HomeMy WebLinkAboutMINUTES Administrative Committee 1988-11-21C)C
RECORD OF PROCEEDINGS
VAdministrative Committee
November 21,1988
Committee:Chairman Hix,Trustees Aldrich and
Dickinson
Attending:All
Also Attending:Mayor Dannels,Trustees Garrett and
Habecker,Town Administrator Kiaphake,
Finance Officer Vavra,Clerk O’Connor
Absent:None
Chairman Hix called the meeting of the Administrative Committee
to order at 1:19 P.M.
HEALTH INSURANCE -REVIEW OF PROPOSED CHANGES.
Town Administrator Kiaphake advised that the Town’s health
insurance policy with Blue Cross/Blue Shield must be renewed by
December 16th.In a meeting held with Mel Kuhr,the Town’s
insurance consultant,Mr.Kuhr advised the cost of the current
plan will increase by 7.60%.A total of four (4)plan options
were also presented:Preferred Plus Plan,Preferred Plus with
Cost Containment,Custom Plus,and Custom Plus with Cost Contain
ment.The Preferred Plus Plan with Cost Containment matches the
Town’s existing policy except that a second opinion and
pre-admission certification is required for certain identified
surgeries.The cost of this plan would increase 2.22%over 1988
rates.An employee meeting was held and the majority of those
attending voted to approve Plan 2 with Cost Containment.Follow
ing discussion,the Committee recommends:(1)approval of Plan 2
the Preferred Plus Plan with Cost Containment,and (2)staff
solicit bids in August,1989 from major medical health insurance
carriers.Staff will also present all pros and cons of each
carrier,plus self-insurance and the Hospital Alliance.
IRS SECTION 89 -REPORT OF PROPOSED CHANGES.
Finance Officer Vavra reported on new IRS regulations and
proposed changes pursuant to IRS Section 89.Currently,the Town
and its employees pay their portion of the health premium accord
ing to years of service.Certain criteria must be met and
formulas passed to conform to IRS regulations.A written plan
must be adopted and distributed to all employees.Discussion
followed,including an option of the Town to change the employ
er/employee allocation of premiums.The “tests”specified by the
IRS have not yet been finalized;staff will conduct the tests
when final rules are approved,and present their findings to the
Committee in February,1989.
1989 PAY PLAN -UPDATE.
Town Administrator Klaphake reported each Department Supervisor
is in the process of reviewing the final hierarchy and pay plan
for their respective department.Upon receipt of all reports,
Administrator Kiaphake will meet with Tom Haller/Arthur Young
Companr.As stated earlier,the basic pay increase will be 3%,
with an additional 1%for adjustments,and 1%for merit pay
increases.
There being no further business,Chairman Hix adjourned the
meeting at 1:58 P.M.
APPROVED1
Vickie O’Connor,Town Clerk
N0V221988
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