Agenda

Return

SD. 4

To:	Board of Supervisors
From:	David Twa, County Administrator
Date:	November 1, 2011

Contra

Costa

County

Subject:

Government Code 7507 Compliance - Other Post Employment Benefits - Deputy Sheriffs' Association

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 11/01/2011

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
cc:	Christine Penkala, County Benefits Manager

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: November 1, 2011
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

ACCEPT actuarial valuation of future annual costs of proposed changes to Other Post-Employment Benefits, changing the County health care premium subsidy for employees represented by or retired from classifications that were represented by the Deputy Sheriffs’ Association, as provided by Buck Consultants in letter of October 25, 2011.

FISCAL IMPACT:

As shown in the 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 and a $1.8 million or 2.93% decrease in the calculated Annual Required Contribution.

BACKGROUND:

Government Code, Section 7507 requires with regard to local legislative boards, that the future costs of changes in retirement benefits or other postemployment benefits as determined by the actuary, shall be made public at a public meeting at least two weeks prior to the adoption of any changes in public retirement plan benefits or other postemployment benefits. The October 25, 2011 report from Buck Consultants is attached.

BACKGROUND: (CONT'D)

On November 15, 2011, the Board of Supervisors may consider and may take formal action with respect to proposed changes in health care benefits 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.

Recommended changes to health care benefits for these groups are:


Active Employees

Dual Coverage. Provide as of 01/01/12, 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 January 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.

Retired Employees

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 care rate revisions.

CHILDREN'S IMPACT STATEMENT:

None.