#2 Add supplemental life insurance to employee benefit package (File Res. #2011-781)
HUMAN RESOURCES DIVISION MEMORANDUM
March 28, 20111
TO: City Council
FROM: Leslie A. Bentz, Benefits & Risk Manager
SUBJECT: Supplemental Life Insurance
Executive Summary
As part of 2011-2012 contract negotiations with the Firefighters Local Number
580 Bargaining Unit, the City agreed to offer a supplemental life insurance
program to employees at their expense through payroll deduction.
Department Recommendation
This employee-paid benefit was mutually agreed upon during contract
negotiations with the Fire union. This contract was signed on February 16, 2011.
Therefore, I move the adoption of Council File Resolution No. 2011-781
authorizing the City of Janesville's joining and eligible personnel's participation in
the WRS ETF supplemental group life insurance program, effective forthwith,
solely at the employees' expense.
Assistant City Manager’s Recommendation
This was agreed to as part of the most recent contract negotiations and there will
be no City expense in offering this employee option. I concur with the
department recommendation.
Suggested Motion
Move to adopt File Resolution 2011-781
Background
The Fire Union was interested in an employee-paid mechanism that would fund
health plan coverage for spouses of retirees or current employees who pass
away. Currently, the health plan provides coverage for the surviving spouse of an
active or retired firefighter until the retiree or employee would have turned age
65, at the cost of the spouse.
The City proposed an employee-paid life insurance option as an economical
means to address the Union’s concern. The City does provide Basic Life
Insurance to all current full time and part time employees, which equals the
employee’s earnings reported to the Wisconsin Retirement System for the
previous year, rounded up to the next thousand.
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Discussion
The Wisconsin Department of Employee Trust Funds (ETF) offers a
Supplemental Life Insurance Program, which is an additional 100 percent of
employee’s previous year's earnings rounded up to the next thousand. The
bargaining unit agreed this was an acceptable compromise and would provide
the needed funds for a surviving spouse to continue to pay the full premium
amount for continued health coverage.
In providing this benefit, ETF requires that employers offer this benefit to all
eligible employees, and not to just a certain group of employees. Therefore, to
provide this benefit, the City must offer it to all eligible employees. Each eligible
employee may decide if (s)he would like to participate in the benefit. Eligible
employees are defined as all active employees who currently have Basic Life
Insurance.
Process
Upon the City Council’s adoption of this resolution, ETF will send enrollment
forms out to all eligible employees. The schedule is somewhat dependent on
their timing, but it is anticipated that we can begin deductions and have the
insurance effective in June 2011.
cc: Susan A. Musick, Human Resources Director
Eric J. Levitt, City Manager
Jacob J. Winzenz, Director of Admin. Services/Assistant City Manager
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RESOLUTION NO. 2011-781
A resolution authorizing the City of Janesville to join and allow eligible employees to participate in the ETF
WRS supplemental life insurance program at the employee’s expense.
Whereas
the Janesville Common Council, pursuant to the applicable provisions of Chapter 40 of the
Wisconsin Statutes now in effect and from time to time amended or renumbered, hereby determine, authorize,
and find it appropriate that the City of Janesville join and participate in, and that its eligible personnel be
included under, the following Group Life Insurance program(s) provided by ETF WRS, pursuant to Chapter 40
of the Wisconsin Statutes:
[X] Supplemental Group Life Insurance
Whereas
the proper officers and/or officials of the City of Janesville are herewith authorized and directed to
take all actions, make such deductions, and submit such eligible and participating City personnel payments as
are required, from time to time and at any time, by the Group Insurance Board of the State of Wisconsin to
provide such supplemental and/or other group life insurance, based upon the number of eligible employees
enrolling in this benefit; and
Whereas
the City of Janesville WRS Agent will submit a certified copy of this adopted Resolution to the State
of Wisconsin Department of Employee Trust Funds (ETF WRS).
NOW, THEREFORE
, the Common Council of the City of Janesville hereby authorize the City of Janesville and
the City’s eligible personnel to join and participate in the WRS ETF supplemental Group Life Insurance
program. Further, each of the above recitals is reiterated and included herein by reference as if fully set forth
verbatim.
Be It Further Resolved that the City Manager, City Clerk-Treasurer, and/or other City Manager designee(s), on
behalf of the Common Council and the City of Janesville, may take any and all actions, enter into such
additional agreement(s), and amend such actions and agreement(s) from time to time and at any time as may
be deemed necessary and/or desirable by the City Manager for the City of Janesville to join and provide this
benefit to the City’s eligible employees at their expense and/or so as to effectuate the intent and purpose of
this Resolution; and that the City Clerk-Treasurer position, and its incumbent and acting Janesville City Clerk-
Treasurer Jean Ann Wulf and her successors and her/their designee(s), be the City of Janesville WRS Agent
for purposes of this supplemental life insurance program and benefit.
CERTIFICATION [Required by ETF WRS]
I hereby certify that the foregoing Resolution is a true, correct, and complete copy of the original Resolution
th
duly and regularly passed by the Common Council of the City of Janesville, Wisconsin, on the 28 day of
March 2011; and that said Resolution has not been repealed or amended, and is now in full force and effect. I
understand that Wis. Stat. Sec. 943.395 provides criminal penalties for knowingly making false and fraudulent
statements on this form and hereby certify that, to the best of my knowledge and belief, the information is true
and correct.
Employer Identification Number (EIN) 69-036-0985
________________________________
Dated this 28th day of March 2011.
Jean Ann Wulf, Clerk-Treasurer, WRS Agent
18 N. Jackson St.
Number of WRS Eligible Employees: 444
Janesville, WI 53545
608-755-3000
wulfj@ci.janesville.wi.us
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Motion by:
ADOPTED:
Second by:
APPROVED:
Councilmember Aye Nay Pass Absent
Brunner
McDonald
Eric J. Levitt, City Manager
Perrotto
ATTEST:
Rashkin
Steeber
Jean Ann Wulf, City Clerk-Treasurer
Truman
Voskuil
APPROVED AS TO FORM:
Wald Klimczyk, City Attorney
Proposed by: Human Resources
Prepared by: Human Resources & City Attorney
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