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City Council Agenda No. 0- �g_
C105101511
November 16, 1993
- .
L Y0F
NOV 2 ?1993
TO: Honorable Mayor Turner and Members ofthe City Council
FROM: Duane K. Munson, Director of Personnel I/7,'�/V\I`
RE: PERS Health Care System
RECOMMENDATION: Approve the attached resolutions allowing the
identified employee groups to participate in the PERS Health Care System
BACKGROUND: City staff and representatives of the Newport Beach
Police Employees Association, The Newport Beach Police Management
Association, The Newport Beach Firefighters Association, Newport Fire
Management Association, The Newport Beach Ocean Lifeguards Association,
and the City's Key and Management employees, have met-and-confered and
agreed to allow PERS Health Care as an option the the City's basic health plan.
Staff conducted negotiations in this matter under the authority granted by the
Newport Beach City Council, last Spring. The costs associated with the
addition of PERS as a health care provider, if any, would be minor. A
significant amount of the possible additional cost of the PERS plan would be
borne by the employee though payroll deduction.
To accomplish this PERS requires the local agency to adopt resolutions
permitting these defined employee groups to become part of the PERS Health
Care System.
(3�)
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RESOLUTION NO. 93 - 85
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH ELECTING TO BE SUBJECT TO THE PUBLIC
EMPLOYEE'S MEDICAL AND HOSPITAL CARE ACT ONLY
WITH RESPECT TO MEMBERS OF THE NEWPORT BEACH
FIREFIGHTERS' ASSOCIATION,
AND
FIXING THE EMPLOYER'S CONTRIBUTION FOR EMPLOYEES
AND EMPLOYER'S CONTRIBUTION FOR ANNUITANTS AT
DIFFERENT AMOUNTS.
WHEREAS, (1) Government Code Section 22850.3 provides that a
contracting agency, may elect upon proper notifica-
tion to participate under the Public Employees'
Medical and Hospital Care Act with respect to a
recognized employee organization only; and
WHEREAS, (2) Government Code Section 22857 provides that a
contracting agency may fix the amount of the
employer's contribution for employees and the
employer's contribution for annuitants at
different amounts provided that the monthly
contribution for annuitants shall be annually
increased by an amount not less than 5 percent of
the monthly contribution for employees, until such
time as the amounts are equal; and
WHEREAS, (3) The City of Newport Beach, hereinafter referred to
the as Public Agency is a local agency contracting
with the Public Employee's Retirement System; and,
WHEREAS, (4) The Public Agency desires to obtain for the members
of the Newport Beach Firefighters' Association, who
are employees and annuitants of the agency, benefit
of the Act and to accept the liabilities and
obligations of an employer under the Act and
Regulations; now, therefore, be it
RESOLVED, (a) That the Public Agency elect, and it does hereby
elect, to be subject to the provisions of the Act; and
be it further
RESOLVED, (b) That the employer's contribution for each employee
shall be the amount necessary to pay the full cost of
his/her enrollment, including the enrollment of
his/her family members in a health benefits plan up
to a maximum of $400.00 per month; and be it
further
RESOLVED, (c) That the employer's contribution for each 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 benefits plan
up to a maximum of $170.00 of the monthly
premium: and be it further
shall increased annually by 5% of the monthly
contribution for employees, until such time as the
contributions are equal; and that the contributions
for employees and annuitants shall be in addition
to those amounts contributed by the Public Agency
for administrative fees and to the Contingency
Reserve Fund; and be it further
RESOLVED, (e) That the executive body appoint and direct, and it
does hereby appoint and direct Duane K. Munson,
Personnel 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
RESOLVED, (f) That coverage under the Act be effective on January 1,
1994.
ADOPTED at the regular meeting of the City Council
at Newport Beach, California
on this 22nd day of November, 1993.
Sign: 4ayor