HomeMy WebLinkAboutResolutions - 1988.08.18 - 17370August 18, 1988
MISCELLANEOUS RESOLUTION 88206
BY: FINANCE COMMITTEE, DR. G. WILLIAM CADDET I, CHAIRPERSON
IN RE: DEPARTMENT OF MANAGEMENT AND BUDGET - PAY OFF OF ACCUMULATED
DEFICITS FOR LIFE AND DISABILITY INSURANCE PROGRAMS
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS the County implemented short and long term disability programs
in December, 1985; and
WHEREAS the County realized the initial premiums charged by the
insurance carrier would most likely be insufficient to cover this benefit;
and
-WHEREAS the County experienced reduced sick leave cost and made a
commitment to its employees to set aside these savings to help fund future
disability cost increases; and
WHEREAS the disability program has incurred an accumulated deficit of
$158,106 on Which the County is paying an interest cost of prime plus one
(10.5V.) which is considerably higher than the rate of return it is earning
on investments; and
WHEREAS the insurance carrier through negotiations with Management and
Budget and Risk Management has agreed to forego interest charges from
January 1, to the present; and
WHEREAS there is an accumulated deficit for life insurance of $413,405
for a total deficit of $571,571; and
WHEREAS there are sufficient funds in the Disability Premium Increase
Reserve to pay off the accumulated deficits for both disability and life
insurances Which would have the effect of avoiding substantial interest
costs thus reducing premium cost; and
WHEREAS the insurance carrier may be willing to credit the County with
a rate of return equal to 9.51 on prepaid insurance dollars.
NO4 THEREFORE BE IT RESOLVED the deficit in both the disability and
life insurance programs be paid off with funds from the Disability Premium
Increase Reserve.
\n,
Y APPROVE THE FOREGONG RESOLUTICU
BE IT FURTHER RESOLVED the County establish a receivable from the
General Fund to Disability Premium Increase Fund equal to the pay off of
the life insurance deficit ($413,405).
BE IT FURTHER RESOLVED Management and Budget and Risk Management
explore the possibility of pre-funding insurance and report back to the
Finance Committee within ninety days.
Mt. Chairperson, on behalf of the Finance Committee, I move the
adoption of the foregoing resolution.
FINANCE COMMITTEE
Resolutlan # 88206 August 18, 1988
19th 'day of
YNN
Augus
ALLEN, County Clerk/Register of
1988
Moved by Caddell supported by Lanni the resolution be adopted.
AYES: McConnell, McDonald,A. McPherson, R. McPherson, Moffitt, Oaks, Pernick,
Price, Rewold, Skarritt, Wilcox, Aaron, Bishop, Caddell, Calandro, Crake, Doyon, Gosling,
Hobart, Jensen, R. Kuhn, S. Kuhn, Lanni, Luxon. (24)
NAYS: None,. (0)
•
A sufficient majority having voted therefor, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
1, Lynn D. Allen, Clerk of the County of Oakland and having a seal,
do hereby certify that I have compared the annexed copy of the attached
Miscellaneous Resolution,Wihich wasAdopted by the Oakland County Board; of Commissioners
at their meeting held on August 18, 1988
with the original record thereof now remaining in my office, and
that it is a true and correct transcript therefrom, and of the
whole thereof.
in Testimony Whereof, I have hereunto set my hand and affixed the
seal of said County at Pontiac, Michigan
this