DATE: November 17, 2015
TO: Mayor and City Council
FROM: Director of Human Resources
SUBJECT
Title
Resolution Establishing the City Contribution for Active and Retiree Medical Premiums Set by the California Public Employee Retirement System (CalPERS) for Calendar Year 2016 pursuant to California Government Code Section 22892 of the Public Employees Medical and Hospital Care Act
End
RECOMMENDATION
Recommendation
That the City Council approves the attached resolution authorizing the implementation of the mandatory minimum employer contributions to active and retiree medical premiums for calendar year 2016.
Body
BACKGROUND
The City contracts with CalPERS to provide competitive health benefits to its active and retired employees. California Government Code Section 22892 of the Public Employees Medical and Hospital Care Act (PEMHCA) establishes the minimum employer health contribution. As of January 1, 2009, the employer contribution is adjusted annually by the CalPERS Board to reflect any change in the Medical Care Component of the Consumer Price Index, rounded to the nearest dollar. The table below shows the minimum employer contribution required by CalPERS for the last six years, and the 2016 rate:
DISCUSSION
This action is necessary to meet the requirement that the governing body adopt a resolution agreeing to the minimum contribution amount established by CalPERS. The City currently contributes to medical premiums in accordance with the terms of the existing agreements between each of the bargaining units, based on the health plan and family status the employee elects and for which they are eligible. For both retirees and active employees, the total amount the City contributes towards medical benefit premiums meets (and in some cases, exceeds) the statutory minimum contribution required by CalPERS.
FISCAL IMPACT
This action is for administrative purposes only...
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