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Home My WebLink AboutItem 4.02 Personnel Systm Revision~~' ~ J ~~ ~ -~ 1~~ CITY CLERK File # 0~^2 ~-~~ AGENDA STATEMENT CITY COUNCIL MEETING DATE: September 15, 2009 SUBJECT: ATTACHMENTS: RECOMMENDATION: ~~ Revisions to the Personnel System Report Prepared by: Angelica T. Smith, Administrative Analyst I 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 Hospital Care Act. 3. Resolution Amending the Benefit Plan. Adopt the following Resolutions: 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 Hospital Care Act; and 3) Resolution Amending the Benefit Plan FINANCIAL STATEMENT: Sufficient funds have been included in the City's Fiscal Year 2009- 2010 budget to cover the cost associated with funding City provided health and welfare benefits. DESCRIPTION: The City of Dublin contracts with the California Public Employees' Retirement System (Ca1PERS) for the provision of health benefits as do a number of other public agencies. Ca1PERS 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 2009-2010 health and welfare benefit discussions, City employees agreed to the City Council's proposal to continue the City's 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 $1,121.89 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 $1,121.89 to $1,153.43 per month effective January 1, 2010. As required by Ca1PERS, the City must adopt two separate Ca1PERS 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 $1,121.89 per month to $1,153.43 for Pq.r~~. I o~ ~ ITEM NO. -1. ,~.. 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 2010 the maximum amount is $1,202.00 per month and paid to future retirees based on a vesting schedule. It is also necessary for the City to amend the City's Benefit Plan (Attachment 3) establishing the maximum medical insurance contribution at $1,153.43 effective January 1, 2010. Premium adjustments in future years will require the adoption of Resolutions based on the 50/50 City/Employee split formula or other method and yet to be determined monthly premiums. The proposed increase is effective with the January 1, 2010 premium statements from Ca1PERS. Sufficient funds have been established by the adoption of the Fiscal Year 2009-2010 Budget to cover City paid health and welfare benefits. RECOMMENDATION Staff recommends that the City Council adopt the following Resolutions: 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 Hospital Care Act; and 3) Resolution Amending the Benefit Plan P~a~e ~ ~" 2 ~ ~~ ~ RESOLUTION NO. XXX - 2009 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 $1,153.43 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, 2010. PASSED, APPROVED AND ADOPTED this 15`h day of September, 2009. AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk Mayor ~-~em~ y.a ~ ~~510~ Attachment 1 ~ of 3 RESOLUTION NO. XXX - 2009 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 $1,202.00 dollars per month plus administrative fees and Contingency Reserve Fund assessments. 2010. BE IT FURTHER RESOLVED that the changes contained herein shall be effective January 1, PASSED, APPROVED AND ADOPTED this 15`h day of September, 2009. AYES: NOES: ABSENT: ABSTAIN: ATTEST: Mayor City Clerk Attachment 2 .~ ~ 3 RESOLUTION NO. XXX - 2009 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 (Ca1PERS) shall be eligible to select from plans administered by the Public Employees Medical and Hospital Care Act. Beginning with the January 1, 2010 premium, the City of Dublin will contribute a maximum of up to $1,153.43 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 15th day of September, 2009, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: Mayor City Clerk ~~~~~~~ ~