AGENDA #12

memorandum

to:                  Mayor and Town Council

from:            W. Calvin Horton, Town Manager

subject:      Information on Eligibility for Dental Insurance Participation for Council Members on the Same Basis as Regular Employees

date:            February 27, 2006

PURPOSE

The purpose of this report is to provide information on the costs and steps needed to allow the Mayor and Council members to participate in the Town’s voluntary dental insurance plan on the same basis as regular employees.

BACKGROUND

The dental insurance plan is fully paid by the employee with no contribution from the Town. The current carrier has said that it is willing to allow the Town’s contract to be revised to include Council members on the same basis as regular Town employees, if the Town Council acts to make this eligibility change. 

DISCUSSION

The terms of the contract with the insurance carrier would require that Council members elect coverage within 30 days of first eligibility, such as within 30 days of being sworn in or within 30 days of the benefit first being offered.  After 30 days, Council members would not be eligible to participate in the plan until the next annual enrollment period. These are the same rules governing the policy for regular Town employees.

By adopting the attached resolution, the Council would make its members eligible for participation in the voluntary dental insurance on the same basis as regular employees. The Town’s personnel ordinance and the contract with the Town’s dental insurance provider would also be amended.

RECOMMENDATION

That the Council take such action as it desires.