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HomeMy WebLinkAboutReso 151-15 Adopte Benefit Plan RESOLUTION NO. 151 - 15 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ******************** ADOPTING A BENEFIT PLAN IN ACCORDANCE WITH PERSONNEL RULES WHEREAS, the City Council adopts Personnel System Rules for employees of the City; and WHEREAS, the provision of employee benefits assists the City in attracting and retaining quality employees; and WHEREAS, the Personnel System Rules require the City Council to adopt a Benefit Plan; and WHEREAS, the identification of benefits in a single document will assist with the administration of the personnel system; and WHEREAS, the following benefit provisions shall be established in accordance with the City of Dublin Personnel Rules; and WHEREAS, the Benefit Plan was last adopted by Resolution No. 109-91 and subsequent amendments. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby adopt the following benefits as a Benefit Plan. Section 1. Eligible Employees: All benefits shall apply to regular permanent full- and part- time employees of the City of Dublin, unless otherwise stated. The benefits outlined in this plan shall not be provided to temporary (part or full time), provisional or contract employees, or to individuals who provide services to the City pursuant to contract unless the contract explicitly provides for such benefits. Section 2. Medical Insurance: All eligible 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 Hospital Care Act (PEMHCA). a. The City currently contracts with the California Public Employees' Retirement System (CaIPERS) for the purpose of providing medical insurance benefits for active employees and their eligible dependents, eligible retired employees, and eligible survivors of retired employees. Eligibility of a dependent to participate in this program shall be in accordance with the terms of the Public Employees' Medical and Hospital Care Act (PEMHCA). Eligibility of retired employees and survivors of retired employees to participate in this program shall be in accordance with those provisions of the PEMHCA providing for participation by CaIPERS annuitants. Page 1 of 8 b. Effective January 1, 2016, the City's employer contribution towards medical insurance benefits for each eligible employee shall be the minimum contribution amount required by Government Code Section 22892. Contributions provided under this Section are required only to the extent mandated by the PEMHCA. During the calendar year 2016, the City shall provide an employer contribution of $125.00 per month to CaIPERS for each eligible active employee towards the purchase of medical insurance benefits provided by CaIPERS. c. In the event CaIPERS requires a minimum employer payment in excess of the amount recited above, the City shall pay such additional amounts as approved by the City Council. Because CaIPERS may change carriers and plans, the City shall not be required to provide a specific insurance coverage and shall only be required to provide those benefits as described in the Benefit Plan so long as the City contracts for benefits with CaIPERS for medical insurance benefits. The City shall provide each eligible annuitant, as defined by the PEMHCA, with an employer contribution towards medical insurance benefits that is equal to any contribution provided to active employees under the Benefit Plan and in accordance with Government Code Section 22892. Section 3. Alternative Benefit: Effective July 1, 2015, subject to proof of other health coverage and completion of CaIPERS Health Form HBD12-A indicating same, eligible City employees who are members of the California Public Employees Retirement System (CaIPERS) and (1) elect to opt-out of receiving City contributions under Government Code Section 22892; as described in Section 2b; (2) are not enrolled in a City-sponsored health insurance plan as the dependent of another City employee; and (3) provide proof of medical insurance coverage from a plan other than a City- sponsored plan shall receive an alternative benefit in the form of a cash payment. a. The amount of alternative benefit is $350 per month and benefit must be elected each year during open enrollment or upon a qualifying event. b. Any cash payment provided under this Section shall be paid and reported to the Internal Revenue Service (IRS) and the California Franchise Tax Board as compensation subject to income tax withholding and is considered a non-reportable CaIPERS payment/benefit. Each eligible employee shall be solely and personally responsible for any tax liability that may arise out of receipt of the alternative benefits provided under this Section. Section 4: Dental Insurance: The City will contribute on behalf of each employee schedule to regularly work at least 30 hours per week, a maximum of the "full-family premium" per month to a dental insurance plan selected by the City. The City will contribute on behalf of each regular employee scheduled to work between 20 to 29 hours per week, a maximum of the "employee only" premium per month to a dental insurance plan selected by the City. Section 5: Vision Insurance: The City will contribute on behalf of each employee schedule to regularly work at least 20 hours per week, a maximum of the "employee only premium" per month to a vision insurance plan selected by the City. Section 6. Trust Fund/Health Reimbursement Arrangement (HRA): a. Plan Limits: On July 1, 2011 through December 31, 2011, employees will have $450 limit for eligible reimbursements. The "Plan Year" will reset beginning on January 1, in which full-time employees shall have a limit of $900 per plan year for eligible reimbursements. Employees regularly scheduled to work between 20 and 40 hours per week shall have a pro-rated share based on hours regularly scheduled. Page 2 of 8 b. Plan Year: The initial "Plan Year" shall cover reimbursements for eligible expenses incurred July 1, 2011 through December 31, 2011. Beginning on January 1, 2012 the "Plan Year" shall begin January 1 and end December 31 of each calendar year. c. Third Party Administrator (TPA)/Eligible Claims: Employees eligible for this benefit may request reimbursement through the third party administrator selected by the City. d. Administrative Rules: The reimbursement of any expenses pursuant to this section shall be contingent upon the fulfillment of requirements pursuant to provision of the Internal Revenue Code and the City's selected third party administrator. Section 7. Flexible Benefits: The City shall make available a flexible benefit program (tax deferred employee contribution) that can be applied to specific expenses, e.g. health premiums, and medical, dental and vision expenses not covered by the insurance plan. The City's plan is subject to the requirement and availability of Internal Revenue Code Section 125, allowing employees to use pre- tax compensation for PEMCHA medical premiums, eligible dependent care expenses, eligible uninsured medical expenses, or a combination thereof. All costs associated with the enrollment and administration of an eligible employees account shall be paid by the City. a. The City shall not treat contributions made to the program as compensation subject to income tax withholding unless the Internal Revenue Service and/or the Franchise Tax Board indicates that such contributions are taxable income subject to withholding. Each employee shall be solely and personally responsible for any federal, state, or local tax liability of the employee that may arise out of the implementation of this Section or any penalty that may be imposed therefore. b. Contributions to the flexible benefit program shall be used only for payment of those benefits that are available through the City's program. Any amount remaining after the Employee has designated the portion of his or her flexible benefit (125 Plan) contribution amount for the purposes described in this Section shall be deemed forfeited. c. Each eligible employee shall file an election in writing during the month of open enrollment for medical insurance each year designating how the contributions in his or her flexible benefits account are to be spent during the ensuing year. Thereafter, no changes to designations shall be allowed until the enrollment of the following year, except for changes due to an eligible qualifying event. d. Each employee shall be responsible for providing immediate written notice to the Director of Human Resources or designee of any change to the number of his or her dependents which would affect the amount of the City's payment into the program. e. Beginning with the January 1, 2016 premium, eligible employees shall receive up to $1,680 per month toward the premium cost for CaIPERS health insurance based on the employee's annual plan election less the amount of any contribution provided by the City directly to CaIPERS under Government Code Section 22892. f. The City shall continue to provide a flexible benefit program as provided in this Section unless amended or repealed by the City Council. Page 3 of 8 Section 8. Disability Insurance: The City will contribute on behalf of each regular employee scheduled to regularly work at least 20 hours per week, the total premium cost of a Long Term Disability Plan selected by the City. In addition, the City Manager shall be authorized to implement a short-term disability program, which would allow regular employees scheduled to work at least 20 hours per week, to purchase short-term disability insurance through payroll deductions, if such a plan is available. Section 9. Life Insurance: The City will contribute on behalf of each full-time employee scheduled to regularly work at least 40 hours per week, the total premium cost of a $50,000 Term Life Insurance Policy selected by the City. In addition, the City Manager shall be authorized to implement a supplemental life insurance program, which would allow full-time employees to purchase additional term life insurance through payroll deductions, if such a plan is available. Section 10. Retirement: The City will provide the California Public Employees Retirement System 2.7% at age 55 (Section 21354.5 of the California Public Employees' Retirement System plan), effective August 20, 2005 and One Year Final Compensation (Section 20042 of the California Public Employees' Retirement System plan) to all eligible CaIPERS Classic employees. The City Council shall have the authority to amend the plan to include benefit options offered by the Public Employees Retirement System. Effective July 1, 2011, the City shall contribute zero (0%) to the Public Employees' Retirement System (PERS) on behalf of all covered employees. City employees shall pay 8% of the employees' contribution rate effective July 1, 2011. The City shall apply the provisions of Internal Revenue Code (IRC) 414(h) (2) to the eligible payroll deductions for employee PERS contributions so long as such provision remains available to the City. Effective October 20, 2012, and pursuant to Article 2 — Contract Provisions, Section 20516 of the California Public Employees Retirement Law (PERL) Employee Cost Sharing of Additional Benefits has been adopted up to a maximum of 4.072%. The City shall apply the provisions of Internal Revenue Code (IRC) 414(h) (2) to all eligible payroll deductions for employee CaIPERS contributions. Employee Cost Sharing of Additional Benefits shall be determined during a review of the February Consumer Price Index (CPI) — All Urban Wage Earnings and the City's Fiscal Year budget process; not to exceed the maximum of 4.072%. Effective January 1, 2013, the City shall comply with the California Public Employees' Pension Reform Act of 2013 (PEPRA). Eligible employees who join the City's CaIPERS retirement system on or after January 1, 2013, and are considered New CaIPERS members (as defined by CaIPERS) and shall have a retirement formula of 2% @ 62; 3-Year final compensation average and shall contribute their portion toward a new CaIPERS retirement tier as defined by law. Effective July 11, 2015, and pursuant the adoption of City Ordinance 1-2015 (June 2, 2015), the above variable sharing of additional benefits shall discontinue and pursuant to Article 2 — Contract Provisions, Section 20516 of the California Public Employees Retirement Law (PERL) Employee Sharing of Additional Costs shall be adopted to 7% for Classic local miscellaneous CaIPERS members and 3.05% for New local miscellaneous CaIPERS members. The City shall apply the provisions of Internal Revenue Code (IRC) 414(h) (2) to all eligible payroll deductions for employee CaIPERS contributions so long as such provision remains available to the City. Page 4 of 8 Section 11. Retiree Health Reimbursement Arrangement (HRA): The City shall make available a Retiree HRA account to eligible employees who were hired before January 1, 2016,. and who retire from the City of Dublin while meeting the eligibility requirements for CaIPERS retiree health insurance as provide under PEMCHA laws. a. Beginning on January 1, 2016, the City's Retiree HRA Plan Year shall begin January 1 and end December 31 of each calendar year. b. Beginning with the January 1, 2016 CaIPERS premium, eligible CaIPERS annuitants under the City of Dublin's CaIPERS health contract shall receive reimbursement up to $1,680 per month toward the cost of CaIPERS health insurance premiums. Reimbursement is provided in the form of cash to the eligible CaIPERS annuitant on a monthly basis based on the CaIPERS annuitant's annual election less the amount of any contribution provided by the City directly to CaIPERS under Government Code Section 22892. In no event, shall the City's total reimbursement exceed the amount described in this section. c. The reimbursement of any CaIPERS retiree medical premium expenses pursuant to this section shall be contingent upon the fulfillment of requirements pursuant to provision of the Internal Revenue Code, the City's and/or the City's selected third party administrator. Retirees are solely responsible for any tax consequences associated with the receipt of benefits under this section. d. Employees hired by the City on or after January 1, 2016, are not eligible for the Retiree HRA as defined in this section. The City's maximum contribution toward CaIPERS retiree health coverage shall be the PEMCHA minimum contribution as determined by CaIPERS under Government Code Section 22892. Section 12. Deferred Compensation Plan: Participation in a variety of deferred compensation plans is offered. These shall be voluntary programs and the City will not contribute any funds on behalf of an employee. Participation is currently offered in a program administered by the International City Management Association/RC exclusively through December 2022. Section 13. Holidays: The following days shall be deemed holidays in accordance with the Personnel System Rules and the Resolution Establishing Management Positions Exempt from Competitive Service and Prescribing Leave Benefits for the Positions: a) New Year's Day January 1 b) Martin Luther King Jr. Day Third Monday in January c) Washington's Birthday Third Monday in February d) Memorial Day Last Monday in May e) Independence Day July 4 f) Labor Day First Monday in September g) Veteran's Day November 11 h) Thanksgiving Day Fourth Thursday in November I) Day following Thanksgiving Day following above j) Day preceding Christmas December 24 k) Christmas Day December 25 I) Day preceding New Year's Day December 31 m) Floating Holiday One floating holiday per calendar year, this shall be subject to the following restrictions: Page 5 of 8 1) Must be used during the calendar year and cannot be carried over; and 2) Requires advance approval of the Department Head and the City Manager. n) Designated Floating Holidays in 2010: On December 1, 2010, full- and part-time regular City employees shall be afforded three (3) designated floating holidays for the sole use on December 28-30, 2010. Eligible employees regularly scheduled to work between 20 and 40 hours per week shall have a pro-rated share based on hours regularly scheduled. Section 14. Education Reimbursement: Full-time and regular part-time employees shall be eligible to participate in an education reimbursement program. The City shall only reimburse the employee for courses undertaken which are job related, or are part of a job related course of study and/or degree program. The employee must obtain prior authorization from the City Manager and reimbursement will only be provided upon submittal of proof of satisfactory completion of the courses undertaken with a passing grade when applicable. The City will reimburse an amount equal to 75% of the employee's tuition and/or fees, (including books). For full-time employees, the amount reimbursed shall not exceed $1,400 per Fiscal Year; for employees scheduled to work between 20- 39 hours per week, the amount shall be pro-rated based on regularly scheduled hours. The payment of any reimbursements shall be contingent upon the fulfillment of reporting requirements established by the City Manager. Section 15. Employee Commute Alternative Program/Clipper Card: The City established an Employee Commute Alternative Program to help ease traffic congestion, improve air quality in the Bay Area and work to achieve less stressful commutes. The City supports this program by encouraging City employees to register with the 511 Regional Rideshare Program through www.511.org and by participating in the Alameda County Congestion Management Agency — Guaranteed Ride Home program. Beginning July 1, 2011, the City will enhance the Employee Commute Alternative Program by offering a transit benefit program through Metropolitan Transportation Commission (MTC) and the Clipper Program entitled Clipper Direct. The Clipper Direct program shall provide participating employees with pre-tax transit benefits. Effective July 1, 20115, the City shall provide a $5.00 per day commute alternative cash incentive to all eligible employees pursuant to providing proper commute verification information. Section 16. Car Allowance and Mileage Reimbursement: The following positions shall be eligible to receive the designated monthly allowance. The receipt of the car allowance pursuant to this section shall be full compensation for all operating costs excluding tolls, parking fees and out of Bay Area travel. a. Management Positions Receiving Monthly Allowance Eligible Positions Monthly Allowance Administrative Services Director/Finance Director $190 Assistant City Manager $190 Assistant Administrative Services Director/Budget $190 Assistant Director of Community Development $190 Assistant Parks and Community Services Director $190 Page 6 of 8 on, VM Assistant Public Works Director/City Engineer $190 Chief Building Official $190 Community Development Director $190 Economic Development Director $190 Economic Development Director/P1O $190 Human Resources Director $190 Parks & Community Services Director $190 Planning Manager $190 Public Works Director/Assistant City Engineer $190 Public Works Transportation & Operations Mgr. $190 b. Miscellaneous Employees Receiving Car Allowance The following position shall be eligible to receive the designated monthly car allowance. Eligible Position Monthly Allowance Senior Civil Engineer $190 c. Operating Costs Employees whose services and compensation are provided for under separate agreement who receive a car allowance shall be eligible to receive 40 percent (rounded up to the nearest cent) of the amount recognized by the Internal Revenue Service for the use of a private vehicle as an operating cost. d. Mileage Reimbursement For employees not receiving a car allowance, when traveling on City business, the City will reimburse the amount recognized by the Internal Revenue Service for the use of a private vehicle. e. Out of Area Travel Reimbursement When traveling out of the area on City business, the City will reimburse the amount recognized by the Internal Revenue Service for the use of a private vehicle, or air transportation costs, whichever is less. f. Administrative Requirements The payment of any mileage reimbursements or car allowance shall be contingent upon the fulfillment of requirements established by the City's accounting procedures and other City rules and policies. Section 17. Resident Registration Fees: Effective July 1, 2015, non-resident employees shall be granted Dublin resident fees and rates for City Parks and Community Services classes, trips and facility rentals; priority registration does not apply. Section 18. The provisions of this Benefit Plan shall be administered in accordance with the regulations, policies and procedures issued by the City Manager or designee which shall include, but not be limited to, the method and frequency of reimbursement to eligible employees for the benefit program(s) selected and appropriate procedures for the verification of payment made pursuant to the Benefit Plan. Sectionl9. This Resolution shall be effective September 15, 2015, and shall replace Resolution 109- 91 and all previous amendments adopted by the City Council which are in conflict. Page 7 of 8 PASSED, APPROVED AND ADOPTED this 15th day of September, 2015, by the following vote: AYES: Councilmembers Biddle, Gupta, Hart, Wehrenberg, and Mayor Haubert NOES: None ABSENT: None ABSTAIN: None t‘. 61\r/A Mayo ATTEST: Ceivvii L In cn•-• City Clerk Reso No. 151-15,Adopted 9-15-15, Item 4.6 Page 8 of 8