- Deferred Compensation
- Life Insurance
- Flexible Spending Accounts
- Vision Plan
- Additional Benefits
|The City participates in the CERS (County Employee Retirement System), under the KRS (Kentucky Retirement System).
Contribution Rates: FY2011 Employer contribution rates change every year and have increased substantially over the past decade.
Retirement Benefit Calculation: The retirement benefit is based on the following formula:
Retirement Age & Benefits:
|Age 65||Full Benefits|
|Age 55||Reduced Benefits|
|Non-Hazardous: No benefit reduction for retiring before age 65 with 27 Years of Service if hired prior to 9/1/2008; 30 Years if hired after this date.||Hazardous: No benefit reduction for retiring before age 65 with 20 Years of Service if hired prior to 9/1/2008; 25 Years of Service if hired after this date.|
|Effective Date: Date of Hire; also applies to numerous permanent part-time positions where annual hours worked qualify for coverage.|
Back Up ^
The City offers two supplemental retirement plans through payroll deduction; 401(k) Kentucky Public Employee Deferred Compensation and 457 ICMA-RC. Both plans are designed for long-term supplemental retirement benefits. Neither should be used as a temporary, short-term savings account. Employees can choose to tax defer a minimum of $15 per paycheck through payroll deduction for either plan. Employees can participate in one or both plans, with contributions up to the IRS annual maximum. These retirement plans are entirely optional and the City does not make any contributions into the plans.
HumanaDental is the administrator utilized for the City’s self-funded dental coverage. The City will pay for 100% of single coverage; dependent coverage options are available at the cost of the employee (rate sheets separate). There is a network of providers who will accept the usual and customary payment.
The cost for dependent coverage is payroll deducted from the employee’s paycheck. Payroll deducted amounts are tax-deferred. If dependent coverage is not selected initially but is later added due to a qualifying event, notification of the change in enrollment status must be submitted within 31 days of the qualifying event. Student status is required for dependents after age 19 until age 24.
MAXIMUM BENEFIT YEAR LIMITS:
$1,500 annually -- for all procedures; per person - increased from $1,000 eff. 1/1/2011
$1,500 lifetime max -- for orthodontic procedures (children only) – increased from $500/year/2 years eff. 1/1/2011
Preventative cleanings and visits are covered 100% using participating provider.
ENROLLMENT PERIOD: January 1 - Dependent coverage can be dropped or added at any time during the year, if there is a qualifying event (marriage, divorce, job changes, etc.). Otherwise, coverage can only be changed during open enrollment, effective January 1st.
EFFECTIVE DATE: The first day of the month after the month of hire.Back Up ^
The City has a “self-insured” medical insurance program. The Third Party Administrator is Humana National POS.
Employee premiums are established by the City annually. The City pays most of the employee’s premium and a major portion of the premium for dependent coverage. The employee’s portion of the premium is deducted from their paycheck each pay period. The payroll deduction is tax deferred. (Rate sheets separate)
PLAN DESIGN: There are three plans available: Plans 200; 400; and 750. These refer to the individual deductibles. The basic benefit design is the same for all three plans except with regard to the deductibles, out-of-pocket limits, and the premiums. Most benefits described are for in-network services. There is an annual deductible that begins each January 1. All three plans have the following in common, and assume use of in-network providers:
- Coinsurance and Office Visits: 80%/20% after deductible is met
- Emergency Room Visits: 80%/20% after deductible (50%/50% if does not qualify as an “emergency”)
- Prescription co-pays: $15 generic; $35 name-brand; there are several OTC medications that are available for $1 with prescription
100% COVERED BENEFITS: Some services are covered at 100% and are not subject to the deductible, such as:
- Preventive Care
- Pre-admission Testing
- Second Opinions
Out-Patient Surgery is paid at 100% after a $50 deductible.
OUT-OF NETWORK-PROVIDERS: If a non-network provider is utilized, the plan will only pay 50% of allowed charges, which may leave the employee owing the remaining 50% plus any charges that may exceed the allowed charges.
- However, in an emergency situation the closest physician and/or hospital may be utilized without penalty. E/R visits are paid the same regardless of whether an in-network or out-of-network provider is used, although a non-network provider may balance bill any charges that exceed allowed charges. An “emergency” does not include routine illness, such as the flu, stomachache, etc; but rather refers to life threatening illnesses such as a heart attack, threat to major organ, etc.
- For non-emergency situations, employees are encouraged to utilize an in-network urgent clinic or see their primary healthcare provider.
FAMILY ELIGIBILITY: The City’s plan requires that a spouse must take coverage with their employer if a group plan is offered. The spouse can have secondary coverage with the City. Children can be covered on the plan until they turn age 26.
EFFECTIVE DATE OF COVERAGE: The first day of the month after the month of hire.
ENROLLMENT PERIOD: January 1 - Dependent coverage can be dropped or added at any time during the year, if there is a qualifying event (marriage, divorce, job changes, etc.). Otherwise, coverage can only be changed during open enrollment, effective January 1.Back Up ^
TERM LIFE PROVIDED BY THE CITY
A $50,000 Term Life Insurance policy coverage is provided for each employee.
- This coverage is available only to the employee, does not carry a cash value, and coverage will terminate once employment with the City is terminated.
- Additional supplemental term life coverage up to $500,000 or five times your annual base salary is available to employees at varied, reasonable rates, depending upon age and amount of additional coverage desired. The cost of any additional coverage will be payroll deducted from the first two paychecks each month. This supplemental or voluntary term life is “portable” and can be changed to a “self-pay” status after leaving employment. To receive additional coverage, the employee must complete an “Evidence of Insurability Form”. During initial employment the employee may choose up to $100,000 of additional life insurance with out completing an “Evidence of Insurability Form”.
ENROLLMENT PERIOD: Anytime.
EFFECTIVE DATE: The first day of the month after the month of hire.Back Up ^
IRS Code Section 125 relating to pre-taxed insurance premiums also allows for the pre-taxed dependent care and medical reimbursement plans. The employee, through payroll deduction, projects for the fiscal year amounts to be used for either medical reimbursement or dependent care.
To receive reimbursement from a Flexible Spending Account, the employee must complete a claim form and provide the necessary receipts to the claims administrator. Checks are mailed to the employee’s designated address. All claims incurred during the previous plan year (calendar year) must be submitted by March 31. It is the employee’s responsibility to retain copies of all documentation for tax purposes.
Use It Or Lose It!!! If one contributes dollars to a reimbursement account and does not use all of the contributed funds, one will lose any remaining balance in the account at the end of the plan year. Therefore, it is extremely important to estimate expenses as accurately as possible. Ways to avoid losing funds include postponing some medical purchases until near the end of the plan year.
MINIMUM / MAXIMUM CONTRIBUTIONS:
- Dependent Care: (maximums) $5,000 for married couples filing jointly or for single parents; $2,500 for married couples filling separately
- Medical Reimbursement:
- $390 minimum contribution per year
- $3,500 maximum contribution per year
A medical reimbursement plan may be used to pay many types of medical expenses not covered under any other plan. Qualified expenses include: medical, drug, vision and dental insurance deductibles and co-pays not covered by insurance (excluding premiums); special medical equipment, physicals, braces, immunizations, birth control pills, etc.
Note that the 2010 health care reform act has affected eligibility of certain over the counter expenditures, and the allowed maximum contribution for medical reimbursement will be reduced to $2,500/year in 2013.Back Up ^
The City pays the entire Employee premium for the Vision Plan. Employees are given a choice of: Employee only; Employee + Spouse; Employee + Child(ren); and Family. Student status is required for dependents after age 19 until age 24.
There is a list of participating network providers. When choosing to go out of the network, reimbursement of expenses is given at a certain dollar amount. The following are in-network benefits amounts and frequency:
- Examinations: $10 co-pay; once every 12 months (contact lens exam options vary)
- Lenses: $0; once every 12 months (standard plastic single, bifocal or trifocal lenses); there are varying co-pay for different lens options (UV coating, tint, scratch-resistant, etc.)
- Frames: $130 allowance plus 20% off balance over $130; once every 24 months
- Contact lenses: Disposal allowance - $130; Conventional allowance - $130 and 15% off balance over $130; once very 12 months
• 1 Vacation Day per month -- may accumulate up to double what would be earned in a year’s time.
• 1 Sick Day per month -- may accumulate up to 180 days.
• One personal day after first of year following hire. If hired before July 1, will earn two personal days after first of year following hire.
• 10 Holidays per year.
NOTE: Police Officers and Dispatchers earn 1 1/4 vacation days per month; 7 holidays per year (earned by the quarter); one sick day per month.
NOTE: Firefighters earn 1 3/4 vacation days per month (1 shift off = 3 vacation days charged); earn 6 ½ holidays (6.5 shift days off, earned by quarter); earn 12 hours sick leave per month (1 shift off = 2 days charged).
SICK LEAVE BANK
The purpose of the Sick Leave Bank (SLB) is to provide sick leave to participating employees who have suffered an unplanned, non-work related personal illness, injury, disability or quarantine, and whose accumulated leave is exhausted. This would help to preserve an employee’s health insurance coverage while he/she is on extended leave and provides up to six weeks’ pay from the SLB. The employee must have accumulated at least 10 days of sick leave in order to join, and must contribute a minimum of two days to be a member of the bank.
DISABILITY LEAVE BANK
The purpose of the Disability Leave Bank (DLB) is to provide extended paid leave to participating employees who have suffered a non-work-related personal illness, injury or disability and whose accumulated leave is exhausted. This would preserve an employee’s health insurance coverage while he/she is on extended leave, and provides up to six months’ pay from the DLB. Only classified and non-classified employees of the City are eligible to voluntarily participate in the DLB.
Required for all employees. Payroll is processed every two weeks. Employees can direct deposited into the bank of their choice by completing an enrollment form and providing the required information about the bank account.
ROTH IRA ACCOUNTS
The City of Bowling Green offers a Roth IRA payroll deduction to all full-time and permanent part-time City employees thru ICMA RC Services. The benefit is totally voluntary and no deposits are made by the City. There is a $15.00 minimum deduction per paycheck, with the same yearly maximums as any other Roth IRA. This deduction is not pre-taxed. Changes in the deduction amount are allowable at any time.
SHORT-TERM DISABILITY & CANCER INSURANCE
Employees have the option to purchase short-term disability (accident and/or sickness) and cancer insurance through an insurance plan offered through the City’s insurance provider.
EMPLOYEE ASSISTANCE PROGRAM
The City has provided its employees and their immediate family members with a confidential counseling service since 1985. The Employee Assistance Program (EAP) provides professional assistance, at no cost to the employee, to resolve any personal or family problems that might affect the employee’s job performance. This service is provided by LifeServices EAP or LEAP effective 7/1/06. Not only are the typical programs of counseling offered, but other work life programs are offered on-site and on-line.
BENEFIT LEVEL: 6 Free visits per family member, per year, per problem
EFFECTIVE DATE: Date of hire.
CONTACT NUMBER: LifeServices EAP 1-800-822-4847
Back Up ^