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Employees' Retirement Association
1355 willow way suite 221 concord ca 94520
925.646.5741 fax:925.646.5747
CONTRA COSTA COUNTY
RECEIVED
MAR 2 12001
March 19,2001
Gayle Uilkema,Chair ®FRCE QF
Contra Costa County Board of Supervisors t�ymmm
County Administration Building
651 Pine Street,Room 108A
Martinez,CA 94553.
Dear Supervisor Uilkema:
----The-Retirement-Board was disappointed to learn from Phil Batchelor that the County was not interested in
our offer regarding health insurance coverage for those retirees who are currently not covered by a County
health plan.
Up until now,the Retirement Board transferred surplus excess funds to the County to reimburse it for the
cost of providing health insurance to our retirees. The arnount transferred each year is a computed amount
and depends on the availability of surplus excess funds. The transfer was capped at the lower of the
County's cost for retiree health insurance or the amount computed.
Our offer was to remove that cap and reimburse the County for its entire cost of providing health insurance
for County retirees. Of course,any reimbursement would be contingent on the availability of surplus
excess funds each year. In exchange, we asked the County to offer health insurance coverage to those
retirees who were ineligible for coverage at the time they retired.
While-we-understand-that.the.County_doesn't want-exposure to_signifr cant future costs, we question whether
the costs will be as high as predicted. The group in question is less than 1,000 individuals and decreases by
6%or more each year-through deaths. -Similarly we question the impact on overall group insurance rates
that this small group would generate even though we know that utilization increases with age.
We'd like to pursue this matter further. We ask that you work with us in this effort. We propose that
representatives from the Retirement Board and the:Board's actuary form a task force with County
representatives and the County's actuary to explore alternatives. Our retirees deserve that we at least make
an effort to address their needs.
We will await your response.
Xe1eenreJ'YS?h't-e
�I /��- /Chair
Contra Costa County Board of Retirement
Cc: Board of Supervisors
Board of Retirement
John Sweeten