HomeMy WebLinkAboutCC 3 PERS HEALTH BENE 09-20-93AGENDA
ATE:
CONSENT CALENDAR NO. 3
9-20-93
Inter-Corn
SEPTEMBER 9, 1993
TO:
FROM:
SUBJECT:
WILLIAM A. HUSTON, CITY MANAGER
PERSONNEL SERVICES
RESOLUTIONS TO CONTRACT FOR HEALTH BENEFITS WITH PERS
RECOMMENDATION;
That Resolutions Nos. 93-100 through 93-104, authorizing'the City Manager to contract with
the Public Employees Retirement System (PERS) for health benefits for all employees who are
PERS members effective January l, 1994.
FISCAL IMPACT:
The fiscal impact is negligible at this time. Over the next ten years, however, the City could
save a substantial amount in reduced exposure for medical expense liability on the City's self-
insured plan, . PERS. requires that con~acting .cities also..provide, retired. , employees .access_ to
medical insurance and pay $16.00 per month toward the retiree's .premium should a retiree
choose to continue in the medical plan. Currently there are 53 retirees listed with PERS as of
July 1, 1993. These retirees will have a one-time only option to enroll in the PERS health plan;
however, the rest of the cost for any plan chosen is paid by the retiree. Cost for the basic plans
can run from $155.45 to $637.00. How many retirees will actually elect to purchase this
insurance coverage is not predictable. If current retirees choose not to participate during this
"window period", they will not be eligible to elect coverage later.
DISCUSSION:
During negotiations with the Tustin Municipal Association, the Tustin Police Officers
Association, and the Tustin Police Management Association an agreement was reached to change
our current benefits structure. The health insurance portion of the City's benefits package
became increasingly expensive due to the rise in health insurance premiums. A Benefits
Committee was formed which consisted of representatives from every segment of our employee
population, represented and unrepresented. The Benefits Committee studied the current situation
and explored alternatives with regard to the employees' benefits package. Their recommendation
to the City was to purchase health benefits from the Public Employees Retirement System
(PERS). The major reasons for this decision was because the size of PERS gives them "clout"
in negotiating with various health insurance companies on premiums and because they are so
large, they. can offer retiree medical insurance. Subsequent to this recommendation, the City
Council Report,. September 20, 1993
Page 2
then negotiated with the three associations on the Committee's recommendations and the'City
agreed to contract with PERS to offer health insurance through PERS. This agreement is also
documented in the Memorandum of Understanding.
Bettie Correa
Senior Personnel Analyst
BMC2: PERSI-ILTH. RES
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RESOLUTION ~)3-100
RESOLUTION ELECTING TO BE SUBJECT TO PUBLIC
EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT ONLY WITH
RESPECT TO MEMBERS OF TUSTIN MUNICIPAL EMPLOYEES'
ASSOCIATION
FIXING THE EMPLOYER'S CONTRIBUTION AT AN AMOUNT
GREATER THAN THAT PRESCRIBED BY SECTION 22825 OF THE
GOVERNMENT CODE
WHEREAS, Government Code Section 22850.3 provides that a contracting
'agency may elect upon proper application to participate under the Public
Employees' Medical and Hospital Care Act with respect to a recognized employee
organization only; and
WHEREAS, the City of Tustin, hereinafter referred to as Public Agency
is a local agency contracting with the Public Employees' Retirement System; and
WHEREAS, the Public Agency desires to obtain for the members of Tustin
Municipal Employees' Association, who are employees and anfitiitants of the
agency, the benefit of the Act and to accept the liabilities and obligations of an
employei' under the Act and Regulations
NOW, THEREFORE, the City Council of the City of Tustin, California,
does hereby resolve as follows:
RESOLVED, that the Public Agency elect, and it does hereby elect, to be
subject to the provisions of the Act; and be it further
RESOLVED, that the employer's contribution for each employee or
annuitant shall be the amount necessary to pay full cost of his/her enrollment,
including the enrollment of family members, in a health benefits plan or plans up
to a maximum of $16.00 dollars per month plus administration fees and
Contingency Reserve Fund assessments; and be it further
RESOLVED, that the executive body appoint and direct, and it does hereby
appoint and direct, William A. Huston to file with the Board of Administration of
the Public Employees' Retirement System a verified copy of this Resolution, and
to perform on behalf of said Public Agency all functions required of it under the
Act and Regulations of the board of Administration; and be it further
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Page 2, Resolution g93-100
RESOLVED, that coverage under the Act be effective on January 1, 1994.
PASSED AND ADOPTED by the City Council of the City of Tustin at a
regular meeting held on the 20th day of September, 1993.
Jim Potts, Mayor
Mary E. Wynn, City Clerk
STATE OF CALIFORNIA)
COUNTY OF ORANGE ) SS
CITY OF TUSTIN )
CERTIFICATION FOR RESOLUTION NO. 93-100
Mary E. Wynn, City Clerk and ex-officio Clerk of the City Council of the City
of Tustin, California, does hereby certify that the whole number of the members
of the City Council is five; that the above and foregoing Resolution was duly and
regularly passed and adopted at a regular meeting of the City Council held on the
20th day of September, 1993 by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
Mary E. Wynn, City Clerk
MD4:reso100.93
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RESOLUTION g93-101
RESOLUTION ELECTING TO BE SUBJECT TO PUBLIC
EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT ONLY WITH
RESPECT TO MEMBERS OF TUSTIN POLICE OFFICERS
ASSOCIATION
FIXING THE EMPLOYER'S CONTRIBUTION AT AN AMOUNT
GREATER THAN THAT PRESCRIBED BY SECTION 22825 OF THE
GOVERNMENT CODE
WHEREAS, Government Code Section 22850.3 provides that a contracting
agency may elect upon proper application to participate under the Public
Employees' Medical and Hospital Care Act with respect to a recognized employee
organization only; and
WHEREAS, the City of Tustin, hereinafter referred to as Public Agency
is a local agency contracting with the Public Employees' Retirement System; and
WHEREAS, the Public Agency desires to obtain for the members of Tustin
Police Officers Association, who are employees and annuitants of the agency, the
benefit of the Act and to accept the liabilities and obligations of an employer under
the Act and Regulations
NOW, THEREFORE, the City Council of the City of Tustin, California,
does hereby resolve as follows:
RESOLVED, that the Public Agency elect, and it does hereby elect, to be
subject to the provisions of the Act; and be it further
RESOLVED, that the employer's contribution for each employee or
annuitant shall be the amount necessary to pay full cost of his/her enrollment,
including the enrollment of family members, in a health benefits plan or plans up
to a maximum of $16.00 dollars per month plus administration fees and
Contingency Reserve Fund assessments; and be it further
RESOLVED, that the executive body appoint and direct, and it does hereby
appoint and direct, William A. Huston to file with the Board of Administration of
the Public Employees' Retirement System a verified copy of this Resolution, and
to perform on behalf of said Public Agency all functions required of it under the
Act and Regulations of the board of Administration; and be it further
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Page 2, Resolution t~93-101
RESOLVED, that coverage under the Act be effective on January 1, 1994.
PASSED AND ADOPTED by the City Council of the City of Tustin at a
regular meeting held on the 20th day of September, 1993.
Jim Potts, Mayor
Mary E. WYnn, City Clerk
STATE OF CALIFORNIA)
COUNTY OF ORANGE ) SS
CITY OF TUSTIN )
CERTIFICATION FOR RESOLUTION NO. 93-101
Mary E. Wynn, City Clerk and ex-officio Clerk of the City Council of the City
of Tustin, California, does hereby certify that the whole number of the members
of the City Council is five; that the above and foregoing Resolution was duly and
regularly passed and adopted at a regular meeting of the City Council held on the
20th day of September, 1993 by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
Mary E. Wynn, City Clerk
MD4:reso101.93
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RESOLUTION #93-102
RESOLUTION ELECTING TO BE SUBJECT TO PUBLIC
EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT ONLY WITH
RESPECT TO MEMBERS OF TUSTIN POLICE MANAGEMENT
ASSOCIATION
FIXING THE EMPLOYER'S CONTRIBUTION AT AN AMOUNT
GREATER THAN THAT PRESCRIBED BY SECTION 22825 OF THE
GOVERNMENT CODE
WHEREAS, Government Code Section 22850.3 provides that a contracting
agency may elect upon proper application to participate under the Public
Employees' Medical and Hospital Care Act with respect to a recognized employee
organization only; and
WHEREAS, the City of Tustin, hereinafter referred to as Public Agency
is a local agency contracting with the Public Employees' Retirement System; and
WHEREAS, the Public Agency desires to obtain for the members of Tustin
Police Management Association, who are employees and annuitants of the agency,
the benefit of the Act and to accept the liabilities and Obligations of an employer
under the Act and Regulations
NOW, THEREFORE, the City Council of the City of Tustin, California,
does hereby resolve as follows:
RESOLVED, that the Public Agency elect, and it does hereby elect, to be
subject to the provisions of the Act; and be it further
RESOLVED, that the employer's contribution for each employee or
annuitant shall be the amount necessary to pay full cost of his/her enrollment,
including the enrollment of family members, in a health benefits plan or plans up
to a maximum of $16.00 dollars per month plus administration fees and
Contingency Reserve Fund assessments; and be it further
RESOLVED, that the executive body appoint and direct, and it does hereby
appoint and direct, William A. Huston to file with the Board of Administration of
the Public Employees' Retirement System a verified copy of this Resolution, and
to perform on behalf of said Public Agency all functions required of it under the
Act and Regulations of the board of Administration; and be it further
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Page 2, Resolution #93-102
RESOLVED, that coverage under the Act be effective on January 1, 1994.
PASSED AND ADOPTED by the City Council of the City of Tustin at a
regular meeting held on the 20th day of September, 1993.
Jim Potts, Mayor
Mary E. Wynn, City Clerk
STATE OF CALIFORNIA)
cOUNTY OF ORANGE ) SS
CITY OF TUSTIN )
CERTIFICATION FOR RESOLUTION NO. 93-102
Mary E. Wynn, City Clerk and ex-officio Clerk of the City Council of the City
of Tustin, California, does hereby certify that the whole number of the members
of the City Council is five; that the above and foregoing Resolution was duly and
regularly passed and adopted at a regular meeting of the City Council held on the
20th day of September, 1993 by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
Mary E. Wynn, City Clerk
MD4:reso 102.93
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RESOL~ION//93-103
RESOLUTION ELECTING TO BE SUBJECT TO PUBLIC
EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT ONLY WITH
RESPECT TO MEMBERS OF THE CONFIDENTIAL GROUP
FIXING THE EMPLOYER'S CONTRIBUTION AT AN AMOUNT
GREATER THAN THAT PRESCRIBED BY SECTION 22825 OF THE
GOVERNMENT CODE
WHEREAS, Government Code Section 22850.3 provides that a contracting
agency may elect upon proper application to participate under the Public
Employees' Medical and Hospital Care Act with r~spect to a recognized employee
organization only; and
WHEREAS, the City of Tustin, hereinafter referred to as Public Agency
is a local agency contracting with the Public Employees' Retirement System; and
WHEREAS, the Public Agency desires to obtain for the members of the
Confidential Group, who are employees and annuitants of the agency, the benefit
of the Act and to accept the liabilities and obligations of an employer under the
Act and Regulations
NOW, THEREFORE, the City Council of the City of Tustin, California,
does hereby resolve as follows:
RESOLVED, that the Public Agency elect, and it does hereby elect, to be
subject to the provisions of the Act; and be it further
RESOLVED, that the employer's contribution for each employee or
annuitant shall be the amount necessary to pay full cost of his/her enrollment,
including the enrollment of family members, in a health benefits plan or plans up
to a maximum of $16.00 dollars per month plus administration fees and
Contingency Reserve Fund assessments; and be it further
RESOLVED, that the executive body appoint and direct, and it does hereby
appoint and direct, William A. Huston to file with the Board of Administration of
the Public Employees' Retirement System a verified copy of this Resolution, and
to perform on behalf of said Public Agency all functions required of it under the
Act and Regulations of the board of Administration; and be it further
1 Page 2, Resolution g93-103
RESOLVED, that coverage under the Act be effective on January 1, 1994.
PASSED AND ADOPTED by the City Council of the City of Tustin at a
regular meeting held on the 20th day of September, 1993.
Jim Potts, Mayor
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Mary E. Wynn, City Clerk
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STATE OF CALIFORNIA)
COUNTY OF ORANGE ) SS
CITY OF TUSTIN )
CERTIFICATION FOR RESOLUTION NO. 93-103
Mary E. Wynn, City Clerk and ex-officio Clerk of the City Council of the City
of Tustin, California, does hereby certify that the whole number of the members
of the City Council is five; that the above and foregoing Resolution was duly and
regularly passed and adopted at a regular meeting of the City Council held on the
20th day of September, 1993 by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
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Mary E. Wynn, City Clerk
MD4:resoi03.93
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RESOLUTION ~'93-104
RESOLUTION ELECTING TO BE SUBJECT TO PUBLIC
EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT ONLY WITH
RESPECT TO MEMBERS OF MISCELLANEOUS MANAGEMENT
GROUP, CHIEF OF POLICE, AND POLICE CAPTAINS.
FIXING THE EMPLOYER'S CONTRIBUTION AT AN AMOUNT
GREATER THAN THAT PRESCRIBED BY SECTION 22825 OF THE
GOVERNMENT CODE
WHEREAS, Government Code Section 22850.3 provides that a contracting
agency may elect upon proper application to participate under the Public
Employees' Medical and Hospital Care Act with respect to a recognized employee
organization only; and
WHEREAS, the City of Tustin, hereinafter referred to as Public Agency
is a local agency contracting with the Public Employees' Retirement System; and
WHEREAS, the Public Agency desires to obtain for the members of the
Miscellaneous Management Group, Chief of Police, and Police Captains, who are
employees and annuitants of the agency, the benefit of the Act and to accept the
liabilities and obligations of an employer under the Act and Regulations
NOW, THEREFORE, the City Council of the City of Tustin, California,
does hereby resolve as follows:
RESOLVED, that the Public Agency elect, and it does hereby elect, to be
subject to the provisions of the Act; and be it further
RESOLVED, that the employer's contribution for each employee or
annuitant shall be the amount necessary to pay full cost of his/her enrollment,
including the enrollment of family members, in a health benefits plan or plans up
to a maximum of $16.00 dollars per month plus administration fees and
Contingency Reserve Fund assessments; and be it further
RESOLVED, that the executive body appoint and direct, and it does hereby
appoint and direct, William A. Huston to file with the Board of Administration of
the Public Employees' Retirement System a verified copy of this Resolution, and
to perform on behalf of said Public Agency all functions required of it under the
Act and Regulations of the board of Administration; and be it further
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Page 2, Resolution g93-104
RESOLVED, that coverage under the Act be effective on January 1, 1994.
PASSED AND ADOPTED by the City Council of the City of Tustin at a
regular meeting held on the 20th day of September, 1993.
Jim Potts, Mayor
Mary E. Wynn, City Clerk
STATE OF CALIFORNIA)
COUNTY OF ORANGE ) SS
CITY OF TUSTIN )
CERTIFICATION FOR RESOLUTION NO. 93-104
Mary E. Wynn, City Clerk and ex-officio Clerk of the City Council of the City
of Tustin, California, does hereby certify that the whole number of the members
of the City Council is five; that the above and foregoing Resolution was duly and
regularly passed and adopted at a regular meeting of the City Council held on the
20th day of September, 1993 by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
Mary E. Wynn, City Clerk
MD4: rcso 104.93
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