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opting for a deductible health insurance plan. Other employees benefit because they have <br />the flexibility to use the funds remaining after purchasing core benefits for voluntary <br />options that are most appealing to them. <br /> <br />The amount of the City's contribution can either be the same for all employees or vary <br />depending on the type of insurance coverage that the employee selects. The Committee <br />discussed the merits of equal and unequal contributions at length and identified the pros <br />and cons of each: <br /> <br />Equal Contribution <br /> o Positive aspects <br /> · Fair to all employees <br /> · Easier to administer <br /> · Creates more flexibility for employees to create their own <br /> benefit package <br /> o Negative aspects <br /> · May cost employer more than unequal contributions <br /> <br />Unequal Contribution <br /> o Positive aspects <br /> · Will, in most cases, cost employer less than equal contributions <br /> o Negative aspects <br /> · Not fair to all employees <br /> · Harder to administer (also more difficult to determine <br /> contribution levels) <br /> <br />Recommendation <br /> <br />The Committee carefully evaluated each of the above options against the following <br />criteria the Committee established: <br /> <br />· Cost - to both the City and employees <br />· Feasibility - could the plan be accomplished given that some of <br /> the main issues are out of the City's control? <br />· Employee Choice - did it offer all employee groups choice and <br /> a feeling of ownership in their benefit package? <br /> <br />The Committee acknowledges and respects the financial constraints of the City and, at <br />the same time, is very aware that employees are the City's most valuable assets. Both the <br />Council and employees have indicated that change is needed to retain current employees <br />and to recruit new employees in this tight labor market. The Committee struggled with <br />developing its recommendation to accomplish that goal. Lengthy discussions took place <br />on what is fair to all employees - Committee members came in with different views on <br />what is fair and appropriate, and most have held firm to their belief while representing the <br />views of their department. <br /> <br /> <br />