Agenda Date: 12/16/2014
Subject:
Title
Resolution adopting and entering into the Trust Agreement for the Colorado Firefighter Heart and Circulatory Benefits Trust
Body
Presented By:
Erich WonSavage, HR Director
POLICY QUESTION:
Does city council support approving an agreement with the Colorado Firefighter Heart and Circulatory Benefits Trust to meet the requirements of SB 14-172?
BACKGROUND:
SB 14-172 takes effect January 1, 2015, requiring employers of firefighters who have been actively employed for five years and who work a minimum of 1,600 hours per year, to provide employer paid benefits to those who suffer specified cardiac or circulatory illness as a result of a strenuous work event, or within 48 hours of a work shift.
Employers may provide this new benefit by purchasing coverage through a private insurer, be self-funded, or become a member of the Colorado Firefighter Heart and Circulatory Benefits Trust, formed through an Intergovernmental Agreement to cover the requirements of SB 14-172.
The State will provide funding for this mandate through the Department of Local Affairs (DOLA) for 2015 and 2016. The State's fiscal year end in June will provide the City of Littleton time in 2016 to determine if it will renew this benefit for 2017. If DOLA funding is no longer provided, the senate bill allows employers to make their own determination whether to continue providing this benefit or discontinue it.
STAFF ANALYSIS:
The cost of one claim could reach $250,000 for employers who self-fund. At a minimum, the city of Littleton should have a fund balance of at least one claim ($250,000), reducing funds available for other city needs. Additionally, to self-fund adds more administrative burden to the Human Resources Department to process claims, determine eligibility and payments, and adjudicate the claim as well as submit reimbursements to DOLA. While the State has funded SB 14-172, it will only reimburse employers while funds are ...
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