HEALTH INSURANCE
Regular fulltime employees will be entitled to receive coverage under the City's group health
plan. This plan is a partially self-insured plan administered by a third party administrator
retained by the City of Austin.
The City will review the rate for employee contribution on an annual basis. Any contribution
made by the employee for his/her coverage will be made through payroll deduction or by other
terms in a labor agreement.
Fulltime, regular employees may use up to $750 worth of accumulated unused sick leave to
cover the costs of health insurance deductibles. Employees are eligible for this benefit when
they have incurred deductible medical expenses of at least $750 in a calendar year. Forms
authorizing the sick leave deduction may be obtained from the Human Resources Director.
Documentation that the employee has incurred deductible expenses from the health plan
administrator must accompany the request. Employees' current year sick leave will be
reduced to reflect the reimbursement amount requested.
LIFE INSURANCE
The City shall pay the cost of the premium for a minimum of $30,000 term life insurance policy
for all regular, full-time employees; additional coverage may be provided as per the employee's
labor agreement. Paid on-call firefighters and Council members receive $20,000 term life
insurance policy.
Supplemental Life - Employees eligible for the term policy are also eligible to purchase
additional life insurance coverage for themselves or for their dependents through payroll
deduction.
LONG TERM DISABILITY
The City shall pay forty percent (40%) of the cost of the premium for a group long-term
disability insurance policy for all full-time regular employees. The employee shall be
responsible for sixty percent (60%) of the premium through payroll deduction.
Coverage: After ninety (90) days of total disability, the insurance provides sixty percent (60%)
of basic monthly earnings (excluding overtime, bonuses or other cash compensation). Income
from other sources, including worker's compensation and government plans such as Social
Security and PERA will be deducted from your benefit.
COBRA (BENEFITS CONTINUATION)
Health and life insurance is available for continuation after an employee's separation from
employment with the City according to guidelines prescribed by the Consolidated Omnibus
Budget and Reconciliation Act (COBRA) of 1985.
COBRA gives employees and their qualified beneficiaries the opportunity to continue health and
life insurance coverage under the City's plans when a "qualifying event" would normally result in
the loss of eligibility. Some common qualifying events are resignation, termination of
employment, or death of an employee; a reduction in an employee's hours or a leave of
absence; and employee's divorce or legal separation; and a dependent child no longer meeting
eligibility requirements.
Under COBRA, the employee or beneficiary pays the full cost of coverage at the City's group
rate plus an administration fee.
The City provides each eligible employee with a written notice describing rights granted under
COBRA when the employee becomes ineligible for coverage under the City's health and life
insurance plan. The notice contains important information about the employee's rights and
obligations.
WORKER'S COMPENSATION INSURANCE
Employees, as defined by the Minnesota Worker's Compensation Act, are covered by Worker's
Compensation Insurance.
Any employee injured on the job and covered by Worker's Compensation Insurance will receive
the difference between his or her compensation check and his or her regular wages for the first
thirty (30) days following the injury. The time shall not be charged against the employee's
vacation leave or other accumulated benefits.
After the first thirty days, the employee may apply any unused portion of his or her accumulated
sick leave or vacation upon any part of his or her disability for which the employee is not entitled
to draw Worker's Compensation Insurance.
DEFERRED COMPENSATION
Regular full-time employees are invited to participate in the Deferred Compensation Plan. This
voluntary supplemental retirement program allows you to have part of your salary withheld and
invested for payment to you upon termination. The deferred amount and the interest earned on
investment are not subject to current State or Federal income tax. When you receive the
money, it will be taxed as ordinary income based on regular W-4 withholdings. The Internal
Revenue Service (IRS 457) regulates the City's Deferred Compensation Plan.
You may defer up to twenty-five (25%) of your salary up to an I.R.S. maximum in any one
calendar year. Three years prior to retirement, you may defer an additional amount under a
catch-up provision.
PUBLIC EMPLOYEES RETIREMENT ASSOCIATION
City employee's retirement program is provided by the Public Employees Retirement
Association (PERA). Employees contribute a percentage of their total salary to PERA through
payroll deduction. The City matches these deductions and contributes an additional percentage
to that amount.
PERA contributions are refundable upon termination regardless of how many years of service
credit you have in the fund. Employer contributions are not refundable. For information on the
requirements to receive benefits and the formula used to figure benefits, please contact PERA
directly at 1-800-652-9026.
FLEXIBLE BENEFITS PLAN
Regular employees who work at least thirty (30) hours per week on a regular basis are eligible
for participation in the Flexible Benefits Plan. This program allows employees to use pre-tax
dollars to pay for eligible medical and dependent care expense. The result is an increase in
your net take-home pay. The City's plan year is January 1 and ends on March 15 of the
following year. To be eligible, employees must enroll during the open enrollment period each
year. The Human Resources Director oversees the enrollment process.
HEALTH CARE SAVINGS PLAN
A Health Care Savings Plan (HCSP) administered through Minnesota State Retirement
Services, in accordance with Minnesota Statutes 352.98, will be made available to regular
fulltime employees. Participation is permitted for all union and non-union personnel. Plan
structure and implementation terms will be determined and approved by majority vote for
employees within each union or non-represented group. Terms and conditions of each HCSP
will be part of the respective union labor agreements. Terms and conditions for non-union and
union personnel are subject to approval by the City Council.
This plan allows employees to save money on a pre-tax basis to pay medical expenses and/or
health insurance premiums after termination with the City of Austin. Employees will be able to
choose among several different investment options provided by the State Board of Investment;
assets in the program will accumulate tax-free.
CREDIT UNION
As a City of Austin employee, you may participate in the Austin City Employees Credit Union.
The Credit Union offers a variety of financial programs and packages including:
- Payroll deductions for checking, savings and payments
- Interest-earning savings accounts
- Low-cost loans
- Home equity loans
- Certificate of Deposit
EMPLOYEE ASSISTANCE PROGRAM
All regular employees and their family members will have access to a confidential Employee
Assistance Program. This program is designed to assist employees and their families by
providing information and/or guidance during stressful or crisis situations. Your supervisor or
Human Resources Director will provide you with information on the providers the City of Austin
have agreements with for this service. The City of Austin will provide up to two (2) visits of onehour duration for the employee and immediate family members per calendar year. Any visits
beyond a total of two (2) billed hours to the City of Austin for the employee and/or their
immediate family will be the responsibility of the employee for payment to the provider.