Charter to set Councilmembers’ salary using the Area Median Income (AMI) for a
single-earner household, as established by Housing and Urban Development (HUD), at 50% for
Councilmembers, 60% for Mayor Pro Tem, and 75% for Mayor starting January 1, 2023. Every
January, this could be adjusted based on HUD’s most recent AMI information.
Each year HUD determines Area Median Income (AMI) for the Fort Collins/Loveland
Metropolitan Statistical Area (MSA), broken down by household size and percentage of AMI.
Below is the current information:
Fort Collins/Loveland MSA Family Median Income 2022, effective June 15, 2022
Number of
People/Household
Median
(100%)
80% AMI 75% AMI 60% AMI 50% AMI 30% AMI
1 $75,200 $60,100 $56,400 $45,120 $37,600 $22,550
2 $85,000 $68,650 $63,750 $51,540 $42,950 $25,800
3 $96,600 $77,250 $72,450 $57,960 $48,300 $29,000
4 $107,300 $85,800 $80,475 $64,380 $53,650 $32,200
5 $115,900 $92,720 $86,925 $69,540 $57,950 $34,800
6 $124,500 $99,550 $93,375 $74,700 $62,250 $37,400
Source: https://www.fcgov.com/socialsustainability/developmentincentives.php
TR
2
Option Two:
Set a new base as outlined in option one on January 1, 2023, using AMI, and then beginning in
2024, return to using an external index (e.g., Consumer Price Index-U) to adjust for inflation
rather than annually using HUD’s AMI data.
Option Three/Four:
Adds to either option one or two benefits consistent with what a benefited City employee
receives, excluding retirement and leave benefits except as required by law. This proposal
includes the availability of coverage for eligible dependents as well as an individual
Councilmember. The City’s benefits cost for 2022 coverage is approximately $13,600, not
including claims experience costs to the Benefits Fund.
Annual costs to the Councilmembers using our 2022 medical, dental, and vision rates would
range from $1350.96 for individual only coverage to $7722.26 for an individual plus family with
our Preferred Provider Plan (PPO). For the High Deductible Health Care Plan (HDHP) for
individual only, it would be $1104.82, and individual with family would be $6207.76.
Please see the attachments on the City’s 2022 Open Enrollment Guide for information on
premiums and the 2022 COBRA guide. Note that employees who meet the guidelines are
eligible to pay for COBRA coverage for 18 months after separation from the City, and eligible
dependents who lost coverage and meet the guidelines at age 26 can continue COBRA for
three years.
For any of the options, there was a request for Charter language to allow a Councilmember to
decline compensation and benefits.
General Thoughts:
x Several Councilmembers expressed support for some form of this ballot initiative, with
the primary reasons being to encourage more people to serve on Council and to
eliminate compensation and benefits as one barrier; others were a recognition that Fort
Collins has grown and is the fourth largest city in the state and to acknowledge the
increased time commitment to serve.
x Concerns were expressed about timing considering the economic recovery the
community is undergoing and the proposed AMI percentages under consideration. The
question emerged on how to increase the compensation and benefits without impacting
the call to serve.
Next Steps:
x Staff will meet with the Council Compensation Chairperson to discuss the next steps and
decide the best path forward, including two on two dialogues or an additional committee
meeting, before the currently scheduled June 21 meeting or another work session.
x The City Attorney will begin to draft ordinances that would set ballot language and
Charter amendments for the various options.
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Employee Benefits Advocacy Program!
Launching in 2022, the City of Fort Collins is thrilled to offer an
Employee Benefits Advocacy Program. More details will arrive soon,
but here’s what you can expect from this great service:
The program provides assistance with:
Understanding and explaining your benefits
Assistance with claims and billing resoluƟon
Finding in-network providers
Help with coordinaƟng care
And more!
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Supplemental Life Insurance
Employee & Spouse Rates
Age Rate/$1,000
18-24 $0.028
25-29 $0.044
30-34 $0.053
35-39 $0.068
40-44 $0.100
45-49 $0.150
50-54 $0.230
55-59 $0.430
60-64 $0.637
65-69 $0.875
70-74 $1.784
75-79 $2.060
80-84 $2.060
85-89 $2.060
90-94 $2.060
95-99 $2.060
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Voluntary AD&D Rates
Coverage Rate/$1,000
Employee $0.025
Spouse $0.025
Child(ren) $0.025
Supplemental Life Insurance
Dependent Rates Rate/$1,000
Life Rate—Child Per $5K $0.600
Life Rate—Child Per $10K $1.200
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Revised: 04/11/2022
Separation of Employment
Benefits Information
The following information is intended to provide you with a summary of the who to contact and the process to
follow should you choose to continue any of your benefit plan coverages.
General Notice of COBRA Continuation Coverage Rights
Continuation Coverage Rights Under COBRA
Introduction
This notice has important information about your right to COBRA continuation coverage, which is a temporary extension
of coverage under the Plan. This notice explains COBRA continuation coverage, when it may become available to you
and your family, and what you need to do to protect your right to get it. When you become eligible for COBRA, you may
also become eligible for other coverage options that may cost less than COBRA continuation coverage.
The right to COBRA continuation coverage was created by a federal law, the Consolidated Omnibus Budget
Reconciliation Act of 1985 (COBRA). COBRA continuation coverage can become available to you and other members of
your family when group health coverage would otherwise end. For more information about your rights and obligations
under the Plan and under federal law, you should review the Plan’s Summary Plan Description or contact the Plan
Administrator.
You may have other options available to you when you lose group health coverage. For example, you may be eligible to
buy an individual plan through the Health Insurance Marketplace. By enrolling in coverage through the Marketplace, you
may qualify for lower costs on your monthly premiums and lower out-of-pocket costs. Additionally, you may qualify for a
30-day special enrollment period for another group health plan for which you are eligible (such as a spouse’s plan), even if
that plan generally doesn’t accept late enrollees.
What is COBRA continuation coverage?
COBRA continuation coverage is a continuation of Plan coverage when it would otherwise end because of a life event.
This is also called a “qualifying event.” Specific qualifying events are listed later in this notice. After a qualifying event,
COBRA continuation coverage must be offered to each person who is a “qualified beneficiary.” You, your spouse, and
your dependent children could become qualified beneficiaries if coverage under the Plan is lost because of the qualifying
event. Under the Plan, qualified beneficiaries who elect COBRA continuation coverage must pay for COBRA continuation
coverage.
If you’re an employee, you’ll become a qualified beneficiary if you lose your coverage under the Plan because of the
following qualifying events:
x Your hours of employment are reduced, or
x Your employment ends for any reason other than your gross misconduct.
If you’re the spouse of an employee, you’ll become a qualified beneficiary if you lose your coverage under the Plan
because of the following qualifying events:
x Your spouse dies;
x Your spouse’s hours of employment are reduced;
x Your spouse’s employment ends for any reason other than his or her gross misconduct;
x Your spouse becomes entitled to Medicare benefits (under Part A, Part B, or both); or
x You become divorced or legally separated from your spouse.
Your dependent children will become qualified beneficiaries if they lose coverage under the Plan because of the following
qualifying events:
Revised: 04/11/2022
x The parent-employee dies;
x The parent-employee’s hours of employment are reduced;
x The parent-employee’s employment ends for any reason other than his or her gross misconduct;
x The parent-employee becomes entitled to Medicare benefits (Part A, Part B, or both);
x The parents become divorced or legally separated; or
x The child stops being eligible for coverage under the Plan as a “dependent child.”
When is COBRA continuation coverage available?
The Plan will offer COBRA continuation coverage to qualified beneficiaries only after the Plan Administrator has been
notified that a qualifying event has occurred. The employer must notify the Plan Administrator of the following qualifying
events:
x The end of employment or reduction of hours of employment;
x Death of the employee;
x The employee’s becoming entitled to Medicare benefits (under Part A, Part B, or both).
For all other qualifying events (divorce or legal separation of the employee and spouse or a dependent child’s losing
eligibility for coverage as a dependent child), you must notify the Plan Administrator within 60 days after the qualifying
event occurs. You must provide this notice to: Human Resources, 215 North Mason Street, 2nd Floor, Fort Collins, CO
80524.
How is COBRA continuation coverage provided?
Once the Plan Administrator receives notice that a qualifying event has occurred, COBRA continuation coverage will be
offered to each of the qualified beneficiaries. Each qualified beneficiary will have an independent right to elect COBRA
continuation coverage. Covered employees may elect COBRA continuation coverage on behalf of their spouses, and
parents may elect COBRA continuation coverage on behalf of their children.
COBRA continuation coverage is a temporary continuation of coverage that generally lasts for 18 months due to
employment termination or reduction of hours of work. Certain qualifying events, or a second qualifying event during the
initial period of coverage, may permit a beneficiary to receive a maximum of 36 months of coverage.
There are also ways in which this 18-month period of COBRA continuation coverage can be extended:
Disability extension of 18-month period of COBRA continuation coverage
If you or anyone in your family covered under the Plan is determined by Social Security to be disabled and you notify the
Plan Administrator in a timely fashion, you and your entire family may be entitled to get up to an additional 11 months of
COBRA continuation coverage, for a maximum of 29 months. The disability would have to have started at some time
before the 60th day of COBRA continuation coverage and must last at least until the end of the 18-month period of
COBRA continuation coverage
Second qualifying event extension of 18-month period of continuation coverage
If your family experiences another qualifying event during the 18 months of COBRA continuation coverage, the spouse
and dependent children in your family can get up to 18 additional months of COBRA continuation coverage, for a
maximum of 36 months, if the Plan is properly notified about the second qualifying event. This extension may be
available to the spouse and any dependent children getting COBRA continuation coverage if the employee or former
employee dies; becomes entitled to Medicare benefits (under Part A, Part B, or both); gets divorced or legally separated;
or if the dependent child stops being eligible under the Plan as a dependent child. This extension is only available if the
second qualifying event would have caused the spouse or dependent child to lose coverage under the Plan had the first
qualifying event not occurred.
Are there other coverage options besides COBRA Continuation Coverage?
Yes. Instead of enrolling in COBRA continuation coverage, there may be other coverage options for you and your family
through the Health Insurance Marketplace, Medicaid, or other group health plan coverage options (such as a spouse’s
plan) through what is called a “special enrollment period.” Some of these options may cost less than COBRA
continuation coverage. You can learn more about many of these options at www.healthcare.gov.
If you have questions
Revised: 04/11/2022
Questions concerning your Plan or your COBRA continuation coverage rights should be addressed to the contact or
contacts identified below. For more information about your rights under the Employee Retirement Income Security Act
(ERISA), including COBRA, the Patient Protection and Affordable Care Act, and other laws affecting group health plans,
contact the nearest Regional or District Office of the U.S. Department of Labor’s Employee Benefits Security
Administration (EBSA) in your area or visit www.dol.gov/ebsa. (Addresses and phone numbers of Regional and District
EBSA Offices are available through EBSA’s website.) For more information about the Marketplace, visit
www.HealthCare.gov.
Keep your Plan informed of address changes
To protect your family’s rights, let the Plan Administrator know about any changes in the addresses of family members.
You should also keep a copy, for your records, of any notices you send to the Plan Administrator.
Plan contact information
Human Resources
215 North Mason Street, 2nd Floor
Fort Collins, CO 80524
970-221-6535
2022 COBRA Rates
MEDICAL TIER MONTHLY PREMIUMS
UMR: PPO
Employee $798.46
Employee w/Spouse $1,756.64
Employee w/Child(ren) $1,437.28
Employee w/Family $2,235.71
UMR: HDHP
Employee $657.48
Employee w/Spouse $1,446.48
Employee w/Child(ren) $1,183.49
Employee w/Family $1,840.96
DENTAL TIER MONTHLY PREMIUMS
Delta Dental
Employee $40.47
Employee w/Spouse $72.85
Employee w/Child(ren) $91.08
Employee w/Family $121.43
VISION TIER MONTHLY PREMIUMS
VSP
Employee $7.93
Employee w/Spouse $15.87
Employee w/Child(ren) $15.87
Employee w/Family $24.95
Revised: 04/11/2022
HEALTH SAVINGS ACCOUNT (HSA)
x Alerus
Contributions made pre-tax, by you and the City, will remain in your Health Savings Account. Even if you
switch employers or choose a different health insurance plan, your HSA stays with you. You can no longer
make contributions to your Health Savings Account after you separate employment. However, you can
continue to use your HSA money to pay for eligible medical, dental or vision expenses incurred by you and
your qualified tax dependents after you opened your HSA. Login to your account at
http://www.alerusrb.com or call 1-877-661-472 with additional questions.
FLEXIBLE SPENDING ACCOUNTS: Health Care or Dependent Care Reimbursement
x Alerus
Only claims for expenses incurred on or before your separation date may be submitted for
reimbursement. Claims and supporting documents and/or receipts must be filed with Alerus within 90
days of separation. Claims submitted after this date cannot be accepted and your remaining balance will
be forfeited unless you elect to continue participation through COBRA continuation.
You may continue your participation in the health care account and receive reimbursement for charges
incurred after your separation. Email HRBenefits@fcgov.com or call 970-221-6535 for additional
information.
VOLUNTARY BENEFITS
x Aflac Critical Illness Plan
x Aflac Accident Plan
If you elected coverage under Aflac’s Critical Illness and/or Accident plans, your benefit plans will end
on the last day of the separation month. You have 31 days to port/convert your Aflac Accident
and Critical Illness plans which will allow you to keep the City’s rates.
Aflac will require an alternate method for your payments. Call Aflac toll-free at 1-800-433-3036 within
31 days of your payroll separation date and let them know you would like to continue your Aflac
coverage.
Aflac will mail you a Continuation of Coverage form for completion.
Completed forms, required premium* and voided check (if applicable) should be mailed to the address
below:
Aflac
P.O. Box 84069 Columbus, GA 31908
* Please make your check or money order payable to Aflac and be sure to include your certificate number.
SUPPLEMENTAL LIFE INSURANCE
x Reliance Standard Supplemental Life Insurance
If you had elected supplemental group term life and/or accidental death insurance as an active employee
for you, your spouse or your eligible dependents, these policies terminate the same day you terminate
employment with the City of Fort Collins. You may elect to convert or port these coverages to individual
term life insurance policies without evidence of eligibility. However, you should know that individual life
insurance is more expensive than group term insurance.
Revised: 04/11/2022
Within two weeks of your separation date, the Reliance Standard Portability packet will be mailed to your
home address on record with the City. The completed Insurance Services Portability Form should be
mailed to:
Insurance Services, Division of Protective Life Insurance Company
Post Office Box 12687
Birmingham, AL 35202-6687
Fax: (205) 268-3402
Email: ladphs@protective.com
Reliance Standard must receive the completed portability form within 31 days of the coverage
separation date.
For additional questions, Insurance Services, Division of Protective Life Insurance Company, 1-800-866-
9933.
x Anthem Voluntary Life Insurance
If you elected voluntary life insurance during your period of employment with the City of Fort Collins,
you may complete an application for continued coverage under this plan for yourself and any
dependents that were covered prior to your separation of employment. The premium rates provided will
be the same as the premium rates for active employees and are subject to change each January 1. To
continue coverage, submit your Portability Application directly to Anthem Life at the address shown on
the bottom of the application. Your application must be submitted within 30 days of your
employment separation date.
If you choose to continue this coverage, Anthem Life will bill you directly at your home address, and
your premiums will be paid directly to the insurance company.
LONG TERM DISABILITY
Eligibility for Long Term Disability ends on your last day of employment and is not subject to continuation
or conversion unless you became disabled and have started your disability claim prior to your separation
date. Payment of LTD benefits is subject to the approval of Reliance Standard Life Insurance. If approved,
you may be required to submit periodic medical updates to Reliance Standard. Your LTD Benefit may be
reduced by income you receive from other sources, such as other employment, social security,
retirement, disability, and workers compensation. If other benefits are approved retroactively, you are
required to reimburse Reliance Standard for the value of those additional benefits.
LTD benefits are payable for up to two years if you are continually unable to perform the essential duties
of your own occupation. After two years, benefits may continue if you are unable to perform the essential
duties of any occupation for which you are reasonably well suited by virtue of your education, training,
and experience. Benefits for disability due to mental illness are limited to two years. Subject to the
approval of Reliance Standard, benefits could be paid until age 65 or beyond, depending upon your age
at the time you became disabled.
* IMPORTANT NOTE: LTD benefits are subject to Federal and State income taxes.
RETIREMENT
When making decisions about your retirement funds, you are strongly encouraged to obtain
professional assistance from an accountant, Financial Planner or tax advisor. If applicable, you
have several options from which to choose regarding the disposition of your account(s):
x 401 (a) Money Purchase Plan
Revised: 04/11/2022
Rollover/Transfer of funds to another employer’s eligible qualified pension plan.
Rollover/Transfer of funds to an Individual Retirement Account (IRA), call the Nationwide service
center at 1-877-677-3678 to obtain the form.
Maintain your account with Nationwide under the City of Fort Collins’ plan. By doing so,
you may continue to manage the allocation of your investment funds, and you preserve
your right to rollover funds to another employer’s qualified pension plan or an IRA at a
later date. However, you may not make additional contributions to the plan.
Withdrawal of funds can be completed online via www.fortcollinsrp.com. Log on to your
account and follow the instructions as noted on the website.
x Loans
There are 3 options available to you if you have an outstanding loan balance when you separate
employment with the City:
1. Pay off the loan in full upon separation.
2. Continue repaying the loan via ACH Debit from your personal bank account.
3. Default the loan and allow the unpaid balance to become a taxable distribution.
With this option, you may incur a substantial tax liability. Please consult your tax or financial
advisor.
x 457 Deferred Compensation Account:
Rollover/Transfer of funds to another employer’s eligible qualified pension plan
Rollover/Transfer of funds to an Individual Retirement Account (IRA), call the Nationwide
service center at 1-877-677-3678 to obtain the form.
Maintain your account with Nationwide under the City of Fort Collins’ plan. By doing so, you
may continue to manage the allocation of your investment funds, and you preserve your right
to rollover funds to another employer’s qualified pension plan or an IRA at a later date.
However, you may not make additional contributions to the plan.
Withdrawal of funds can be completed online via www.fortcollinsrp.com. Log on to your
account and follow the instructions as noted on the website.
You may choose to transfer all of your accrued vacation amount pre- tax to your 457 Plan.
Special Note to Employees on Disability benefits: 457 Funds may be used to supplement Long Term
Disability (LTD) earnings without reducing your monthly LTD benefit payment.
x Post-Employment Health Plan (PEHP):
You are eligible to begin receiving reimbursement from your PEHP/Retirement Health Savings Plan for
IRS approved medical expenses as soon as you separate employment with the City of Fort Collins. The
City will notify Nationwide that you have separated employment and are eligible to use funds from the
Plan. Contact the Nationwide service center for questions at 1-877-677-3678.
x General Employees Retirement Plan (GERP):
If applicable, this plan is a defined benefit plan. Benefits are determined by a formula based on your years
of eligible service with the City of Fort Collins and your final average monthly compensation (FAMC).
Normal retirement age is 65. Benefits may be taken as early as age 55, but they are reduced according to
the number of months at retirement that you are under age 65. The benefit formula is: (FAMC) x (years of
eligible service) x 1.5% x (vesting for early retirement) = monthly benefit. If you would like a benefit
Revised: 04/11/2022
calculation prepared, please call Human Resources at 970-221-6562 or email HRBenefits@fcgov.com to
request and complete the GERP Calculation Estimate Form.
Special Note to Employees on Disability benefits: Any distribution from your GERP pension must be
reported to Reliance Standard and will offset/reduce your LTD benefit.