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Home My Public Portal About04-012 RESOLUTION 04-012 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, AMENDING THE RESOLUTION OF BENEFITS BETWEEN THE CITY AND UNCLASSIFIED EMPLOYEES 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 Unclassified employees. WHEREAS, the City has informed Unclassified Employees 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 III of the Resolution of Benefits between the City and Unclassified Employees as adopted by Resolution No. 03-071 is hereby amended to read as follows: Section 3 —Life Insurance Premium The City shall provide the Director of Public Works, Director of Parks and Recreation, Director of Human Resources, Director of Public Safety, Director of Finance and City Engineer with basic term life insurance coverage of not less than one hundred fifty . ,Ihousand dollars ($150,000.00) after an evidence of insurability (EOI) form is submitted and approved by the City's life insurance carrier; if the EOI form is not submitted, $110,000 is the maximum coverage and is subject to any age reduction schedules mandated by the insurance company. The City shall provide the Administrative Services General Manager, Public Services General Manager, Development Services General Manager, Economic Development General Manager and Assistant City Manager with term life insurance coverage of not less than two hundred thousand dollars ($200,000.00) after an evidence of insurability (EOI) form is submitted and approved by the City's life insurance carrier; if the EOI form is not submitted, $110,000 is the maximum coverage and is subject to any age reduction schedules mandated by the insurance company. The City shall provide the City Manager with 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 not f submitted, $11 0,000 is the maximum coverage and is subject to any age reduction schedules mandated by the insurance company. All employees 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 'the employees' health insurance, or, if none, by paying the additional premiums themselves through payroll deduction. The maximum additional (supplemental) term life insurance an employee may purchase is up to the basic minimums listed above for each classification, provided the EOI form is submitted and approved by the City's life insurance carrier. Otherwise the maximum additional term life insurance (supplemental insurance) an employee may purchase is $110,000. Reso No. 04-012 ° Page 2 of 4 Section 2. Section 4 of Article III of the Resolution of Benefits between the City and Unclassified Employees as adopted by Resolution No. 03-071 is hereby amended to read as follows: m Section 4—Long Term Disability Insurance Program 4.1 The City shall provide long term disability insurance (or "LTD") benefits for each full-time employee ("covered employee") as follows: a. The City shall provide an LTD insurance plan for each covered employee under the terms, requirements and conditions set forth 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 all covered employees upon the effective date of the Fortis LTD Plan and thereafter all covered employees shall be covered by the Fortis LTD Plan, except for employees 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. 4.2 The City shall provide short term disability insurance (or "STD") benefits for each full-time employee ("covered employee") as follows: a. . Solely in order to provide a maximum 60-day waiting period, the City shall provide an STD insurance pjan for each covered employee 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. 4.3 After a maximum of a 60-day waiting period: (1) An employee 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 employee 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 employee 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. Reso No. 04-012 Page 3 of 4 ty a (3) There shall be no reduction of LTD or STD be nefits for a compensation award. workers' (4) There shall be no exclusion for "soft tissue injuries", includin but not limited to musculoskel�tal and connective tissue disorders strains sprains of the cervical, thoracic and lumbosacral Spine. and (5) The only allowable offsets are those listed in th policies. e Fortis LTD and STD 4.4 The provision of the Fortis LTD Plan and the Fortis STD Plan is conditi the following: oned upon (1) The continued availability of insurance coverage for LTD and/or STD comparable cost as set forth in the LTD and STD policies, subject only to at a increases in premium not to exceed applicable increases in the consumr price index for each year for the LTD and STD Plans underwritten by Forties or other insurance carrier. (2) Eligibility for and administration of benefits under the Fortis STD Plan the Fortis LTD Plan and including the d etermination whether an employee nd disabled from his or her own occupation, shall be determined by Fortis, and a not by the City. (3) Eligibility for and administration of benefits for existin LTD claimants, including the determination whether an employee is disabled from his or own occupation, shall be determined by the City after consultation her l Fortis. with 4.5 Except as to the existing LTD claimants discussed in -b J required to provide LTD and/or STD covera e or benefits above, the City is not now or in the future. The City reserves the nght to chap o t n a self funded basis, LTD benefits provided, on such terms as the City e LTD carrier andlor;-interests. h are in its best 4.6 For injuries and other disabilities covered under California workers com ensation employees shall be paid their regular pay rate for up to seventeen (17) weeks from Ws�date of such disability the 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 retirement, the employee returns to work or a r and/or service work following a determination by a � �sal by the employee to rphysician that the employee is no longer temporarily disabled, whichever comes first. In the event of a dispute between the treating physician and another physician as to the employee's temporary disability status, such dispute shall be resolved in accordance with applicable California Workers Compensation laws. If an employee is approved for workers compensation leave, the employee shall not be eligible for STD or LTD benefits during the period of such workers compensation leave. LTD eligibility for employees who are still disabled after seventeen (17) weeks shall be determined by the terms of the LTD insurance Ian a p described in section 4.1, above. 3, Ae'so,No. 04-012 Page 4 of 4 , 4.7 Employees may use annual leave, administrative leave or sick leave for the additional one-third (1/3) of his or her salary while on long term disability. Section 3. Except as herein amended, the Resolution of Benefits between the City and Unclassified Employees as adopted by Resolution No: 03-071 shall remain in full force and effect. PASSED, APPROVED AND ADOPTED THIS 6`h DAY OF JA NUARY, 2004. PRIES FICER ATTEST: CITY CLERI� APPROVED AS TO FORM; CITY ATTORNtTy c:UlyDOCSIPersonneRUnc lass ifiedVteso No.04-012 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. 04-012 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, D ear, NOES: COUNCIL L MEMBERS: and Santarina None ABSTAIN: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Calas TO City Clerk, City of Carson, Cali`L'orn�ia