HomeMy WebLinkAbout2000-08-08; City Council; 15864; CALPERS Health Program For ManagementCIP OF CARLSBAD - AGEWA BILL
ypTIoNoF THE CALPERS HEALTH
PROGRAM FOR MANAGEMENT EMPLOYEES
RECOMMENDED ACTION:
Adopt Resolution No. aM0*&ladopting the CalPERS Health Program for management
employees.
ITEM EXPLANATION:
The City has been evaluating the health insurance programs it provides for City
employees and their dependents. In May 1999 a health benefits task force was formed to
evaluate different health benefit providers and to explore different benefit plan design
alternatives.
After working with the City’s health benefits consultant for several months, the health
benefits task force made a recommendation that City employees transition from the
current health insurance plans to the CalPERS Health Program. Management employees
were surveyed and it was determined that a majority agreed with the task force
recommendation to transition to the CalPERS Health Program.
In order to contract for coverage under the Public Employees’ Medical and Hospital Care
Act (which governs the CalPERS Health Program), the public agency must file a separate
resolution with CalPERS. The attached resolution formalizes the City’s intent to allow
management employees to enrol1 in the CalPERS Health Program, and sets the City’s
contribution for each affected employee or annuitant at a maximum of $16.00 per month.
Although management employees will not have coverage under the CalPERS Health
Program until January 1,2001, this resolution is being submitted for City Council
consideration at this time in order to allow enough time for a smooth transition from one
selection of health insurance providers to another.
FISCAL IMPACT:
It is estimated that the transition to the CalPERS Health Program will have little or no
fiscal impact. It is difficult to predict which health plans employees would have selected
under the current choice of health plans and which health plans employees will select
under the CalPERS Health Program; however, it is anticipated that the City’s costs for
health insurance to cover management employees will not increase as a result of this
transition.
EXHIBIT:
Resolution No.adoo*& 1 Electing to be Subject to Public Employees’ Medical and
Hospital Care Act Only With Respect to the Management Employees and Fixing the
Employer’s Contribution at an Amount At or Greater Than That Prescribed by Section
22825 of the Government Code.
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RESOLUTION NO. 2ooo-261
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, ELECTING TO BE SUBJECT TO
PUBLIC EMPLOYEES’ MEDICAL AND HOSPITAL CARE ACT
ONLY WITH RESPECT TO THE MANAGEMENT EMPLOYEES AND
FIXING THE EMPLOYER’S CONTRIBUTION AT AN AMOUNT AT
OR 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 Carlsbad 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 Management Employees
who are 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, BE IT RESOLVED by the City Council for the City of
Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That the Public Agency elect, and it does hereby elect, to be subject to the
provisions of the Act; and be it further
3. That the employer’s contribution for each employee or annuitant shall be
the amount necessary to pay the full cost of his/her enrollment, including the enrollment
of family members, in a health benefits plan or plans up to a maximum of sixteen ($16)
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per month plus administrative fees and Contingency Reserve fund assessments; and be it
further
4. That the executive body appoint and direct, and it does hereby appoint and
direct, the Human Resources Director 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
5. That coverage under the Act be effective on January 1,200l.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the Carlsbad
City Council held on the ,200O; by the following vote, to 8th day of August
wit on behalf of the City:
AYES: Council Members Lewis, Hall, Finnila, and Nygaard.
NOES: None.
ABSENT: Council Member Kulc
ATTEST:
M. WOOD, City Clerk
(SEAI-