Agenda

Return

D.15

To:	Board of Supervisors
From:	David Twa, County Administrator
Date:	November 17, 2015

Contra

Costa

County

Subject:

Government Code 7507 Compliance - Other Post Employment Benefits - UCOA and UPFF, Local 1230

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 11/17/2015

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
Federal D. Glover, District V Supervisor

Contact:	Lisa Driscoll, County Finance Director, 335-1023
cc:	Ann Elliott, Employee Benefits Manager Harjit S. Nahal, Assistant County Auditor Jeff Carman, Chief CCCFPD County Counsel

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 17, 2015
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 United Chief Officers' Association and UPFF, Local 1230, as provided by the County's Actuary in letters dated November 10, 2015 and January 9, 2015 respectively.

FISCAL IMPACT:

As shown in the valuations, the result of the health plan changes described herein, if implemented, will create a $22.6 million or 2.85% decrease in the Actuarial Accrued Liability and a $2.5 or 2.86% decrease in the calculated Annual Required Contribution.

BACKGROUND:

On December 8, 2015, the Board of the Contra Costa County Fire Protection District may consider and may take formal action with respect to proposed changes in health care benefits affecting employees represented by the United Chief Officers' Association and UPFF, Local 1230 and persons who retired from classifications that were represented at the time of retirement by the United Chief Officers' Association and UPFF, Local 1230 and who are eligible for health care coverage.

The following is a summary of the recommended changes to health care benefits for UCOA:

Health and Welfare, Life and Dental Care

For the plan year that begins on January 1, 2016, the District will contribute up to an amount equivalent to 80% of the 2016 CalPERS Kaiser premium.
For the plan year that begins on January 1, 2017, the District 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 District for that plan as of November 30, 2016. If there is an increase in the monthly premium charged by a health plan for 2017, the District and the employee will each pay fifty percent (50%) of that increase. For each plan year thereafter, and for each plan, the District and the employee will each pay fifty (50%) of the monthly premium increase above the 2016 plan premiums.

Delta and PMI Delta Care

For the plan year that begins on January 1, 2016, the District will pay a monthly premium subsidy for each dental plan that is equal to the actual dollar monthly premium subsidy that is paid by the District as of November 30, 2015. In addition, if there is an increase in the monthly premium charged by a dental plan for 2016, the District and the employee will each pay fifty percent (50%) of that increase. For each plan year thereafter, the District and the employee will each pay fifty percent (50%) of the monthly premium increase above the 2015 plan premium.

Dental Only

Employees who elect dental coverage as stated above without health coverage will pay one cent ($.01) per month for such coverage. Beginning on January 1, 2016, the District 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 District for 2015. If there is an increase in the premium charged by a dental plan for 2016, the District and the employee will each pay fifty percent (50%) of the increase. For each plan year thereafter, the District and the employee will each pay fifty percent (50%) of the premium increase that is above the 2015 plan premium.

The following is a summary of the recommended changes to health care benefits for UPFF, Local 1230:

Health & Welfare, Life & Dental

For the plan year that begins on January 1, 2016, the District 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 District as of November 30, 2015. If there is an increase in the monthly premium charged by a health plan for 2016, the District and the employee will each pay fifty percent (50%) of that increase. For each calendar year thereafter, the District and the employee will each pay fifty percent (50%) of the monthly premium increase above the 2015 plan premium.

Delta and PMI Delta Care

For the plan year that begins on January 1, 2016, the District 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 District as of November 30, 2015. In addition, if there is an increase in the monthly premium charged by a health plan for 2016, the District and the employee will each pay fifty percent (50%) of that increase. For each calendar year thereafter, the District and the employee will each pay fifty percent (50%) of the monthly premium increase above the 2015 plan premium.

Dental Only

Employees who elect dental coverage as stated above without health coverage will pay one cent ($.01) per month for such coverage. Beginning on January 1, 2016, the District 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 District for 2015. If there is an increase in the premium charged by a dental plan for 2016, the District and the employee will each pay fifty percent (50%) of the increase. For each calendar year thereafter he District and the employee will each pay fifty percent (50%) of the premium increase that is above the 2015 plan premium.
In the event, in whole or in part, that the above amounts are greater than one hundred percent (100%) of the applicable premium of any plan, the District’s contribution will not exceed one hundred percent (100%) of the applicable plan premium.

Retirement Dental Coverage

For employees hired on or after January 1, 2015, no monthly premium subsidy will be paid by the District for any dental plan after they separate from District employment.

Dual coverage

On and after January 1, 2015, each employee and retiree may be covered by only a single District health and/or a single District dental plan, including CalPERS plans.
On and after January 1, 2015, each dependent may be covered by the health and/or dental plan of only one spouse or one domestic partner.

CONSEQUENCE OF NEGATIVE ACTION:

Delayed implementation of health care rate revisions.