Policy 3-9 EMPLOYEE HEALTH/CAFETERIA PLAN REVIEW COMMITTEE

PURPOSE: To establish an employee committee to consider matters relating to the City of Lawton Health Plan and Cafeteria Plan (Flexible Benefits).

BACKGROUND: The City of Lawton has established a Health Plan and Cafeteria Plan as a means of providing health and dental coverage, and tax savings on benefits, to employees and eligible dependents. It is important to have employee involvement of the plan in order to make the plan as effective as possible.

POLICY: An Employee Health/Cafeteria Plan Review Committee is hereby established. The Committee shall establish by-laws to assure effective operations to monitor and review the City of Lawton Health Plan and Cafeteria Plan and its individual benefit plans.

1. Membership. The Employee Health Plan/Cafeteria Plan Review Committee shall consist of the following members:

A. Two representatives and one alternate representative shall be appointed by the president of each bargaining unit which represents Police Officers, Firefighters, and bargaining unit eligible General Employees. Alternate representative shall vote only in the absence of primary members.

B. Two representatives and one alternate representative shall be appointed by the City Manager which represents bargaining unit non-eligible General Employees. Alternate representative shall vote only in the absence of primary members.

C. One retiree representative and one alternate representative to be appointed by the City Manager. Alternate representative shall vote in the absence of primary member.

2. Appointments. Appointments of the committee members shall be for a period of two years. Members shall be appointed in alternate years. Appointments shall be made in December and effective on the 1^st of January. If a vacancy occurs the appropriate bargaining unit president or City Manager shall appoint a new member or alternate to fill the vacancy. The list of members and alternates shall be provided to the Human Resources Department in writing for the member or alternate to be eligible to vote.

3. Chairman. One of the primary members shall be elected by popular vote of the committee membership to serve as chairman for a period of one year. The election shall be conduced annually during the first regular committee meeting in January.

4. Meetings. The committee shall meet regularly at least once each two months at a predetermined time and place. The time and place of regular meetings shall be specified in the committee by-laws. An agenda for each meeting, which outline the work to be done by the committee, and the minutes from said meetings, shall be sent to the City Manager and all divisions.

6. Duties and Responsibilities. The duties and responsibilities of the Health Plan/Cafeteria Plan Review Committee are as follows:

A. Review composite claims data from each of the component benefit plans which make up the Cafeteria Plan and based on the data, make recommendations for minimizing claim losses to the Human Resources Director and City Manager.

B. Inform, educate and describe actual and proposed changes in the benefit plans to employees in the various representative employee groups including reasons for increases in City, employee and retiree costs.

C. Inform and represent to the entire committee the desires of employee groups concerning the benefit plans, coverage, and rate of coverage.

D. Review and provide recommendations to the Human Resources Director and City Manager concerning changes in the benefit plans, coverage, and rates of coverage from time to time may be required.

E. Serve as an appeals review committee for individual employees who feel their claims have not been adequately reviewed by the Third Party Administrator.

F. Monitor the experience of the benefit plans and make recommendations to the Human Resources Director and City Manager for their improved administration.

G. To issue periodic reports to employees on the status of the benefit plans and participate in educating employees on the best use of their benefits.

RESCISSION: This policy rescinds Administrative Policy 3-9 dated October 19, 1998, and rescinds Administrative Policy 3-9 dated January 4, 2000, and remains in effect until rescinded.