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HomeMy WebLinkAbout06 - PERS Medical Contribution for Police Management AssociationJanuary 8, 2002 Agenda Item 6 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 Police Management 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 Police Management Association ( NBPMA), Fixing the Employer's Contribution under the Public Employees' Medical and Hospital Care Act. DISCUSSION: At the January 8, 2002 council meeting, staff is requesting the City Council approve the negotiated bargaining agreement with the NBPMA, 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 NBPMA 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 POLICE MANAGEMENT ASSOCIATION, FIXING THE EMPLOYER'S CONTRIBUTION UNDER THE PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT WHEREAS (1) 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, (2) 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 Police Management Association; and NOW, THEREFORE, BE IT RESOLVED, AS FOLLOWS: (a) 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 (b) That the City Council appoint and direct, and it does hereby 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 (c) That coverage under the Act be effective on or after March 2002. ADOPTED at the regular meeting of the City Council at Newport Beach, California on this 8`h day of January 2002 Signed: ATTEST: CITY CLERK Mayor