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Reed City Council adopts updated Department Head benefits resolution
Summary
At its Dec. 9 meeting, Reed City Council adopted Resolution 2024-07 (effective July 1, 2024) updating department-head benefits: adjusted life insurance levels, clarified medical plans and employer "hard cap," set sick-leave accrual and payout rules, and detailed vacation, longevity and allowance provisions.
Reed City Council on Dec. 9 adopted Resolution 2024-07, revising the City's Department Head and Administrative benefits package effective July 1, 2024. The motion to accept the updated resolution was made by Council Member Trevor Guiles, seconded by Nate Bailey, and approved in a roll-call vote with all seven members voting yes.
The resolution sets term life insurance for department heads at $50,000 and increases the Chief of Police's term life coverage to $100,000. The city will offer three medical plans: Blue Cross Blue Shield SB PPO Gold 1500, Blue Care Network Gold Option B HMO and Blue Care Network HSA Gold Option C HMO; the cost-share is calculated against a treasury "hard cap," with employees responsible for amounts above that cap. Employees who choose an HSA plan and fall below the hard cap may receive a city contribution up to the cap into their HSA. A payment-in-lieu option for medical coverage is set at $500 per month.
Other provisions include short-term and long-term disability coverage through the Municipal Employees Retirement System of Michigan (Standard Insurance), with benefits based on 66 2/3% of base pay not to exceed $1,000 per week, and a retirement tier under MERS (Defined Benefit Plan B-3 with certain riders for pre- and post-2009 hires as specified in the resolution). Vacation accrual is fixed by years of service (10 days for under five years; 15 days for five to under 10; 20 days for 10 or more). Sick leave accrues at one day per month with a maximum accumulation of 145 days; the resolution specifies payout schedules on separation (50% payout for six months to ten years of service; 100% for ten years or more).
The resolution also enumerates holidays, five personal leave days per fiscal year, longevity lump-sum payments (ranging from $400 to $950 based on years of service), work clothing and uniform allowances, automobile or mileage allowances for certain department heads, and a $30/month phone allowance for employees who accept city compensation for using a personal cell phone for city business.
The clerk certified the resolution and noted public notice was provided in compliance with the Michigan Open Meetings Act. The text of Resolution 2024-07 appears in the meeting packet and was reviewed in full before the vote.
