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HomeMy WebLinkAboutMINUTES - 12062011 - D.3RECOMMENDATION(S): ADOPT Resolution No. 2011/458 applying health plan modifications to certain persons retired from classifications represented by the Deputy Sheriffs' 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 $27.2 million or 2.65% decrease in the Actuarial Accrued Liability (AAL) and a $1.8 million or 2.93% decrease in the calculated Annual Required Contribution. These figures represent the changes for both active and retired individuals. BACKGROUND: On November 1, 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 Deputy Sheriffs' Association, APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 12/06/2011 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: December 6, 2011 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: Christine Penkala, County Benefits Manager D. 3 To:Board of Supervisors From:David Twa, County Administrator Date:December 6, 2011 Contra Costa County Subject:OPEB - Application of Health Plan Modifications to Persons Retired from Classifications Represented by the Deputy Sheriffs' Association employees represented by the Deputy Sheriffs' Association, and persons who retired from classifications that were represented at the time of retirement by the Deputy Sheriffs' Association and who are eligible for health care coverage. The County Administrator is recommending adoption of the attached resolution (2011/458), which applies health plan modifications (summarized below) to retirees in the above listed groups: BACKGROUND: (CONT'D) Dual Coverage. Provide as of 04/01/12, 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 . Effective January 1, 2012, the County's monthly premium subsidy for the CalPERS Health Plans will be set at the December 2011 dollar amount paid by the County for the Kaiser Bay Area premiums plus: Effective April 1, 2012, the County and the DSA will divide the increase in the Kaiser Bay Area premium 80% employer/20% employee; and Effective January 1, 2013, the County and the DSA will divide the increase in the Kaiser Bay Area premium 75% employer/25% employee. CONSEQUENCE OF NEGATIVE ACTION: Delayed implementation of health plan modifications. CHILDREN'S IMPACT STATEMENT: None. ATTACHMENTS Resolution No. 2011/458 Actuarial Letter from Buck Consultants