HomeMy WebLinkAboutAgenda - 01-20-2000 - 8gOrange County
Board of Commissioners
.Action Agenda Item Abstract
Meeting Date: January 18, 2000
Subject: ABC Board Retiree Health Insurance
Action Agenda
Item No.
Department: Personnel and Finance
Attachment(s):
Draft Resolution
Public Hearing: Yes
Budget Amendment
Needed: Yes
Information Contact:
Elaine Holmes, Personnel Director
Extension 2550
Ken Chavious, Finance Director
Extension 2453
Telephone Number:
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 227-2031
No X
No X
Purpose: To consider a resolution expressing the Board of Commissioners' support for the
Orange County ABC Board's decision to provide the retiree health insurance benefit that it
had in place prior to January 1, 1998 to all its eligible employees, including those hired after
January 1, 1998.
Background: In March 1999 the ABC Board decided to extend the grandfather clause
instituted when it changed its retiree health insurance to cover all current ABC employees
who also were ABC employees as of the date of the change; that is, January 1, 1998.
in March 1999, the ABC Board decided to defer making any decision on reinstituting the
previous retiree health insurance policy to cover all employees; that is those hired after
January 1, 1998, pending further review. Since March, the ABC Board has reviewed the
retiree health insurance policy further. At its December 21, 1999 meeting, the ABC Board
decided to extend its previous retiree health insurance policy to cover all ABC Board
employees. The attached resolution expresses the Board of Commissioners' support for
this action and acknowledges that the payment of this benefit impacts the profit distribution
Orange County receives from the ABC Board.
Financial Impact: For the ABC Board as for the County, the costs for retiree health
insurance are funded as an operating expense on spay-as-you-go basis. The ABC
Board's current costs for retiree health insurance are about $9,800. The earliest date any
additional cost from extending the policy to all employees would be incurred is at least 14 to
15 years in the future. This is because the employee has to have 15 years ABC Board
service and be eligible to retire. 1t is not possible to project with accuracy the cost of health
insurance or ABC employees who might potentially be covered that far into the future.
Recommendation: The Manager recommends the Board adopt the attached resolution.
2
Attachment
Resolution
Orange County ABC Board Retiree Health Insurance
WHEREAS, Orange County provides health insurance benefits to eligible employees
retiring from County service, and
WHEREAS, the Board of County Commissioners has encouraged the Orange County ABC
Board to extend the retiree health insurance benefit that it had in place prior to January 1,
1998 to all its eligible employees, and
WHEREAS, the ABC Board at its December 21, 1999 meeting has decided to provide this
benefit to eligible employees retiring from ABC Board service, including those hired after
January 1, 1998 and
WHEREAS, the Board of County Commissioners acknowledges that the payment of this
benefit impacts the profit distribution Orange County receives from the ABC Board, and
WHEREAS, the impact of the change in retiree health insurance on the ABC Board
distribution to the County can be absorbed with manageable effect on the overall County
budget,
NOW THEREFORE BE IT RESOLVED THAT:
1. The Orange County Board of Commissioners supports the ABC Board's decision to
extend the prior to January 1, 1998 retiree health insurance benefit to all eligible
employees of the Orange County ABC Board.
2. The Orange County Board of Commissioners understands that the cost of this benefit is
to be budgeted and paid from the regular operating expenses of the ABC Board.
3. Any reduction in the profit distribution from the ABC Board as a result of the retiree
health insurance change is hereby acknowledged by the Board of County
Commissioners and will be absorbed in the County general fund budget.
Adopted this the day of 1999.
Chair
Orange County Board of Commissioners
I, Beverly A. Blythe, Clerk to the Board of County Commissioners for the County of Orange,
North Carolina, do hereby certify that the above resolution was adopted by the County
Commissioners at a meeting of the Board on 1999•