DATE:
September 10, 2024
CATEGORY:
Consent
DEPT.:
Human Resources
TITLE: Employer Health Contribution for Safety
Employees and Retired Annuitants Under
the Public Employees’ Medical and
Hospital Care Act
RECOMMENDATION
1. Adopt a Resolution of the City Council of the City of Mountain View Fixing the Employer Contribution at an Equal Amount for Employees and Annuitants Under the Public Employees’ Medical and Hospital Care Act with Respect to a Recognized Employee Organization (Group 001 Safety —Fire), to be read in title only, further reading waived (Attachment 1 to the Council report).
2. Adopt a Resolution of the City Council of the City of Mountain View Fixing the Employer Contribution at an Equal Amount for Employees and Annuitants Under the Public Employees’ Medical and Hospital Care Act with Respect to a Recognized Employee Organization (Group 002 Safety —Police), to be read in title only, further reading waived (Attachment 2 to the Council report).
BACKGROUND
In March 2014, the Mountain View Professional Firefighters (MVFF), Local 1965; and Mountain View Police Officers Association (POA) migrated to the California Public Employees’ Retirement System (CalPERS) health benefit program administered under the Public Employees’ Medical Hospital Care Act (PEMHCA). Accordingly, the City contracts with CalPERS to provide health insurance benefits to sworn active employees and sworn retirees. Benefit levels and cost-sharing based on the premiums, including calculation o f City contributions, were agreed upon by both bargaining groups. The agreed-upon terms were based on the analysis of a study conducted jointly between the MVFF and the City by a labor management committee, which hired an actuarial consultant to advise the City.
In October 2015, the City adopted new resolutions to clarify the employer contribution as required by CalPERS to ensure that CalPERS honored the City’s contribution to rates as intended as outlined in Memorandums of Understanding (MOU) with both groups. In September 2019, September 2020, August 2021, August 2022, and September 2023, the City Council adopted new resolutions at the direction of CalPERS, which incorporated the requirement for specific
Employer Health Contribution for Safety Employees and Retired Annuitants Under the Public Employees’ Medical and Hospital Care Act September 10, 2024
contribution amounts in the resolution and complied with the requirement to adopt new resolutions on an annual basis to honor the contribution structure agreed upon with labor groups. This annual process is required by CalPERS.
ANALYSIS
In July 2024, the CalPERS Board approved new rates for 2025 health insurance plans, and City contributions have been calculated anew according to labor agreements. The deadline to file new resolutions with CalPERS is November 30, 2024. However, CalPERS encourages earlier adoption to align with their open enrollment period of September 16, 2024 through October 11, 2024. The resolutions are included in this report as Attachments 1 and 2, and they include the specific contribution amounts, based on 2025 premium rates and the contribution structure in the MOUs.
The City has engaged with leadership of MVFF, POA, and unrepresented sworn management regarding the need to adopt a PEMHCA resolution for 2025 employer contributions and has shared the updated employer contributions in the attached resolutions with all par ties. The attached resolutions are updated to outline City contributions to comply with CalPERS requirements, maintain the intent of the current employer contribution structure as outlined in MOUs, and support adoption of new resolutions as soon as possible to ensure employees and eligible annuitants have the open enrollment information needed to make informed medical insurance decisions during the CalPERS open enrollment period.
FISCAL IMPACT
The increase in the City’s premium contributions is included in the Fiscal Year 2024 -25 Adopted Budget. No additional appropriation is being requested at this time.
ALTERNATIVES
1. Direct staff to provide additional information.
2. Provide other direction.
Employer Health Contribution for Safety Employees and Retired Annuitants Under the Public Employees’ Medical and Hospital Care Act September 10, 2024
PUBLIC NOTICING
Agenda posting and copies to the Mountain View Professional Firefighters, Local 1965 and the Police Officers Association.
Prepared by:
Ada Chang
Senior Human Resources Analyst
Maxine Gullo
Human Resources Director
Approved by:
Arn Andrews
Assistant City Manager
AC-MG/4/CAM
036-09-10-24CR-1
204332
Attachments: 1. Resolution: Fixing Employer Contribution for Employees and Retired Annuitants with Respect to Safety—Fire
2. Resolution: Fixing Employer Contribution for Employees and Retired Annuitants with Respect to Safety—Police