The URL can be used to link to this page

Home My WebLink AboutItem 4.08 PersonelHealthWelfare CITY CLERK File#~ 100 - L10 AGENDA STATEMENT CITY COUNCIL MEETING DATE: December 7, 2004 SUBJECT: Revisions to the Personncl System Report Prepared by: Julie Carter, Assistant 10 the City Manager ATTACHMENTS: 1. Resolution Amending the Bencfit Plan 2. Resolution Fixing Employer's Contribution Ratc Under the Public Employees' Medical and Hospital Care Act. 3. Rcsolution Fixing Employer's Contribution Rate Vesting Requirement For Future Rctirees Under the Public Employees' Medical and Hospital Care Act. RECOMMENDATlON:'51 FINANCIAL STATEMENT: QAK Adopt Resolutions. Sufficient funds have been included in the City's Fiscal Year 2004- 2005 budget to cover the cost associated with funding City provided health and welfare benefits. DESCRIPTION: The City's personnel system is governed by several documcnts. Each dowment addresses a specific sct of issues. 111e Staff report identifies proposed changes to the City's benefit plan for City paid Health Benefit as previously agreed to on July I, 2003 by the City Council and City employees. The proposed changes to the City's benefit plan are scheduled to be effective January I, 2005. BACKGROUND: The City's Personnel System Rules requires the City Council to adopt a Benefit Plan. The Benefit Plan provides a summary of the City's benefit program including medical, dental, life and disability insurance, retirement, holidays, car allowance and travel expenses, and participation in deferred compensation and credit union programs. The City currently contracts with the Califomia Public Employees' Retirement System (CaIPERS) for the provision of health bcnefits as due a number of other public agencies. CalPERS allows each participating agency to designate the amount to be contributed by the employer. The City is required by CalPERS to contribute the same premium amount for current (active) employees as it does for retired employees. Presently, the City contributes up to the Kaiser Family (3-party) premium, which in 2004 is $794.09 per month per employee/retire for medical insurance. Premium amounts that exceed the City's maximum contribution arc paid directly by the employee/retiree. During thc Fiscal Year 2003/2004 health and we] fare benefit discussions the City Council agreed to maintain the Kaiser Family premium fixed amount through calendar year 2003 and 2004. The City Council proposed that in 2005 the City's maximum health premium contribution would be capped at a 10% increase above the 2004 Kaiser Family premium rate; with City employees' agreement to pick-up COPIES TO: IDb~ ITEMNO.~ t/ ,.,' any increase beyond 10% and an increase that resulted in 20% or more would be further discussed. City employees agreed with this proposal as presented by the City Council. The 2005 CalPERS Health Premiums Kaiser Family rate increased 16.13% to $922.19 per month. The 2005 CalPERS Kaiser Family premium exceeds the amount as previously agreed by the City Council and City employees and therefore it is necessary for the City to amend the City's Benefit Plan establishing the - maximum Medical Insurance contribution at $873.50 for calendar year 2005. Attachment 1 amends the - City's Benefit Plan effective January 1, 2005, to a fIxed rate of $873.50 exclusive of administrative charges, toward medical insurance. In addition to amending the City's Benefit Plan to limit the City's contribution to $873.50, it is also necessary to adopt two separate CalPERS Resolutions fixing the employer's contribution und.er the Public Employees' Medical and Hospital Care Act. The attached resolutions (Attachment 2 and 3) increase the City's contribution from $794.09 per month to $873.50 for current (active) employees and current/future retirees. Again, this proposed increase represents a 10% increase in the City's maximum contribution which is the previously agreed amount established by the City Council in July 2003. The proposed increase is effective with the January 1, 2005 premium statements from CalPERS. Sufficient funds were established by the adoption of the Fiscal Year 2004-2005 Budget to cover City paid health and welfare benefits. Staff recommends that the City Council review the modifications to the City's Personnel System and adopt the necessary resolutions as attached to this report. ~ - , e ~. .ß' of':"- ....., . ~ 1'b;( It>? RESOLUTION NO. XX- 2004 . 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 I 09~91 and subsequent amendments to include the following: Section 2. Medical Insurance: All City employees who are members of the Public Employees Retirement System (PERS) shall be eligible to select rrom plans administered by the Public Employees Medical and Hospital Care Act. e Beginning with the January I, 2005 premium,thc City of Dublin will contribute a maximum of up to $873.5Q per month premium, exeJusive ofadminiStJative 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 ded¡¡ctionsor 'at the employee's option to the extent allowed by Section 4 of the Benefit Plan. . PASSED, APPROVED AND ADOPTED this 7th day of December, 2004. AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk . \2 -1-0,", '-I,S, Attachment I RESOLUTION NO. XX- 2004 ~\ 'Ô:? 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 22892(b)(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 $873.50 dollars per month plus administrative fees and Contingency Reserve Fund assessments. PASSED, APPROVED AND ADOPTED this 7th day of December, 2004. AYES: NOES: ABSENT: ABSTAIN: .' Mayor ATTEST: City Clerk Attachment 2 · · · · 3~.? RESOLUTION NO. XX- 2004 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 sball fix the amount of the employer's contribution at an amount not less than the amount required under Section 22892(b)(1) ofthe 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 I, 2004 shall be the an10unt necessary to pay the cost of his/her emollment, including the emollment of his /her family members, in a health benefit plan, up to a maximum of$873.50 dollars per month plus administrative fecs and Contingency Reserve Fund assessments. PASSED, APPROVED AND ADOPTED this 7th day of December, 2004. · AYES: NOES: ,- ~\,;..:. ABSENT: . ABSTAlN: · Mayor ATTEST: City Clerk Attaehmcnt 3