REPORT TO COUNCIL
SUBJECT
Title
Adopt Resolutions Approving Amendments to the City's Contribution for CalPERS Medical Insurance for Management, SEA, Confidential, and SEIU Employees and Annuitants (Retirees)
Report
BACKGROUND
The City's healthcare is administered through CalPERS. CalPERS healthcare is regulated by the Public Employees' Medical and Hospital Care Act (PEMHCA), which requires participating agencies to adopt a resolution stating the employer contribution amount toward the employees' and retirees' medical plans. The resolution is adopted annually or when there are changes in bargaining unit agreement affecting amounts paid by the City toward medical coverage. PEMHCA regulations further require that medical insurance contributions for retired annuitants paid for by a contracting agency be equal to the medical insurance contributions paid for its active employees.
EXISTING POLICY
In accordance with Article 8 of PEMHCA, the City's contract with CalPERS provides that the City's contribution towards medical insurance (and the effective date of said contribution) be the same for active employees and retirees.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a "project" with the meaning of the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines section 15378 (b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
DISCUSSION
As established during negotiations with the Sunnyvale Employees Association (SEA) and the Service Employees International Union (SEIU), the existing Memoranda of Understanding for these respective bargaining units provide for annual increases in the City's contribution toward medical coverage for active employees. The total City medical and cafeteria contribution for SEA is 80% (52% for SEIU) of the average of the family level monthly premium of the Blue Shield Access+ and Ka...
Click here for full text