HomeMy WebLinkAboutItem 4.08 Personnel System Amend or nU,��
19 82 STAFF REPORT CITY CLERK
` CITY COUNCIL File #720-40
DATE: October 21, 2014
TO: Honorable Mayor and City Councilmembers
FROM: Christopher L. Foss, City Manager "
SUBJECT: Revisions to the Personnel System
Prepared by Angelica Smith, Administrative Analyst 11
EXECUTIVE SUMMARY:
The City Council will consider proposed changes to the City's current Personnel System. The
proposed modifications are based on the need to amend the City's vesting medical contribution
rate for the 2015 calendar year.
FINANCIAL IMPACT:
CaIPERS medical contribution rates are set to change effective with the January 1, 2015
premium statements. Sufficient funds have been appropriated in the Fiscal Year 2014-2015
Budget to cover City paid health and welfare benefits.
RECOMMENDATION:
Staff recommends the City Council adopt the Resolution Fixing the Employer's Contribution
Under Section 22893 of the Public Employees' Medical and Hospital Care Act.
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Submitted By \ Reviewed By
Human Resources Director Assistant City Manager
DESCRIPTION:
The City currently contracts with the California Public Employees' Retirement System
(CaIPERS) for the provision of health benefits under the Public Employees' Medical and
Hospital Care Act (PEMHCA). On April 1, 2004, the City adopted the CaIPERS permissible
post retirement vesting Resolution authorized by Section 22893 of the Government Code. This
is the Government Code Section that allows employers to adopt a vesting requirement
prospectively affecting employees hired on or after its adoption. This section of the Government
Code is commonly referred to as State 190 Formula. There are three contribution levels under
the State's 190 Formula: fixed benefits based on family status upon retirement, the State's 190
Formula, or one fixed contribution.
Page 1 of 2 ITEM NO. 4.8
Under the State's 190 Formula, agencies must require a minimum of 10 years of CalPERS
service credit (5 years must be completed at the City of Dublin) to receive pre-approved State
retiree medical coverage benefits pursuant to an adopted vesting schedule. The attached
Resolution (Attachment 1) establishes is the contribution rate for those employees who were
hired after April 1, 2004 and are eligible for the City's plan under vesting requirements for
retirees. The format of the Resolution is standardized and meets the requirements set by
CalPERS.
State 190 Formula rates are set by the State (State Annuitant 100/90 formula) and in 2015, the
City will move from one fixed contribution amount to the State's 190 Formula as follows:
Single: $655
2-Party: $1,246
Family: $1,605
The above monthly amounts are paid to CalPERS on behalf of retirees based on a vesting
schedule which is derived from comprehensive CalPERS years of service. There are currently
eight (8) CalPERS vesting annuitants/retirees under the City's plan.
An acknowledgment of compliance with Government Code Section 7507 is required when City
Councils consider changes to retirement plan benefits or other post-employment benefits
(OPEB). Administrative Services conducts OPEB actuarial analysis of the City's OPEB
obligations in compliance with Government Code Section 7507. The last actuarial which
addressed changes to future OPEB obligations was completed during Fiscal Year 2012/2013
through the use of an actuary consulting firm.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
Not Applicable
ATTACHMENTS: 1. Resolution Fixing the Employer's Contribution Rate Under Section
22893 of the Public Employees' Medical and Hospital Care Act
Page 2 of 2
RESOLUTION NO. XX - 14
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
* * * * * * * * * * *
RESOLUTION FIXING THE EMPLOYER'S CONTRIBUTION UNDER SECTION 22893
OF THE PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT
WHEREAS, (1) 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(a)(1) of the Act, and
WHEREAS, (2) City of Dublin is a local agency contracting under the Act; now, therefore be it
RESOLVED, (a) That the employer's contribution for each 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 State
100/90 Formula per month,
Plus Administrative fees and Contingency Reserve Fund, but not more than 100
percent of the premium applicable to him or her, nor less than the 100 percent of
the weighted average of the health benefits plan premiums for employees or
annuitants enrolled for self alone plus 90 percent of the weighted average of the
additional premiums required for enrollment of family members in the four health
benefits plans that have the largest number of enrollments; and be it further
RESOLVED, (b) That City of Dublin has fully complied with any and all applicable provisions of
Government Code Section 7507 in electing the benefits set forth above.
Adopted at a regular meeting of the City of Dublin City Council at Dublin,
California, this 21St day of October, 2014.
AYES-
NOES-
ABSENT-
ABSTAIN-
Signed-
Mayor
Attest:
City Clerk
ATTACHMENT 1