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HomeMy WebLinkAbout08/15/2014� BAKERSFIELD /s/ Ste�v�Tec�;c� Committee ME Staff: Steven Teglia Ken Weir, Chai Assistant to the City Manager Terry Maxwell Harold Hanson SPECIAL MEETING OF THE PERSONNEL COMMITTEE Friday, August 15, 2014 12:00 p.m. City Hall North - Conference Room A 1600 Truxtun Avenue Bakersfield, CA 93301 AGENDA SUMMARY REPORT Meeting called to order at 12:05 p.m. 1. ROLL CALL Committee members: Councilmember Ken Weir, Chair Councilmember Terry Maxwell Councilmember Harold Hanson City staff: Alan Tandy, City Manager Steven Teglia, Assistant to the City Manager Chris Huot, Assistant to the City Manager Caleb Blaschke, Management Asst. - City Manag Nelson Smith, Finance Director Virginia Gennaro, City Attorney Christi Tenter, Human Resources Manager Ginger Rubin, Benefits Technician Retired employees and BCARE: Others present: Fred Baugher, Bill Descary, Margaret Ursin and Rok Johnny Wu and Tom Morrison: Segal Company 3. PUBLIC STATEMENTS None 4. NEW BUSINESS A. OPEB Actuarial Analysis Presentation Finance Director Smith stated that OPEB stands for Other Posi Benefits. Retiree medical benefits fall into this category. The City have an actuarial study done every two years. He introduced Tom Segal, to provide the report. Mr. Morrison distributed information, and provided a summary of thE the Committee. • As of June 30, 2013, the unfunded actuarial accrued liability < $19.7 million, from $83.6 million to $63.8 million. • The funded ratio of assets to actuarial accrued liability, wr liability for all retirees plus active employees who are eligible f when they retire, increased from 19.37�o in 2011 to 42.15�o i increase in funding is due not only to making the minimum rec Required Contribution (ARC), but also, in some years, paying r minimum amount. • The overall net obligation decreased by $1.7 million. As a resu increased contributions, along with recent plan changes, th forward decreased from $8.0 million to $6.5 million. • The assets on hand to meet all benefit obligations increasE million to $46.5 million due to contributions made, plus investm� • The actuarial present value of total projected benefits is $121 • The City is currently 42.15�o funded. If the current schedule i the liability will be fully funded in 24 years, which is the amortization schedule. Committee Chair Weir noted the positive aspects of the report, and Bakersfield is one of a few cities in the state or country that has accc type of success. Mr. Morrison said that in comparison to other cities in the statE Bakersfield can be considered Best in Class. B. Discussion reqardinq 2015 Health Care Plan Renewals Assistant to the City Manager Teglia stated that a meeting with i Committee had taken place earlier this same day, and they were � the same information that would be presented to the Personnel C follow-up meeting with each Committee will take place. Mr. Morrison summarized the information that had been distributed. • Anthem o HMO: There is a proposed rate increase of l b�o. o PPO for active employees: There is a proposed rate inc o PPO for retirees: There is a proposed rate increase of 2� o Senior Secure for retirees over the age of 65: There i rate increase of 4.b�o. It was noted that, with the proposed rate increases, there difference between the active employee contribution for Anthem HMO and PPO plans. • Kaiser o HMO for active employees, and those under the age < a proposed rate increase of 15�0. o High Deductible plan for active employees: There is a K increase of 5�. o High Deductible plan for those under the age of 6� proposed rate increase of 15.b�o. o Senior Advantage: There is a proposed rate increase o1 • There is no increase or decrease proposed for the two Pacific Plans, as they are in the midst of multi-year contracts. There rate increase of 7.2�0 on the Met Life Dental plan. • There is no rate increase or decrease proposed for Assistance Program Plan, Flexible Spending (125) Plan, Life Long-Term Disability. Suggestions for modifications to mitigate the rate increases were pro include increasing out-of-pocket maximums, lowering co-insurance A summary of rate histories for each plan for active employees revE appear to be in line with the national trends. Over a five-yea average increase for the Anthem PPO Plan was 4.b�o. The higl increase for the same time period was 7.3� for the Anthem HMO, a average increase was 2.8�o for the Kaiser HMO. For the non-medicare eligible retirees, the five-year average rate 12.7� for the Kaiser HMO, 10.7�o for the Kaiser DHMO, and 2.8� fo PPO plans. These figures factor into the OPEB liability Enrollment in each plan for active employees is as follows: • Anthem PPO - 52�0; • Kaiser HMO - 27�0; and • Anthem HMO - 21 �. Committee member Maxwell asked about the total increase in c answer was $1.2 million. Assistant to the City Manager Teglia noted that the amount c< depending on potential modifications that might be agreed to by � Committee. Committee Chair Weir asked about the time table for resolving all qu Assistant to the City Manager Teglia said that the plan changes shoul and brought forward to the City Council prior to Open Enrollment place at the beginning of November. He added that staff will me the Personnel Committee, and bring forward a report on the progrE the Insurance Committee. 3. COMMITTEE COMMENTS None 4. ADJOURNMENT The meeting was adjourned at 12:45 p.m.