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Session 1800 <br />January 8, 2001 <br /> <br />This change from being self-insured to purchase of insurance policies should result in <br />lower long-term expenditure levels, more predictable cost, professional benefit <br />administration as well as improved employee benefits. <br /> <br />Mr. Munkel moved approval. Mr. Sharpe seconded the motion. <br /> <br />Responding to Mr. Wagner, Mr. Ollendorff said that we were at the mercy of the market <br />to hike premiums. He believes it is guaranteed for only one year. 'The City typically <br />renews if the company remains competitive. If it isn't then the City will take new bids <br />and then come back to the City Council. <br /> <br />Responding to Mr. Sharpe, Mr. Ollendorff explained if the price got to a point where it <br />was more than the City could afford then we could go back to being self-insured, as we <br />are now. We could also go out for additional bids and see if a better price could be <br />obtained. The last thing we could do is to reduce the benefit that is paid out to the <br />employees. <br /> <br />Responding to Mr. Lieberman, Mr. OIlendorff said that he did not believe that this <br />requires an ordinance. The money would still be paid out of the pension fund just as it <br />is now. The difference is instead of the pension fund paying money to several different <br />employees. it would pay money to an insurance company. He has asked the City <br />attorney to look into adding a specific mention of this disability insurance when the next <br />pension amendment comes up. Responding further to Mr. Lieberman, Mr. Ollendorff <br />said that they are aiming to institute this by March 1st. This depends on the Pension <br />Board taking action on this later this month and then getting all the employees signed <br />up and registered. The most important step is to get the next pension ordinance <br />approved prior to this happening. <br /> <br />Responding to Mr. Sharpe, Mr. Ollendorff said that this would have to be approved by <br />the Pension Board to go into effect. This has been discussed with them over the past <br />year and they have recommended to Council that this be pursued. <br /> <br />Responding to Mr. Wagner, Mr. Ollendorff explained that the major advantage of <br />purchasing a disability insurance policy is that the City does not have to determine what <br />is a disability - the insurance company has to answer these questlens. Decisions will <br />be based on national insurance company standards which is more stable than having <br />the decisions made by a group of citizens that may feel one persorl's injury rates <br />differently than another person's injury. It will be a more consistent and fair process. <br />Mr. Wagner want s to make sure our employees are being treated fairly and we are not <br />dodging our responsibilities for someone injured on the job. Mr. Ollendorff said that the <br />two employees on the Pension Board are very much in favor of this insurance policy. <br /> <br />4 <br /> <br /> <br />