Item Coversheet
Pittsfield Charter Township

6201 West Michigan Avenue, Ann Arbor, MI 48108
Phone: (734) 822-3135  I  Fax: (734) 944-6103
Website: www.pittsfield-mi.gov


Office of the Supervisor
 
 


MEMORANDUM
 
 


TO:
Pittsfield Charter Township Board of Trustees
 
THROUGH:
Mandy Grewal, Supervisor

FROM: 
Patricia Denig, Director of Human Resources

DATE:

October 28, 2020

SUBJECT:

Authorize the Supervisor and Clerk to enter into an Agreement for employer provided insurance benefit rates for 2021, subject to Township Attorney approval


BOARD ACTION REQUESTED:

Authorize the Supervisor and Clerk to enter into an Agreement for employer provided insurance benefit rates for 2021, subject to Township Attorney approval.

BACKGROUND:

This agreement is for employer provided insurance benefit rates for 2021 provided to all Class I: Full-time elected officials and employees of the Township not covered by collective bargaining agreements, and Class II: Full-time employees of the Township covered by collective bargaining agreements:

 

  • Dental Insurance – Delta Dental
  • Health Insurance – Blue Cross/Blue Shield PPO  
  • Life, Accidental Death & Dismemberment (AD&D) and Long-Term Disability (LTD) Insurance –Hartford Life Insurance Company
  • Voluntary Supplemental Insurance  AFLAC

 

Employer provided health insurance, dental insurance, and life insurance benefits are reviewed and renewed or modified as deemed necessary and appropriate on an annual basis. The following is a synopsis of the aforementioned benefit rates for 2021:

 

Health Insurance – The 2021 rates show a 42.85% decrease from 2020 rates due to the elimination of the Division 0003 Health Insurance Plan (as negotiated through our collective bargaining agreements 2019-2021), for an estimated annual expense of $1,562,615.52.

 

Dental Insurance – The 2021 rate had 0.00% increase from 2020, as rate lock from 2019-2020 was offered for 2021, with an estimated annual expense of $110,503.44. 

 

Life, AD&D and LTD Insurance – The 2021 rates had a 0.00% increase from 2020 as rate was locked in for a two-year period (2020-2021), with an estimated annual expense of $30,123.07.

 

AFLAC Voluntary Supplemental Insurance – The Township is transitioning to a group policy for AFLAC Voluntary Supplemental Insurance to provide lower rates to employees.  There is no cost to the employer for this voluntary benefit, all premiums are paid solely by the employee if they elect coverage.

IMPACT ON TOWNSHIP'S HUMAN RESOURCES:

Human Resources will continue to monitor monthly billings to ensure that all eligible employees are listed and billed within the appropriate categories for this benefit, and, ensure that bills are submitted in a timely fashion to the Finance Department for processing payments.



IMPACT ON TOWNSHIP'S BUDGET:

The Township has budgeted for the level of benefits in the 2021 budget. 



IMPACT ON INDIRECT COST:

None



IMPACT ON OTHER TOWNSHIP DEPARTMENTS OR OUTSIDE AGENCIES:

None



CONFORMITY TO TOWNSHIP POLICIES:

Conforms

ATTACHMENTS:
Description
Pittsfield Charter Township Employer Provided Renewal Packet