TO: Committee of the Whole - Finance, Administration, and Communications
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
Human Resources
Cathryn Laird
425-556-2125
DEPARTMENT STAFF:
Human Resources
Nicole Bruce
Sr. Human Resources Analyst/Benefits Plan Administrator
Human Resources
Mark Berens
Payroll Supervisor
TITLE:
title
100% Federal COBRA Subsidy and Long-Term Care Benefit Program
OVERVIEW STATEMENT:
recommendation
Human Resources is providing information regarding two new pieces of legislation recently passed into law:
* 100% Federal COBRA Subsidy: Created in the American Rescue Plan Act that was signed into law on March 10, 2021. It is for employees who had a reduction in hours or involuntary separation and are COBRA-eligible for any months between April 1, 2021 and September 30, 2021.
* Washington State Long-Term Care: The new Washington State Long-Term Services and Supports Trust Act created the Long-Term Care Benefit Program. This is a new employee payroll tax beginning January 1, 2022.
body
? Additional Background Information/Description of Proposal Attached
REQUESTED ACTION:
? Receive Information ? Provide Direction ? Approve
REQUEST RATIONALE:
* Relevant Plans/Policies:
N/A
* Required:
Both the subsidy and the payroll tax are mandated by law.
* Council Request:
N/A
* Other Key Facts:
N/A
OUTCOMES:
100% COBRA Subsidy: The President signed the American Rescue Plan Act (ARPA) on March 10, 2021, which contains several benefits related-relief provisions for participants. Included in these provisions was a 100% COBRA subsidy for employees who had a reduction in hours or were involuntarily separated from employment during certain periods of the pandemic. The subsidy will be available beginning April 1, 2021 and end on September 20, 2021. Additional guidance and sample notices for assistance eligible individuals were released on April 7, 2021. We are currently working with Gallagher, our COBRA administrator, to ide...
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