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Meeting Date:
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5/16/2018 - 3:30 PM
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Category:
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Action Items
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Type:
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Action
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Subject:
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14.9 BUSINESS: Approval of Health and Welfare Benefit Increase for Management Employees, Confidential Employees and Board Members, and Converting to a Two-Tiered Premium Structure
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Strategic Plan:
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Enclosure
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File Attachment:
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Summary:
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The District is recommending an increase to the health and welfare contribution for management and confidential employees, and for Board members who receive the same health and welfare package, and converting from three-tiered to two-tiered premiums.
A cap was placed on the District contribution towards health and welfare for management, confidential and Board members in July 2011. Since that time, when fiscally responsible to do so, the Board of Trustees has approved an increase to the District contribution to all employee groups consistent with the amount provided to the Perris Secondary Educators Association (PSEA), on a per FTE basis, under their 80 percebt soft-cap structure. For 2018-19, this increase was estimated to be $387 per FTE. A Tentative Agreement (TA) was reached with the California School Employee's Association (CSEA) on March 6, 2018 and ratified by their membership on April 25, 2018 that includes this same increase to the District contribution, as well as converting their group from a super composite premium and cap structure to a two-tiered premium and cap structure. The TA with CSEA covers a three year period beginning July 1, 2018. As such, administration is recommending an increase to the District contribution for management, confidential and Board members equivalent to the cost of $387 per FTE, also for a three-year period.
Additionally, the District is recommending converting from three-tiered to two-tiered premiums. This provides an overall premium cost savings, and along with the contribution increase, allows for management, confidential and Board member health benefits to be restructured, primarily to provide savings to those with family coverage. Currently management, confidential and Board member health benefits are based on three-tier premiums with three-tiered caps. Premiums vary for employee only coverage, two-party coverage (employee +1) and family coverage, and the District contributes a different cap amount for each of these tiers. Beginning July 1, 2018 the District would convert to a two-tier premium structure but would remain with three-tier caps. A higher cap will be provided for those taking Anthem over Kaiser medical plans, and higher cap for those with two-party over family coverage. The caps are structured this way so that the two-party employees are not subsidizing families and to equalize Anthem and Kaiser payroll deductions as much as possible.
A three-year cap structure was created as follows: Effective July 1, 2018, Anthem caps would become $10,300 for single coverage, $18,100 for two-party coverage, and $17,100 for family coverage. Kaiser caps would become $10,300 for single coverage, $16,000 for two-party coverage, and $14,500 for family coverage. Effective July 1, 2019, Anthem caps would be increased to $10,500 for single coverage, $18,450 for two-party coverage, and $17,450 for family coverage. Kaiser caps would be increased to $10,500 for single coverage, $16,250 for two-party coverage, and $15,050 for family coverage. Effective July 1, 2020, Anthem caps would be increased to $10,700 for single coverage, $18,825 for two-party coverage, and $17,825 for family coverage. Kaiser caps would be increased to $10,700 for single coverage, $16,525 for two-party coverage, and $15,525 for family coverage. This represents a total cost increase of $20,898, on average, for each fiscal year.
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Funding:
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The cost for this item is included in the 2018-19 budget and multi-year projections.
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Recommendation:
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It is recommended that the Board of Trustees approve the increase to health and welfare contributions for management and confidential employees, and for Board members and converting to a two-tiered premium structure as presented.
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Approvals:
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Recommended By:
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Signed By:
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Candace Reines - Deputy Superintendent
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Signed By:
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Grant Bennett - Superintendent
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Vote Results:
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| Original Motion | | Member David Nelissen Moved, Member Edward Garcia, Jr. seconded to approve the Original motion 'It is recommended that the Board of Trustees approve the increase to health and welfare contributions for management and confidential employees, and for Board members and converting to a two-tiered premium structure as presented.'. Upon a Roll-Call Vote being taken, the vote was: Aye: 4 Nay: 0. | | The motion Carried 4 - 0 | | | | | Edward Garcia, Jr. | Yes | | Dr. Jose Luis Araux | Yes | | Anthony T. Stafford, Sr. | Yes | | David Nelissen | Yes | |
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