Human Resources Department
www.santa-ana.gov/HR
Item # 9
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
August 4, 2026
TOPIC: Employee Benefits Rates for 2027 Plan Year
AGENDA TITLE
Employee Benefits Rates for 2027 Plan Year
RECOMMENDED ACTION
Receive and file Employee Benefits Rates from January 1, 2027 to December 31, 2027.
GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
Along with competitive salaries, the City offers a comprehensive benefits package to its employees to ensure their financial and health wellbeing. Benefits costs are either shared between the City and employee as negotiated or borne entirely by the employee as a voluntary benefit. Rates are determined annually each calendar year.
For health insurance, the City contracts directly with CalPERS and is subject to its administration and rates. The 2027 rates for the CalPERS Health Plans for Region 2 (Orange County) will increase between 3.7% to 12.19% depending on plan, with a decrease of 3.5% for the Peace Officers Research Association of California (PORAC) (see Exhibit 1). CalPERS eliminated two (2) UnitedHealthcare plans for 2027 due to excessive renewal cost. The City provides flat dollar amounts for employer contributions to health care based on negotiated agreements with bargaining groups.
The City utilizes the services of Keenan & Associates (Keenan) as its broker for dental insurance, life and accidental death and dismemberment (AD&D) coverage, long-term disability (LTD) insurance, vision insurance, employee assistance program (EAP), and other voluntary benefits and benefits administration. Keenan negotiates terms and rates directly with vendors, as directed by the City, to ensure the most competitive rates and cost containment.
For City contracted benefits, the 2027 rates will either decrease or remain the same (see Exhibit 2). Dental premiums will reduce by 5% to 8%, depending on plan and coverage.
These savings will mostly be realized by the employees, and the City contributions will experience a reduction in some cases. Basic life and AD&D insurance have a reduction
Employee Benefits Rates for 2027 Plan Year
August 4, 2026
5 9
4 7
of 31% and LTD 22%. The City will realize these savings in employer contributions which will total about $62,000.
Employees will have an opportunity to make changes to their benefits during the upcoming 2027 Open Enrollment period between September 14 and October 9, 2026.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
For dental insurance, life and AD&D coverage, LTD insurance, vision insurance, EAP, and other voluntary benefits, costs are expected to fit within budget. For health insurance, because the City’s cost is based on a negotiated flat-dollar contribution, any change in cost would result from bargaining group negotiations and is not directly related to rate increases. At this time, no budget adjustment is necessary.
EXHIBIT(S)
1. CalPERS 2027 Region 2 & 3 Premiums for Public Agency and School Members
2. City Employee Benefits Rates 2027
Submitted By: Lori Schnaider, Executive Director of Human Resources Approved By: Alvaro Nuñez, City Manager