Item Number: {{item.number}}
City Council / Board of Directors
Written Communications
Meeting of: December 19, 2023
Submitted By:
Sophie L. Smith, Deputy City Manager
Josefina Trevino, Human Resources Officer
Subject:
Council Member Benefits
Recommendation:
Any action is at the discretion of the Honorable City Council Fiscal Impact:
Dependent upon action taken
Discussion:
At the December 5, 2023 meeting, Mayor Pro Tem Becerra requested, and the City Council unanimously agreed to add this item for discussion and possible action at the December 19, 2023 meeting. The discussion is in reference to the Council's benefits. Specifically, whether or not a Council Member, that is also a CalPERS retiree, is entitled to the same benefits as the rest of the Council. Mayor Pro Tem Becerra also questioned if a CALSTRS retiree is similarly impacted. Mayor Pro Tem Becerra requested discussion to possibly reach a solution.
Background:
Below are the fringe benefits currently offered to City Council Members, as approved in Benefits Resolution 23-038 adopted with the FY 23-24 budget:
Fringe – The amount of $900 per month is provided by the City for health, dental, and vision coverage for all Council Members. If eligible family members are enrolled, they must be enrolled in the same coverage as elected by the Council Member. The maximum cashback benefit for Council Members waiving medical benefits is $400 per month. Council Members may purchase dental and vision coverage with this amount. Any remaining balance may be deposited into a flexible spending account or included as taxable income on their paychecks.
The City of Victorville contracts with CalPERS to provide all medical plans to active employees, as well as its retirees. CalPERS offers two categories to differentiate between active and retired employees. The medical plans available to Council Members fall within the “active” category.
Discussion:
Because Mayor Pro Tem Becerra is a retiree from the City of Victorville, she is currently enrolled in a “retiree” medical program through CalPERS. She has earned this benefit through her past employment with the City of Victorville. As a Council Member, although she is entitled to an additional benefit up to $900, she must waive the Council Member medical benefits provided through an “active” plan, and instead take the cashback benefit of $400 monthly. She cannot enroll in the “active” plan to try to take advantage of the full Council Member benefit of $900 because of her status as a CalPERS retiree. Mayor Pro Tem Becerra inquired whether she could access the “active” employee medical insurance plan, instead of the retiree plan. According to CalPERS, the retiree cannot be enrolled in the active plan unless they are reinstated from retirement, or “un-retire.” With this restriction, a CalPERS retiree does not have access to the full benefit provided to all Council Members of $900 per month. The maximum amount they may receive is $400 per month. This scenario would not apply to any retirees from other agencies, including CalSTRS, since CalPERS is a separate entity.
In order for a Council Member, who is also a CalPERS retiree, to receive the full $900 monthly benefit, the proposed language would need to be added the Benefits Resolution (please see italics)
Fringe – The amount of $900 per month is provided by the City for health, dental, and vision coverage for all Council Members. If eligible family members are enrolled, they must be enrolled in the same coverage as elected by the Council Member. The maximum cashback benefit for Council Members waiving medical benefits is $400 per month. Any Council Member who is a CalPERS retiree and not allowed to enroll in the City’s active plan, may receive a maximum of $900 per month cash back. Council Members may purchase dental and vision coverage with this amount. Any remaining balance may be deposited into a flexible spending account or included as taxable income on their paychecks.
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