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File #: 23-935    Version: 1 Name:
Type: Memo Status: Passed
File created: 11/7/2023 Departments: HUMAN RESOURCES
On agenda: 11/14/2023 Final action: 11/14/2023
Title: Accept an analysis on the actuarial impact upon future costs if the board were to adopt a resolution changing retiree health benefits for Law Enforcement Unit.
Attachments: 1. 20231114_att_LEU post employment benefits actuarial analysis.pdf
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 Law Enforcement Unit

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 Law Enforcement Unit.

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BACKGROUND:
On January 8, 2019, your Board adopted the tentative agreement establishing the terms and conditions of a successor agreement to the Memorandum of Understanding (MOU) with the Law Enforcement Unit (LEU) which will expire on December 23, 2023.

The County and LEU have been exploring changes to the current retiree health benefits which provides a monthly sick leave value of $440 or $400 for each 8 hours of accrued and unused sick leave to use towards monthly retiree health care premiums upon retirement from SamCERA.

DISCUSSION:
The actuarial report represents the current retiree health benefit tied to sick leave and the financial impacts of implementing the following changes (Scenario 2 in the actuarial report) to retirement benefits or other post-employment benefits for members of the Law Enforcement Unit:

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 ten years of service at the time of retirement will have frozen sick leave hours plus any of the unused 192 hours of old sick leave at time of retirement will be deposited into the employee's RHSA using the current conversation rate.

b. Employees hired before the transition date with between ten and fifteen years of service at the time of retirement to age 65 will receive a County contribution up to $500 per month for purchase of medical, dental and vision through the County health plans. Whe...

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