HomeMy WebLinkAboutEstablishing a Non-Reverting Self-Funded Employee Benefit FundORDINANCE No. 7161 -83
Passed by the Common Council of the City of South Bend, Indiana
IRENE K. GAMMON
Attest:
Presented by me to the Mayor of the City of South Bend, Indiana
January 25, ig 83
Clerk
of Common Council
IRENE K. GAMMON
Approved and signed by me � � , �.(.(���� ;� S-
19 ��
City Clerk
ORDINANCE NO. 7161 -83
AN ORDINANCE ESTABLISHING A
NON- REVERTING "SELF- FUNDED
EMPLOYEE BENEFIT FUND ".
STATEMENT OF PURPOSE AND INTENT:
It is in the City's best interest to retain
a portion of the potential liability of the City of South Bend's
employee group health and life insurance in order to receive
benefits from interest earned , better cash flow, and other
savings from not paying premiums to an insurance company.
NOW, THEREFORE, BE IT ORDAINED BY THE COMMON
COUNCIL OF THE CITY OF SOUTH BEND, INDIANA:
SECTION I. A special non - reverting fund is
hereby created to be known as the "Self- Funded Employee Benefit
Fund ". Monies which may be paid into this fund include monies
assessed from City departments and monies collected from employees.
Monies may be expended from this fund for the payment of claims
arising from retained risk, premiums for life insurance and
accidental-death and dismemberment insurance and any stop loss
coverages deemed necessary, and all incidental costs associated
with any claims including but not limited to administration fees
and conversion fees.
SECTION II. Said fund may be invested by the
Controller's Office with all earned interest belonging to said fund
in its entirety.
SECTION III. This Ordinance shall be in full
force and effect from February 1, 1983, as passed, by the Common
Council and approval by the Mayor.
1st READIP;G 1-100-814
PUBLIC HEARING / -,� q-,r3
2nd READING
NOT APPROVED
REFERRED
PASSED
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RED IN COPS OFFICE
M. �i N r` i
Irene Gammon
CITY CLERK, SOUTH BEND, IND.
Joseph E. Kernan
Director, Administration and
Finance
CITY ®f SOUTH BEND
ROGER O. PARENT, Mayor
COUNTY-CITY BUILDING SOUTH BEND, INDIANA 46601
January 4, 1983
Members of the Common Council
4th Floor
County -City Building
South Bend, IN 46601
Dear Council Members:
219/284 -9742
This Bill would establish a "Self- Funded Employee Benefit Fund"
to be used in conjunction with the City's Health Benefit Program
for its employees.
On the advice of Corporate Policy Holders, our independent
professional insurance advisers, the City of South Bend will begin
a self - funded employee health benefit program effective in February
of this year. Overall savings for the City will result because of
numerous advantages to this program: claims will be based directly
on experience, cash flow will be improved, retentions will not be
paid to an insurance carrier, and the City will earn the interest
from invested funds. The establishment of this new Fund is a
necessary step in setting up this program.
If you have any questions, please contact Sherrie Petz or myself.
Thank you very much for your consideration.
Sincerely,
"Joseph E. Kernan
JEK:elc
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;ys i e a Aln, aloundt Alf toe TUB of Fs,,0 4 Brad:
Your ?committee OF THE WHOLE
w who n yeas referred
BILL NO.
5 -83 A BILL ESTABLISHING A NON— REVERTING "SELF —
FUNDED EMPLOYEE BENEFIT FUND."
R sbec,,fudly report that they have examined the matter and that in their opinion THIS BILL SHOULD BE RECOMMENDED
TO THE COUNCIL FAVORABLE.
RAYMOND ZIELINSKI
Chairman