Agenda 03/25/2008 Item #16E 4
Agenda Item No. 16E4
March 25, 2008
Page 1 of 5
EXECUTIVE SUMMARY
Recommendation to approve an amendment to the Collier County Group Health and
Flexible Reimbursement Insurance Plan effective January 31, 2008 to recognize the
Voluntary Separation Incentive Program.
OBJECTIVE: To receive approval of an amendment to the Collier County Group Health and
Flexible Reimbursement Insurance Plan effective January 31, 2008 to recognize the Voluntary
Separation Incentive Program.
CONSIDERATIONS: The Board of Commissioners provides group health insurance
coverage to its employees through a partially self-insured group health program. This program
utilizes a Master Plan Document (the Policy or Plan Document), which governs covered
benefits and exclusions. The County's third party claims administrator, Meritain, Inc., utilizes
this document to adjudicate claims. The Plan's reinsurers use the document to determine
reinsurance pricing and reimbursement eligibility.
,-
On January 29, 2008 the Board approved a Voluntary Separation Incentive Plan, whereby
eligible employees are given the option to voluntarily separate from employment in exchange
for the provision of extended health insurance benefits; cash; or a combination of both. At the
recommendation of the County's Benefits and Actuarial Consultant, Willis, Inc., an amendment
to the Group Health Plan Document is needed to prevent the treatment of extended health
insurance benefits as a taxable benefit. An amendment is also necessary to provide guidance
to the claims administration company, Meritain, Inc., as to the eligibility and proper adjudication
of claims presented by those employees who have separated from employment under the
program.
A Plan amendment has been prepared by Meritain, Inc. and has been reviewed and approved
by Willis, Inc. It has also been reviewed and approved by the County's reinsurance carrier,
Greenwood International.
No other changes are recommended to the design of the Health Plan. No changes are
recommended to the Flexible Reimbursement Plan. Once approved by the Board of
Commissioners, each employee will be provided a copy of the document.
FISCAL IMPACT: There is no fiscal impact associated with this Plan Amendment.
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with
this item.
RECOMMENDATION: It is recommended that the Board of Commissioners approves an
amendment to the Collier County Group Health and Flexible Reimbursement Insurance Plan
effective January 31, 2008 to recognize the Voluntary Separation Incentive Program.
~
PREPARED BY:
Jeff Walker, CPCU, ARM, Director Risk Management
Page I of I
Agenda Item No. 16E4
March 25, 2008
Page 2 of 5
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
Item Summary:
16E4
Recommendation to approve an amendment to the Collier County Group Health and Flexible
Reimbursement Insurance Plan effective January 31,2008 to recognize the Voluntary
Separation Incentive Program.
Meeting Date:
3/25/20089:00:00 AM
Approved By
Jeffrey A. Walker, CPCU,
ARM
Risk Management Director
Date
Administrative Services
Risk Management
2129/200810:20 AM
Approved By
Len Golden Price
Administrative Services Administrator
Date
Administrative Services
Administrative Services Admin.
3111/200811:42 AM
Approved By
OMS Coordinator
Applications Analyst
Date
Administrative Services
Information Technology
3/11/20081:42 PM
Approved By
Laura Davisson
Management & Budget Analyst
Date
County Manager's Office
Office of Management & Budget
3/17/20088:24 AM
Approved By
James V. Mudd
Board of County
Commissioners
County Manager
Date
County Manager's Office
3/17/20084:05 PM
file://C:\AgendaTest\Export\ I 03-March%2025,%202008\16.%20CONSENT%20AGENDA \... 3/19/2008
Agenda Item No. 16E4
March 25, 2008
Page 3 of 5
COLLIER COUNTY GOVERNMENT
Employee Benefit Plan
Amendment #6
Group Number: RB785
Effective January 31, 2008 the document specified above shall be amended as shown below:
The following Voluntary Separation Incentive Program ;s hereby added to the Termination of Benefits section:
TERMINATION OF BENEFITS
VOLUNTARY SEPARATION INCENTIVE PROGRAM
Medical coverage provided by the County with Meritain Health,m will be extended for those employees eligible for the
Voluntary Separation Incentive Program (VSIP). The Voluntary Separation Incentive Program (VSIP) will be extended to any
regular full-time employee who meets the eligibility criteria outlined below. Under this plan, if an eligible employee chooses to
take part in the program, the County will continue to pay the full premium costs for that employee's medical and dental
benefits for a period of three (3) years, or will provide a financial incentive in lieu of benefits if the employee so chooses.
Who is Eliqible?
1. Anyone enrolled in the Deferred Retirement Option Program (DROP).
2. In Regular Class and Senior Management Service Class Pension (defined benefit), anyone age sixty-two (62) or
more with a minimum of six (6) years of service, or thirty (30) years of service at any age under these categories.
3. In Special Risk Class Pension service, anyone age fifty-five (55) or more with a minimum of six (6) years of spec'
risk class service; OR anyone with twenty-five (25) total years of special risk class service AND age fifty-two (52),
OR twenty-five (25) years of special risk class service regardless of age; OR thirty (30) years of any creditable
service.
Medical Coveraqe
1. Eligible employees may elect to continue coverage at their current participation level (single or family medicallsingle,
single +1 or family dental).
2. You will not pay any medical or dental premiums - the County will pay the premium costs for three (3) years.
Premium costs are defined as total combined costs for the employee and Employer portions of medical I coverage.
3. Eligible employees may select a blended option of medical and dental coverage, together with a partial cash
payment.
Enrollment
1. Eligible employees will have a period of sixty (60) days to enroll.
2. The plan enrollment period begins on Thursday, January 31,2008 at 8:00 AM and ends on Monday, March 31, 2008
at 5pm.
3. Employees who meet the FRS eligibility criteria outlined above between April 1, 2008 and June 30, 2008 may also
participate in this program. To participate, those who fall into this category will be required to enroll during the sixty
(60) day window (1/31/08 to 3131108), but would not be considered to be enrolled into the plan until the date they
become eligible under FRS guidelines.
4. Once you make your election, you will have a period of seven (7) calendar days during which time you may change
or revoke your participation. After that time period, your election is considered final.
RB785 - #6 - 1/31108
Agenda Item No. 16E4
March 25, 2008
Page 4 of 5
Options (All references to dental coverage means the dental coverage provided by CIGNA, not Meritain Health'm)
Eligible employees who elect to participate in this program have five (5) options from which to choose:
OPTION 1: Medical and Dental coverage for a period of three (3) years.
Electing this option will allow you to continue your medical and dental coverage under the plans in which you are currently
enrolled, and the County will pay all premium costs during that time period.
OPTION 2: Medical and Dental coverage for a period of two (2) years, with a one year cash incentive. Electing this
option will allow you to continue your medical and dental coverage under the plans in which you are currently enrolled, and
the County will pay all premium costs during the two (2) year period. At the end of the coverage period, you will receive a
one-time cash p payment equal to 50% of one year's combined medical and dental insurance premium costs ($6,200), less
applicable payroll taxes.
OPTION 3: Medical and Dental coverage for a period of one year, with a two (2) year cash incentive. Electing this
option will allow you to continue your medical and dental coverage under the plans in which you are currently, enrolled, and
the County will pay all premium costs during the one year period. At the end of the coverage period, you will receive a one-
time cash payment equal to 50% of two year's combined medical and dental insurance premium costs ($12,400), less
applicable payroll taxes.
OPTION 4: A one time Cash Incentive in lieu of three (3) years of Medical and Dental benefits. Electing this option
provides for a one-time cash payment equal to 50% of three (3) year's combined medical and dental insurance premium
costs ($18,600), less applicable payroll taxes.
OPTION 5: Medical and Dental coverage payable until you reach age sixty-five (65), with a cash incentive for the
remaining months covered under the plan. Electing this option will allow you to continue your medical and dental
coverage until the end of the month in which you reach age sixty-five (65). At the beginning of the month following the date
you reach age sixty-five (65), you will receive a one-time cash payment equivalent to 50% of the calculated monthly value of
, medical and dental plan premiums ($516.67/month) for the remaining months in which you are eligible to participate in the
, plan, less applicable payroll taxes.
NOTE: ANY EXTENSIONS PROVIDED UNDER OPTIONS 1, 2, 3 OR 5 WILL RUN CONCURRENT WITH COBRA
COVERAGE. AN ELIGIBLE EMPLOYEE/DEPENDENT WILL RECEIVE A COBRA NOTIFICATION FOR MEDICAL
COVERAGE FROM MERITAIN HEALTH AND THOSE GUIDELINES MUST BE FOLLOWED,
Separation
1. For employees who are eligible as of the date plan enrollment begins, your two (2) week notice period with the
County begins as of the date your election is considered final.
2. For employees who become eligible between April 1, 2008 and June 30, 2008, the date you become eligible under
FRS guidelines will start your two (2) week notice ending employment with the County.
RB785 - #6 -1/31/08
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Agenda Item No. 16E4
March 25, 2008
Page 5 of 5
The section "Amendment or Termination of the Plan" under General Provisions is hereby deleted and replaced with the
following:
GENERAL PROVISIONS
AMENDMENT OR TERMINATION OF THE PLAN
The Plan may be amended or terminated at any time without prior notice and, except as otherwise provided, in any manner,
by written authorization and signed by the Plan Administrator.
It is the intent of this Plan to comply with all applicable Federal and State laws. Wherever this Plan is in confiict with either
Federal or State law, the Federal or State law will prevail, unless exempt from either law.
In Witness Whereof, Collier County Government has caused this Amendment to take effect, be attached to, and form a part
of their Employee Benefit Plan.
Authorized Signature
Date
Title
Witness
Date
Title
RB785 - #6 - 1/31/08
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