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HomeMy WebLinkAboutMINUTES - 10012013 - SD.3RECOMMENDATION(S): ADOPT Resolution No. 2013/360 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 valuation, the result of the health plan changes described herein, if implemented, will create a $21.0 million or 2.04% decrease in the Actuarial Accrued Liability and a $1.9 million or 2.70% decrease in the calculated Annual Required Contribution. These figures represent the changes for both active and retired individuals. BACKGROUND: On September 10, 2013, 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, 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 (2013/360), which applies health plan modifications (summarized below) to retirees in the above listed groups: APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 10/01/2013 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Candace Andersen, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor ABSENT: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: October 1, 2013 David Twa, County Administrator and Clerk of the Board of Supervisors By: Chris Heck, Deputy cc: Ted Cwiek, Human Resources Director SD.3 To:Board of Supervisors From:David Twa, County Administrator Date:October 1, 2013 Contra Costa County Subject:OPEB - Application of Health Plan Modifications to Persons Retired from Classifications Represented by the Deputy Sheriffs' Association BACKGROUND: (CONT'D) Premium Cost Sharing. Effective January 1, 2014, the County will pay a monthly premium subsidy for each health plan that is equal to the actual dollar monthly premium subsidy that is paid by the County as of November 30, 2013. In addition, if there is an increase in the monthly premium charged by a health plan for 2014 and for each year thereafter, the County and the employee will each pay fifty percent of the monthly premium increase that is above the previous year’s plan premium. Delta, and PMI Delta Care. Beginning on January 1, 2014, the County will pay a monthly dental premium subsidy for each dental plan that is equal to the actual dollar monthly premium subsidy that is paid by the County for 2013. If there is an increase in the premium charged by a dental plan for 2014, the County and the employee will pay fifty percent (50%) of the increase. For each calendar year thereafter, the County and the employee will each pay fifty percent (50%) of the premium increase that is above the 2013 plan premium. Dental Only. Beginning on January 1, 2014, the County will pay a monthly dental premium subsidy for each dental plan that is equal to the actual dollar monthly premium subsidy that is paid by the County for 2013. If there is an increase in the premium charged by a dental plan for 2014, the County and the employee will pay fifty percent (50%) of the increase. For each calendar year thereafter, the County and the employee will each pay fifty percent (50%) of the premium increase that is above the 2013 plan premium. CONSEQUENCE OF NEGATIVE ACTION: Delayed implementation of health plan modifications. CHILDREN'S IMPACT STATEMENT: None. ATTACHMENTS Resolution No. 2013/360 September 4, 2013 - Actuarial Report (7507)