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SD. 7
To: Board of Supervisors
From: David Twa, County Administrator
Date: February  15, 2011
The Seal of Contra Costa County, CA
Contra
Costa
County
Subject: Government Code 7507 Compliance - Other Post Employment Benefits - Public Defenders
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On:   02/15/2011
APPROVED AS RECOMMENDED OTHER
Clerks Notes:

VOTE OF SUPERVISORS

AYE:
John Gioia, District I Supervisor
Gayle B. Uilkema, District II Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor
Contact: Lisa Driscoll, County Finance Director, 335-1023
cc: Lisa Driscoll, County Finance Director     Ted Cwiek, Human Resources Director    
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:     February  15, 2011
David Twa,
 
BY: , Deputy

 

RECOMMENDATION(S):

ACCEPT actuarial valuation of future annual costs of negotiated and proposed changes to Other Post Employment Benefits as provided by Buck Consultants in letter of February 9, 2011.

FISCAL IMPACT:

As shown in the valuation, the result of the health plan changes described herein, if implemented, will create a $5.3 million or 0.51% decrease in the Actuarial Accrued Liability and a $341,000 or 0.55% 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 February 9, 2011 report from Buck Consultants is attached.   
BACKGROUND: (CONT'D)
  
On March 1, 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 Contra Costa County Defenders' Association and persons who retired from classifications that were represented at the time of retirement by the Contra Costa County Defenders' Association and who are eligible for health care coverage.  
  

Recommended changes to health care benefits for these groups are:   
  
Active Employees

  • Employees represented by the Contra Costa County Defenders’ Association hired on or after the date the Board approves the new Memorandum of Understanding will not receive a County subsidized retiree health/dental care benefit.   
    Dual Coverage. Provide as of 03/01/11, 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 2010-2011.
    • Contra Costa Health Plan and Coordinated Dental Plans – Currently shared 98% County, 2% Participant for Plan A and 90% County, 10% Participant for Plan B.
      • Effective 03/01/11, County will pay a premium subsidy equal to 93% of the 2010 premium for Plan A and Participant will pay an amount equal to 7% of the 2010 premium for Plan A. County will pay an amount equal to 87% of the 2010 premium for Plan B and Participant will pay an amount equal to 13 % of the 2010 premium for Plan B. Any premium increases for 2011 in Plan A and Plan B to be shared 50% by the County and 50% by the Participant, up to a maximum of 11%; portion of increase above 11% to be paid by the County.
    • Kaiser and Health Net HMO and dental plans – Increases 01/01/10 and 01/01/11 to be shared 50% by the County and 50% by the Participant, up to a maximum of 11%; portion of increase above 11% to be paid by the County.
    • Health Net PPO- Increases 01/01/10 and 01/01/11 to be shared 50% by the County and 50% by the Participant.
  • Fixed Premium. Effective 06/29/11, fix the County monthly premium subsidy for all of these plans at the June 2011 amount.
  • Dental Plan Benefit. Increase to $1,800, from $1,600, the annual maximum benefit available in the Delta Dental Insurance plan effective 03/01/11.  
Retired Employees  
  • Dual Coverage. Provide as of 06/01/11, 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 January 1, 2010 - June 1, 2011.
    • Contra Costa Health Plan and Coordinated Dental Plans – Currently shared 98% County, 2% Participant for Plan A and 90% County, 10% Participant for Plan B.
    • Kaiser and Health Net HMO and dental plans – Increases 01/01/10 and 01/01/11 to be shared 80% by the County and 20% by the Participant.
    • Health Net PPO- Increases 01/01/10 and 01/01/11 to be shared 50% by the County and 50% by the Participant.
  • Premium Cost Sharing June 1, 2011.
    • Contra Costa Health Plan and Coordinated Dental Plans – Effective 06/01/11, County will pay a premium subsidy equal to 93% of the 2010 premium for Plan A and Participant will pay an amount equal to 7% of the 2010 premium for Plan A. County will pay an amount equal to 87% of the 2010 premium for Plan B and Participant will pay an amount equal to 13 % of the 2010 premium for Plan B. Any premium increases for 2011 in Plan A and Plan B to be shared 50% by the County and 50% by the Participant, up to a maximum of 11%; portion of increase above 11% to be paid by the County.
    • Kaiser and Health Net HMO and dental plans – Increases 01/01/10 and 01/01/11 to be shared 50% by the County and 50% by the Participant, up to a maximum of 11%; portion of increase above 11% to be paid by the County.
    • Health Net PPO- Increases 01/01/10 and 01/01/11 to be shared 50% by the County and 50% by the Participant.
  • Fixed Premium. Effective 06/29/11, fix the County monthly premium subsidy for all of these plans at the June 2011 amount.
  • Dental Plan Benefit. Increase to $1,800, from $1,600, the annual maximum benefit available in the Delta Dental Insurance plan effective 06/01/11.
  • Effective 06/1/11 all persons who become Medicare eligible must enroll in Medicare Parts A and B.  
      
CONSEQUENCE OF NEGATIVE ACTION:

Delayed implementation of health care rate revisions.
CHILDREN'S IMPACT STATEMENT:

None.

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