Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Rocio Kiryczun, Human Resources Director
Michelle Kuka, Deputy Director, Human Resources
Subject: Actuarial impact upon future annual costs if the board were to adopt a resolution changing retiree health benefits for Probation and Detention Association
RECOMMENDATION:
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Accept an analysis on the actuarial impact upon future costs if the board were to adopt a resolution changing retiree health benefits for Probation and Detention Association.
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BACKGROUND:
On July 9, 2019, your Board adopted the tentative agreement establishing the terms and conditions of a successor agreement to the Memorandum of Understanding (MOU) with the Probation Detention Association (PDA) which expired on May 28, 2022.
The County and PDA have been negotiating a successor agreement. As part of those negotiations, the County and PDA are exploring changes to the current retiree health benefits which currently provide a monthly sick leave value of $675 or $400 for each 8 hours of sick leave to use towards monthly retiree health care premiums upon retirement from SamCERA.
DISCUSSION:
The actuarial report analyzes proposed changes to the current retiree health benefit, which is tied to sick leave, and the financial impacts of implementing the following changes to retirement benefits or other post employment benefits for members of the Probation and Detention Association:
1) At time of transition current sick leave hours will be frozen with the exception of 192 hours that will remain in employee's balances and new sick leave hours will continue to be earned at 3.7 hours per pay period (96.2 hour per year) with a cap of 960 hours.
2) 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 froze...
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