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09.e1 Memo 21-12 Proposed changes to the 60 day rule for Benefits EligibilityPage 1 of 1 City of Scandia 14727 209 th St. N. PO Box 128, Scandia, Minnesota 55073 Phone (651) 433 -2274 Fax (651) 433 -5112 http://www.ci.scandia.mn.us DATE: July 16, 2021 FROM: Ken Cammilleri, City Administrator TO: Honorable Mayor and City Council Members RE: Proposed changes to the 60 day rule for Benefits Eligibility Included in this meetings packet is a recommended change to the benefits eligibility requirement in the City’s Personnel Manual to change the eligibility for enrollment to be after 15 days rather than the currently specified 60 day period. Longer eligibility periods are more practical for organizations that have larger work forces and greater turnover in hires. Only 7 city employees are eligible for benefits, and these positions are considered permanent and have relatively small amounts of turn over, so there is no significant need to have a longer period of delay. In addition, benefits eligibility could be a factor that a prospective employee might consider when a job offer is made. Offering a short eligibility period assures that our employees obtain health insurance when they become eligible rather than subjecting them to potential periods of being uninsured. This recommended change will not have any budgetary impacts to the City’s budget. Please let me know if you have any questions.