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HomeMy WebLinkAbout6. NEW BUSINESS 4/19/05 ,f INTEROFFICE MEMORANDUM Village of Mount Prospect Mount Prospect, Illinois FROM: VILLAGE MANAGER MICHAEL E. JANONIS ASSISTANT VILLAGE MANAGER (J8Øf1 t{,f!.,OŠ ~.c- TO: DATE: MARCH 30, 2005 SUBJECT: PARTICIPATION IN INTERGOVERNMENTAL PERSONNEL BENEFIT COOPERATIVE (IPBC) - HEALTH INSURANCE The Village has been a member of the IPBC since 1997 and has renewed in 1999 and 2002 previously. The IPSC is a cooperative of 36 public agencies that include municipalities, forest preserves, park districts, library districts and sub-pools of smaller communities. IPBC has grown from 22 agencies in 2002 to 36 in 2005. More agencies are joining the cooperative in order to avoid the cost and complexities of placing their own insurance and assuming all experience and rate fluctuations individually. The IPBC negotiates the HMO and PPO insurance coverage rates along with stop loss insurance, life insurance, prescription drug rates, network services, and claims administration services. The co-op would also negotiate dental insurance coverage, if applicable. Each agency has the flexibility to organize their own health insurance plans based on their individual needs and coverage options which allows each agency to negotiate as necessary with any employee groups. Participation in the co-op allows for the sharing or pooling of risk for major claims in addition to bulk purchasing of stop loss insurance for major claims. While the risk is shared among member communities each participant does assume a percentage of their own claims responsibility as determined by the number covered employees/retirees as a percentage of the total pool. Therefore, even if the pool experiences a poor year in terms of costs each individual community can receive some benefit from a good year if that individual community had favorable claims experience compared to the overall pool. Summary of Cost Increases 2002-2005 . Projected 2002 2003 2004 2005 National Trend 12.9% 13.9% 11.2% N/A IPBC Trend 16.5% 15.8% 10.4% 6.3% ß PARTICIPATION IN INTERGOVERNMENTAL PERSONNEL BENEFIT COOPERATIVE (IPBC)- HEALTH INSURANCE March 30, 2005 Page 2 Staff would recommend Village Board authorization to approve the attached resolution to continue participation in IPBC for the next three years from July 1,2005 to June 30,2008. Please contact me if you have any questions or comments. ~~a;.Jn David Strahl c: Finance Director David Erb Personnel Assistant Debbie Matusiak H:IHUMRIIPBCI2005 Renewal Memo.doc , vwl ds 03/30/05 4/14/05 RESOLUTION NO. A RESOLUTION EXTENDING THE PERIOD OF PARTICIPATION IN THE INTERGOVERNMENTAL PERSONNEL BENEFIT COOPERATIVE FOR A PERIOD OF THREE ADDITIONAL YEARS WHEREAS, the Village of Mount Prospect, a municipal corporation, is a member of the Intergovernmental Personnel Benefit Cooperative (the "/pac") , which is an intergovernmental entity providing employee benefits to the officers and employees of this municipality; and WHEREAS, through its membership in the IPBC, this municipality gains the ability to achieve economies of scale in the administration of the benefit claims of its employees and the other benefits of membership provided for in the Contract and By-Laws of the IPBC; and WHEREAS, the Contract and by-Laws of the IPBC provide that the IPBC shall operate in three (3) year terms, with the governing board of each member, including the governing board of this municipality, being required to pass an ordinance or resolution agreeing to continue as a member for each new term; and WHEREAS, failure to approve a timely ordinance or resolution at least sixty (60) days before the commencement date of a new term shall constitute a withdrawal from the IPBC; and WHEREAS, the next three (3) year term of the IPBC commences on July 1, 2005; and WHEREAS, the Village of Mount Prospect desires to express, through the passage of this Resolution, its intent to continue as a member of the IPBC for the three-year term commencing on July 1, 2005, provided that an adequate number of other members of the cooperative, as set forth within the Contract and By-Laws document, also agree to continue as members for the next term. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION ONE: The Village of Mount Prospect shall continue as a member of the Intergovernmental Personnel Benefit Cooperative for a three-year term commencing on July 1, 2005, in accordance with the Contract and By-Laws of that entity as they currently exist or as they may be validly amended in the future. IPBC Membership P.2/2 SECTION TWO: The obligation of this municipality to be a member of the Intergovernmental Personnel Benefit Cooperative shall obligate this Village to make financial contributions to the Intergovernmental Personnel Benefit Cooperative only to the extent required from as specified by the Contract and By-Laws of the Intergovernmental Personnel Benefit Cooperative and authorized therewith by the Board of Directors or the Executive Committee. SECTION THREE: This Resolution shall be in full force and effect upon its passage and approval in the manner provided by law. AYES: NAYS: ABSENT: PASSED and APPROVED this day of ,2005. Gerald L. Farley Mayor ATTEST: Velma W. Lowe Village Clerk H:\CLKO\files\WIN\RES\IPBC term renewal.2005doc