HomeMy WebLinkAbout05 - PERS Medical Contribution for NB Firefighters AssociationMay 14, 2002
Agenda Item 5
CITY OF NEWPORT BEACH
HUMAN RESOURCES DEPARTMENT
To: Mayor and City Council
From: Linn Livingston, Human Resources Director
Subject: Resolution Fixing the Employer's PERS Medical Contribution For
Newport Beach Firefighters Association
RECOMMENDATION:
Adopt the following Resolution:
A Resolution of the City Council of the City of Newport Beach only with respect to
members of the Newport Beach Firefighters Association (NBFA), fining the employer's
contribution under the Public Employees' Medical and Hospital Care Act.
At the May 14, 2002 council meeting, staff is requesting the City Council approve the
negotiated bargaining agreement with the NBFA, which includes the flexible benefits
(cafeteria) plan. The cafeteria plan design continues the flexible choice of benefit plans
in addition to allowing employees to receive cash if their health plan premiums are lower
than the City's contribution. Under The California Public Employees' Retirement
System (PERS) HealthCare Program, which the City joined in 1993, a local agency is
required to provide an equal monthly contribution for both active and retired members.
Newport Beach's contribution for active employees has been higher than for retirees, and
the City has an agreement with PERS to equalize these contributions over time.
Introduction of the cafeteria plan allows the City to correct this situation by establishing
the contribution for both active and retired employees at $16 per month, the minimum
amount required by PERS. This contribution will be deducted from the amount available
to active employees for their cafeteria plan, as provided in the proposed MOU for NBFA
members. In order to accomplish this, the city needs to amend its resolution with
California Public Employees' Retirement System (PERS) HealthCare program for this
employee association.
RESOLUTION NO. 2002 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH ONLY WITH RESPECT TO MEMBERS OF
THE NEWPORT BEACH FIREFIGHTERS ASSOCIATION,
FIXING THE EMPLOYER'S CONTRIBUTION UNDER THE
PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT
WHEREAS Government Code Section 22825.6 provides that a local
agency contracting under the Public Employees' Medical
and Hospital Care Act shall fix the amount of the
employer's contribution at an amount not less than the
amount required under Section 22825 of the Act; and
WHEREAS City of Newport Beach, hereinafter referred to as Public
Agency is local agency contracting under the Act for
participation by members of the Newport Beach
Firefighters Association; and
NOW, THEREFORE, BE IT RESOLVED, AS FOLLOWS:
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 his/her
family members in a health benefits plan up to a maximum
of $16.00 per month; Plus administrative fees and
Contingency Reserve Fund Assessments; and
That the City Council appoint and direct Linn Livingston,
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
That coverage under the Act be effective on or after July
2002.
ADOPTED at the regular meeting of the City Council at
Newport Beach, California on this 14A day of
May 2002
Signed:
ATTEST:
CITY CLERK
MAYOR