Employee Benefit Trust Minutes - 12/04/2008 •
CITY OF WICHITA FALLS
EMPLOYEE BENEFITS TRUST BOARD MEETING
December 4, 2008
Present: Bill Sullivan, Chair
Darron Leiker, City Manager
Jim Dockery, Asst. City Manager/CFO
Tammy Guerra, Human Resource Manager
Gail Garmon, Employee Benefits Coordinator
Cassie Stennett, Broker
The meeting was called to order at 10:00 a.m.
Agenda Items:
Approval of Minutes
Jim Dockery made a motion to accept the minutes of the last meeting. Darron Leiker
seconded the motion. Motion carried.
Financial Report � esA ' ,+
Jim Dockery gave a financial report through September, 2008, swing paid claims and
administration fees to that date at about 1.5 million dollars/ He stated that the 7%
premium increase to employees and retirees and the 4% increase to the City's
contribution would produce about $400,000 in additional revenue for the coming year.
He further stated that with the current trend in increased expenses, the increase might fall
short of what is needed.
Darron Leiker inquired as to how the Flex spending accounts had ended the year. Jim
stated that those figures were not yet in and will come from Alt Benefits after the first of
the year.
Bill Sullivan inquired as to how many retirees who may have previously dropped
coverage came back onto the plan during open enrollment. Gail Garmon stated that only
one retiree had chosen to come back onto the plan.
Irrevocable Trust Agreement with ICMA
Jim Dockery informed the Board that the papers for forming the Irrevocable Trust for
purposes of funding the City's retiree future liability were ready to be signed. He noted
that the City would start with the Traditional Growth investment option, which should
yield about 5% per year. To get a return of 7%, it might be necessary to move into the
stock market in the future.
Darron Leiker noted that this would be the wrong time to get into the stock market and
agreed that the Traditional Growth option was the best choice for now.
Jim made a motion to adopt the Irrevocable Trust agreement. Tammy Guerra seconded
the motion. Motion carried. Bill Sullivan, as Trustee, signed the agreement. The signed
papers will be forwarded to Chris Solimine with ICMA.
Renewal Bids
Cassie Stennett, broker, was present to present the renewal bids from ING (stop loss) and
Blue Cross Blue Shield.
Cassie reported that the original Blue Cross renewal bid had been an increase of 6.13%
over last year and that she had negotiated that down to 4.51%. The new rate brings the
total yearly Blue Cross administration cost from the current$564,000. to $590,000.
Bill Sullivan inquired as to the guaranteed cap on increases from Blue Cross. Cassie
stated that the guaranteed cap was 10%.
The Board expressed a desire to get more detailed reports from the Blue Cross system.
Cassie will schedule additional training for February.
Cassie then presented the ING bid for the City's stop loss coverage. The current ING
contract has a $225,000 specific limit and rates of $6.10 aggregate, $8.79 single, and
$25.98 family, for a total yearly cost of approximately $230,000. The proposal for that
same contract was $6.10 aggregate, $10.20 single, and $25.98 family, for a yearly total of
approximately $267,000. After much discussion Bill Sullivan made a motion that the
Board accept ING's alternate bid of $245,000 specific limit, $6.10 aggregate, $9.32
single, and $27.54 family, for a yearly total or approximately$244,000. Darron seconded
the motion. Motion carried.
Cassie stated there would be no changes to the Walgreen's Health Initiatives contract.
She informed the Board that this group averages between $14,000-15,000 per quarter in
rebates through its coalition participation with Pharmaceutical Strategies Group (PSG).
The meeting was adjourned at 12:00 p.m.