The City of Bowling Green sets itself apart from other employers by offering an aggressively competitive benefits package. Our greatest asset is our employees. To prove our commitment to our employees we offer the following benefits to our full-time employees:
Kentucky Public Pensions Authority
The City of Bowling Green participates in the Kentucky Public Pensions Authority (KPPA). This offers our employees a defined benefits pension plan to provide employees income after retirement. Most new hires will be a part of Tier 3, the Cash Balance Plan.
Cash Balance Plan
The Cash Balance Plan is Tier Three within our defined benefit pension plan. This benefit tier is for members who began participation on or after January 1, 2014. A Cash Balance Plan is known as a hybrid plan because it has characteristics of both a defined benefit plan and a defined contribution plan. A Cash Balance Plan resembles a defined contribution plan because it determines the value of benefits for each participant based on individual accounts. However, the assets of the plan remain in a single investment pool like a traditional defined benefit plan. A Cash Balance Plan resembles a defined benefit plan since it uses a specific formula to determine benefits. The Hybrid Cash Balance plan was established as part of Senate Bill 2, which was enacted by the Kentucky General Assembly during its 2013 Regular Session.
All regular full-time employees who began participation with KPPA on or after January 1, 2014 contribute to the Cash Balance Plan. Your participation in the plan is mandatory unless you are a non-participating employee. Employment classifications that are non-participating include part-time, seasonal, temporary, probationary (CERS only), interim, emergency, and independent contractors.
How Does It Work?
Members and employers contribute a specified amount into the member’s account. The account earns a guaranteed amount of interest at the end of each fiscal year. If the member has participated in the plan during the fiscal year, there may be an additional interest credit added to the member’s account depending on KPPA’s investment returns. All interest is paid on the preceding year’s balance so there is no interest paid in the member’s first year.
When a member is eligible to retire, the benefit is calculated based on the member’s accumulated account balance. A member earns service credit for each month they contribute to the Cash Balance Plan. Once a member obtains 60 months of service credit the member is considered vested. Being vested changes the level of benefits to which you are entitled.
Accounts Earn Interest and Grow
Your account earns 4% interest annually on both the member contributions and the Employer Pay Credit balance. Interest is credited to your account each June 30, based on your account balance from the preceding June 30. New members do not see interest credited in their first year since there is no prior year balance.
Over time, the value of your account can increase a great deal because of compounding interest.
Am I Eligible for a Refund of My Account if I Quit My Job?
At the time of termination, the member is eligible to either take a refund of the accumulated account balance if vested (five or more years of service), or annuitize the account balance, if eligible for retirement. If the member terminates employment and requests a refund prior to vesting, the member is eligible only for the member’s contributions and associated interest, and forfeits the employer pay credit and associated interest. Learn more about refund of contributions.
Additional information about the KPPA is available on www.kyret.ky.gov.
Kentucky Public Employees’ Deferred Compensation Authority (KDC)
Kentucky Public Employees’ Deferred Compensation Authority (KDC) is authorized under the Kentucky Revised Statutes (18A.230 – 18A.275) to provide administration of tax-deferred supplemental retirement plans for all state, public school and university employees, and employees of local political subdivisions that have elected to participate. It is an agency attached to the Personnel Cabinet of the Commonwealth of Kentucky for administrative purposes only.
We offer supplemental retirement plans for employees like you to save from each paycheck and invest toward retirement. These plans can help bridge the gap between what you have in your pension and Social Security (if applicable), and how much you will need in retirement. The available deferred compensation plans include:
- 457(b) Plan – tax-deferred (pre-tax)
- 401(k) Plan – tax-deferred (pre-tax), which includes three after-tax options
- Roth 401(k)
- Deemed Traditional IRA
- Deemed Roth IRA
Additional information is available at www.kentuckyplans.com.
The City offers a choice of two medical plans. Both plans provide excellent coverage that includes pharmacy benefits at very affordable premiums.
|SERVICES||PPO PLAN||RBP PLAN|
|Out of Pocket Maximums|
|Primary Care (PCP)||Deductible/Co-Insurance||$30|
|Inpatient Services||Deductible/Co-Insurance||$500 (Medical Center)
$750 (all other facilities)
|Emergency Room (Bona Fide True Emergency)||$250 Co-Pay (applies to OOP Max but not deductible), then 80%/20%||$250 (true emergency)
$500 (non-true emergency)
|MRI, CT, & PET Scans||Deductible/Co-Insurance||$150 (Medical Center)
$250 (all other facilities)
|Outpatient Surgery||Deductible/Co-Insurance||$250 (Medical Center)
$350 (all other facilities)
|Physical, Occupational, & Speech Therapy||Deductible/Co-Insurance||$30|
|Sleep Studies||Deductible/Co-Insurance||$250 (Medical Center)
$350 (all other facilities)
|Other Medical Services|
$40 (initial visit)
|Skilled Nursing||Deductible/Co-Insurance||$500 (Medical Center)
$750 (all other facilities)
|Home Health Care||Deductible/Co-Insurance||$0|
|Hospice Services||Covered 100%||$0|
|Private Duty Nursing||Deductible/Co-Insurance||$0|
|Durable Medical Equipment||Deductible/Co-Insurance||$50|
|Routine Foot Care||Deductible/Co-Insurance||$40|
|Annual Health Reimbursement Arrangement (HRA) Amounts|
|Individual Max HRA Accrual||$7,800||NA|
|Family Max HRA Accrual||$13,100||NA|
|PREMIUMS||PPO Plan||RBP PLAN|
|Employee Only Premium Per Month||$35.00||$23.33|
|Employee + One Premium Per Month||$68.75||$45.83|
|Family Premium Per Month||$101.88||$67.92|
Health Reimbursement Arrangement (HRA) – PPO Plan Only
The Health Reimbursement Arrangement (HRA) Plan is an account funded by the City of Bowling Green which employees electing the City’s health plan can use to be reimbursed for eligible medical expenses during the plan year.
Employees electing single coverage will receive $1,000 in their account on January 1 of each year. Employees electing employee + one or family coverage will receive $2,000. Employees hired during the plan year and electing the City’s health plan will receive a prorated amount based on the months employed in the plan year. Any unused amounts will rollover to the next plan year. The account maximum for single is $7,800 and family is $13,100.
An employee’s spouse who has a “group plan” offered through his/her employer will only be eligible for secondary coverage on the City’s medical plan. A group plan in this context is defined as an insurance plan sponsored by an employer to provide health insurance for employees, and does not include plans filed as individual plans in any state. If you are uncertain whether your spouse’s employer offers a “Group Health Plan” or an “Individual Health Plan” please provide either an application for your spouse’s coverage or a Schedule of Benefits (or both). The spousal waiver only applies to the City’s medical plan.
|Type||30 Day Supply||90 Day Supply|
|OTC (Claritin, Claritin-D, Loratidine, Abreva, Prilosec-OTC, Alavert, Alaway-OTC, Zaditor-OTC, Zyrtec-OTC, Zyrtec-D-OTC, Slo-Niacin, Allegra, Allegra D, Prevacid-24, Zegerid OTC, Nexium OTC) NOTE: Prescription Nexium is only available for children under 13 years of age|
All the drugs listed above are also available at the City Care Center at no cost to the member
|$5 (Walgreen’s/CVS/Rite Aid + $15)||$10 (Walgreen’s/CVS/Rite Aid + $15)|
|Tier 1 (Generic)||$7 (Walgreen’s/CVS/Rite Aid + $15)||$14 co-pay (Walgreen’s/CVS/Rite Aid + $15)|
|Tier 2 (Preferred Brand)||$35 |
(Walgreen’s/CVS/Rite Aid + $15)
|$70 (Walgreen’s/CVS/Rite Aid + $15)|
|Tier 3 (Non-Preferred Brand)||$50 (Walgreen’s/CVS/Rite Aid + $15)||$100 (Walgreen’s/CVS/Rite Aid + $15)|
|Tier 4 (Specialty)||Not Covered||Not Covered|
oral exams, x-rays, cleanings, topical fluoride treatment, sealants, space maintainers
oral surgery, fillings, routine extractions, prefabricated stainless steel crowns, crowns, inlays & onlays, implants, periodontics, endodontics (root canals)
emergency care for pain relief, bridgework, dentures/partials, denture relines & rebases, denture repair & adjustments, teeth whitening
|Annual Maximum (excludes orthodontia)||$1,500|
|Orthodontia||Child orthodontia covers children to age 19. Plan pay 50% of the covered orthodontia services, up to $1,500 lifetime orthodontia maximum|
|Premiums Per Month|
|Employee + Spouse||$33.35|
|Employee + Child(ren)||$33.31|
|Employee + Family||$67.17|
|Exam with dilation||$10 co-pay|
|Contact lens exam||Up to $60|
|Standard plastic lenses||$0 co-pay|
|Contact lenses||$130 allowance|
|Examination||Once each calendar year|
|Lenses or contact lenses||Once each calendar year|
|Frame||Once every two years|
|Premium Per Month|
|Employee + Spouse||$5.25|
|Employee + Child(ren)||$5.83|
|Employee + Family||$11.67|
Health Flexible Spending Account
A healthcare Flexible Spending Account, or FSA, allows you to set aside money (up to $2,750 per plan year) from your paycheck – before taxes are taken out – to pay for healthcare expenses your health plan doesn’t cover.
The IRS allows employees to rollover up to $550 in their account to the following year. This rollover will be automatic. There will be no forms to complete to keep your balance up to $550. There must be minimum account balance of $25 for the rollover to occur for employees not electing an FSA in the following year.
An FSA helps you plan for healthcare expenses and take home more of your paycheck. A key advantage of an FSA is that it may offer FICA, federal, and state tax savings. Since healthcare FSA contributions are deducted from your pay before they are taxed, you do not report them as income – which means you pay no taxes on the money you contribute to your FSA.
|Example of annual tax savings|
|Amount deposited into FSA before taxes||-$1,500||-$0|
|Remaining taxable income||$26,500||$28,000|
|Minus federal and Social Security taxes||-$9,447||-$9,982|
|If you had used after-tax dollars (instead of FSA dollars) for eligible health expenses||-$0||-$1,500|
|You would have less spendable income |
Your tax savings with an FSA
* This example is intended to demonstrate a typical tax savings based on 28% federal and 7.65% FICA taxes. Actual savings will vary based on your individual tax situation. Please contact a tax professional for more information on tax implications of an FSA.
Flexible Spending Debit Card
Once your plan begins, you’ll receive a card in the mail. Use the card for FSA-eligible expenses wherever Visa cards are accepted, such as doctors’ offices, dentists’ offices, hospitals, and pharmacies.
A list of eligible expenses can be found at www.irs.gov.
This FSA helps you plan for child-care expenses. It allows you to set aside money (up to $5,000 per plan year) from your paycheck – before taxes are taken out – to pay for child-care expenses. Once your plan begins, you can submit claim forms for eligible expenses. The amount requested must be in your account before it can be reimbursed.
The City also offers supplemental life (employee paid) coverage to the employee, employee’ spouse, and employee’s children.
Employee Supplemental Coverage
Guarantee Issue up to $250,000
Can elect up to $400,000 (any amount over $250,000 will require evidence of insurability)
Spouse Term Life Coverage ($5,000 increments)
Guarantee Issue up to $50,000
Can elect up to $150,000 (any amount over $50,000 will require EOI)
Child or Children Term Life Coverage
Can elect $10,000 or $15,000
Disability Income Insurance
- can help protect your finances in case of a covered injury or illness
- provides a benefit to help cover costs while you are unable to work
- pays some of you gross monthly earnings
Accident Only Insurance – Limited Benefit Accident Only Insurance
- may help manage out-of-pocket costs to treat injuries resulting from a covered accident
- provides benefit payments directly to you
Cancer Insurance – Limited Benefit Group Cancer Insurance
- may help ease the financial burden of cancer treatment, so you can focus on recovery
- provides benefit payments directly to you
Life insurance may help ensure your family is financially protected in the event of a loss. You own the policy, so you can take it with you to a different job or into retirement.
The Employee Assistance Program (EAP) is a service paid for you by the City of Bowling Green. It provides confidential, professional short-term counseling, referral, and follow-up for you and your family members. The program also provides legal and financial consultation services, as well as assistance with elder care, child care, adoption, education, and daily living concerns. The City recognizes its employees as one of its most valuable resources. While everyone experiences stress, sometimes the effects of too much stress can disrupt work performance and personal well-being.
The EAP is designed to help you deal with problems before they become unmanageable. The EAP can provide help in a variety of areas, including: depression; grief and loss; relationship problems; alcohol and drug related problems; financial pressures; family problems; parenting concerns; stress; and anxiety. These are a few of the reasons why people seek help from the EAP. All sessions are confidential and professional.
Summary of EAP Benefits:
Up to eight counseling sessions with a licensed counselor in-person locally or by phone. Counselors will provide assistance for all personal issues, including but not limited to: PTSD counseling for first responders and emergency personnel, grief counseling, help with anxiety and stress, depression, addiction, and marital and family issues.
Worklife services where professionals provide assistance with Child Care, Adult Care, Adoption, Parenting, Education, Daily Living, and Career
Legal Assist Service where clients receive a cost-free consultation and a 25% discount from the referred attorney’s hourly fee thereafter
Financial Assist Service providing free, unlimited telephonic access to Certified Consumer Credit Counselors
A robust, user-friendly web service featuring live connect, monthly feature articles, monthly online seminars, mental and physical wellness information, self-help locators for child and elder care, and a highly-utilized savings center.