Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Employee Benefits topic
No spam. Unsubscribe anytime.
Muskego Finance Committee approves inclusion in state income continuation insurance plan
Summary
The Muskego City Finance Committee voted unanimously Sept. 17 to approve a resolution to include city employees in the Wisconsin Retirement System/ETF income continuation insurance plan, a voluntary short- and long-term disability option currently on a premium holiday.
The Muskego City Finance Committee voted unanimously Sept. 17, 2024, to approve a resolution to include city employees in the income continuation insurance plan administered through the Wisconsin Retirement System and the Employees Trust Fund (ETF).
City staff described the plan as a voluntary benefit that would function like short- and long-term disability insurance. Kate, a staff presenter, said the plan would cover up to 75% of an employee's average annual earnings, capped at $120,000, in the event of disability, illness or accident. Benefits would continue until age 65 or until the employee was no longer disabled, she said.
Kate said the program is currently on a 'premium holiday' and therefore would have no immediate cost to the employee or the city if the municipality signs on. She said the city aims to open enrollment in November with an effective date of Jan. 1 (the transcript did not specify the year). When asked how long the premium holiday had been in effect, Kate said administrators could not provide a duration and that no plans to end the holiday had been reported to them.
Committee members pressed for clarity on costs if the premium holiday ended. Kate said the eventual cost would depend on the elimination period employees choose; she cited options ranging from 30 to 180 days and recommended the 30-day option. She added that if the premium holiday were discontinued, the city could opt out of the program at that time and that any return of employer costs would be brought back to the city council for a decision.
Kate also said a minimum participation threshold of 65% of city employees would be required to move forward with the program. The committee asked how the plan would interact with the city's existing optional short- and long-term disability offerings; staff said the current plans are funded by employee premiums and this ETF program would be an additional voluntary option.
The committee approved the resolution by voice vote. The next procedural steps described in the meeting were to proceed with enrollment outreach in November and to return to the council if any employer costs emerged once the premium holiday ends.
