Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Rocio Kiryczun, Human Resources Director
Subject: Actuarial impact upon future annual costs if the board were to adopt a resolution changing retiree health benefits for American Federation of State, County and Municipal Employees
RECOMMENDATION:
title
Accept an analysis on the actuarial impact upon future costs if the board were to adopt a resolution changing retiree health benefits for American Federation of State, County and Municipal Employees.
body
BACKGROUND:
On February 26, 2019, your Board adopted the tentative agreement establishing the terms and conditions of a successor agreement to the Memorandum of Understanding (MOU) with the American Federation of State, County and Municipal Employees (AFSCME) which expired on October 2, 2021.
The County and AFSCME have been exploring changes to the current retiree health benefits which provides a monthly sick leave value based on hire date and years of service for each 8 hours of sick leave to use towards monthly retiree health premiums upon retirement from SamCERA.
DISCUSSION:
The actuarial reports represent the current retiree health benefit tied to sick leave and the financial impacts of implementing the following retiree health benefit:
1) Retiree Health Benefits will be based on hire date and years of service at time of retirement
a. Employees hired before the transition date with less than fifteen years of service at the time of retirement will have frozen sick leave hours plus 192 hours of old sick leave deposited into the employee's RHSA using the current conversion rate.
b. Employees hired before the transition date with between fifteen and twenty years of service at the time of retirement to Medicare will receive a County contribution up to $891.95 per month for purchase of medical, dental and vision through the County health plans. When the retiree reaches the age of Medi...
Click here for full text