City Council Study Session Agenda and Packet 2017 05 09

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How Medical Spending Accounts Work You decide how much money you'll contribute to your account during the plan year at the time you enroll. Your contribution is spread over the number of pay periods and a portion is deducted from your check each payday. As you incur expenses for yourself or eligible dependents, you simply submit a claim to reimburse yourself tax- free. This includes the below items that are not reimbursed by insurance: • Medical • Prescription • Dental • Hospital • Over-the-counter drugs • Vision • Lab (with a prescription) • Hearing expenses Dependent Care FSA The Dependent Care FSA is a benefit that allows you to set aside money on a tax-free basis to pay for childcare or disabled dependent care while you are at work. • Day care & day camp costs • Caregivers for disabled dependents (over age 13) • Caregiver expenses for any dependent you claim on your income tax return who is under age 13 or who is physically or mentally disabled. Employees are eligible to participate in the flexible spending plans, administered by Rocky Mountain Reserve, if they are full-time employees or benefited part-time employees. There is no cost for employees to participate in the plans as the City of Louisville pays all administrative fees. All FSA providers will require documentation from you before releasing funds in order to comply with IRS requirements. However, any amount left in your healthcare and/or dependent care FSA at the end of the plan year will be forfeited. Life and Disability Insurance Lincoln Financial Group Basic Life & AD&D Insurance The City provides group term life insurance to benefited part-time and full-time employees. The policy covers the employee at two and one-half times your gross annual salary up to a maximum of $300,000. The policy also provides additional coverage for Accidental Death and Dismemberment (AD&D). The City pays the full monthly premium for eligible full-time (Tier 1) employees. Benefited part-time (Tier 2) employees share a portion of the cost for the coverage. Type of Service Employee Life Benefit Amount Two and one-half times basic Annual Earnings, rounded to the next higher $1,000; subject to a maximum of $300,000. Dependent Life Amount If you are married, or have any dependent children (6 months — 23 years), they are eligible for coverage at $2500 per dependent. Employee Accidental Death & Dismemberment (AD&D) Two and one-half times Basic Annual Earnings, rounded to the next higher $1,000; subject to a maximum of $300,000. Reduction of Benefits Age 65, will reduce by 35% of original amount Age 70, will reduce an additional 25% of original amount Age 75, will reduce an additional 15% of original amount Benefits will terminate when you retire *If you first enroll for Life and AD&D Insurance at age 65 or older, the above age reductions will apply to: any Guarantee Issue Amount available without evidence of insurability; and the maximum amount of insurance for which you are eligible. Short Term Disability: The City offers a short-term disability plan to all benefited part-time and full-time employees. Employees are eligible to apply for short-term disability coverage after one year of service. The benefit amount for a short-term disability claim is 67% of your weekly earnings, up to a maximum of $950 per week. Short-term disability coverage is designed to provide a safety net for those employees who have not been employed long enough to earn the full Extended Illness Bank (EIB) accrual. 9