HomeMy WebLinkAbout4.3 Personnel System Revision G~~y OF DpB~y
~9' STAFF REPORT CITY CLERK
~~~c`C~~~~ CITY COUNCIL Flle # 720-40/720-60
DATE: .October 4, 2011
TO: Honorable Mayor and City Councilmembers
FROM: Joni Pattillo, City Manager
SUBJECT: Revisions to Personnel System
Prepared by Angelica Smith, Administrative Analyst
EXECUTIVE SUMMARY:
The Staff report identifies proposed changes to the City's current Personnel System. The
proposed adjustments are based on the need to amend the City's contribution rate to California
Public Employees' Retirement System (CaIPERS) for the provision of health benefits under the
Public Employees' Medical and Hospital Care Act.
FINANCIAL IMPACT:
The proposed increase is effective with the January 1, 2012 premium statements from
CaIPERS. Sufficient funds have been budgeted in the Fiscal Year 2011-2012 Budget to cover
City paid health and welfare benefits.
RECOMMENDATION:
Staff recommends the City Council adopt the following resolutions: Resolution Fixing the
Employer's Contribution Under the Public Employees' Medical and Hospital Care Act;
Resolution Fixing the Employer's Contribution Vesting Requirement for Future Retirees Under
the Public Employees' Medical and Hospital Care Act; and Resolution Amending the Benefit
Plan.
~ Submitted By Reviewed By '
Human Resources Director Assistant City Manager
Page 1 of 2 ITEM NO. 4.3
DESCRIPTION:
The City currently contracts with the California Public Employees' Retirement System
(CaIPERS) for the provision of health benefits. CaIPERS allows each participating agency to
designate the amount to be contributed by the employer. The City is required by CaIPERS to
contribute the same premium amount for current (active) employees as it does for retired
employees. During the Fiscal Year 2011-2012, the City will continue the current health
contribution to a 50/50 split of the increase to the Kaiser Family premiums.
Presently, the City contributes $1,200.79 per month per employee/retiree for medical insurance.
Premium amounts that exceed the City's maximum contribution are paid directly by the
employee/retiree. Based on the agreed 50/50 split of the increase to the Kaiser Family
premiums the City will increase its contribution from $1,200.79 to $1,254.68 per month effective
January 1, 2012.
As required by CaIPERS, the City must adopt two separate CaIPERS Resolutions fixing the
employer's contribution under the Public Employees' Medical and Hospital Care Act (PEMHCA).
The attached Resolution (Attachment 1) increases the City's contribution from $1,200.79 per
month to $1,254.68 for current (active) employees. Attachment 2 is the contribution rate for
those employees who were hired after April 1, 2004 and eligible for the City's plan under vesting
requirements for future retirees. This rate is set by the State (State Annuitant 100/90 formula)
and, in 2012, the maximum amount is $1,382.00 per month and paid to future retirees based on
a vesting schedule. It is also necessary for the City to amend the City's Benefit Plan
(Attachment 3) establishing the maximum medical insurance contribution at $1,254.68 per
month effective January 1, 2012.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
Not Applicable
ATTACHMENTS: 1. Resolution Fixing the Employer's Contribution Under the Public
Employees' Medical and Hospital Care Act
2. Resolution Fixing the Employer's Contribution Vesting Requirement
for Future Retirees Under the Public Employees' Medical and
Hospital Care Act
3. Resolution Amending the Benefit Plan
Page 2 of 2
RESOLUTION NO. XX - 11
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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
22893(1) of the Act; and
WHEREAS, the City of Dublin is a local agency contracting under the Act.
NOW THEREFORE BE IT RESOLVED that the employer's contribution for each
employee or annuitant shall be the amount necessary to pay the cost of his/her enrollment,
including the enrollment of his/her family members, in a health benefit plan, up to a maximum
of $1,254.68 dollars per month plus administrative fees and Contingency Reserve Fund
assessments.
BE IT FURTHER RESOLVED that the changes contained herein shall be effective
January 1, 2012.
PASSED, APPROVED AND ADOPTED this 4t" day of October, 2011, by the following
votes:
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
RESOLUTION NO. XX - 11
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
FIXING THE EMPLOYER'S CONTRIBUTION VESTING REQUIREMENT FOR
FUTURE RETIREES 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
22893 (1) of the Act; and
WHEREAS, the City of Dublin is a local agency contracting under the Act.
NOW THEREFORE BE IT RESOLVED that the employer's contribution for each active
and retired employee first hired on or after April 1, 2004 shall be the amount necessary to pay
the cost of his/her enrollment, including the enrollment of his/her family members, in a health
benefit plan, up to a maximum of $1,382.00 dollars per month plus administrative fees and
Contingency Reserve Fund assessments.
BE IT FURTHER RESOLVED that the changes contained herein shall be effective
January 1, 2012.
PASSED, APPROVED AND ADOPTED this 4t" day of October, 2011, by the following
votes:
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
RESOLUTION NO. XXX -11
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
AMENDING THE BENEFIT PLAN
WHEREAS, the Personnel System Rules requires the City Council to adopt a Benefit
Plan; and
WHEREAS, the Benefit Plan prescribes the current benefits provided to employees by
the City.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin
hereby amends Resolution 109-91 and subsequent amendments to include the following:
Section 2. Medical Insurance: All City employees who are members of the California Public
Employees Retirement System (CaIPERS) shall be eligible to select from plans administered
by the Public Employees Medical and Hospital Care Act.
Beginning with the January 1, 2012 premium, the City of Dublin will contribute a maximum of
up to $1,254.68 per month premium, exclusive of administrative charges, towards medical
insurance. If the cost of coverage exceeds the amount of the City contribution, the additional
cost will be paid by the employee through payroll deductions or at the employee's option to
the extent allowed by Section 4 of the Benefit Plan.
PASSED, APPROVED AND ADOPTED this 4t" day of October, 2011, by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk