1 City of Belmont
City Council Compensation & Benefits Summary
Effective January, 2023
On February 11, 1997 the City Council adopted Resolution 8002 granting itself health and welfare benefits commensurate with those granted to the Management Confidential Bargaining Unit. On January 27, 2015, the Council adopted Resolutions 2015-008 and 2015-009 which delinked the health and welfare benefits from the Management Confidential Bargaining Unit and adopted certain health, welfare, and retirement benefits for those members for members appointed or elected after January 27, 2015. On _________, the Council adopted Resolution 2022-______ reducing all members cash-inlieu of health insurance option consistent with reductions to miscellaneous employee groups’ cash-in-lieu benefit and adjusting the vision benefit from a reimbursement plan to a VSP plan contribution to be consistent with changes to the benefit afforded miscellaneous employee groups.
The following represents the compensation and benefits offered to Councilmembers as authorized and approved by the City Council effective January 27, 2015. Council members elected or appointed after January 27, 2015 benefits are hereby established as set forth below. Council members elected or appointed prior to January 2, 2014 benefits were established by Resolution 8002 – 2/11/97 and Resolution 2012-094 – 9/11/12.
1. Medical Coverage/Internal Revenue Code 125 Plan:
The City offers health insurance plans under the Public Employees’ Medical and Hospital Care Act (PEMHCA) as administered by California Public Employees’ Retirement System (CalPERS) Health Benefits Program. Councilmembers may choose a CalPERS medical plan. The City provides councilmembers who participate in a City-sponsored medical plan with the minimum employer contribution towards the cost of providing the benefit coverage as required by PEMHCA.
The City offers an Internal Revenue Code Section 125 Flexible Benefits Plan. The City will contribute an amount up to the current CalPERS Region 1 Health Premium for Kaiser Permanente Subscriber & 2+ Dependents (“City Contribution”) which a councilmember may use toward the cost of qualified benefits as follows. A councilmember may use Flexible Benefit Plan funds toward the cost of city-provided health insurance for the councilmember and eligible dependents.
A councilmember may elect as the cash option the difference of the City Contribution minus the premium amount of any health insurance plan elected, if the difference is greater than zero, up to a maximum monthly amount of $389.94. A councilmember may use Flexible Benefit Plan funds up to the amount that may be taken as the cash option toward a health care reimbursement account, dependent care reimbursement account, or the cash option. If the councilmember elects to receive cash, the entire sum must be applied to Deferred Compensation.
2. Deferred Compensation Plan: The City offers an Internal Revenue Code Section 457
Exhibit A
2 deferred compensation plan. The plan is available for Councilmembers to contribute monies from stipend or cash in lieu of health benefits, subject to the 457 Plan limits.
City will make no contribution.
3. Dental Coverage: Delta Dental Preferred Option (DPO) Plan. City pays the full coverage for the Councilmember and Councilmember pays $5 per month for one Dependent and $10 per month for two or more Dependents.
4. Vision Plan: The City will contribute a maximum of $30 per month to VSP vision plan.
5. Life & Accidental Death and Dismemberment Insurance: $75,000 coverage; Councilmembers may purchase additional life insurance in accordance with the plan.
6. Long-term Disability: 66 2/3% of base wages. City pays full cost of coverage.
7. Retiree Dental: Retired councilmembers may Eligible to participate in the City’s retired employee dental plan at the retiree’s cost.
8. CalPERS Retirement: Councilmembers may choose to participate in California Public Employees Retirement System. CalPERS is an optional election for Elected Officials.
The retirement benefit is defined in the city’s current contract with CalPERS.
For Councilmembers elected or appointed before December 28, 2012, the retirement formula is 2%@ 55, one-year final compensation.
For Councilmembers elected or appointed on or after January 1, 2013, the retirement formula is 2%@ 62, three-year final compensation.
9. Retiree Health Benefits: The City participates in the CalPERS Health Plan as governed by the Public Employees’ Medical and Hospital Care Act (PEMHCA) and provides the PEMCHA minimum employer contribution for retirees as required by a law. Councilmembers are eligible for the following additional retiree health benefits.
Councilmembers Elected or Appointed Before October 1, 2012:
Stipend: Councilmembers may choose to receive $390/month (Ord. 896, 1995; California Government Code 36516).
(a)
1. Medical Coverage/Internal Revenue Code 125 Plan/Health Benefit Conversion:
Councilmembers may choose a medical plan-- PPO (Preferred Provider Organization) or HMO (Health Maintenance Organization) through the California Public 3 Employees’ Retirement System (CalPERS) Health Benefits Program, up to 100% Kaiser employee plus two (2) or more dependents coverage. If Councilmember opts out of medical plan coverage provided by the City, s/he may defer some or all of the City’s contribution to the Deferred Compensation Plan. Councilmembers may elect to defer some or all of the city’s contribution. The difference of $1587.14, less the cost of a Health Plan (if applicable) may be applied to Deferred Compensation only.
No cash out is allowed.
2. Deferred Compensation Plan: The plan is available for Councilmembers to contribute monies from stipend and/or compensation in lieu of health benefits, subject to the 457 limits.
3. Dental Coverage: Delta Dental Preferred Option (DPO) Plan; City pays the full coverage for the Councilmember and Councilmember pays $5/ month for one (1) Dependent and $10/ month for two (2) or more Dependents.
4. Vision Reimbursement Plan: This City-funded plan covers Councilmember and eligible dependents. The City contributes $19.00/ month for each Councilmember.
Councilmember pays for services out of pocket and submit claims for reimbursement at the end of the fiscal year. Claims for reimbursement must be for services received during the fiscal year.
5. CalPERS Retirement: Councilmembers may choose to participate in California Public Employees Retirement System. CalPERS is an Optional Election for Elected Officials. The retirement formula is 2%@ 55, one year final compensation.
6. Retiree Health Benefits: The City participates in the CalPERS Health Plan as governed by the Public Employees’ Medical and Hospital Care Act (PEMHCA), and provides the minimum PEMCHA contribution (currently $122 per month, increasing annually) for retirees as required by a law. Councilmembers elected or appointed after February 11, 1997, and before October 1, 2012, Councilmembers who retire from the City with at least 12 years continuous service may receive a monthly reimbursement for health care premiums (capped at the Kaiser Bay Area Region CalPERS Region 1 Health Premium for Kaiser Permanente Subscriber employee only premium).
7.1.(b) Retiree Dental: Eligible to participate at retiree’s cost.
8. Life & Accidental Death and Dismemberment Insurance: $75,000 coverage; Councilmembers may purchase additional life insurance in accordance with the plan.
9. Long-term Disability: 66 2/3% of base wages. City pays full cost of coverage.
Councilmembers Elected or Appointed Between December 31, 2012 and January 27, 2015:
4 1. Stipend: Councilmembers may choose to receive $390/month (Ord. 896, 1995; California Government Code 36516).
2. Medical Coverage/Internal Revenue Code 125 Plan/Health Benefit Conversion:
Councilmembers may choose a medical plan-- PPO (Preferred Provider Organization) or HMO (Health Maintenance Organization) through the California Public Employees’ Retirement System (CalPERS) Health Benefits Program, up to 100% Kaiser employee plus two (2) or more dependents coverage. If Councilmember opts out of medical plan coverage provided by the City, s/he may defer some or all of the City’s contribution (1/2 of the current Kaiser Employee or single plan rate) to the Deferred Compensation Plan. No cash out is allowed.
3. Deferred Compensation Plan: The plan is available for Councilmembers to contribute monies from stipend and/or compensation in lieu of health benefits, subject to the 457 limits.
4. Dental Coverage: Delta Dental Preferred Option (DPO) Plan; City pays the full coverage for the Councilmember and Councilmember pays $5/ month for one (1) Dependent and $10/ month for two (2) or more Dependents.
5. Vision Reimbursement Plan: This City-funded plan covers Councilmember and eligible dependents. The City contributes $19.00/ month for each Councilmember.
Councilmember pays for services out of pocket and submit claims for reimbursement at the end of the fiscal year. Claims for reimbursement must be for services received during the fiscal year.
6. CalPERS Retirement: Councilmembers may choose to participate in California Public Employees Retirement System. CalPERS is an Optional Election for Elected Officials. The retirement formula is 2%@ 62, three year final compensation.
7. Retiree Health Benefits: The City participates in the CalPERS Health Plan as governed by the Public Employees’ Medical and Hospital Care Act (PEMHCA), and provides the minimum PEMCHA contribution (currently $122 per month, increasing annually) for retirees as required by a law. Councilmembers elected or appointed between October 1, 2012, and January 27, 2015,Councilmembers may receive a contribution from the City to a Retirement Health Savings (RHS) Plan based on years of service. Vesting in the RHS plan is after 10 years of continuous service with the City.
Years of Service Monthly Contribution
Years 1-5 $150.00
Years 6-10 $200.00
Years 11-15 $250.00
Years 16 and thereafter $300.00
(c) Councilmembers elected or appointed after January 27, 2015, are not eligible for retiree health benefits other than the minimum PEMCHA employer contribution 5 required by law.
8. Retiree Dental: Eligible to participate at retiree’s cost.
9. Life & Accidental Death and Dismemberment Insurance: $75,000 coverage; Councilmembers may purchase additional life insurance in accordance with the plan.
10. Long-term Disability: 66 2/3% of base wages. City pays full cost of coverage.
Councilmembers Elected or Appointed After January 27, 2015:
1. Stipend: Councilmembers may choose to receive $390/month (Ord. 896, 1995; California Government Code 36516).
2. Medical Coverage/Internal Revenue Code 125 Plan/Health Benefit Conversion:
Councilmembers may choose a medical plan-- PPO (Preferred Provider Organization) or HMO (Health Maintenance Organization) through the California Public Employees’ Retirement System (CalPERS) Health Benefits Program, up to 100% Kaiser employee plus two (2) or more dependents coverage. If Councilmember opts out of medical plan coverage provided by the City, s/he may defer some or all of the City’s contribution (1/2 of the current Kaiser Employee or single plan rate) to the Deferred Compensation Plan. No cash out is allowed.
3. Deferred Compensation Plan: The plan is available for Councilmembers to contribute monies from stipend and/or compensation in lieu of health benefits, subject to the 457 limits.
4. Dental Coverage: Delta Dental Preferred Option (DPO) Plan; City pays the full coverage for the Councilmember and Councilmember pays $5/ month for one (1) Dependent and $10/ month for two (2) or more Dependents.
5. Vision Reimbursement Plan: This City-funded plan covers Councilmember and eligible dependents. The City contributes $19.00/ month for each Councilmember.
Councilmember pays for services out of pocket and submit claims for reimbursement at the end of the fiscal year. Claims for reimbursement must be for services received during the fiscal year.
6. CalPERS Retirement: Councilmembers may choose to participate in California Public Employees Retirement System. CalPERS is an Optional Election for Elected Officials. The retirement formula is 2%@ 62, three year final compensation.
7. Retiree Health: No retiree health in excess of any PEMCHA (Public Employees’ Medical and Hospital Care Act) minimum employer contributions which may be required by law.
6 10. In accordance with Government Code Section 53208.5, the health and welfare benefits of the council may be no greater than the most generous schedule of benefits being received by any category of miscellaneous (i.e. non-safety) employees.
Accordingly, if the benefits of the miscellaneous employees are reduced such that no category of miscellaneous employees has benefits as generous as those provided herein, the benefits provided herein shall be deemed simultaneously reduced to be no more generous than the most generous schedule of benefits being received by any category of miscellaneous employees.
Life & Accidental Death and Dismemberment Insurance: $75,000 coverage; Councilmembers may purchase additional life insurance in accordance with the plan.
Long-term Disability: 66 2/3% of base wages. City pays full cost of coverage.
Notes:
1. Councilmembers serving consecutive terms remain in their preinitial-election category. Councilmembers with a break in service are considered newly elected for all benefits except PERS. There were no Councilmembers elected after September 30, 2012 through December 31, 2013.
2. Elected officials can choose whether or not to enter into the California Public employees Retirement System (CalPERS) via “CalPERS Election of Optional Membership.”
3. The Public Employees’ Pension Reform Act of 2013 (PEPRA) created two categories; “classic” (elected prior to 1/1/13) and “New” (elected on or after 1/1/13). Councilmembers with a break in service exceeding six (6) months, pursuant to PEPRA are considered newly elected for PERS retirement benefits.
4. For Retiree Health, the City participates in the CalPERS Health Plan as governed by the Public Employees’ Medical and Hospital Care Act (PEMHCA) and provides the minimum PEMHCA contribution for retirees as required by law.