From
Lisa Norris, Human Resources Director
Title
Employee Insurance Fund Monthly Review - Presented by Lisa Norris, Human Resources Director
Presenter
Lisa Norris, Human Resources Director
Recommended Action
Review Only
Analysis
This analysis covers the experience in the Employee Insurance Fund through April 2020:
Employee Insurance Fund (Attachment 1):
The insurance fund is complete through April 2020 and is running well. Revenues are projected to come in right at budget under the current forecast. Expenses are also trending well, and expected to only hit about 87% of the budget overall. Active claims (column 9, row 28) and retiree claims (column 9, row 29) have reached $8.1 million and $1.3 million respectively through April. This puts active claim projections at $13.9 million by year end, only reaching 88.4% of budget. Retiree claim projections are expected to reach $2.2 million, or 69% of budget by year-end. This projects our Operating Balance (column 14, row 37) to be "to the good" by $4.4 million, and our Ending Resource balance to land at $9.1 million. This fund is trending excellent. Should this continue, we should be able to withhold at least two months of City Contributions for Actives and Retirees, equating to about $2.8 million, thereby helping our bottom line as we progress through COVID-19, with minimal financial risk.
Financial Consideration
The current budget is approved and no financial consideration is necessary at this time until additional claims data based on future months can be reviewed.