HomeMy WebLinkAbout2008-01-08 - AGENDA REPORTS - CALPERS EMPLOYER CONTRIBUTION (2)CONSENT CALENDAR
DATE:
SUBJECT:
DEPARTMENT
Agenda Item:.az
CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approval:
Item to be presented by:
January 8, 2008
RESOLUTION SETTING THE EMPLOYER'S CONTRIBUTION
UNDER THE PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL
CARE ACT
City Manager's Office
RECOMMENDED ACTION
City Council adopt a resolution setting the employer's contribution under the Public Employees
Medical and Hospital Care Act for employees and annuitants at an amount not less than the
amount required under Section 22892(b) of the Act, which is $97.00 per month for 2008.
BACKGROUND
The City contracts with the California Public Employees' Retirement System (CaIPERS) to
provide health insurance for both active and retired employees. Under Government Code
Section 22892(b), the contracting agency, the City, can set the employer contribution toward
health coverage for employees and annuitants. The employer contribution shall be an equal
amount for both employees and annuitants, but may not be less than $97.00 per month during the
calendar year 2008.' Commencing in January 2009, the employer contribution shall be adjusted
to reflect any change in the medical care component of the Consumer Price Index.
The City currently provides a cafeteria style benefit program for active employees wherein they
receive $971.96 per month to use toward health, vision, and dental insurance. Retirees currently
also receive the same monthly amount as employees to use toward retiree health insurance. The
City seeks to amend its contract with Ca1PERS to reduce future fiscal liability while ensuring it
meets the minimum health care contribution requirements established by CaIPERS.
All active employees and current retirees would continue to receive the City's full. cafeteria
dollars to use toward health care coverage. Employees hired into regular positions (both
Adopted: If' so. o�-►
represented and unrepresented) on or after January 1, 2008, and who later retire from the City
under PERS will receive the PERS-required minimum health care contribution. With Council's
approval, this action would be retroactive to January 1, 2008.
Current employees hired on or before December 31, 2007, who later retire from the City under
PERS would receive the difference between the minimum PERS health care contribution and the
City's cafeteria dollars so as to be made whole. This change was discussed with unrepresented
employees during information sessions held in July 2007 and is consistent with the City's current
Memorandum of Understanding with SEIU Local 721, which the Council adopted on
December 11, 2007.
ALTERNATIVE ACTIONS
1. City Council elect not to amend the City's contract with Ca1PERS and continue its current
practice with regard to health insurance contributions for employees and retirees.
2. Other options as determined by the City Council.
FISCAL IMPACT
The City's fiscal liability for providing future retiree health care contributions will be reduced by
approximately 85% per future retiree.
ATTACHMENTS
Resolution
RESOLUTION NO. 08-
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA CLARITA FIXING THE EMPLOYER'S CONTRIBUTION
UNDER THE PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT
WHEREAS, Government Code Section 22892(a) provides that a local agency
contracting under the Public Employees' Medical and Hospital Care Act shall fix the amount of
the employer's contribution at an amount not less than the amount required under Section
22892(b) of the Act; and
WHEREAS, the City of Santa Clarita is a local agency contracting under the Act;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of Santa Clarita:
That the employer's contribution for each employee or annuitant shall be the amount
necessary to pay the full cost of his/her enrollment, including the enrollment of family members,
in a health benefits plan up to a maximum of:
Contribution
Code Employee Group Per Month _
1 Unrepresented $97.00
2 SEIU Local 721 $97.00
Plus administrative fees and Contingency Reserve fund assessments.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Santa
Clarita at a regular meeting held on the 8th day of January, 2008.
MAYOR
ATTEST:
CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Sharon L. Dawson, CMC, City Clerk of the City of Santa Clarita, do hereby certify that
the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a
regular meeting thereof, held on the 8th day of January, 2008, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
2
CITY CLERK