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CITY COUNCIL AGENDA ITEM NO. 4

Meeting Date:     March 28, 2000

 Subject/Title:      Long Term Disability Benefit

 Submitted by:     Patricia Standley, Human Resources Supervisor

 Approved by:      Jon Elam, City Manager

 RECOMMENDATION   

Passage of Resolution No. 00- establishes a new limit for calculation purposes of the Long Term Disability benefit at two-thirds, based on salary, up to a maximum salary level of $15,000 per month.  This results in a maximum benefit level of $9,900 per month.

 PREVIOUS ACTION

Resolution 93-50 set the maximum salary level of $7,000 per month and a maximum Long Term Disability benefit level of $4,690.   

BACKGROUND

In 1993, the City revised the Long Term Disability benefit to provide up to two-thirds salary in the event of injury or illness that disables an employee beyond 30 calendar days.  At that time, the maximum salary level was set at $7,000 with a maximum benefit level of $4,690.

 The current maximum salary level is not sufficient to provide two-thirds salary to all City employees.  The recommended change in the maximum salary level, which is the basis used to calculate Long Term Disability benefits, will provide an equal benefit to all City employees. 

The revision of benefits to the $15,000 maximum salary level will cost approximately $1,000 per year for a total of eight employees.

 The Council Personnel Sub-Committee supports the above recommendation and presents it for City Council consideration and approval, effective April 1, 2000. 

RESOLUTION NO. 

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD APPROVING CHANGES TO THE LONG TERM DISABILITY PLAN FOR BRENTWOOD CITY EMPLOYEES

 WHEREAS,       the Long Term Disability Plan for Brentwood City employees is to provide salary continuation benefit to employees should they become injured both on and off the job; and

 WHEREAS,       it is in the interests of the City of Brentwood to ensure that employees are fully recovered from any injuries prior to returning to work and not forced to return to work due to financial pressures; and

 WHEREAS,       the maximum benefit on Long Term Disability has not been adjusted since 1993.

 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Brentwood hereby approves establishing a new limit for calculation purposes of the Long Term Disability benefit at two-thirds of salary up to a maximum salary level of $15,000 per month and a maximum benefit of $9,900 per month.

 PASSED by the City Council of the City of Brentwood at its regular meeting of March 28, 2000 by the following vote: 

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