HomeMy WebLinkAboutAgenda Packet - March 19, 1984 - CC 1 . 3
CITY O USA
..7.14111
FINANCE DEPARTMENT
MARCH 14, 1984
AGENDA ITEM
j TO: HONORABLE MAYOR, CITY COUNCIL
and CITY ADMINISTRATOR
FROM: ALEX McFARLANE, ACTING FINANCE OFFICER
SUBJECT: POLICE RETIREMENT PLAN
PURPOSE:
Authorize change in retirement plan - Police.
FACTS:
1. The Memorandum of Understanding with the Police Association of
July. 3, 1983 included an allocation of $300 . 00 from the City
for an actuarial report on alternate retirement plans to the
present plan (1/2 at 55) .
2 . The report was received November 23, 1983 and the cost for the
safety personnel would be:
Present Plan Alt 1 Alt 2(CHP)
1/2 at 55 2% at 55 2% at 50
Final CompBase 3 yrs 1 yr 3 yrs 1 yr 3 yrs
Rate per 100 19 .233 21 .861 20. 310 27 .207 25 . 163
Rate Increase - 7U - 2 . 628 1 .077 7 . 974 5 . 930
Cost Increase - Dollars - $35 .281 14.458 107 . 052 79. 611
3 . The Police Association has asked that the 27 at 55 plan be adopted
during this fiscal year.
4. The current budget does not provide for this change.
5 . A change in the plan requires time for processing of a contract
amendment with PERS and individual member counceling by PERS
staff.
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Continued. . . 1
as.
213 EAST FOOTHILL BOULEVARD, AZUSA, CALIFORNIA 91702 • PHONE (213) 334-5125
1
-. Police Retirement Plan
Page Two
March 14, 1984
6. The plan could be in place by July 1 and the $35 , 000 (2 . 628%) cost
considered as part of the 84-85 salary and benefit negotiations .
RECOMMENDATIONS
It is recommended that the City Council authorize staff to proceed
with implementing the 2% at 55 plan for safety employees to be
effective July 1, 1984 and considered a 1984-85 benefit enhancement .
/tdb
CITY OF EiSi
Tr� 1 1 ,
7-& eairt
FINANCE DEPARTMENT
MARCH 12 , 1984
AGENDA ITEM
T0: HONORABLE MAYOR, CITY COUNCIL and
CITY ADMINISTRATOR
FROM: ALEX McFARLANE, ACTING FINANCE OFFICER
SUBJECT: HEALTH INSURANCE PLAN
PURPOSE:
Authorize PERS Health Insurance Plan
FACTS:
1. The City currently provides health insurance through Blue Cross
and Ross-Loos under the Cafeteria benefit .
2 . Rates to March 1, 1984 were:
Single 2 Party Family
Ross-Loos 97 .46 185 . 66 228 . 01
Blue Cross 97 .56 185 . 77 228 . 11
3. Blue Cross proposed new rates for March 1 at a 957 increase to:
Single 2 Party Family
Blue Cross (3-1) 190.40 362 . 55 445 . 18
4. The Acting Finance Officer and Personnel Officer have had several
meetings with the employee representatives to consider alternative
plans - Blue Cross and other carriers .
5 . The group decided to remain with Blue Cross as of March 1 with a
$1, 000 deductible and the following rates :
Continued. . . O1' <Lj 4-5X/ / * 10' *
____ 213 EAST FOOTHILL BOULEVARD, AZUSA CALIFORNIA 91702 • PHONE 213 334-5125
'Health Insurance Plan
Page Two
March 12 , 1984
Single 2 Party Family
Blue Cross- March 1 118 .62 225 . 87 277 . 35
- Prior 97 .56 185 . 77 228 . 11
- Increase 21 . 06 40 . 10 49 . 24
6. The Memorandums of Understanding for 83-84 provided that the City
increase the Cafeteria benefit by $30 to cover this increase.
7 . The group asked staff to search for a long-term solution in order
to avoid extreme changes in benefits and costs .
8 . The group has studied alternatives and has decided that the plan
administered by the Public Employees Retirement System meets the
need for a large stable group plan.
9. PERS provides a variety of indemnity and HMO plans at deductables
and rates in the range of Blue Cross - prior to March 1 .
10. PERS requires a minimum contribution of $16 for each plan member
and the benefit given to active employees must also be extended
to retired employees .
11 . The employee group would like to work with the City in changing the
Cafeteria benefit to a health plan only benefit . This would require
meet and confer sessions to negotiate the level of support and
allocation of the Cafeteria balance to salaries .
12 . Present Cafeteria benefits and costs are:
March 1 No . Emp. Cost/Month
Misc. & Council 280 100 $28 , 000
IBEW 160 25 4, 000
Police - Sworn 280 49 13 , 720
- Clerks &
Disp. 230 13 2 , 990
- Cadets 250 6 1 , 500
193 $50, 210
Cost per year = 12 x $50, 210 = $602 ,520
13. The Cafeteria is applied as follows :
(a) Mandatory deduction for employee' s self-health coverage
(Blue Cross or Ross Loos)
(b) Balance to be applied to one or more of the following:
1. Dependent health coverage
2 . Dental Plan
3 . Additional life insurance
4. Deferred compensation plan'
ti - }tealth Insurance Plan
Page Three
March 12 , L984
14. A sample health benefit under PERS would be:
EMPLOYEE
City Single 2 Party Family
PERS (Blue Cross) 16 . 00 84. 00 182 . 00 220. 00
Dental - Family 30. 00 - -
Life Insurance-12 , 000 4. 00 - -
50. 00 84. 00 182 .00 220. 00
15 . The difference between this health benefit and the Cafeteria benefit
amount would be negotiated back into salaries .
16. The City' s cost per month would be:
Current Employees - 193 @ $50 $ 9 ,650
Retired Employees - 100 @ $16 1, 600
PERS- Contingency Fund - @ 5% 562
- Admin. Fee 56
$11 ,868
Cost per year = 12 x $11 , 868 = $142 ,416
17 . Amount available to be added back to salaries :
Current Cafeteria cost $ 602 ,500
Health Only benefit (142 ,416)
$ 460, 084
RECOMMENDATION
It is recommended that the City Council authorize staff to proceed
with the PERS health insurance plan for current and retired employees .
/tdb