A model ordinance for adoption of Fringe Benefit Plans, such as group life, accident and health, income protection, etc.

The following ordinance has been requested as a result of Attorney General Opinion No. 4818, which relates to Township pension and Group Insurance Plans. The purpose of the ordinance is to provide suggested guidelines for the types of items which should be included in an ordinance creating a Group Insurance Plan.

Certainly no form can be a substitute for legal judgment and certainly no form should be used unless, after careful review, it is the professional judgement of an attorney that the use of the form will accomplish the particular objectives and intentions of his client Township. Although the forms are the result of much thought and effort, neither the authors nor the distributors assume any responsibility for the results of use in individual cases.

The language in Section III of this model ordinance attempts to list every possible Township official and employee. A Township may delete, where appropriate, those classes of officers or employees who are not to be covered under the Township's plan. Under Section IV, the ordinance may eliminate any contribution from the officer or employee by placing a “0” in the blank spaces.

This ordinance should be made effective on the date of its publication.

The ordinance must be published in a newspaper of general circulation within thirty (30) days after its adoption by the Township Board and the ordinance must also be placed in the official ordinance book of the Township within seven (7) days thereafter under the Clerk's certificate of adoption.

In a charter Township, the ordinance or a summary must be published before its adoption as well as following its adoption.

A copy must be filed with the county Clerk if the Township does not maintain a Township office open to the public during regular business hours of regular business days.

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An ordinance to create and establish a Township Group Insurance Plan covering life, health, hospitalization, medical and surgical service and expense, accident insurance, and long term disability income coverage for certain classes of Township officers and employees and their dependents, and to authorize the Township Supervisor and the Township Clerk to contract in the name of the Township for such plan; to define those classes of officers and employees who shall be covered by such Group Insurance Plan; to set forth the respective per centum shares which the Township and the officers and employees shall contribute to the premium or charges arising under such Group Insurance Plan; to provide for the payroll deduction of contributions, if any, from officers' and employees' compensation; to establish the time at which existing and future employees shall become eligible for such plan; to provide a method for non-coverage of an officer or employee of the plan; to ratify and confirm the validity of any plan in existence on the effective date of this ordinance; and to repeal all ordinances or parts of ordinances in conflict herewith.

THE TOWNSHIP OF ______, ______ COUNTY, MICHIGAN, ORDAINS:

Section I
This ordinance shall be "known and cited as the ______________ Township Group Insurance Plan Ordinance."

Section II
Pursuant to Section 110b of Public Act 77 of 1989, as amended, (MCL 41.110b), the Township hereby creates and establishes a Group Insurance Plan covering life, health, hospitalization, medical and surgical service and expense, accident insurance, and long term disability income insurance coverage for its officers and employees enumerated herein; and, for such purposes, also hereby authorizes the Township Supervisor and the Township Clerk to contract, in the name of the Township Board, with any company authorized to transact such business within the State of Michigan for such group insurance policies.

Section III
The Group Insurance Plan created, established and contracted for under this ordinance shall cover each person within the following classes of officers and employees and shall also cover the dependents of such person:

[ ] All members of the Township Board.
[ ] All members of the Township Zoning Board.
[ ] All members of the Township Planning Commission.
[ ] All members of the Township Zoning Board of Appeals.
[ ] All members of the Township Board of Review.
[ ] All members of the Township Construction Board of Appeals.
[ ] All members of the Township Park Board.
[ ] All members of the Township Library Board.
[ ] All members of the Township Recreation Board.
[ ] All Township Constables.
[ ] All Township Building Inspectors and their assistants.
[ ] The Township Fire Chief.
[ ] The Township Police Chief.
[ ] The Township Manager / Superintendent.
[ ] All Township employees who are employed for more than twenty (20) hours per week on a regular basis.
[ ] All Township Firefighters.
[ ] All Township Emergency Medical Personnel.
[ ] All Township Police Officers.
[ ] All Township Ambulance Drivers or attendants.
[ ] All Township Assessors (if an employee).
[ ] The Township Attorney (if an employee)
[ ] The Township Engineer (if an employee).
[ ] The Township Auditor (if an employee).
[ ] The Township Unsafe Buildings Hearing Officer.

Section IV.
The Township shall annually contribute ____ per centum of the portion of the premium or charges arising under such life insurance contract for each person within the class of persons enumerated in Section III hereof. Such Township contribution shall be secured from the general fund of the Township. Each person within such class shall be responsible for the remainder of the premium or charges, if any, not paid for by the Township, and the Township Treasurer is hereby authorized to deduct the same from such person's pay, salary or compensation to apply to such person's responsibility. Any person required by ordinance to make contributions to the coverage who desires not to be so covered shall give written notice to the Township Clerk that he/she desires not to be insured or covered, and if the notice is received before the person has become insured or covered under the contract, he/she shall not be covered under the contract. If the notice is received after the individual has become insured or covered, his/her coverage under the contract shall cease as provided for in the contract.

Section V
The Township hereby ratifies and confirms the validity of any life, health, hospitalization, medical and surgical service and expense, accident insurance, and long term disability income insurance coverage, or any one or more of such forms of insurance in existence on the effective date of this ordinance.

Section VI
This ordinance shall take effect on the date of its publication. All ordinances or parts of ordinances in conflict herewith are hereby repealed.

The purpose of this sample ordinance is to provide a suggested guideline for the types of items that should be included within an ordinance. Certainly, no sample ordinance should be used unless, after careful review, it is the professional judgment of your legal counsel that using the sample will accomplish the particular objectives and intentions of your Township. Although these sample ordinances are the result of much thought and effort, neither the authors nor the Michigan Townships Association assumes any responsibility for the results of using these samples word-for-word in individual cases.