City Employee Benefits
- Retirement
- Deferred Compensation
- Dental
- Medical
- 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). Currently the City contributes approximately 16.17% (33.87% for Police & Firefighters) and the employee contributes 5% (8% for Police & Firefighters “hazardous duty”). Police Officers and Firefighters do not pay into social security (6.2%), but do pay Medicare (1.45%). Employee contributions are tax-deferred and are refundable upon termination of employment with the City. Therefore, you will need to select a beneficiary for your share of the contributions. Employees must pay into the CERS system for five (5) years before becoming vested for retirement benefits and ten (10) years before becoming vested for medical benefits. Payments are made by payroll deduction, and will begin with the first paycheck. Employment with other KRS approved positions can be counted towards retirement with the CERS. These positions must be held with a state, county, university or military employer. |
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| The retirement benefit is based on the following formula: Years of Service X Benefit Factor of 2.0% (2.5% for Hazardous Duty) X Final Compensation |
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| Retirement Age & Benefits: | |
| Age 65 | Full Benefits |
| Age 55 | Reduced Benefits |
| 27 Years of Service | Full Benefits regardless of age (20 Years for “hazardous duty”) |
| Other benefits provided through this retirement plan include disability, medical and death benefits. | |
| Effective Date: Date of Hire | |
Other benefits provided through this retirement plan include disability, medical and death benefits.
Sworn police officers and firefighters are covered under a hazardous duty provision, which has a higher benefit factor, lower retirement age, and dependent medical benefits upon retirement. Sworn personnel pay into Medicare but not FICA.
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| The City offers two supplemental retirement plans through payroll deduction; 401(k) Kentucky 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 the 401K and a minimum of $15.00 for the 457 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. | ||
| ENROLLMENT PERIOD: | Quarterly | |
| EFFECTIVE DATE: | The first day of the month after the month of hire. | |
| 457 ICMA - RC | 401 (k) KY DEFERRED COMP | |
| Deferral Amounts (after salary is adjusted for employee retirement contri | Can defer maximum of $15,500/yr in 07, increasing $500/yr thereafter. Up to twice the applicable annual limit. Other limitations may apply. | Can defer maximum of $15,500/yr in 07, increasing $500/yr thereafter. Participants age 50 and over are allowed to make additional deferrals. |
| When are Benefits Available? | Termination of employment (no tax penalty for distributions before 59 ½ & upon termination) Retirement (no minimum age) Death Unforeseeable emergency | Termination of employment (10% tax penalty may apply if premature) Age 59 ½ Retirement (55 minimum age) Death Hardship withdrawal (10% penalty) |
| When do Benefits Begin? | Must begin on April of calendar year following attainment of age 70 ½ (but can start earlier). May elect earlier Benefit Commencement Date, but election must be made within 60 days of termination of employment. 1/97 law allows one-time postponement of beginning payment date elections. | Automatically at age 65 (if retired from same employer) but not later than April of calendar year following attainment of age 70 ½. Benefit Commencement Date may be elected any time after termination, before age 65. |
| Rollovers | Can transfer to/from another 457 Plan, a qualified 401(k), a tax-sheltered 403b annuity plan, or a traditional IRA | Can roll over to/from other qualified plans or IRA’s under certain circumstances. 401(k) usually limited to private sector but KDC is grand fathered. |
| Other | 1/97 law: all amounts deferred must be held in trust for exclusive benefit of plan participants and/or beneficiaries. 1/97 law: will permit loans. | Deferrals and earnings are put in trust in employee’s name immediately. Can borrow up to 50% of account ($1,000 minimum). |
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| HumanaDental is the carrier currently utilized for dental coverage. Employees are required to use a network of dentists. The City will pay for 100% of single coverage (rate sheets separate). There is a non-network benefit of 50% of usual and customary, but more out-of-pocket for employee. | |
| The cost for family coverage will be payroll deducted from the employee’s paycheck. Payroll deducted amounts are tax-deferred. If family coverage is not selected initially but is later added due to a change in family status, notification of the change in enrollment status must be submitted within 30 days of the qualifying event. Student status is required for dependents after age 19 until age 24. | |
| DEDUCTIBLES: | NONE |
| MAXIMUM BENEFIT YEAR LIMITS: | $1,000 annually -- for all procedures; per person $ 500 annually -- for orthodontic procedures (children only) (With a $1,000 Lifetime Maximum) |
| ENROLLMENT PERIOD: | July 1 -- Family coverage can be dropped or added at any time during the year, if there has been a change in family status (marriage, divorce, job changes, etc.). Otherwise, coverage can only be dropped/added during open enrollment, effective July 1. |
| EFFECTIVE DATE: | The first day of the month after the month of hire. |
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| The City is operating under a “self-insured” medical insurance program. The Third Party Administrator is Humana National POS. The level of Employee contributions are set by the Plan Administrator. The employee’s portion of the premium is deducted from their paycheck each pay period. The payroll deduction is tax deferred. (Rate sheets separate) |
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| There is an annual deductible that begins each January 1. The deductibles are as follows: | ||
| Single | Family | |
| Annual Deductible | $200 | $400 |
| Maximum out-of-pocket | $500 | $1,500 |
| Once the deductibles are met, the plan covers 80% of allowed charges, if a network provider is utilized. Once the out-of-pocket limit is met, the plan generally pays 100% of allowed charges. | ||
| Some services are covered at 100% and are not subject to the deductible, such as: >Preventive Care >Pre-admission Testing >Second Opinions >Out-patient Surgical >Other |
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| If a non-network provider is utilized, without referral from a network physician, 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. 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. In the event of an accident, the plan will pay for the first $300. Anything over the first $300 will be applied toward the deductible. Once the deductible is met, the plan will begin to cover 80% of allowable charges beyond the $300. In order for an incident to be classified as an accident, treatment must be sought within the first 72 hours of the injury. Vision Rider: The City’s Medical plan contains a vision rider. Anyone the employee covers on medical will automatically have access to the vision rider. There is not cost for the vision rider for employee only. There is an additional cost for employee plus one or more (rate sheet separate) |
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| EFFECTIVE DATE OF COVERAGE: | The first day of the month after the month of hire. | |
| PRE-EXISTING CONDITION CLAUSE: | 6 Months -- (existing medical conditions for which you are receiving treatment, will not be covered until after the first 6 months -- unless certificate of previous coverage is provided) | |
| ENROLLMENT PERIOD: | Annually -- Open enrollment begins each May with changes becoming effective July 1; changes can be made throughout the year for changes in family status (marriage, divorce, birth, change in job status, etc.) within 30 days of the event | |
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| 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”. |
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| ENROLLMENT PERIOD: | Annually -- open enrollment begins in May with any changes becoming effective July 1. |
| EFFECTIVE DATE: | The first day of the month after the month of hire. |
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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. A check will then be issued with the following payroll check. All claims incurred during the previous plan year must be submitted by August 30. 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, 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 (June 30) or posting a credit balance with the doctor’s office.
MINIMUM / MAXIMUM CONTRIBUTIONS:
- Dependent Care: $5,000 for married couples filing jointly or for single parents
- (Maximums): $2,500 for married couples filling separately
- Medical Reimbursement:
$ 260 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. |
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The City pays the entire Employee monthly premium for the Vision Plan. Employees are given a choice of a "tier" family plan which is similar to the dental plan. Employees can either enroll in Employee + one dependent or Employee + family coverage.
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.
BENEFITS FOR NETWORK PROVIDERS
CO-PAYS:
$10 — Examinations once every 12 months
$10 — Frames – once every 24 months, Lenses – once every 12 months
In lieu of spectacle lenses and a frame, one may choose contact lenses once every 12 months. A $105 credit will be applied toward the cost of the fitting, evaluation, and contacts.
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| PAID LEAVE • 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: New employees will accrue leave, but will not be allowed to use sick and vacation leave until after three full months of employment. 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). NOTE: Full-time and non-classified employees who work each six month period and use less than a day of sick leave will be rewarded with a $50 savings bond. At the end of the year, there will be a drawing of eligible employees for one or more grand prizes totaling $1,000. 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. Only classified and non-classified employees of the City are eligible to voluntarily participate in the SLB. The employee must have accumulated at least 10 days of sick leave in order to join. ENROLLMENT PERIOD: June & December -- one day will be assessed each June and December until a total of two days have been donated into 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. The employee must have accumulated at least 30 days of sick leave in order to join. An employee cannot be a member of the Sick Leave Bank and the Disability Leave Bank. Employees with 120 or more accrued sick days do not have to contribute days to gain membership. ENROLLMENT PERIOD: June & December – one day will be assessed each June and December, as long as the employee is a member of the DLB, unless the employee has 120 or more accrued sick days. DIRECT DEPOSIT Payroll checks are issued every two weeks. Employees have an option to have these checks direct deposited into the bank of their choice by completing an enrollment form with the Payroll Division, 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 IRA. This deduction is not pre-taxed. Changes in the deduction amount are allowable quarterly. ENROLLMENT PERIOD: Quarterly EFFECTIVE DATE: Within 90 days of hire date. SHORT-TERM DISABILITY & CANCER INSURANCE Employees will have the option to purchase short-term disability (accident and/or sickness) and cancer insurance through Colonial Life Insurance Company during the first month of employment. If they elect not to participate at that time, then they must wait until the next enrollment period. ENROLLMENT PERIOD: Annually -- Open enrollment will begin in May with changes becoming effective July 1. Back Up ^ |
| EMPLOYEE ASSISTANCE PROGRAM The City has provided its classified 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 ^ |