HomeMy WebLinkAbout4.02 Personnel Revise PERSG~~ OF DU~I f~
/// ~
19 ~-~-~ `82
~~-~~%
~
~ ~~LIFOR~~~ /
STAFFREPORT CITY CLERK
DUBLIN CITY COUNCIL File # ^0~0-~~
DATE: October 5, 2010
TO: Honorable Mayor and City Councilmembers
FROM: Joni L. Pattillo, City Manager
SUBJE ~` Revisions to the Personnel System
Report Prepared by: Angelica T. Smith, Administrative Analyst I
EXECUTIVE SUMMARY:
The Staff report identifies proposed changes to the City's current Personnel System. The
proposed adjustments are based on the need to amend the City's contribution rate to California
Public Employees' Retirement System (CaIPERS) for the provision of health benefits under the
Public Employees' Medical and Hospital Care Act (PEMHCA).
FINANCIAL IMPACT:
The proposed increase is effective with the January 1, 2011 premium statements from
CaIPERS. Sufficient funds have been established by the adoption of the Fiscal Year 2010-2011
Budget to cover City paid health and welfare benefits.
RECOMMENDATION:
Staff recommends the City Council adopt Resolution Fixing the Employer's Contribution Under
the Public Employees' Medical and Hospital Care Act; adopt Resolution Fixing the Employer's
Contribution Vesting Requirement for Future Retirees Under the Public Employees' Medical and
Hospital Care Act; and adopt Resolution Amending the Benefit Plan.
r ~
.~ /
~ ~~ '
-c: ~~t~ % ~'
. Z (
ubmitted By
Human Resources Director
Revie By
Assistant City Manager
Page 1 of 3 ITEM NO. ~• ~,
DESCRIPTION:
The City currently contracts with the California Public Employees' Retirement System
(CaIPERS) for the provision of health benefits as do a number of other public agencies.
CaIPERS allows each participating agency to designate the amount to be contributed by the
employer. The City is required by CaIPERS to contribute the same premium amount for current
(active) employees as it does for retired employees. During the Fiscal Year 2010-2011, the City
will continue the current health contribution to a 50/50 split of the increase to the Kaiser Family
premiums that resumes for one Fiscal Year.
Presently, the City contributes $1,153.43 per month per employee/retiree for medical insurance.
Premium amounts that exceed the City's maximum contribution are paid directly by the
employee/retiree. Based on the agreed 50/50 split of the increase to the Kaiser Family
premiums the City will increase its contribution from $1,153.43 to $1,200.79 per month effective
January 1, 2011.
As required by CaIPERS, the City must adopt two separate CaIPERS Resolutions fixing the
employer's contribution under the Public Employees' Medical and Hospital Care Act (PEMHCA).
The attached Resolution (Attachment 1) increase the City's contribution from $1,153.43 per
month to $1,200.79 for current (active) employees. Attachment 2 is the contribution rate for
those employees who were hired after April 1, 2004 and eligible for the City's plan under vesting
requirements for future retirees. This rate is set by the State (State Annuitant 100/90 formula)
and in 2011 the maximum amount is $1,326.00 per month and paid to future retirees based on
the following vesting schedule:
CaIPERS Credited
Years of Service % of Employer Contribution
for Retiree Medical
10 50
11 55
12 60
13 65
14 70
15 75
16 80
17 85
18 90
19 95
20 or more 100
It is also necessary for the City to amend the City's Benefit Plan (Attachment 3) establishing the
maximum medical insurance contribution at $1,200.79 effective January 1, 2011. Premium
adjustments in future years will require the adoption of Resolutions based on the 50/50
City/Employee split formula or other method as yet to be determined monthly premiums.
Page 2 of 3
' NOTICING REQUIREMENTS/PUBLIC OUTREACH:
Not Applicable
ATTACHMENTS: 1. Resolution Fixing Employer's Contribution Rate Under the
Public Employees' Medical and Hospital Care Act.
2. Resolution Fixing Employer's Contribution Rate Vesting
Requirement for Future Retirees Under the Public
Employees' Medical and Hospitat Care Act.
3. Resolution Amending the Benefit Plan.
Page 3 of 3
l
RESOLUTION NO. XX - 10 ~ D~ ~
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
*********
FIXING THE EMPLOYER'S CONTRIBUTION UNDER THE
PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT
WHEREAS, Government Code Section 22892(a) provides that a local agency
contracting under the Public Employees' Medical and Hospital Care Act shall fix the amount of
the employer's contribution at an amount not less than the amount required under Section
22893(1) of the Act; and
WHEREAS, the City of Dublin is a local agency contracting under the Act.
NOW THEREFORE BE IT RESOLVED that the employer's contribution for each
employee or annuitant shall be the amount necessary to pay the cost of his/her enrollment,
including the enrollment of his/her family members, in a health benefit plan, up to a maximum
of $1,200.79 dollars per month plus administrative fees and Contingency Reserve Fund
assessments.
BE IT FURTHER RESOLVED that the changes contained herein shall be effective
January 1, 2011.
PASSED, APPROVED AND ADOPTED this 5th day of October, 2010, by the following
votes:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
City Clerk
Mayor
/ r ct I ~ "" ,~ '~' ~ /~ ~'
(~
ATTACHMENT 1
~~~ ~
RESOLUTION NO. XX - 10
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
*********
FIXING THE EMPLOYER'S CONTRIBUTION VESTING REQUIREMENT FOR
FUTURE RETIREES UNDER THE PUBLIC EMPLOYEES' MEDICAL
AND HOSPITAL CARE ACT
WHEREAS, Government Code Section 22892(a) provides that a local agency
contracting under the Public Employees' Medical and Hospital Care Act shall fix the amount of
the employer's contribution at an amount not less than the amount required under Section
22893 (1) of the Act; and
WHEREAS, the City of Dublin is a local agency contracting under the Act.
NOW THEREFORE BE IT RESOLVED that the employer's contribution for each active
and retired employee first hired on or after April 1, 2004 shall be the amount necessary to pay
the cost of his/her enrollment, including the enrollment of his/her family members, in a health
benefit plan, up to a maximum of $1,326.00 dollars per month plus administrative fees and
Contingency Reserve Fund assessments.
BE IT FURTHER RESOLVED that the changes contained herein shall be effective
January 1, 2011.
PASSED, APPROVED AND ADOPTED this 5th day of October, 2010, by the following
votes:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
City Clerk
Mayor
ATTACHMENT 2
~} ~~ ~
RESOLUTION NO. XXX - 2010
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
*********
AMENDING THE BENEFIT PLAN
WHEREAS, the Personnel System Rules requires the City Council to adopt a Benefit
Plan; and
WHEREAS, the Benefit Plan prescribes the current benefits provided to employees by
the City.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin
hereby amends Resolution 109-91 and subsequent amendments to include the following:
Section 2. Medical Insurance: All City employees who are members of the California Public
Employees Retirement System (CaIPERS) shall be eligible to select from plans administered
by the Public Employees Medical and Hospitat Care Act.
Beginning with the January 1, 2011 premium, the City of Dublin will contribute a maximum of
up to $1,200.79 per month premium, exclusive of administrative charges, towards medical
insurance. If the cost of coverage exceeds the amount of the City contribution, the additional
cost will be paid by the employee through payroll deductions or at the employee's option to the
extent allowed by Section 4 of the Benefit Plan.
PASSED, APPROVED AND ADOPTED this 5th day of October, 2010, by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
City Clerk
Mayor
ATTACHMENT 3