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Home My Public Portal About04-010 RESOLUTION 04-010 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, AMENDING THE RESOLUTION OF BENEFITS BETWEEN THE CITY AND THE MAYOR AND CITY COUNCIL TO REFLECT THE TERMS OF THE NEW LONG TERM DISABILITY INSURANCE PROGRAM AND THE NEW LIFE INSURANCE PROGRAM WHEREAS, the City's Long Term Disability Insurance program will be insured and administered by Fortis Benefits Insurance Company ("Fortis") and will no longer be self-insured by the City. WHEREAS, the City has been informed of the requirements to be eligible for the maximum life insurance coverage provided to the Mayor and City Council. WHEREAS, the City has informed the Mayor and City Council regarding the change of the Long Term Disability program and Life Insurance program. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, HEREBY FINDS, DETERMINES AND RESOLVES AS FOLLOWS: Section 1. Section 3 of Article II of the Resolution of Benefits between the City and the Mayor and City Council as adopted by Resolution No. 03-072 is hereby amended to read as follows: Section 3 —Life Insurance Premium 3.1 The City shall provide the Mayor and City Council with basic term life insurance coverage of not less than two hundred fifty thousand dollars ($250,000.00) after an evidence of insurability (EOI) form is submitted and approved by the City's life insurance carrier; if the EOI form is nbt submitted, $110,000 is the maximum coverage and is subject to any age reduction schedules mandated by the insurance company. The Mayor and City Council shall have the right to purchase additional (supplemental) term life insurance through the City-sponsored programs using monies remaining from the monthly sum originally provided by the City for health insurance or, if none, by paying the additional premiums themselves through payroll deduction. The maximum additional term life insurance (supplemental insurance) the Mayor and City Council may purchase is up to the basic,minimum of$250,000, provided the EOI form is submitted and approved by the City's life insurance carrier. Otherwise, the maximum additional term life insurance (supplemental insurance) the Mayor and City Council may purchase is $110,000. Section 2. Section 7 of Article II of the Resolution of Benefits between the City and the Mayor and City Council as adopted by Resolution No. 03-072 is hereby amended to read as follows: Section 7—Long Term Disability Insurance Program 7.1 The City shall provide long term disability insurance (or "LTD") benefits for the Mayor and City Council as follows: a. The City shall provide an LTD insurance plan for the Mayor and City Council under the terms, requirements and conditions set forth Reso No. 04-010 Page 2 of 4 in the policy underwritten by Fortis Benefits Insurance Company ("Fortis"). b. The City's existing Self-Funded Disability Plan dated September 1988 ("Self-Funded Plan") shall cease for the Mayor and City Council upon the effective date of the Fortis. LTD Plan and thereafter the Mayor and City Council shall be covered by the Fortis LTD Plan, except for elected officials with approved claims under the Self-Funded Plan existing prior to that date ("existing LTD claimants"). As to such existing LTD claimants, the City has contracted with Fortis to provide claims administration services, effective August 1, 2003. The administration of the LTD claims for existing LTD claimants shall thereupon be handled by Fortis under the same terms as those in effect on the date the existing LTD claimant became disabled. 7.2 The City shall provide short term disability insurance (or "STD") benefits for the Mayor and City Council as follows: a. Solely in order to provide a maximum 60-day waiting period, the City shall provide an STD insurance plan for the Mayor and City Council under the terms, requirements and conditions set forth in the policy underwritten by Fortis Benefits Insurance Company("Fortis"). Nothing herein shall bind the City to provide STD insurance coverage if an alternate LTD policy is available at a cost that is acceptable to the City with a 90-day waiting period. 7.3 After a maximum of a 60-day waiting period: (1) An elected official who has been employed with the City for 5 or more years, and who is disabled from his or her own occupation, shall be entitled to 66 2/3% of his or her base pay rate to a maximum pay rate of$7,500 per month at the commencement of disability leave up to age 65; and (2) An elected official who has been employed with the City for fewer than 5 years and who is disabled from his or her own occupation shall be entitled to 66 2/3% of his or her base pay rate to a maximum pay rate of$7,500 per month at the commencement of disability leave for 24 months. An elected official who has been employed with the City for fewer than 5 years and who is disabled from all occupations shall be entitled to 66 2/3% of his or her base pay rate to a maximum pay rate of $7,500 per month at the commencement of disability leave up to age 65. (3) There shall be no reduction of LTD or STD benefits for a workers' compensation award. (4) There shall be no exclusion for "soft tissue injuries", including but not limited to musculoskeletal and connective tissue disorders, strains and sprains of the cervical, thoracic and lumbosacral spine. Reso No. 04-010 Page 3 of 4 (5) The only allowable offsets are those listed in the Fortis LTD and STD policies. 7.4 The provision of the Fortis LTD Plan and the Fortis STD Plan is conditioned upon the following: (1) The continued availability of insurance coverage for LTD and/or STD at a comparable cost as set forth in the LTD and STD policies, subject only to increases in premium not to exceed applicable increases in the consumer price index for each year for the LTD and STD Plans underwritten by Fortis or other insurance carrier. (2) Eligibility for and administration of benefits under the Fortis STD Plan and the Fortis LTD Plan and including the determination whether an elected official is disabled from his or her own occupation, shall be determined by Fortis, and not by the City. (3) Eligibility for and administration of benefits for existing LTD claimants, including the determination whether an elected official is disabled from his or her own occupation, shall be determined by the City after consultation with Fortis. 7.5 Except as to the existing LTD claimants discussed in 7.1-b, above, the City is not required to provide LTD and/or STD coverage or benefits on a self-funded basis, now or in the future. The City reserves the right to change the LTD carrier and/or LTD benefits provided, on such terms as the City determines are in its best interests. 7.6 For injuries and other disabilities covered under California workers compensation laws, elected officials shall be paid their regular pay rate for up to seventeen (17) weeks from the date of such disability ("workers compensation leave") or until the City's workers compensation administrator terminates workers compensation leave either due to payment of a "compromise and release" settlement, a disability and/or service retirement, the elected official returns to work, or a refusal by the elected official to return to work following a determination by a physician that the elected official is no longer temporarily disabled, whichever comes first. In the event of a dispute between the treating physician and another physician as to the elected official's temporary disability status, such dispute shall be resolved in accordance with applicable California Workers Compensation laws. If an elected official is approved for workers compensation leave, the elected official shall not be eligible for STD or LTD benefits during the period of such workers compensation leave. LTD eligibility for elected officials who are still disabled after seventeen (17) weeks shall be determined by the terms of the LTD insurance plan described in section 7.1, above. Section 3. Except as herein amended, the Resolution of Benefits between the City and the Mayor and City Council as adopted by Resolution No. 03-072 shall remain in full force and effect. Reso No.04-010 Page 4 of 4 PASSED,APPROVED AND ADOPTED THIS 6th DAY OF JANUARY, 2004. PRESID F CER ATTEST: CITY CLERK APPROVED AS TO FORM: // )-"i " - CITY VORNEY cAMyDocs\Personnel\City Council\Reso No.04-010 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF CARSON ) I, Helen S. Kawagoe, City Clerk of the City of Carson, California, do hereby certify that the whole number of members of the City Council is four; that the foregoing resolution, being Resolution No. 04-010 as duly and regularly adopted by said Council at a regular meeting duly and regularly held on the 6th day of January, 2004, and that the same was passed and adopted by the following vote: AYES: COUNCIL MEMBERS: Presiding Officer Raber, Dear, and Santarina NOES: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Calas City Clerk, City of Carson, alifornia i