Exh 23I. Executive Summary
Palmer& Cay Consulting Group has reviewed and analyzed The City of Atlantic Beach employee benefits and pension programs. Our
analysis includes all of the benefit plans now in existence and is intended to assist The City in assessing the competitiveness of its program
taking into consideration all sources of death, disability, health and retirement benefits provided by company-sponsored plans.
Our analysis is divided into three sections: the executive summary, observations, and recommendations. Hopefully, this will serve as a
catalyst to modify the current program, with an emphasis on adequacy, competitiveness and pricing.
Observations
The City of Atlantic Beach is currently spending approximately 37% of annualized payroll or$1,618,913 on non-cash compensation
benefits), which is slightly above the average employer cost of 32 to 36% of payroll.
The current medical plan offers adequate choice and the contribution strategy is fair. 87% of those enrolled have chosen the HMO
plan.
Current dental plan is a pre-paid dental plan and is considered poor by the employees.
The current Supplemental Life offers adequate flexibility for employees and their dependents.
The City of Atlantic Beach should explore the feasibility of offering medical and dependent care flexible spending accounts to allow
employees to be reimbursed for qualified expenses on a tax advantaged basis.
The current Defined Benefit is very rich as a percentage of income replacement at retirement. However, employees do not seem to
fully understand the program, but value it as part of their overall benefits package.
The City should enhance communications for benefits available to all employees, as well as the cost (on an individual basis) of these
benefits.
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Retirement Benefits
Current Structure of Qualified Benefit Formulas places the
City's Retirement Plans above the regional market
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