Current Remuneration for Members of City Council Elected Official 2006 Annual Salary Car Allowance Mayor *121,820.71 (1/3 tax free) Choice of city owned vehicle or car allowance Councillor *$63,638.06 (1/3 tax free) $400 per month (1/3 tax free) * Benefits Group Life Insurance, Dependent Life Insurance, Longterm Disability, Extended Health, Provincial Health Care and Dental Care Retirement Benefits Transition Allowance 6% of the elected official’s annual salary (1/3 tax free) 2 weeks salary for each year served to a maximum of six months salary Credits start accumulating after the 2001 election The salary for Members of Council is adjusted on the first day of the payroll calendar year by the same percentage increase or decrease as the Average Weekly Earnings for Alberta as reported by the Statistics Canada survey of employment payroll and hours for the immediately preceding year. Councillors receive $300.00 (one-third tax free) in the month they serve as Deputy Mayor. 1 Remuneration (Council Members) Salaries Mayor - $121,820.71(one-third tax free) Councillors - $63,638.06 (one-third tax free). The tax free portion is intended to be a non-accountable allowance against which elected municipal officers can discharge business expenses. All, or substantially all, of these business expenses are GST taxable supplies acquired in Canada, in relation to municipal activities. Deputy Mayor’s Allowance Councillors receive $300.00 (one-third tax free) in the month they serve as Deputy Mayor. At its Inaugural Meeting, and thereafter on an annual basis, Council approves a schedule of the Deputy Mayor terms. In the month the Councillor serves as Deputy Mayor, payment is received on the regular bi-weekly pay cheque. Compensation Adjustments Cash compensation for Members of Council will be adjusted on the first day of the payroll calendar year by the same percentage increase or decrease as the Average Weekly Earnings for Alberta, as reported by the Statistics Canada Survey of Employment Payroll and Hours, for the preceding year’s September to September information report. Annual economic adjustments will be made automatically by Human Resources. Retirement Benefits Council Members will receive 6% of their total annual salary to support retirement. This allowance is paid out on a bi-weekly basis. The option of participating in the City of Edmonton Group Registered Retirement Plan is also available. Presently, the TD Bank and Great West Life are the carriers for the Group Plan. 2 Vehicle Allowance Councillors receive $400.00 (one-third tax free) per month for vehicle allowance to offset transportation costs associated with fulfilling their duties within the City of Edmonton and the Capital region. This will be paid on the first pay of every month. The Mayor has the option of either obtaining a City vehicle or a vehicle allowance of comparable annual value. (Policy C100) Transition Allowance The Mayor and Councillors of the City of Edmonton are provided with a severance payment upon the conclusion of their service. This severance allowance is to be equal to two weeks salary for each year served after October, 2001, to a maximum of six months salary. Compensation Commission The City will establish a Council Compensation Commission, or similar independent body, every six years (or two Council terms) to conduct a comprehensive review of compensation levels, issues and policies relating to elected officials. The Commission could include representatives from labour, the business community, post secondary institutions, the judiciary and citizens at large. The Independent Compensation Commission would be appointed toward the end of the second year of the Council term with their recommendations not coming into effect until after the next election. 3 BENEFITS AND REMUNERATION - COUNCIL MEMBERS Members of Council will be provided with the same employee benefits package and employer/employee contribution rates as the City of Edmonton’s Management Exempt Group. The following description is a brief summary of the benefit plans a Council Member is eligible to participate in. The plans’ terms, conditions and limitations are contained in the contract documents (where applicable) which govern in the event of a discrepancy. Health Benefit Plans A Council Member can participate in the following City of Edmonton benefit plans: Alberta Health Care, Major Medical and Supplementary Health Care, Dental Plans, Long Term Disability, Life Insurance, Dependents’ Group Life Insurance and Optional Group Life Insurance. Alberta Health Care Cost Sharing: City of Edmonton 50% – Council Member 50% On the first day of the month following commencement in the position, a Council Member will be eligible to join the Alberta Health Care Group Plan. The premium paid by the City of Edmonton is a taxable benefit. Major Medical and Supplementary Health Care Plan Cost Sharing: City of Edmonton 60% – Council Member 40% The Major Medical and Supplementary Hospital Plan provides coverage for some medical expenses which are not covered under the A.H.C. Plan. There is a $30.00 per calendar year deductible. The Plan reimburses 80% of the amount in excess of $30.00, for eligible expenses, unless otherwise stated. Some eligible expenses include: direct bill semi-private hospital room accommodation prescription drugs and other limited medical expenses - 80% coverage 4 professional ambulance services to an active treatment hospital - 80% coverage charges for a clinical psychologist engaged in the treatment of mental or emotional illness up to $1,000.00 per year, reimbursed at 50%. Coverage is not provided for assessments Chiropractor services, 75% of the cost of a treatment session, once all allowable limits have been reached under A.H.C. to a maximum of $1,000 Your new card allows for a pay direct feature for prescription drugs only. Your benefit plan pays the pharmacist for the portion covered by the plan. You only pay the portion not covered. Dental Plan (Blue Cross) Cost Sharing: City of Edmonton 65% – Council Member 35% Some eligible expenses include: basic (routine) services – 100% coverage repairs to existing restorative items (crowns, bridges, inlays, onlays, retentive pins) – 80% coverage new restorative items – 50% coverage orthodontic services, 50% coverage to a maximum lifetime benefit of $2,000.00 per covered individual pre-authorization must be obtained for treatment or services expected. Coverage ceases on the last day of the term of office. However, expenses can be claimed if they were incurred before the date of termination, if the treatment commenced within a 90 day period prior to the date of the last premium payment. In this event, treatment would have to be completed within 30 days of the date of the last premium payment. Long Term Disability Cost Sharing: City of Edmonton 0% - Council Member 100% This Group Plan provides protection against loss of income to Councillors who are under the age 65 and unable to work due to a long-term disability. Benefits become payable after 85 continuous working days of disability subject to satisfactory medical evidence of the disability. Life Insurance 5 Cost Sharing: City of Edmonton 50% - Council Member 50% Coverage is provided world-wide every day of the year for death by any cause. (The Optional Group Life Insurance Benefit has some exclusions). Premiums paid by the City for life insurance are a taxable benefit. All Council Members who have one or more dependents must maintain dependent coverage under the Group Life Plan. The named beneficiary is revocable. To change a beneficiary, the appropriate forms must be completed. Death Benefit Dependent Coverage Single Coverage 2.5 times annual regular 1 times annual regular salarysalary-rounded to nearest rounded to nearest $1,000 or $1,000 or $64,000 for Councillors $160,000 for Councillors $122,000 for Mayor $305,000 for Mayor Termination and Conversion: If under 65 upon the conclusion of service with the City, this group life insurance continues for 31 days. During this period only, application may be made to have this life insurance coverage (or a portion of it) converted to an individual policy. Medical evidence will not have to be provided to convert to an individual policy. The rate for the individual premium will be based on sex, age, and whether or not a person smokes at the time of conversion. Dependents’ Group Life Insurance Cost Sharing: Council Member - 100% Dependents’ Group Life Insurance provides coverage for spouses and/or dependent children. All Members of Council will be automatically covered under the Plan if maintaining dependent coverage (i.e. 2.5 times annual salary) under the Group Life Plan. 6 Spouse $12,500 (fixed amount) Death Benefit Dependent Children $5,000 per dependent ($2,500 if the child is under 14 days of age or stillborn from a pregnancy that existed at least 7 months) Optional Group Life Insurance Plan Cost Sharing: Council Member - 100% Coverage can be purchased in multiples of $25,000. to a maximum of $250,000. Cost varies between age bands, gender, and whether or not a person smokes. To be considered a non-smoker, applicants must not have used tobacco products (cigarettes, pipes, cigars, cigarillos, chewing tobacco, nicorette gum and nicotine patches) within the past 12 months. Coverage is subject to insurability of the member, and those over the age of 65 years of age are not eligible. Other Voluntary Benefit Plans Alberta Blue Cross Annual Blue Travel Insurance Alberta Blue Cross Annual Blue Travel Insurance provides health care coverage for personal trips outside of Alberta. Coverage is for trips up to 30 days in length and is applicable for one year from date of application. Extended coverage can be obtained for trips that extend past 30 days, by applying directly to Blue Cross. As of July 1, 2002, a pre-existing condition clause for all ages has been added to the Blue Cross Coverage. There are no age restrictions for you or your spouse. You must be actively at work to qualify for the special rates. Coverage is effective on the date of application and must be renewed annually. 7 Canada Savings Bonds Payroll Savings Plan Council Members may purchase Canada Savings Bonds through payroll deductions. Once signed up, bond purchases are deducted from each pay. During the City’s annual Canada Savings Bond sales period, in October, changes in contribution amount or opening a new plan is allowed, if for example, purchasing bonds for someone else. If changes are required at other times of the year, contact the Payroll Department. If leaving the City, arrangements can be made to have bond purchases continue by debit from a personal bank account or through a new employer (assuming they sponsor the new Payroll Savings Program). Home and Automobile Insurance Group Plan This voluntary plan allows members to obtain group rates on personal, home and automobile insurance. A Council Member, if interested, can receive a “no-obligation” quotation by calling AON Reed Stenhouse at 423-1444. Registered Retirement Savings Group Plan A Council Member may voluntarily participate in a Group RRSP, by electing to make bi-weekly contributions to the plans offered by Great West Life Assurance or the Toronto Dominion Bank. 8