DATE:  June 18, 2000

TO:      Board of Regents

FROM: Richard Crofts, Commissioner

RE:       Intergovernmental Agreement-Flathead Valley Community College 

The referenced Intergovernmental Agreement concerns the inclusion of the employees of Flathead Valley Community College under the Montana University System group benefits program. This is at the request of the administration and trustees of FVCC.

Currently the university system administers a group benefits program for eligible employees of all units. This program includes self insured health and dental benefits, insured life, long term disability, accidental death and dismemberment, supplemental life, supplemental accident, health and dependant care spending accounts, and optional long-term care. In addition, several 403b supplemental retirement accounts are offered. At this time approximately 7,300 employees and retirees and 6,650 dependants are covered by the benefits plan.

 In 1999 Miles Community College requested inclusion in the plan and a similar agreement was executed at that time.

Flathead Valley Community College has requested inclusion in our plan. This would add approximately 120 new members, which would not materially affect the actuarial soundness of the plan because the number of covered members is already large enough to experience the maximum benefits of pooled risk. FVCC's current insurance is expensive, and the total premium plus 65% of dependent premium has been employer paid for most employees. The college reached an agreement with its employees to offer MUS benefits, pay the same employer monthly contribution towards those benefits paid by the MUS ($295).

The FVCC board of trustees approved the Intergovernmental Agreement on June 26, 2000. A copy of the Agreement will be provided before the Regents' meeting. If approved by this board, our benefits staff will hold enrollment meetings at FVCC in August, with the insurance becoming effective September first.

 I recommend approval of the referenced Interlocal Agreement.