HomeMy WebLinkAboutMINUTES - 03281989 - 1.45 BOARD OF SUPERVISORS - r x_--.045
FROM: �Xarry D. Cisterman, Director of Personnel Contra
_ Costa
DATE: March 14, 1989 Courcy
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.SUBJECT: Section 89 - Benefits Consultant
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SRECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
:-RECOMMENDATI-ON: -
Authorize the Director of Personnel to negotiate a contract with
William M. Mercer Meidinger Hansen for benefits consulting services related to
Internal Revenue Code Section 89 discrimination testing.
BACKGROUND:
Section 89 of the Internal Revenue Code of 1986 established specific
rules which require all employers to meet minimum standards for establishing and
communicating all benefit plans, and to conduct detailed discrimination tests
for health and group term life insurance plans to determine whether they dispro-
.portionately benefit highly compensated emloyees. The penalties for failing to
meet the minimum standards and pass the discrimination tests are severe,
directly affecting both the employer and the employee.
The rules imposed by Section 89 are complex, and the testing itself is
onerous. In order to conduct the discrimination testing and determine whether
the County meets the requirements of Section 89, the Benefits Division of the
Personnel Department will need to use the legal expertise and. advanced tech-
nical support that William M. Mercer Meidinger. Hansen can provide.
Having assessed several proposals for this service, the Personnel
Department determined that Mercer Meidinger Hansen can provide the best benefits
consulting services for the County's needs at the most reasonable price.
FISCAL IMPACT:
The estimated fees for this project will be between $5,500 and $7,b00,
plus an additional cost for generating information from within the County. The
funds will need to be appropriated from the general fund with offsetting reve-
nues from the Health Plan Administration trust fund. Appropriation and revenue
adjustments will be submitted separately.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S)
ACTION.OF BOARD ON MAR Z 8 1989 APPROVED AS'RECOMMENDED >< OTHER
VOTE OF SUPERVISORS
UNANIMOUS (ABSENT ) 1 HEREBY CERTIFY THAT THIS IS A TRUE
AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN
ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD
OF SUPERVISORS ON THE DATE SHOWN.
Originating Department: Personnel - Benefits Division MAR
CC: County Administrator's Office ATTESTED MAR 2 8 1989
Auditor-Controller's Office Phil Batchelor,Clerk of the Board of
(Q Supervisors and County Administrator
M362/7-83 BY v
, DEPUTY