Number
121597
Version
SUBSTITUTE 1
Reference
Sponsor
ALD. MURPHY
Title
A substitute ordinance establishing a health care benefit and workers’ compensation liability reserve fund.
Sections
304-29.5 cr
Analysis
This ordinance establishes a health care benefit liability and workers’ compensation reserve fund to provide funding for the payment of unanticipated premiums or liability claims for workers’ compensation and health care benefits. The health care benefit liability reserve fund may be funded by:
1. The difference between the total annual adjusted budgeted appropriations and total annual expenditures for health care or workers’ compensation benefits.
2. Funds appropriated by the common council.
Under this ordinance, all expenditures from the fund require the adoption of a resolution by a 3/4 vote of all common council members.
Body
The Mayor and Common Council of the City of Milwaukee do ordain as follows:
Part 1. Section 304-29.5 of the code is created to read:
304-29.5. Employee Health Care Benefit and Workers’ Compensation Liability Reserve Fund. 1. PURPOSE. As authorized under s.65.07(1) (s), Wis. Stats., this section establishes a health care benefit and workers’ compensation liability reserve fund for paying unanticipated premiums or liability claims for workers’ compensation and health care benefits.
2. FUNDING SOURCES. a. The health care benefit and workers’ compensation liability reserve fund may be funded by the following:
a-1. The difference between the total annual adjusted budgeted appropriations and total annual expenditures for health care or worker’s compensation benefits.
a-2. Appropriations of the common council made from time to time.
b. All appropriations or transfers to the health care benefit and workers’ compensation liability reserve fund shall be approved by the common council.
3. FUNDING LEVEL. a. The amount in the health care benefit and workers’ compensation liability reserve fund shall be allowed to accumulate from year to year with the amount not to exceed the level necessary as recommended by an actuary in accordance with generally-accepted actuarial principles.
b. As provided for in s. 65.07 (1) (s) <http://docs.legis.wi.gov/document/statutes/65.06(6)(a)> (2), Wis. Stats, if an actuary has determined, under generally-accepted actuarial principles, that the balance in the reserve fund exceeds the amount necessary for paying claims and premiums, the amount transferred or expended shall not exceed the actuarially-determined excess amount, unless an additional amount is provided in accordance with sub. 4-b.
4. EXPENDITURES. a. Payment of unanticipated liability claims and premiums may either be made directly from the reserve account or appropriations may be made from the reserve account to an operating account for such payment.
b. The common council by resolution adopted by a 3/4 vote of all common council members may appropriate funds from the reserve fund for payment of unanticipated liability claims and premiums under this subsection.
5. DISSOLUTION OF FUND. If an actuary has determined, under generally-accepted actuarial principles, that the balance in the reserve fund exceeds the amount necessary for paying claims and premiums, the amount transferred or expended shall not exceed the actuarially determined excess amount.
6. REPORTING. The department of employee relations-employee benefits division shall submit the following to the common council:
a. An annual actuarial report related to the fund’s recommended funding level.
b. A semi-annual report related to the status of the fund.
LRB:
APPROVED AS TO FORM
______________________
Legislative Reference Bureau
Date: ___________________
ATTORNEY
IT IS OUR OPINION THAT THE ORDINANCE
IS LEGAL AND ENFORCEABLE
_____________________________
Office of the City Attorney
Date: _________________________
Department
DOA-Budget and Management Division
Drafter
LRB138531-5
Jim Carroll
4/18/13