Elected Officers Compensation Commission

AGENDA Elected Officers Compensation Commission AGENDA FOR FEBRUARY 6, 2024 AT 12:00 PM Lansing City Hall, City Council Conference Room 124 W. Michigan Avenue, 10th Floor To provide input or ask questions on any item that is listed on the agenda, members of the public may contact the City Council at city.council@lansingmi.gov or (517) 483-4177 prior to the meeting. Thomas Hoisington Ben Kohrman Jeff McAlvey Derek Melot Holli Seabury Liisa Speaker Steve Young 1. Call to Order 2. Roll Call 3. Public Comment on Agenda Items (Up to 3 Minutes) 4. Discussion/Action: A. Election of Officers for 2024 B. Determination of 2024 Meeting Schedule C. DISCUSSION - Past Materials and Future Request for Materials 5. Other A. Commissioner Comments B. Excused Absences ADJOURN Persons with disabilities who need an accommodation to fully participate in these meetings should contact the City Council Office at 517-483-4177 (TTY 711) 24 hour notice may be needed for certain accommodations. An attempt will be made to grant all reasonable accommodation requests. Page 1 of 22  Resolution #2024-012 By the Committee of the Whole Resolved by the City Council of the City of Lansing WHEREAS, pursuant to the Lansing City Charter and Chapter 280 of the Lansing Code of Ordinances, the Council shall designate in advance the first meeting of the Elected Officers Compensation Commission in even-numbered years; and WHEREAS, Chapter 280 of the Lansing Code of Ordinances requires the first meeting of the Elected Officers Compensation Commission to be prior to February 21, 2024 and that the commission meet on no more than 15 session days; and WHEREAS, Chapter 280 of the Lansing Code of Ordinances requires the Elected Officers Compensation Commission to make its determination within forty-five days after its first meeting. NOW, THEREFORE, BE IT RESOLVED the Lansing City Council hereby calls upon the Elected Officers Compensation Commission to meet and conduct its business in 2024 and designates their first meeting as Tuesday, February 6, 2024 at noon in the City Council Conference Room on the 10th floor of City Hall as the first meeting of the Commission. BE IT FURTHER RESOLVED the City Council Office Manager shall serve as the recording secretary to the Commission unless the Commission determines otherwise. BE IT FINALLY RESOLVED the City Clerk shall notify the members of the Commission in writing concerning the designated date, time, and place of the first meeting at least seven calendar days in advance thereof. Page 2 of 22  - CODE OF ORDINANCES Part 2 - ADMINISTRATION CODE TITLE 8. - BOARDS, COMMISSIONS AND AUTHORITIES CHAPTER 280. ELECTED OFFICERS COMPENSATION COMMISSION CHAPTER 280. ELECTED OFFICERS COMPENSATION COMMISSION Cross reference(s)—Compensation of officers and employees - see CHTR. Secs. 2-104, 9-102; Elections generally - see CHTR. Art. II, Ch. 2; Election Commission - see CHTR. Sec. 2-205; ADM. Ch. 282; Elections under the City Charter - see CHTR. Secs. 9-302, 9-401, 9-402; Compensation of judges - see ADM. 210.01(Rule 48); Compensation of Housing Commission members - see ADM. 260.02; Compensation of Senior Citizens Advisory Board members - see ADM. 278.04; Compensation of Waterfront Development Board members - see ADM. 264.03; Compensation of Board of Trustees of Employees' Retirement System - see ADM. 292.09. 280.01. Establishment; powers and duties. Pursuant to M.C.L.A. 117.5c, as amended, there is hereby established an Elected Officers Compensation Commission in and for the City. The Commission shall determine the salaries of all elected officials, and such determinations shall be controlling, unless Council, by resolution adopted by two-thirds of the members, rejects them. The determinations of the Commission shall be effective 30 days following their filing with the City Clerk, unless rejected by Council. In case of rejection, the existing salary shall prevail. Any expense allowance or reimbursement paid to elected officials in addition to salary shall be for expenses incurred in the course of City business and accounted for to the City. (Ord. No. 319, 6-18-73) 280.02. Membership; terms; vacancies. The Elected Officers Compensation Commission shall consist of seven members who are registered electors of the City and who shall be appointed by the Mayor, subject to confirmation by a majority of the members elected and serving in Council. The terms of office of the members shall be seven years. Members shall be appointed before October 1 of the year of appointment and shall serve until October 1 of the year in which their terms expire or until their successors qualify for office. Vacancies shall be filled for the remainder of the unexpired term. No member or employee of the legislative, judicial or executive branch of any level of government or members of the immediate family of such member or employee shall be eligible to be a member of the Commission. (Ord. No. 319, 6-18-73) 280.03. Meetings; chairperson; compensation. Commencing in 2022, the Elected Officers Compensation Commission shall meet for not more than 15 session days in each even-numbered year and shall make its determination within 45 calendar days after its first meeting. Council shall designate, by resolution, the date, time and location for the first meeting, thereby officially calling the Commission together for the carrying out of its official duties. The first meeting in even-numbered years shall not be set later than February 21. The City Clerk shall notify the members of the Commission in writing concerning the designated date, time and location, at least seven calendar days in advance. A majority of the members of the Commission constitutes a quorum for conducting the business of the Commission. The Commission shall not take action or make a determination without the concurrence of a majority of the members appointed and serving on the Commission. The Commission shall elect a Chairperson from among its members. As Lansing, Michigan, Code of Ordinances Created: 2023-11-29 10:03:50 [EST] (Supp. No. 60) Page 1 of 2 Page 3 of 22 used in this section, "session days" means calendar days on which the Commission meets and a quorum is present. The members of the Commission shall not receive compensation but shall be entitled to actual and necessary expenses incurred in the performance of official duties. (Ord. No. 532, 5-7-79; Ord. No. 1284 , § 1, 5-10-21) 280.04. Open meetings. The business which the Elected Officials Compensation Commission may perform shall be conducted at public meetings of the Commission held in compliance with Public Act 267 of 1976, being M.C.L.A. 15.261 to 15.275. Public notice of the time, date and place of such meetings shall be given in the manner required by Public Act 267 of 1976. (Ord. No. 532, 5-7-79) 280.05. Freedom of information. A writing prepared, owned, used, in the possession of or retained by the Elected Officials Compensation Commission in the performance of an office function shall be made available to the public in compliance with Public Act 442 of 1976, being M.C.L.A. 15.231 to 15.246. (Ord. No. 532, 5-7-79) Created: 2023-11-29 10:03:50 [EST] (Supp. No. 60) Page 2 of 2 Page 4 of 22  First Meeting City Council City Council City Council City Council 45 Days Page 5 of 22  Elected Officers Compensation Commission The following are items or invitations the Commission has reviewed in the past. Staff is asking to address these at the first meeting to determine future meeting agendas and meet the 45-day timeline. List of Materials Commission has requested in the past: o Consumer Price Index (CPI) o Inflation Rates o City Union Wage and Salary Adjustments from _(Years)________ o Salaries for the top six (6) employees in the City employment o Financial Overview o Salary Comparisons from 10 other comparable communities Staff requested to attend in the past: Finance Director DATE:________________ (Provide financial overview)___ HR DATE:________________ (provide salaries for top employees/union wage comparison/community comparison) Invitation extended in the past to speak to the Commission: City Council Members DATE:______________________ City Clerk – DATE:____________________________________ Mayor – DATE: ________________________ Any additional materials or invitations for 2024: _________________________________________________ _________________________________________________ _________________________________________________ Page 6 of 22  EOCC Past Recommendations 3/25/1995 3/12/1991 1/1/1992 4/8/1993 Attempt to reject failed 3/21/1997 Rejected 1991 1992 1993 1994 6/1/1995 1/1/1996 6/1/1997 1/1/1998 Mayor $71,590 $74,095 3.49% No Increase No Increase $81,000 $85,000 $87,975 $91,054 Clerk $46,300 $48,152 4.00% No Increase No Increase $58,000 $58,000 $58,000 $59,000 Council $12,877 $13,392 4.00% No Increase No Increase $14,000 $14,000 $15,000 $15,000 Vice President $12,877 $13,392 No Increase No Increase $14,750 $14,750 $15,750 $15,750 President $12,877 $13,392 No Increase No Increase $15,500 $15,500 $16,500 $16,500 from 1996 (Accepted March 1999) Accepted March 2001 1997 1998 1/1/1999 7/1/1999 7/1/2000 7/1/2001 7/1/2002 Mayor Rejected Rejected $85,000 $90,000 $95,000 5.56% 102,000 7.35% $107,000 4.90% Clerk Rejected Rejected $58,000 $62,950 $67,900 7.86% $68,500 0.88% $69,100 0.88% Council Rejected Rejected $14,000 $17,000 $19,000 11.76% $20,200 3.16% $20,200 3.06% Vice President Rejected Rejected $14,750 $17,750 $19,750 11.27% $20,950 3.04% $20,950 2.70% President Rejected Rejected $15,500 $18,500 $21,000 13.50% $21,600 2.86% $22,200 2.78% Last Increase Self-suported Vision Care added Council Healthcare Removed 1/01/2010 2002 Rejected 4/24/2005 4/30/2007 Accepted 4/30/2009 Accepted 3/22/2011 7/1/2002 7/1/2003 7/1/2004 7/1/2005 7/1/2006 7/1/2007 7/1/2008 7/1/2009 7/1/2009 1/1/2010 7/1/2010 1/1/2010 1/1/2010 1/1/2011 1/1/2011 healthcare healthcare Healthcare Salaries Mayor $107,000 $108,500 $110,000 No Increase No Increase No Increase No Increase 102,037 10%prem 10%prem $102,037 Mayor Discontinued No Increase $ 101,650 Clerk $69,100 $70,100 $71,100 No Increase No Increase No Increase No Increase $72,831 10%prem 10%prem $72,831 Clerk Discontinued No Increase $ 72,555 Council $20,200 $20,500 $20,800 No Increase No Increase No Increase No Increase $20,200 10%prem discontinue $20,200 Council Discontinued No Increase $ 20,200 Vice President $20,950 $21,250 $21,550 No Increase No Increase No Increase No Increase $20,950 10%prem discontinue $20,950 Vice President Discontinued No Increase $ 20,950 President $22,200 $22,500 $22,800 No Increase No Increase No Increase No Increase $22,200 10%prem discontinue $22,200 President Discontinued No Increase $ 22,200 C.A. 09-23 Proposed- effective Proposed-effective 2013 Accepted 3/5/2015 2017 7/1/2017 7/1/2018 March28, 2013 Effective 7/1/2015 Salaries New Amount New Amount Fringe Benefit STATUS Salaries Salaries New Amount Fringe Benefit Mayor Increase $ 129,684 $ 130,980 No Chg from 2015 Rejected Mayor 107,000 Mayor Increase $ 128,400 Benefits & Vehicle Clerk Increase $ 87,936 $ 88,815 No Chg from 2015 Rejected Clerk $72,555 Clerk Increase $ 87,066 Benefits Council NO CHANGE $ 24,240 $ 24,240 Rejected Council $20,200 Council Increase $ 24,240 Vice President NO CHANGE $ 25,140 $ 25,140 Rejected Vice President $20,950 Vice President Increase $ 25,140 President NO CHANGE $ 26,640 $ 26,640 Rejected President $22,200 President Increase $ 26,640 Res 2017-095 2019 2021 Eff. 1/1/2021 Effective Effective Effective per 2019 Salaries 1/1/2019 1/1/2020 1/1/2021 Fringe Benefit STATUS Salaries Decision Fringe Benefit Mayor Increase $ 134,058.25 $ 136,739.42 $ 139,610.42 No Chg from 2015 Approved Mayor NO CHANGE $ 139,610.42 No Chg from 2015 Clerk Increase $ 90,902.77 $ 92,720.83 $ 94,667.97 No Chg from 2015 Approved Clerk NO CHANGE $ 94,667.97 No Chg from 2015 Council Pres. Increase $ 27,813.95 $ 28,370.23 $ 28,966.00 No Chg from 2010 Approved Council Pres. NO CHANGE $ 28,966.00 No Chg from 2010 Council VP Increase $ 26,247.85 $ 26,772.81 $ 27,335.04 No Chg from 2010 Approved Council VP NO CHANGE $ 27,335.04 No Chg from 2010 Council Mbr Increase $ 25,308.19 $ 25,814.35 $ 26,356.45 No Chg from 2010 Approved Council Mbr NO CHANGE $ 26,356.45 No Chg from 2010 2022 Eff. 1/1/2022 Eff. 1/1/2023 per 2022 per 2022 Salaries Decision Decision Fringe Benefit Mayor NO CHANGE $ 139,610.42 $ 139,610.42 No Chg from 2015 Clerk Increase 5% 5% No Chg from 2015 Council Pres. NO CHANGE $ 28,966.00 $ 28,966.00 No Chg from 2010 Council VP NO CHANGE $ 27,335.04 $ 27,335.04 No Chg from 2010 Council Mbr NO CHANGE $ 26,356.45 $ 26,356.45 No Chg from 2010 Page 7 of 22 2022 Salary and Fringe Benefit Survey as of 3/2/2022 **Wages are annual unless otherwise noted** City Population Type of Government City Clerk Council Member City Manager (if Mayor Benefits City Clerk Vehicle applicable) City Administrator’s salary is $96,749-$125,774; current determined by Council, and 120,735 City Manager incumbent’s salary is $23,726.32 our interim City $47,452.63 N/A No $124,305.00 Administrator’s salary is Ann Arbor, Michigan $223,600.00 Mayor & City Clerk: Dental, vision, Medical (80/20), PTO, Paid Holidays, Life Insurance, Cafeteria Plan Participation, Long-term President - $18,638 + meeting stipend ($100/meeting); Member - disability insurance, 401A Defined Contribution Plan, Deferred Comp 457 (optional). City Council: optional enrollment to dental, 110,000 Strong Mayor $99,868 N/A $160,329 No $15,516 + meeting stipend ($100/meeting) vision, medical plans (100% employee contribution). Optional participation in the Deferred Compensation 457 plan (100% employee Dearborn, Michigan contribution only). East Lansing, $91,233.22 (not an elected 48,729 City Manager $8,500 (not a full time position) $169,922.48 $10,000 (not a full time position) Only City Clerk and City Manager receive benefits, including health, dental, life, ltd, PTO, and retirement No Michigan position) Flint, Michigan 94,370 Strong Mayor $70, 817.7600 $22,500.00 N/A $125,000.10 Medical, Dental, Vision, Life insurance, STD, FSA, MERS retirement (Hybrid and HCSP) President $28,966.00 117,159 Strong Mayor $94,667.97 VP $27,335.04 N/A $139,610.95 No Council: Option to purchase health and dental. Members $26,356.45 Lansing, Michigan Mayor and Clerk: Health, Dental, DC, Long Term Disability, Life Insurance appointed position; $6,577.43 annually; $70/meeting after 32 meetings per year; City 76,300 Strong Mayor N/A $139,153.00-$161,313.00 16% DC Pension Contribution, 4% Retiree Healthcare Savings No Rochester Hills, $115,240.00-$133,594.00 Council President: $8,350.48 Michigan Only City Clerk and City Manager receive benefits. I attached our health benefits (note that dental coverage is at no cost to the 59,195 Local Government $102,899 $20 per meeting $158,393 $40 per meeting employee) Royal Oak, Michigan City Council- Medical, dental, vision, 401K and an RHS account. All other elected receive a 401K, medical, dental and vision. Basic 132,644 Strong Mayor $92,923.00 $31,411.90 N/A $125,642.00 No Life insurance, no Sick and Accident insurance. Warren , Michigan Page 8 of 22 Page 9 of 22 Page 10 of 22 Page 11 of 22 Page 12 of 22 Page 13 of 22 Page 14 of 22 Page 15 of 22 Page 16 of 22 Page 17 of 22  City of Lansing ELECTED OFFICIALS Summary of Fringe Benefits 2022 Elected officials shall be eligible for City-provided health, dental, and life insurance coverage, and for participation in any deferred compensation program, as summarized below. Unless otherwise noted, this Summary of Fringe Benefits is operative on JULY 1, 2019. The last adopted recommended Summary of Fringe Benefits remains operative until that date. I. FOR THE MAYOR AND CITY CLERK ONLY: Health Insurance: The City of Lansing shall provide at the time of being sworn in or during an annual open enrollment period the following choice of medical insurances. Coverage will be effective the first (1st) day of the month following the date the Mayor or Clerk, respectively, are sworn in. If an elected official chooses a non-base plan, he or she will be required to pay the difference between the base and non-base plan, in addition to any premium share. Elected officials selecting the base plan below will receive a $400 cash payment incentive for each plan year chosen. • Base Plan - includes a $40.00 co-pay for office visits. Prescription drug co-pays are $10/$40/$80. This plan includes a $1000/single and $2000/ family in network deductible and 80% co-insurance. Emergency room services have a $250 co-pay and Urgent Care visits have a $60 co-pay. • Option 1 - includes a $30.00 co-pay for office visits. Prescription drug co-pays are $10/$40/$80. This plan includes a $500/single and $1000/ family in network deductible and 80% co-insurance. Emergency room services have a $150 co-pay and Urgent Care visits have a $50 co-pay. • Option 2 - includes a $20.00 co-pay for office visits. Prescription drug co-pays are $10/$20/$40 or $15/$25/$50 for Physician’s Health Plan. This plan includes a $500 calendar year limit on preventative services, emergency room services with a $50 co-pay, and a $20 co-pay and 100% coverage for mental health and substance abuse services. The Base Plan is as provided above. If the Base Plan exceeds the state mandated hard cap amount, the elected official will pay the difference. If the elected official chooses to “buy up” to an optional plan (either Option 1 or Option 2) the elected official will be responsible for any cost differential between the Base Plan premium and the premium of the selected optional plan chosen. Benefit summaries and rate sheets are available in the Department of Human Resources. Vision Plan: The Mayor and City Clerk are eligible to purchase the Blue Cross Blue Shield VSP 12/12/12 Vision Plan. This plan provides vision exams, lenses and frames, and contact lenses with co-pays. Opt out: The Mayor and City Clerk will be allowed to opt out of the City’s health care plan annually, during the City’s open enrollment period provided the Mayor or City Clerk provides written proof of coverage from another source. The Mayor or City Clerk who opts out of the City’s health care plan will be eligible to receive $1,800 in any year in which they receive coverage from another source. In addition, such payments will be made twice a year, by separate check, following the period of time the Mayor or Clerk had alternate coverage. Dental Insurance: The City pays the full premium costs for the Dental plan provided by the City, coverage includes the Mayor and City Clerk and family members. Coverage includes 100% coverage for cleaning; 50% coverage for treatment costs with an $800 maximum per person per contract year. Mayor and City Clerk and dependents will also receive orthodontic coverage which provides $1,000 lifetime maximum per 1 Page 18 of 22 person. Coverage is effective the first day of the month following thirty calendar days of service. Booklets and summaries are available in the Department of Human Resources. Retiree Dental Insurance: Eligible retirees shall be covered by the same insurance as the active Mayor and City Clerk. The Mayor and City Clerk shall become eligible for retiree dental insurance beginning at the date of termination of employment with the City, or at age fifty-five (55), whichever is later; provided the Mayor or City Clerk respectively has at least fifteen (15) years of service with the City. AFLAC: The Mayor and City Clerk will have the opportunity to pay for medical insurance premiums, unreimbursed medical expenses, and dependent care costs with pretax dollars through AFLAC. AFLAC also offers supplemental insurances that may be purchased on a pretax basis through payroll deduction. The maximum annual benefit for AFLAC medical insurance premiums and unreimbursed maximum medical expenses shall be the sum permitted by the Internal Revenue Code. The maximum benefit for AFLAC dependent care costs shall be the sum permitted by the Internal Revenue Code. Life Insurance: The City pays the premium for a base $50,000 of group life and $50,000 Accidental Death and Dismemberment Insurance for the Mayor and City Clerk. Life insurance coverage for dependents is available for a reasonable cost to the Mayor and City Clerk, in accordance with the following schedule: Spouse $25,000 Unmarried child, age 14 days to 6 months $500 6 months to 23 years $ 2,000 Coverage is effective one (1) month and one (1) day following the commencement of service. Summaries are available in the Department of Human Resources. Vacation: No accrued time for sick leave, vacation, or personal time shall exist or be required. Parking/Transportation: The Mayor and City Clerk shall have designated parking in the basement of City Hall. Vehicle: An automobile will be provided for the regular full time use of the Mayor. Deferred Compensation: The Mayor and City Clerk shall be eligible to participate in the City’s deferred compensation 457 plans as may be offered by the City. Currently those plans include Voya and T. Rowe Price. The Mayor and City Clerk will be able to contribute up to the maximum allowed by the IRS annually through payroll deduction. Summaries are available in the Department of Human Resources. Defined Contribution Retirement System: In accordance with the City Charter, officials elected on or after October 1, 1990 shall belong to the City of Lansing Defined Contribution Money Purchase Pension Plan. The Plan provides for: 1) A City contribution totaling 6% of the Mayor or City Clerk’s gross salary. The Plan is administered by Principal Financial Group. 2) The Mayor and City Clerk become eligible for City contributions following six (6) months of service and must be enrolled in the Plan prior to completion of six (6) months of service in order to self-direct the investment options of their retirement account. Failure to enroll prior to completion of six (6) months of service shall result in the City transferring monies into the Plan which shall default to the fund designated as the default fund. 2 Page 19 of 22  3) The Mayor and City Clerk will be notified by Principal Financial Group to enroll persons and benefits are managed online. 4) The Mayor and City Clerk have the option of contributing up to five percent (5%) of their compensation each Plan Year, subject to certain limits imposed by law. 5) At the end of three full years of service the Mayor and City Clerk will be vested for all City contributions. Should the Mayor and City Clerk leave at the end of three full years the elected official will have the following options: - Lump sum payment subject to applicable taxes; - Rollover monies into another tax deferred investment option; or - Leave monies in the plan and continue to be invested tax deferred. 6) The Mayor and City Clerk are also eligible for a City paid long-term disability policy which is administered by the selected vendor following the completion of six (6) months of service. The Mayor and City Clerk shall receive information pertaining to the long-term disability policy at the quarterly enrollment session. Retirement Health Care: Optional: This is a one-time only option that must be made in writing within thirty (30) days after being officially sworn in or having elected to qualify on or before July 1, 2001. For all officials elected after October 29, 1990, the City agrees to provide retirement health care coverage up to 100% of the premium for the Base Plan health care coverage provided to active Mayor and City Clerk. Retirement health coverage shall begin at the date of termination of employment with the City, provided the Mayor and City Clerk have at least 15 years of service with the City and be at least 55 years of age. This coverage is available at a cost of 3.25% of the Mayor and City Clerk’s respective gross pay. This coverage shall be the same insurance coverage provided to the active Mayor and Clerk. Retirees shall convert to complementary coverage at their Medicare eligibility date. Retiree health benefits shall not include spouse or family coverage for a Mayor or City Clerk first elected after July 1, 2009. II. FOR CITY COUNCILMEMBERS: The fringe benefits designated in this Section II are for City Councilmembers. Health Insurance: Councilmembers shall have the option to purchase health care insurance, at their own expense. If chosen, coverage will be effective the first (1st) day of the month following the date the Councilmember is sworn in (commencement of service) or chosen during an annual open enrollment period. Current plans offered are following UAW coverage plans: • Base Plan - includes a $40.00 co-pay for office visits. Prescription drug co-pays are $10/$40/$80. This plan includes a $1000/single and $2000/ family in network deductible and 80% co-insurance. Emergency room services have a $250 co-pay and Urgent Care visits have a $60 co-pay. • Option 1 - includes a $30.00 co-pay for office visits. Prescription drug co-pays are $10/$40/$80. This plan includes a $500/single and $1000/ family in network deductible and 80% co-insurance. Emergency room services have a $150 co-pay and Urgent Care visits have a $50 co-pay. • Option 2 - includes a $15.00 co-pay for office visits. Prescription drug co-pays are $0/$15/$40. Emergency room services with a $50 co-pay, $20 co-pay for urgent care, and a $15 co-pay for mental health and substance abuse services. Benefit summaries and rate sheets are available in the Department of Human Resources. 3 Page 20 of 22 Vision Plan: Councilmembers will be eligible to purchase the Blue Cross Blue Shield VSP 12/12/12 Vision Plan. This plan provides vision exams, lenses and frames, and contact lenses with co-pays. Dental Insurance: Councilmembers shall have the option to purchase this dental insurance, at their own expense, on the same terms and at the same rate as other part-time employees of the City for whom such coverage is available, currently UAW. Coverage includes 100% coverage for cleaning; 50% coverage for treatment costs with a $1,500 maximum per person per benefit year. Councilmembers and dependents will also receive orthodontic coverage which provides fifty percent (50%) of treatment costs with a $3,000.00 lifetime maximum per person. Coverage is effective the first day of the month following thirty calendar days of service. Booklets and summaries are available in the Department of Human Resources. Retiree Dental Insurance: Eligible retirees shall be covered by the same insurance as active Councilmembers. The Councilmember shall become eligible for retiree dental insurance beginning at the date of termination of employment with the City, or at age fifty-five (55), whichever is later; provided the Councilmember has at least fifteen (15) years of service with the City. Councilmembers first taking office on or after January 1, 2010, shall not be eligible for this benefit. AFLAC: The Councilmembers will have the opportunity to pay for medical insurance premiums, unreimbursed medical expenses, and dependent care costs with pretax dollars through AFLAC. AFLAC also offers supplemental insurances that may be purchased on a pretax basis through payroll deduction. The maximum annual benefit for AFLAC medical insurance premiums and unreimbursed maximum medical expenses shall be the sum permitted by the Internal Revenue Code. The maximum benefit for AFLAC dependent care costs shall be the sum permitted by the Internal Revenue Code. Councilmembers first taking office on or after January 1, 2019 shall not be eligible for this benefit. Life Insurance: Councilmembers are not eligible for City provided group life and Accidental Death and Dismemberment Insurance. Vacation: No accrued time for sick leave, vacation, or personal time shall exist or be required. Parking/Transportation: Councilmembers shall have designated parking as provided by the Rules adopted by City Council. Deferred Compensation: Councilmembers shall be eligible to participate in the City’s deferred compensation 457 plans as may be offered by the City. Currently those plans include Voya and T. Rowe Price. Councilmembers will be able to contribute up to the maximum allowed by the IRS annually through payroll deduction. Summaries are available in the Department of Human Resources. Defined Contribution Retirement System: Officials elected on or after October 1, 1990 and first taking office before January 1, 2010, shall belong to the City of Lansing Defined Contribution Money Purchase Pension Plan. Retirement Health Care: For all officials elected after October 29, 1990 and taking office before January 1, 2010 who exercised the option to participate in retiree healthcare, the City will provide retirement health care coverage up to 100% of the premium for the Base Plan health care coverage provided to the active Mayor and Clerk. Retirement health coverage shall begin at the date of termination of employment with the City, provided the Councilmember has at least 15 years of service with the City and be at least the age of 55. This coverage is available at a cost of 3.25% of the Council member’s gross pay. This coverage shall be the same insurance coverage provided to the active Mayor and Clerk. Retirees shall convert to complementary coverage at their Medicare eligibility date. Retiree Healthcare Opt out: Councilmembers who receive Retirement Health Care insurance will be allowed to opt out of the City’s health care plan annually, during the City’s open enrollment period provided the Councilmember provides written proof of coverage from another source. Any Councilmember who opts 4 Page 21 of 22 out of the City’s health care plan will be eligible to receive $1,800 in any year in which they receive coverage from another source. In addition, such payments will be made twice a year, by separate check, following the period of time the Councilmember had alternate coverage. Department of Human Resources, 8th Floor, 124 W. Michigan, Lansing MI 48933. Phone: 483-4014 EQUAL OPPORTUNITY EMPLOYER Revised 4/21/04: Retiree dental Revised 03/28/2007: Vision Revised 03/30/09: Phased elimination of benefits for Councilmembers Revised 03/22/11: For clarity Revised 4/02/13: To provide for three tier optional health insurance plans in compliance with PA 152 of 2011, and other clarifications Revised 3/5/2015: For technical corrections and clarifications Revised 3/17/2017 For Clerk and Mayor Compensation Revised 3/14/19 for Compensation Revised 2/24/2021 No Changes for Elected Officials Revised 3/24/2022 Compensation & Updated Fringe 5 Page 22 of 22