DATE: September 22, 2020
TO: Board of Supervisors
SUBMITTED BY: Paul Nerland, Director of Human Resources
SUBJECT: County Health Contributions for Plan Year 2021
RECOMMENDED ACTION(S):
TITLE
1. Approve the Addenda to the Memoranda of Understanding (MOU) regarding County Health Premium Contributions for Plan Year 2021, effective December 14, 2020, for the following Representation Units:
• Unit 11 - Deputy Probation Officers
• Unit 30 - Deputy District Attorneys
• Unit 37 - Sheriff’s Correctional Sergeants
• Unit 42 - Engineers
2. Approve the County’s Health Premium Contributions for Plan Year 2021 for Unrepresented and Management (including Senior Management, Department Head and Elected Official) classifications, effective December 14, 2020.
REPORT
There is a $159,394 increase in Net County Cost (NCC) associated with the recommended actions. Approval of the recommended actions would implement the County’s health contribution increase for Plan Year 2021 for the above mentioned units and classifications. The total estimated cost for FY 2020-21 is approximately $462,673, including $159,394 in NCC. Impacted department appropriations will be monitored and adjustments will be brought to your Board if needed. This item is countywide.
ALTERNATIVE ACTION(S):
If your Board were not to approve the recommended actions, the County’s health contributions would remain unchanged for the above mentioned units and classifications.
FISCAL IMPACT:
There is an increase in NCC of $159,394 associated with the recommended actions. The total estimated cost of the negotiated terms and conditions for FY 2020-21 is approximately $462,673; $159,394 in NCC, which includes related retirement costs. The estimated year-over-year cost increase for FY 2021-22 is approximately $390,673; $134,787 in NCC. Impacted department’s FY 2020-21 appropriations will be monitored and adjustments will be brought to your Board if needed.
DISCUSSION:
Your Board’s representatives have met with representatives from Units 11, 30 and 42, and have reached agreement regarding the above named Addenda to the units’ MOUs.
The significant components of the agreements are as follows:
Ø Health Insurance: (Up to indicates that the contribution will not exceed the cost of employee’s health plan selection)
o Increase County Contributions for Employee Only up to $368 (up to $25 increase per pay period) effective December 14, 2020
Your Board’s representatives have also met with representatives from Unit 37 and have reached agreement regarding the above named Addendum to the unit’s MOU.
The significant components of the agreement are as follows:
Ø Health Insurance: (Up to indicates that the contribution will not exceed the cost of employee’s health plan selection)
o Increase County Contributions for Employee Only up to $318 (up to $10 increase per pay period) effective December 14, 2020
o Increase County Contributions for Employee plus Child(ren) up to $528 (up to $30 increase per pay period) effective December 14, 2020
o Increase County Contributions for Employee plus Spouse up to $528 (up to $30 increase per pay period) effective December 14, 2020
o Increase County Contributions for Employee plus Family up to $528 (up to $30 increase per pay period) effective December 14, 2020
Employees eligible to participate in the County’s Health Plan Benefit Program (Program) can choose to opt out of the Program during the next open enrollment period by providing written proof that they have medical coverage from another source.
REFERENCE MATERIAL:
BAI #42, February 25, 2020
BAI #44, December 10, 2019
BAI #37, November 19, 2019
BAI #44, July 9, 2019
BAI #48, June 4, 2019
ATTACHMENTS INCLUDED AND/OR ON FILE:
Addenda to MOUs for Units 11, 30, 37 and 42
CAO ANALYST:
Yussel Zalapa