Download Retirement Benefits

Current Remuneration for Members of City Council
Elected
Official
2006 Annual
Salary
Car
Allowance
Mayor
*121,820.71
(1/3 tax free)
Choice of
city owned
vehicle or
car
allowance
Councillor
*$63,638.06
(1/3 tax free)
$400 per
month (1/3
tax free)
*
Benefits
Group Life
Insurance,
Dependent Life
Insurance, Longterm Disability,
Extended Health,
Provincial Health
Care and Dental
Care
Retirement
Benefits
Transition
Allowance
6% of the
elected
official’s
annual salary
(1/3 tax free)
2 weeks salary
for each year
served to a
maximum of
six months
salary
Credits start
accumulating
after the 2001
election
The salary for Members of Council is adjusted on the first day of the payroll calendar year by
the same percentage increase or decrease as the Average Weekly Earnings for Alberta as
reported by the Statistics Canada survey of employment payroll and hours for the
immediately preceding year.
Councillors receive $300.00 (one-third tax free) in the month they serve as Deputy Mayor.
1
Remuneration (Council Members)
Salaries
Mayor - $121,820.71(one-third tax free)
Councillors - $63,638.06 (one-third tax free).
The tax free portion is intended to be a non-accountable allowance
against which elected municipal officers can discharge business
expenses. All, or substantially all, of these business expenses are GST
taxable supplies acquired in Canada, in relation to municipal activities.
Deputy Mayor’s Allowance
Councillors receive $300.00 (one-third tax free) in the month they
serve as Deputy Mayor. At its Inaugural Meeting, and thereafter on an
annual basis, Council approves a schedule of the Deputy Mayor terms.
In the month the Councillor serves as Deputy Mayor, payment is
received on the regular bi-weekly pay cheque.
Compensation Adjustments
Cash compensation for Members of Council will be adjusted on the
first day of the payroll calendar year by the same percentage increase
or decrease as the Average Weekly Earnings for Alberta, as reported
by the Statistics Canada Survey of Employment Payroll and Hours, for
the preceding year’s September to September information report.
Annual economic adjustments will be made automatically by Human
Resources.
Retirement Benefits
Council Members will receive 6% of their total annual salary to
support retirement. This allowance is paid out on a bi-weekly basis.
The option of participating in the City of Edmonton Group Registered
Retirement Plan is also available. Presently, the TD Bank and Great
West Life are the carriers for the Group Plan.
2
Vehicle Allowance
Councillors receive $400.00 (one-third tax free) per month for vehicle
allowance to offset transportation costs associated with fulfilling their
duties within the City of Edmonton and the Capital region. This will
be paid on the first pay of every month.
The Mayor has the option of either obtaining a City vehicle or a
vehicle allowance of comparable annual value. (Policy C100)
Transition Allowance
The Mayor and Councillors of the City of Edmonton are provided with
a severance payment upon the conclusion of their service. This
severance allowance is to be equal to two weeks salary for each year
served after October, 2001, to a maximum of six months salary.
Compensation Commission
The City will establish a Council Compensation Commission, or
similar independent body, every six years (or two Council terms) to
conduct a comprehensive review of compensation levels, issues and
policies relating to elected officials. The Commission could include
representatives from labour, the business community, post secondary
institutions, the judiciary and citizens at large. The Independent
Compensation Commission would be appointed toward the end of the
second year of the Council term with their recommendations not
coming into effect until after the next election.
3
BENEFITS AND REMUNERATION - COUNCIL MEMBERS
Members of Council will be provided with the same employee benefits package and
employer/employee contribution rates as the City of Edmonton’s Management
Exempt Group.
The following description is a brief summary of the benefit plans a Council Member
is eligible to participate in. The plans’ terms, conditions and limitations are contained
in the contract documents (where applicable) which govern in the event of a
discrepancy.
Health Benefit Plans
A Council Member can participate in the following City of Edmonton benefit
plans: Alberta Health Care, Major Medical and Supplementary Health Care,
Dental Plans, Long Term Disability, Life Insurance, Dependents’ Group Life
Insurance and Optional Group Life Insurance.
Alberta Health Care
Cost Sharing: City of Edmonton 50% – Council Member 50%
On the first day of the month following commencement in the
position, a Council Member will be eligible to join the Alberta Health
Care Group Plan. The premium paid by the City of Edmonton is a
taxable benefit.
Major Medical and Supplementary Health Care Plan
Cost Sharing: City of Edmonton 60% – Council Member 40%
The Major Medical and Supplementary Hospital Plan provides
coverage for some medical expenses which are not covered under the
A.H.C. Plan. There is a $30.00 per calendar year deductible. The Plan
reimburses 80% of the amount in excess of $30.00, for eligible
expenses, unless otherwise stated. Some eligible expenses include:
direct bill
semi-private hospital room accommodation
prescription drugs and other limited medical expenses - 80% coverage
4
professional ambulance services to an active treatment hospital - 80%
coverage
charges for a clinical psychologist engaged in the treatment of mental
or emotional illness up to $1,000.00 per year, reimbursed at 50%.
Coverage is not provided for assessments
Chiropractor services, 75% of the cost of a treatment session, once all
allowable limits have been reached under A.H.C. to a maximum of
$1,000
Your new card allows for a pay direct feature for prescription drugs
only. Your benefit plan pays the pharmacist for the portion covered
by the plan. You only pay the portion not covered.
Dental Plan (Blue Cross)
Cost Sharing: City of Edmonton 65% – Council Member 35%
Some eligible expenses include:
basic (routine) services – 100% coverage
repairs to existing restorative items (crowns, bridges, inlays, onlays,
retentive pins) – 80% coverage
new restorative items – 50% coverage
orthodontic services, 50% coverage to a maximum lifetime benefit of
$2,000.00 per covered individual
pre-authorization must be obtained for treatment or services expected.
Coverage ceases on the last day of the term of office. However,
expenses can be claimed if they were incurred before the date of
termination, if the treatment commenced within a 90 day period prior
to the date of the last premium payment. In this event, treatment
would have to be completed within 30 days of the date of the last
premium payment.
Long Term Disability
Cost Sharing: City of Edmonton 0% - Council Member 100%
This Group Plan provides protection against loss of income to
Councillors who are under the age 65 and unable to work due to a
long-term disability. Benefits become payable after 85 continuous
working days of disability subject to satisfactory medical evidence of
the disability.
Life Insurance
5
Cost Sharing: City of Edmonton 50% - Council Member 50%
Coverage is provided world-wide every day of the year for death by
any cause. (The Optional Group Life Insurance Benefit has some
exclusions).
Premiums paid by the City for life insurance are a taxable benefit.
All Council Members who have one or more dependents must
maintain dependent coverage under the Group Life Plan. The named
beneficiary is revocable. To change a beneficiary, the appropriate
forms must be completed.
Death Benefit
Dependent Coverage
Single Coverage
2.5 times annual regular
1 times annual regular salarysalary-rounded to nearest
rounded to nearest $1,000 or
$1,000 or
$64,000 for Councillors
$160,000 for Councillors
$122,000 for Mayor
$305,000 for Mayor
Termination and Conversion: If under 65 upon the conclusion of
service with the City, this group life insurance continues for 31 days.
During this period only, application may be made to have this life
insurance coverage (or a portion of it) converted to an individual
policy. Medical evidence will not have to be provided to convert to an
individual policy. The rate for the individual premium will be based
on sex, age, and whether or not a person smokes at the time of
conversion.
Dependents’ Group Life Insurance
Cost Sharing: Council Member - 100%
Dependents’ Group Life Insurance provides coverage for spouses
and/or dependent children.
All Members of Council will be automatically covered under the Plan
if maintaining dependent coverage (i.e. 2.5 times annual salary) under
the Group Life Plan.
6
Spouse
$12,500
(fixed amount)
Death Benefit
Dependent Children
$5,000 per dependent ($2,500
if the child is under 14 days of
age or stillborn from a
pregnancy that existed at least
7 months)
Optional Group Life Insurance Plan
Cost Sharing: Council Member - 100%
Coverage can be purchased in multiples of $25,000. to a maximum of
$250,000. Cost varies between age bands, gender, and whether or not a
person smokes. To be considered a non-smoker, applicants must not
have used tobacco products (cigarettes, pipes, cigars, cigarillos,
chewing tobacco, nicorette gum and nicotine patches) within the past
12 months. Coverage is subject to insurability of the member, and
those over the age of 65 years of age are not eligible.
Other Voluntary Benefit Plans
Alberta Blue Cross Annual Blue Travel Insurance
Alberta Blue Cross Annual Blue Travel Insurance provides health care
coverage for personal trips outside of Alberta. Coverage is for trips up
to 30 days in length and is applicable for one year from date of
application. Extended coverage can be obtained for trips that extend
past 30 days, by applying directly to Blue Cross.
As of July 1, 2002, a pre-existing condition clause for all ages has
been added to the Blue Cross Coverage. There are no age
restrictions for you or your spouse. You must be actively at work
to qualify for the special rates. Coverage is effective on the date of
application and must be renewed annually.
7
Canada Savings Bonds Payroll Savings Plan
Council Members may purchase Canada Savings Bonds through
payroll deductions. Once signed up, bond purchases are deducted
from each pay.
During the City’s annual Canada Savings Bond sales period, in
October, changes in contribution amount or opening a new plan is
allowed, if for example, purchasing bonds for someone else. If
changes are required at other times of the year, contact the Payroll
Department.
If leaving the City, arrangements can be made to have bond purchases
continue by debit from a personal bank account or through a new
employer (assuming they sponsor the new Payroll Savings Program).
Home and Automobile Insurance Group Plan
This voluntary plan allows members to obtain group rates on personal,
home and automobile insurance. A Council Member, if interested, can
receive a “no-obligation” quotation by calling AON Reed Stenhouse at
423-1444.
Registered Retirement Savings Group Plan
A Council Member may voluntarily participate in a Group RRSP, by
electing to make bi-weekly contributions to the plans offered by Great
West Life Assurance or the Toronto Dominion Bank.
8