Staff briefs committee on MMIA workers' comp wind-down; withdrawal decision due May 1

A staff member briefed the ordinance committee on March 23 about the MMIA workers' compensation program wind-down and the options available to the city.

Staff said that effective July 1 the city will need to obtain workers' compensation coverage from another insurer. The staff member outlined an option to request distribution of the city's accumulated equity in MMIA's workers' compensation program, with funds distributed over four years on a sliding-percentage schedule: example distributions cited were 10% in the first distribution, 25% in the second, 50% in the third, and 15% in the fourth; staff used a $500,000 example balance to illustrate how the percentages would apply.

The staff member described benefits to leaving funds in MMIA (access to investment options and potential ongoing earnings) and risks to withdrawing early (the city remains legally liable for claims until all claims are closed). The staff member said he was "sort of leaning toward starting the withdrawal process" as a recommendation but emphasized the decision will be made by the governing body and must be communicated by May 1.

Separately, the staff member said the open season for voluntary supplementary employee insurance (accidental death, cancer plans and similar products offered at employee expense) will move to a fiscal-year cycle: open season will be May 15–June 15 with coverage effective July 1, aligning those voluntary plans with the city's regular health insurance fiscal cycle.