HomeMy WebLinkAboutMINUTES - 03012011 - D.2RECOMMENDATION(S):
ADOPT Resolution No. 2011/63 applying health plan modifications to certain persons
retired from classifications represented by the Contra Costa County Defenders' Association
at the time of retirement.
FISCAL IMPACT:
As shown in the attached valuation, the result of the health plan changes described herein, if
implemented, will create a $5.3 million or 0.51% decrease in the Actuarial Accrued
Liability (AAL) and a $341,000 or 0.55% decrease in the calculated Annual Required
Contribution. These figures represent the changes for both active and retired individuals.
BACKGROUND:
On February 15, 2011, the Board of Supervisors received a report on the County's other
post employment benefits regarding proposed future costs/savings of changes in other post
employment benefits. At that meeting, staff from the County Administrator's office
announced that the County Administrator would be recommending that the Board consider
taking formal action with respect to proposed changes in health care affecting:
employees represented by the Contra Costa County Defenders' Association,
APPROVE OTHER
RECOMMENDATION OF CNTY
ADMINISTRATOR
RECOMMENDATION OF BOARD
COMMITTEE
Action of Board On: 03/01/2011 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Gayle B. Uilkema, District II Supervisor
Mary N. Piepho, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V 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: March 1, 2011
David J. Twa, County Administrator and Clerk of the Board of
Supervisors
By: June McHuen, Deputy
cc: Lisa Driscoll, County Finance Director, Ted Cwiek, Human Resources Director
D. 2
To:Board of Supervisors
From:David Twa, County Administrator
Date:March 1, 2011
Contra
Costa
County
Subject:OPEB - Application of Health Plan Modifications to Persons Retired from Classifications Represented by the
CCC Defenders' Association
employees represented by the Contra Costa County Defenders' Association,
and persons who retired from classifications that were represented at the time of
retirement by the Contra Costa County Defenders' Association and who are eligible for
health care coverage.
The County Administrator is recommending adoption of the attached resolution (2011/63),
which applies health plan modifications (summarized below) to retirees in the above listed
groups:
BACKGROUND: (CONT'D)
New Hires. Employees hired on or after March 1, 2011 will not receive a County
subsidized retiree health/dental care benefit.
Dual Coverage. Provide as of 06/01/11, 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 - June 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 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 June 1, 2011.
Contra Costa Health Plan and Coordinated Dental Plans – Effective 06/01/11,
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 June 2011 amount.
Dental Plan Benefit. Increase to $1,800, from $1,600, the annual maximum benefit
available in the Delta Dental Insurance plan effective 06/01/11.
Medicare Parts A and B . Effective 06/01/11, require enrollment in Medicare Parts A
and B for retirees who become 65 on or after June 1, 2011.
CONSEQUENCE OF NEGATIVE ACTION:
Delayed implementation of health plan modifications.
CHILDREN'S IMPACT STATEMENT:
None.
ATTACHMENTS
Resolution No. 2011/63
Gov Section 7507 Report