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HomeMy WebLinkAboutResolution 5305-11-2020 A Resolution NO. 5305-11-2020 AUTHORIZING A"PREMIUM HOLIDAY" FOR ACTIVE EMPLOYEES DURING THE DECEMBER PAY PERIODS AND USE OF$1,100,000 OF FUND BALANCE TO OFFSET THE COST OF THE "PREMIUM HOLIDAY" WHEREAS, the City of Fort Worth("City") self-funds its health insurance plan("Plan") available to eligible and participating employees,retirees, spouses and dependents; WHEREAS, the Plan offers both a health center and a consumer choice option for participating active employees; WHEREAS, the active employees/members participating in the Plan exercised good healthcare decisions during fiscal year 2020 and utilized the various options available through the Plan,which has resulted in a financial surplus in the Plan for active participating employees; WHEREAS, the Plan ended fiscal year 2020 with approximately a $9,000,000 surplus for participating active employees/members, which adds to the existing fund balance of approximately$11,000,000 in the Plan; and WHEREAS, the City Manager's Office recommends using a portion of the fund balance in the Plan for a "premium holiday" that excuses premium payments for active employees participating in the Plan for both pay periods in December, at a total cost of approximately $1,100,000. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,TEXAS,THAT: 1. No healthcare ,premiums will be deducted from the paychecks of active employees who are participants in the Plan, for either pay period in December 2020 (Pay Period 25 and Pay Period 26). 2. Use of approximately $1,100,000 from fund balance in the Plan to offset the cost of forgiving the premium payments in December for active employees who are participants in the Plan is hereby authorized. Adopted this 17'h day of November 2020. ATTEST: By: F FQ/y>,� Mary J. Kayser,City Secretary '•4 AS