HomeMy WebLinkAboutMINUTES - 11232010 - D.2RECOMMENDATION(S):
ACCEPT actuarial valuation of future annual costs of negotiated and proposed changes to
Other Post Employment Benefits as provided by Buck Consultants in letter of November
16, 2010.
FISCAL IMPACT:
As shown in the valuation, the result of the health plan changes described herein, if
implemented, will create a $14.4 million or 1.37% decrease in the Actuarial Accrued
Liability and a $1,186,000 or 1.86% decrease in the calculated Annual Required
Contribution.
BACKGROUND:
Government Code, Section 7507 requires with regard to local legislative boards, that the
future costs of changes in retirement benefits or other postemployment benefits as
determined by the actuary, shall be made public at a public meeting at least two weeks prior
to the adoption of any changes in public retirement plan benefits or other postemployment
benefits. The November 16, 2010 report from Buck Consultants is attached.
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 11/23/2010 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Mary N. Piepho, District III Supervisor
Susan A. Bonilla, District IV
Supervisor
Federal D. Glover, District V
Supervisor
ABSENT:Gayle B. Uilkema, District II
Supervisor
Contact: Lisa Driscoll, County Finance
Director, 335-1023
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes
of the Board of Supervisors on the date shown.
ATTESTED: November 23, 2010
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc: Ted Cwiek, Human Resources Director, Lisa Driscoll, County Finance Director, Mary Ann Mason, Deputy County Counsel
D. 2
To:Board of Supervisors
From:David Twa, County Administrator
Date:November 23, 2010
Contra
Costa
County
Subject:Government Code 7507 Compliance - Other Post Employment Benefits
On December 7, 2010, the Board of Supervisors will consider and may take formal action
with respect to proposed changes in health care benefits affecting employees represented by
the Probation Peace Officers Association of Contra Costa County and persons who retired
from classifications that were represented at the time of retirement by the Probation Peace
Officers Association of Contra Costa County and who are eligible for health care coverage.
Recommended changes to health care benefits for these groups are:
BACKGROUND: (CONT'D)
Active Employees
Employees represented by the Probation Peace Officers Association of Contra Costa
County hired on or after the date the Board approves the new Memorandum of
Understanding will not receive a County subsidized retiree health/dental care benefit.
Dual Coverage. Provide as of 01/01/11, that employees and retirees and dependents
of employees and retirees can no longer have dual coverage in two County/District
health or dental plans. This provision will apply to County and District employees
and retirees who have spouses or partners who are either County or District
employees or retirees.
Premium Cost Sharing 2010-2011.
Contra Costa Health Plan and Coordinated Dental Plans – Currently shared
98% County, 2% Participant for Plan A and 90% County, 10% Participant for
Plan B.
Effective 01/01/11, County will pay a premium subsidy equal to 93% of
the 2010 premium for Plan A and Participant will pay an amount equal to
7% of the 2010 premium for Plan A. County will pay an amount equal to
87% of the 2010 premium for Plan B and Participant will pay an amount
equal to 13 % of the 2010 premium for Plan B. Any premium increases
for 2011 in Plan A and Plan B to be shared 50% by the County and 50%
by the Participant, up to a maximum of 11%; portion of increase above
11% to be paid by the County.
Kaiser and Health Net HMO and dental plans – Increases 01/01/10 and
01/01/11 to be shared 50% by the County and 50% by the Participant, up to a
maximum of 11%; portion of increase above 11% to be paid by the County.
Health Net PPO- Increases 01/01/10 and 01/01/11 to be shared 50% by the
County and 50% by the Participant.
Fixed Premium. Effective 06/29/11, fix the County monthly premium subsidy for all
of these plans at the May 2011 amount.
Dental Plan Benefit. Increase to $1,800, from $1,600, the annual maximum benefit
available in the Delta Dental Insurance plan effective 01/01/11.
Retired Employees
Dual Coverage. Provide as of 04/01/11, that employees and retirees and dependents
of employees and retirees can no longer have dual coverage in two County/District
health or dental plans. This provision will apply to County and District employees
and retirees who have spouses or partners who are either County or District
employees or retirees.
Premium Cost Sharing January 1, 2010 - April 1, 2011.
Contra Costa Health Plan and Coordinated Dental Plans – Currently shared
98% County, 2% Participant for Plan A and 90% County, 10% Participant for
Plan B.
Kaiser and Health Net HMO and dental plans – Increases 01/01/10 and
Kaiser and Health Net HMO and dental plans – Increases 01/01/10 and
01/01/11 to be shared 80% by the County and 20% by the Participant.
Health Net PPO- Increases 01/01/10 and 01/01/11 to be shared 50% by the
County and 50% by the Participant.
Premium Cost Sharing April 1, 2011.
Contra Costa Health Plan and Coordinated Dental Plans – Currently shared
98% County, 2% Participant for Plan A and 90% County, 10% Participant for
Plan B.
Effective 04/01/11, County will pay a premium subsidy equal to 93% of
the 2010 premium for Plan A and Participant will pay an amount equal to
7% of the 2010 premium for Plan A. County will pay an amount equal to
87% of the 2010 premium for Plan B and Participant will pay an amount
equal to 13 % of the 2010 premium for Plan B. Any premium increases
for 2011 in Plan A and Plan B to be shared 50% by the County and 50%
by the Participant, up to a maximum of 11%; portion of increase above
11% to be paid by the County.
Kaiser and Health Net HMO and dental plans – Increases 01/01/10 and
01/01/11 to be shared 50% by the County and 50% by the Participant, up to a
maximum of 11%; portion of increase above 11% to be paid by the County.
Health Net PPO- Increases 01/01/10 and 01/01/11 to be shared 50% by the
County and 50% by the Participant.
Fixed Premium. Effective 06/29/11, fix the County monthly premium subsidy for all
of these plans at the May 2011 amount.
Dental Plan Benefit. Increase to $1,800, from $1,600, the annual maximum benefit
available in the Delta Dental Insurance plan effective 01/01/11.
All retirees, who retire after 1/1/11, are required to enroll in Medicare when eligible.
CONSEQUENCE OF NEGATIVE ACTION:
Delayed implementation of health care rate revisions.
CHILDREN'S IMPACT STATEMENT:
None.
ATTACHMENTS
Gov Code 7507 Report