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HomeMy WebLinkAboutAgenda - 06-07-2012 - 2ORANGE COUNTY BOARD OF COMMISSIONERS • ACTION AGENDA ITEM ABSTRACT Meeting Date: June 7, 2012 SUBJECT: Pay and Benefits Presentation DEPARTMENT: Human Resources ATTACHMENT(S): 1. Mark III Employee Benefits Presentation 2. Summary of Retiree Health Benefits Provided by Other Jurisdictions 3. Proposed Amendment to Article IV, Section 28 of the Orange County Personnel Ordinance Action Agenda Item No. 2 PUBLIC HEARING: (YIN) No INFORMATION CONTACT: Sharon Goode Laisure, Interim Human Resources Director, 245 -2553 Diane Shepherd, Benefits Manager, 245- 2558 • PURPOSE: To receive information and provide feedback to staff on employee pay and benefits for FY 2012 -13. • BACKGROUND: Staff has provided information relating to FY 2012 -13 employee pay and benefits in Attachments 1, 2 and 3, and in Appendix A of the Manager's Recommended Budget. The information provided includes background information on employee pay and benefits over recent years and information on specific pay and benefits plan elements. Key components of the recommended employee pay and benefits plan include: Recommendation Appendix A Pages A Cost of Living Adjustment (COLA) of 2% for all permanent 261 employees hired on or before July 1, 2012 An Employee Performance Award in the amount of $500 or $1,000, effective with WPPR Review Dates from July 1, 2012 to 263 June 30, 2013 Funding for an increase in health insurance costs of up to 265 23.0% over current premiums, effective January 1, 2013 Living Wage increase from $10.81 to $10.97 per hour (affects 270 approximately 100 temporary employees) Implement recommendations of the County's FY 2012 -13 internal Classification and Pay Study (affects approximately 35 273 -280 employees) Continue the six -month hiring delay 290 Continue the voluntary furlough program 301 Continue the $27.50 per pay period County contribution to non - law enforcement employees' supplemental retirement accounts. Continue the mandated 5% Law Enforcement Officer 303 contribution to the 401 (k). Address Increased Costs for Retiree Health Benefits • Change the eligibility for employees hired on or after July 1, 2012 305 • Set aside $3 million in reserve fund An essential part of maintaining the County workforce is its employee pay and benefits plan. In FY 2008 -09, the Board of County Commissioners (Board) approved the most recent increase in salaries, which included a 2.25% cost of living increase and a 1.0% or 2.0% in -range salary increase based on work performance. Since then, employee pay and benefits recommendations have been heavily influenced by the downturn in the economy and focused on maintaining the County's permanent workforce without increasing property taxes. The County Manager's (Manager) recommendations for funding employee pay and benefits in the FY 2012 -13 Recommended Budget are driven by the desire to maintain strong health insurance benefits in the face of ever - increasing health insurance costs, to provide additional compensation, and to address future retiree health benefits for permanent employees hired on or after July 1, 2012. Classification and Pay Study In FY 2011 -12, staff reviewed 97 classifications affecting 266 employees, and conducted an is external survey to compare the County's classification and salary structure to the external market. Overall, this year's review showed that employees are generally classified correctly and the County's salaries and salary ranges are competitive with the survey market. Staff will continue to take a proactive approach to reviewing both classifications and compensation. Employee Health Insurance Plan The most recent claims data available shows a slight drop in Loss Ratio (Medical Claims divided by Premiums Paid) for the first three months of 2012 compared to the first three months in 2011. Benefits consultant, Mark III Employee Benefits, has projected an increase in premiums of 23% ($171,609) based on data available, assuming no changes to the design of the benefits. Attachment 1 includes the details. The Board will approve a funding level for the health insurance renewal in the FY 2012 -13 Annual Operating Budget and will consider and approve final plan design and premium structure in Fall 2012. Retiree Health Benefits As discussed at the work session of April 24, the County's liability for future retiree health benefits has climbed to $62.8 million. In response to this projection, the Manager recommends modifying the eligibility requirements for employees hired on or after July 1, 2012 and contributing $3 million to a reserve fund to fully fund the current expense for FY 2012 -13. Attachment 2 is a survey by the UNC School of Government showing the benefits each North Carolina County provides for its employees and retirees, as of January 2012. U Proposed Changes to Personnel Ordinance •Revisions to the Personnel Ordinance are required to implement any changes to retiree health benefits. Attachment 3 is the proposed Amendment to Article IV, Section 28 which would affect new employees hired on or after July 1, 2012, by increasing the years of Orange County service required for retiree health insurance for employees hired on or after July 1, 2012 and requiring those eligible for Medicare to enroll in Medicare and receive Medicare benefits. FINANCIAL IMPACT: Appendix A of the Manager's Recommended Budget includes information about the estimated costs of various pay and benefits options. RECOMMENDATION(S): The Manager recommends that the Board discuss employee pay and benefits for FY 2012 -13 and provide direction to staff. • 41 0 • 0 . r.,: t -- ' 52 Medical Plan Options 2013 Mark III Employee Benefits 0 [ June 7, 2012 2011 Plan Experience Orange County Claims Per Combined Active/Retiree Date Subs Premium Medical Pharmacy Medical Claims Per Month January-11 942 $730,318.78 $677,871.32 $197,444.99 $875,316.31 $929.21 February-11 938 $724,036.02 $464,013.77 $210,811.24 $674,825.01 March-11 936 $716,724.77 $630,161.30 $229,233.93 $859,395.23 $719.43 April-11 936 $918.16 $710,722.48 $630,975.00 $195,361.30 $826,336.30 $882.84 May-11 944 $740,073.16 $717,175.68 $200,070.97 $917,246.65 $971.66 June-11 944 $721,743.42 $498,296.43 $194,286.52 $692,582.95 $733.67 July-11 956 $739,482.35 $443,167.74 $209,671.36 $652,839.10 $682.89 August-11 956 $647,937.42 $286,057.43 $206,410.37 $492,467.80 September-11 949 $644,001.78 $16,374.93 $233,693.85 $250,068.78 $263.51 October-11 951 $640,668.70 $1,363,881.02 $202,981.28 $1,566,862.30 $1,647.59 November-11 953 $725,418.04 $786,960.78 $224,202.10 $1,011,162.88 December-11 953 $1,061.03 $720,025.52 $819,539.94 $253,465.10 $1,073,005.04 $1,125.92 Total 11,358 $8,461,152.44 $7,334,475.34 $2,557,633.01 $9,892,108.35 , F; , $225.18 7 Y o For 2011, we estimate that the NCACC lost $2,700,000 while insuring Orange County. 2 • • 4111 . • • 2012 Renewal — Fully Insured Orange County Medical Plan Prepared by Mark III Brokerage, Inc. August 2011 UnitedHealthcare Option 4: Alternate Plans POS: S5E-P-M5 HSA: C3Z-PM 2012 2012 In-Network In-Network Primary Care Physician Visits $20 80% after Ded. S p ecialist Ph y sician Visits z r q _ ,tr �, .;: _; 80% after Ded. Preventive Care 100% 100% Deductible $500 $1,500 Deductible - Family Maximum : ;.a $3,000 Coinsurance LimitLL $1,000 $2,000 Coinsurance Limit - Family Max $3,000 $2,000 In-patient Hospital Services 80% after Ded. 80% after Ded. Out-patient Hospital Services 80% after Ded. 80% after Ded. Emergency Room 04 80% after Ded. Pharmacy $8/$25/$45 Lifetime Maximum Unlimited Unlimited Rates Monthly Monthly Employee Only $578.59 $475.49 Employee and Spouse $1,220.83 $1,003.28 Employee and Child $937.32 $770.29 Employee and Children $937.32 $770.29 Employee and Family $1,735.77 $1,426.47 Monthly Cost HSA Contribution $1,237 Annual $9,385,469.52 Increase over current = 3 2012 Plan Experience HSA Plan Claims Per Date Combined Active/Retiree Subs Mbrs Premium Medical Pharmacy Capitation Medical Claims Per Month Loss Ratio January-12 195 375 $142,357 $12,038 $2 $3,845.63 $15,884.91 $81.46 11.16% February-12 196 373 $141,406 $21,599 $699 $3,814.70 $26,113.07 $133.23 18.47% March-12 191 362 139,684 $30,321.00 $1,091.00 $3,732.00- $35,144.00 $184.00 25.16% Total 582 1,110 $423,446.44 $63,958.26 $1,791.39 $11,392.33 $77,141.98 -, o PPO Plan : 18.22/ Claims Per Date Combined Active/Retiree Subs Mbrs Premium Medical Pharmacy Capitation Medical Claims Per Month Loss Ratio January 12 755 1,258 $601,087 $503,372 $72,164 $12,887.50 $588,423.77 $779.37 97.89% February-12 750 1,254 $602,794 $443,530 $86,572.58 $12,928.74 $543,031.69 $724.04 90.09% March-12 746 1,246 $599,131.00 $424,785.00 $105,977.00 $12,867.00 $543,629.00 0 Total 2,251 3,758 $1,803,011.20 $1,371,687.47 $264,713.75 $728 73 92.90/ $38,683.24 $1,675,084.46 .rn" .; '' '5;.: :' 92.90% Orange County Claims Per Combined Date Subs Mbrs Premium Medical Pharmacy Capitation Medical Claims Active Per eMonth/Retiree Loss Ratio January-12 950 1,633 $743,443.38 $515,409.87 $72,165.67 $16,733.13 $604,308.68 $636.11 81.29% February-12 946 1,627 $744,199.26 $465,129.86 $87,271.47 $16,743.44 $569,144.77 $601.63 76.48% March-12 937 1,608 $738,815.00 $455,106.00 $107,068.00 $16,599.00 $578,773.00 0 Total 2,833 4,868 $2,226,457.64 $1,435,645.73 $266,505.14 $617 69 78.70/ $50,075.57 $1,752,226.44 �q� s —° _" , 78.70% 4 • S • . • 0 - 2013 Renewal Estimate Total Loss Stop-Loss Net Orange County Government Subscribers Premium Claims Ratio Credit Claims April-11 936 $710,722.48 $826,336.30 116.27% $40,919.97 $785,416.33 May-11 944 $740,073.16 $917,246.65 123.94% $144,265.98 $772,980.67 June-11 944 $721,743.42 $692,582.95 95.96% $95,217.96 $597,364.99 July-11 956 $739,482.35 $652,839.10 88.28% $54,576.96 $598,262.14 August-11 956 $647,937.42 $492,467.80 76.01% $67,721.02 $424,746.78 September-11 949 $644,001.78 $250,068.78 38.83% $17,172.22 $232,896.56 October-11 951 $640,668.70 $1,566,862.30 244.57% $197,731.64 $1,369,130.66 November-11 953 $725,418.04 $1,011,162.88 139.39% $179,769.79 $831,393.09 December-11 953 $720,025.52 $1,073,005.04 149.02% $119,266.39 $953,738.65 January-12 950 $743,443.38 $604,308.68 81.29% $0.00 $604,308.68 February-12 946 $744,199.26 $569,144.77 76.48% $0.00 $569,144.77 March-12 937 $738,815.00 $578,773.00 78.34% $0.00 $578,773.00 Total 11,375 $8,516,530.51 $9,234,798.24 101.410 $916,641.93 $8,318,156.31 Fully Insured Calculation Current PPO Plan Design 2013 Renewal Premium -1/12- 12/12 $8,930,391 Claims $8,318,156 Claims-With Benefit Change $7,819,067 Loss Ratio 87.56% Trend 2013 - 10%-21 Months- 17.5% 117.50% Trended Loss Ratio 103% Target Loss Ratio 84% Rate Increase-2013 122.47% 5 Timeline o July 2nd, 2012 — UHC Renewal Delivered to Mark III . o The renewal options that will be reviewed both fully insured and self-funded options for the current plan designs. o Depending on the competitive nature of the renewal, we will consider going to market. o We want to be careful not create too much disruption for employees. 6 • • - • 0 . Timeline o For the self-funded option, we will request an alternative pharmacy benefit manager. o In August, we will present renewal options to the . ' Commissioners at the first work session . /00 Iniploye M /I/Benefits • • County• es in North Carolina 2012 • • . TABLE 36.EMPLOYEE/RETIREE HEALTH INSURANCE I January 1,2012 I I Health Insurance(Employee Only Coverage) Health Insurance for Retirees Choice %Paid of Normal Normal Annual Total Employee County on Family Retirees Retirees Age County Plans Deductible Copay Stop Loss Cost Pays Pays Coverage under Age 65 65 or More Alamance no $500 $0 $2,000 $500.00 $0.00 $500.00 0% 100%county paid after 25 years no service; 75%after 20 years of service;50% after 15 years of service. All are grandfathered benefits Alexander no 3,500 $35 3,500 509.00 0.00 509.00 0% no no Allegheny no 500 $20 500 579.00 0.00 579.00 0% 100%mencounty paid Local Govt 1 Retirement d Local Anson no 1,000 $25 none 638.22 0.00 638.22 0% 55%county paid after 30 years medicare supplement service;45%paid after age 62 and 25 years;35%paid after age 62,20 years Ashe no 1,000 $100 3,000 529.00 0.00 529.00 0% 100% with paid after 25 years no service Ashe County Avery no 200 $10 2,000 915.63 0.00 915.63 0% 100%county paid after 20 years Up to$2,000 county paid service after 20 years service for a medicare supplement Beaufort yes 700 $30 3,210 410.94 0.00 410.94 0% 100% 60 or paid after 20 medicare supplement or after 30 years regardless of age Bertie no 1,000 $35 3,000 606.00 0.00 606.00 0% 50%county paid after 15 years 100%county paid Medicare service and age 55; 100%county paid after 20 supplement ....F years continuous or 25 years non- continuous Bladen yes 700 $30 3,210 434.00 0.00 434.00 0% no data no data Brunswick no 500 $20 1,500 733.00 0.00 733.00 0% 100%county paid for disability 100%county paid for retiree with 5 years or service disability retiree with 5 years retiree with 10 years or service retiree with 10 years Medicare Buncombe yes 150 $25 150 1198.00 65.00 1133.00 0% service and age' no 60 after 20 years of service and age 50 or 30 years N service at any age Burke no $1,500 $20 $4,500 $542.00 $0.00 $542.00 0% 20%county paid after 5 years,45% no paid after 10 years,60%paid after 15 years,75%paid after 20 years, 100%paid after 25 years Cabarrus yes 0 $20 2,000 580.00 $0/$25 530 or 505 0% 100%county 50%w i years no less than ea years service ©2012 School of Government,University of North Carolina at Chapel Hill A County Salaries in North Carolina 2012 TABLE 36.EMPLOYEE/RETIREE HEALTH INSURANCE G9 January 1,2012 Health Insurance(Employee Only Coverage) Health Insurance for Retirees Choice %Paid of Normal Normal Annual Total Employee County on Family' Retirees Retirees Age County Plans Deductible Copay Stop Loss Cost Pays Pays Coverage under Age 65 65 or More Caldwell no 1,000 n/a 3,000 530.00 30.00 500.00 0% no no Camden Carteret no 1,000 $0 2,000 538.00 0.00 538.00 0% 100%county paid after 20 years no service,age 50 Caswell Catawba yes 1,200 all 4,000 396.00 0.00 396.00 0% 100%after 30 years service and no age 55 Chatham no 150 $15 2,000 621.00 0.00 621.00 0% 100%county paid after 30 years of no service;75%paid after 25 years; 50%after 20 years Cherokee no 500 $25 3,000 659.00 0.00 659.00 0% 100%county paid after 30 years of no service Chowan no no data $35 no data 448.00 0.00 448.00 0% 100%county paid if retired in no NCLGERS and 20 years service with county Clay no 1,500 no data 5,000 638.59 50.00 588.59 0% 100%county paid after 10 years of no service/age 60 Cleveland yes 1,500 no data 3,500 445.00 0.00 445.00 0% 100%county paid after 20 years of no continuous service with the county Columbus no 1,500 $30 no data 537.32 0.00 537.32 0% 100%county paid after 20 years 100%county paid after 20 service years service Craven no 400 20% 1,500 435.00 0.00 435.00 0% 'Sliding scale based on service after no 20 years of service,eligible to remain on plan after 15 years with Craven County Cumberland no 1,000 $30 3,000 511.00 21.00 532.00 0% 100%County paid after 25 years 100%County paid after 25 service years service Currituck no 1,500 $20 5,500 511.00 0.00 511.00 0% 50%county paid after 10 years, 50%county paid after 10 75%after 15 years, 100%after 20 years,75%after 15 years, years 100%after 20 years Dare no 1,000 $25 1,000 570.00 0.00 570.00 0% 90%county paid with 20 years 90%county paid with 20 service,95%paid with 25 years and years service,95%paid with 100%paid with 30 years service 25 years and 100%paid with 30 years service Davidson yes 1,000 no data 3,000 420.00 76.00 420.00 79% 1/3 county paid after 20 years,2/3 1/3 county paid after 20 after 25 years, 100%after 30 years, years,2/3 after 25 years, all age 55 100%after 30 years,all age 56 ©2012 School of Government,University of North Carolina at Chapel Hill • • 110 r Coun ies in North Carolina 2012 • 0 , . TABLE 36.EMPLOYEE/RETIREE HEALTH INSURANCE January 1,2012 I I I Health Insurance(Employee Only Coverage) Health Insurance for Retirees Choice %Paid of Normal Normal Annual Total Employee County on Family Retirees Retirees Age County Plans Deductible Copay Stop Loss Cost Pays Pays Coverage under Age 65 65 or More Davie no 1,000 $20 2,000 592.22 0.00 592.22 0% 50% 75%paid aafte? years and 25 ears years and age 60; 20 75% 60; paid any age and 100%paid after 30 after 25 years any age and years of service at any age 100%paid after 30 years of service at any age Duplin yes 2,000 $30 4,000 557.92 0.00 557.92 0% 50%county paid if hired before 50%county paid if hired 8/18/2008 and with 10 years before 8/18/2008 and with service;50%county paid if hired 10 years service;50% before 8/18/2008 and with 25 years county paid if hired before service 8/18/2008 and with 25 years service Durham yes 500 $20 2,500 490.00 0.00 490.00 0% 100%county paid after 20 years if 100%county paid after 20 hired before 7/1/06;after 30 years if years if hired before 7/1/06; hired on or after 7/1/06 after 30 years if hired on or after 7/1/06 for medicare supplement Edgecombe no 1,250 $30 75,000 583.00 0.00 583.00 0% 100%county paid after 30 years no Forsyth no 750 $20 no data 643.82 64.08' 579.74 75% no County pays same as for active employees for medicare eligible Franklin yes 500 $20 1,500 637.00 50.00 587.00 0% 100%county paid after 20 Retirees may have years/age 55 or after 30 years coverage,county pays for regardless of age basic medicare plan,retiree pays for upgrade. Retire payment varies with age/service Gaston yes 1,500 $25 3,000 410.00 0.00 410.00 80% no no Gates yes 750 $15 2,500 564.00 0.00 564.00 0% 100%county paid after 25 years 100%county paid after 25 continuous service years continuous service Graham Granville no 750 $20 2,000 474.00 24.00 450.00 0% 95%county paid after 22 years/age 100%medicare supplement 62 or 25 years/age 55 or 30 years with 22 years service regardless of age Greene no 1,750 $25 3,000 642.00 0.00 642.00 0% 100°/ county paid after 25 years of none sery ice Guilford yes 200 $20 2,000 635.00 35.00 600.00 34% 75%after 25 Y ears, 100%after 30 75%after 25 years, 100% years regardless of age,20 years after 20 years, 15 years with with Guilford Guilford Halifax no 2,000 $30 2,000 430.00 0.00 430.00 0% 100%paid with 30 years service at none employee only coverage level ©2012 School of Government,University of North Carolina at Chapel Hill a) County Salaries in North Carolina 2012 TABLE 36.EMPLOYEE/RETIREE HEALTH INSURANCE ' ° v January 1,2012 Health Insurance(Employee Only Coverage) Health Insurance for Retirees Choice %Paid of Normal Normal Annual Total Employee County on Family Retirees Retirees Age County Plans Deductible Copay Stop Loss Cost Pays Pays Coverage under Age 65 65 or More Harnett no 1,500 $35 4,500 497.00 0.00 497.00 0% 50%county paid after 15 years, County remiburses$200 for 75%after 20 years,85%after 25 Medicare supplement years, 100%after 30 years regardless of age Haywood yes 1,000 $25 3,000 770.00 0.00 770.00 0% County pays 67%to 100%based County pays 100%for 30 on sliding scale of service and age yyears service,67%for 20 between 15 and 30 years of service years and 50%for 5 years and less than or greater than age toward a medicare 60 supplement Henderson no 500 $15 2,500 761.00 60.00 701.00 0% 50%county paid after service/age no total of 70,75%after total of 75, 80%after total of 80 Hertford no 1,500 $15 no data 565.46 0.00 565.46 0% 100%county paid for retirees with 100%county paid medicare 30 years service with Hertford supplement for retirees with Coiunty. Several grandfathered 30 years service with programs for thoise hired before Hertford Coiunty. Several 8/6/2007 grandfathered programs for thoise hired before 8/6/2008 Hoke no 1,000 $35 5,000 499.00 0.00 499.00 0% 25%county paid after 12 years; no 50%after 15 years;75%after 25 years, 100%after 30 years at any age Hyde Iredell yes 1,500 $40 no data 562.00 0.00 562.00 0% 25%county paid after 15 years/age no 55;50%paid after 20 years/age 55; age 50,75%after 25 years/age 55, 100%after 30 years/any age.All if hired from 7/1/06 Jackson Johnston yes 750 $20 3,750 525.00 0.00 525.00 no data none for employees hired on or none for employees hired on after 01/01/2011. Grandfatehred or after 01/01/2011. programs for earlier hires. Grandfatehred programs for earlier hires. Jones no 2,000 $25 3,000 541.65 135.41 406.24 0% no no Lee yes 1,000 $20 3,000 479.94 54.63 425.31 0% 100%county paid after 20 years 100%county paid service and age 55 supplement Lenoir no 700 $30 4,200 553.75 20 533.75 0% 100%county paid after 25 no years/age 60 or after 30 years/any age. ©2012 School of Government,University of North Carolina at Chapel Hill • 410 III . . Count ies in North Carolina 2012 t • • . TABLE 36.EMPLOYEE/RETIREE HEALTH INSURANCE January 1,2012 I I Health Insurance(Employee Only Coverage) Health Insurance for Retirees Choice %Paid Age of Normal Normal Annual Total Employee County on Family Retirees Retirees A 9 County Plans Deductible Copay Stop Loss Cost Pays Pays Coverage under Age 65 65 or More Lincoln yes 1,500 $35 2,000 610.00 54.00 556.00 0% 100%county paid after 20 years 100%county paid after 25 years McDowell no 1,000 $20 50,000 self funded 0.00 all 0 25%county paid after 15 years, no 50%paid after 20 years,75%paid after 25 years, 100%paid after 30 years. Macon no 500 $25 1,500 500.00 0.00 500.00 73% 100%county paid after 15 years 100%county paid after 25 years Madison no 300 10% 1,500 576.00 33.00 543.00 0 no no Martin no 750 $25 775 565.84 0.00 565.84 0 100%county paid after 25 50%county paid with 15 years/age 60 or after 20 years/age years all with Martin or 20 50 or after 30 years at any age. years, 10 with Martin plus a Last 10-20 years must be with the Medicare supplement is County provided . Mecklenburg yes 200 $15 1,000 685.00 102.00 583.00 no data county paid after 10 years, 50% 100 paid after 10 100/° ° paid after 20 years of service after 20 years of service Mitchell yes 150 $20 no data 377.00 0.00 377.00 0 75%county paid after 20 years, 75%county paid after 20 87.50%after 25 years, 100%after years,87.50%after 25 30 years of service years, 100%after 30 years of service Montgomery Moore no 500 $20 2,500 659.00 0.00 659.00 0% 50 county after 5 25%county paid after 15 50% after 20 years00%paid years,50%paid after 20 after 30 years years, 100%paid after 30 years Nash yes 500 $20 2,000 516.00 0.00 516.00 0% 50%county paid after 10 years, 50%county paid after 10 75%paid after 15 years, 100%paid years,75%paid after 15 after 20 years(pre-07/2007 years, 100%paid after 20 employees) years(Medicare only)Above is for pre-2001 retirees New Hanover yes 1,000 $30 200,000 643.00 65.00 578.00 44% 25%county paid after 15 years, 25%county paid after 15 50%paid after 20 years,75%after years,50%paid after 20 25 years,91%paid after 30 years years,75%after 25 years, 91%paid after 30 years. Medicare primary. Northampton no 500 $15 2500 640.00 64.00 577.00 0 100%county paid after 30 years or no 20 years/age 60 Onslow yes 1,750 $40 4,750 475.00 0.00 475.00 0 100%county paid after 10 years; no must be hired prior to 07/01/2009 ©2012 School of Government,University of North Carolina at Chapel Hill CO County Salaries in North Carolina 2012 TABLE 36.EMPLOYEE/RETIREE HEALTH INSURANCE Co January 1,2012 1 1 Health Insurance(Employee Only Coverage) Health Insurance for Retirees Choice %Paid of Normal Normal Annual Total Employee County on Family Retirees Retirees Age County Plans Deductible Copay Stop Loss Cost Pays Pays Coverage under Age 65 65 or More Orange yes 250 $15 0 531.00 0.00 531.00 1% 100%county paid after 10 years 100%county paid after 10 years,50%after 5 years service Pamlico no 500 no data no data 537.00 0.00 537.00 0% no no Pasquotank no 0 $5 6,000 546.00 0.00 546.00 .0% 100%county paid after 25 years 100%county paid after 25 years Pender no 500 $20 3,000 604.00 0.00 604.00 0% 100%county paid after 30 years, 100%county paid after 20 100%county paid after 25 years/ years Medicare supplement age 55 only Perquimans no none $35 6,000 546.00 0.00 546.00 0% 100%County paid after 20 years no service Person no 500 $25 2,500 406.00 0.00 406.00 0% 50%county paid after 20 years, no 75%paid after 25 years; 100%paid after 30 years. Pitt no 500+10% $20 2,500 636.00 40.00 596.00 0% 100%county paid after 20 no years/age 60 or 100%after 30 years Polk no 500 $25 2,500 527.00 0.00 527.00 0% no no Randolph no 1,500 $25 2,000 516.00 0.00 516.00 0% 50%county paid after 20 years, no 75%after 25 years, 100%after 30 years Richmond no 1,000 $40 3,000 630.00 0.00 630.00 0% 100%county paid after 30 years no service Robeson yes 1,250 $25 125,000 650.00 0.00 650.00 0% 100%county paid after 20 years 100%county paid medicare and age 50 or 30 years of service at supplement after 30 years any age Rockingham no 1,000 n/a 2,500 440.00 0.00 440.00 0% 50%county paid after 20 years 100%county paid after 30 service;75%paid after 25 years years if hired before and 100%paid after 30 years of 8/16/07. No contribution service. Various grandfather dates _after that date Rowan no 1,000 $30 2,500 670.00 0.00 670.00 0% 100%county paid after 20 years no with the county and age 55 Rutherford no 750 $25 no data 491.00 0.00 491.00 0% 100%county paid after 20 years;5 100%county paid after 20 years if hired before 10/2006 years;5 years if hired before 10/2006 Sampson Scotland no 0 $35 5,000 551.50 0.00 551.50 0% 100%county paid after 15 years if 100%county paid after 15 hired before 7/1/04 years if hired before 7/1/04 Stanly no 500 $20 3,000 333.00 0.00 333.00 0% no no Stokes no 1,500 $40 2,500 374.00 0.00 374.00 0% 100%county paid after 25 years no service ©2012 School of Government,University of North Carolina at Chapel Hill • 110 III , . Count ies in North Carolina 2012 • • TABLE 36.EMPLOYEE/RETIREE HEALTH INSURANCE January 1,2012 I I Health Insurance(Employee Only Coverage) Health Insurance for Retirees Choice %Paid Retirees Age of Normal Normal Annual Total Employee County on Family Retirees g County Plans Deductible Copay Stop Loss Cost Pays Pays Coverage under Age 65 65 or More Surry yes 500 $25 2,500 696.00 196.00 500.00 0% 50%county paid after 20 years/age Employee may take 55,50%paid after 30 years supplement at own cost regardless of age,no coverage if hired after 06/16/08 Swain yes 500 $25 3,000 520.00 120.00 400.00 0% 30 100%of em llo share aid or r no years/age 62 Transylvania no 750 $25 2,000 481.00 0.00 481.00 60%county paid after 5 years/age no 60,80%after 20 years/age 55, 100%after 30 years all service must be with the county Tyrrell no 500 $0 3,500 563.00 0.00 563.00 0% 100%county paid after 20 years 100%Medicare supplement service after 20 years of service Union no 1,650 20% 2,750 518.00 0.00 518.00 50% 100%county paid after 20 years 100%Medicare supplement after 20 years service Vance no 1,000 $25 3,000 682.00 0.00 682.00 0% 100%county paid after 30 years if 100%county paid hired 7/1/2011 or later supplement after 15 years Wake yes 1,200 15% 2,500 503.00 22.00 481.00 0% 50%after 10 years service, 100% 50%after 10 years service, after 20 years service 100%after 20 years service Warren yes 1,000 $25 3,000 514.87 0.00 514.87 0% No County contribution,employee No County contribution, can participate with 20 years with employee can participate County and age 60 or 30 years in with 20 years with County NCLGERS,20 years with County and age 60 or 30 years in and age 55 NCLGERS,20 years with County and age 55 Washington yes 350 $30 no data 432.00 0.00 432.00 65% 100%county paid after 20 years 100%county paid after 20 sery ice years service Watauga no 750 $15 2,000 514.00 0.00 514.00 '$30/month $300 county paid after 20 years no service,$400 paid after 25 years Wayne yes 1,000 $20 2,000 575.00 0.00 575.00 0% nonne county paid aftr 25 employees hired after a yeas,none foremployees 7/1/09 hired after 7/1/09 Wilkes no 750 $0 3,750 725.00 0.00 725.00 50% 100%county paid after 30 years, no 63%after 25 years, Wilson no 1,000 25% no data 516.00 0.00 516.00 0% no data no data Yadkin no 2,000 no data 1,500 393.00 0.00 393.00 0% 100%county paid no Yancey yes 1,500 $0 3,000 446.74 29.21 417.53 37.5% 100%county paid after 20 years no • 1. Eligible for$24.08 wellness discount ©2012 School of Government,University of North Carolina at Chapel Hill O 11 Sec. 28 -36. - Health insurance. • It is the policy of Orange County to provide permanent employees both full -time and part-time (regularly scheduled at least 20 hours each workweek) with group health insurance. The cost to the employee for group health insurance is determined each year. Employees also have the option, at additional expense, to cover the employee's spouse, dependent child(ren), domestic partner as defined in this Ordinance poky, and /or family. (a) Effective Date. Coverage is effective on the first day of the month following the date of employment. (b) Retiree Health Insurance. The County provides retiree health insurance and contributes toward the cost of this for eligible employees. (1) Employees Eligible. a. A Permanent Employee Eligibility employed on or before June 30. 2012 is eligible for retiree health insurance if he or she retires from Orange County and meets one of the following criteria: 1. Has at least ten years of total Orange County Service as a permanent employee. 2. Is age 65 or older and has at least five years of total Orange County Service as a permanent employee. 3. Is retiring on a Disability Retirement and has at least five years of total Orange County Service as a permanent employee. • b. A Permanent Employee employed on or after July 1. 2012 is eligible for retiree health insurance if he or she retires from Orange County and meets one of the following criteria: 1. Has at least twenty consecutive years of Orange County Service as a permanent employee. 2. Is age 65 or older and has at least ten consecutive years of Orange County Service as a permanent employee. 3. Is retiring on a Disability Retirement and has at least ten consecutive years of Orange County Service as a permanent employee. (2) Eligibility Period to Elect Participation in Retiree Health Insurance. To participate in retiree health insurance, the eligible retiree must be retiring directly from Orange County and request such participation within 30 calendar days of the last date of employment. (3) Retiree Health Insurance Plans Available a. For an eligible retiree under age 65.7 4 The retiree is covered under one of the County's group health insurance plans. The retiree remains on the County group health insurance plan in which enrolled at retirement. During any subsequent annual enrollment period, the retiree may change to another County health insurance plan as well as add or drop dependents. • b. For any eligible retiree eligible for Medicare due to age 65 eF oldeF or disability. Medicare becomes the primary insurer and the County becomes the secondary insurer. County group health insurance ends. The 12 retiree enrolls in Medicare Part A and Part B and pays the cost. The County provides Medicare supplement hospitalization and provider insurance and prescription coverage, as specified in this Ordinance. is (4) County Contribution for Retiree Health Insurance a. Effective July 1, 2008, Orange County will not subsidize the cost of retiree dependent health care for employees hired after July 1, 2008. b. For an eligible retiree under Section (b)(1)a.1. with ten fv,«; the County subsidizes the cost of retiree health insurance as follows: Retiree/ Dependent Health Plan Type Retiree Supplement* Dependent Supplement* Retiree under 65 Group Health Plan 100% Retiree under 65 Dependent under 65 Group Health Plan None 52% Dependent 65 or over Medicare Supplement None None Retiree 65 and over Medicare Supplement 100% Group Health Plan Dependent under 65 Group Health Plan None Dependent 65 or over Medicare Supplement None c. For an eligible retiree, under Sections (b)(1)a.2 and (b) 1 a 3 a�esf FetiFing on a disability FetiFement, with five yeaFG, but less than ten years--ef the County • subsidizes the cost of retiree health insurance as follows: Retiree /Dependent Health Plan Type Retiree Supplement* Dependent Supplement* Retiree under age 65 Group Health Plan 50% Retiree under 65 Dependent under 65 Group Health Plan None 26% Dependent 65 or over Medicare Supplement None None Retiree 65 or over Medicare Supplement 50% Group Health Plan Dependent under 65 Group Health Plan None Dependent 65 or over Medicare Supplement None d. For an eligible retiree under Section (b)(1)b the County subsidizes the cost of retiree health insurance as follows: Retiree Health Plan Type Retiree Supplement* Dependent Supplement* Retiree under 65 Group Health Plan 100% None Retiree 65 and over or Medicare Supplement 100% None Medicare eligible Retiree under 65 Prescription Coverage Disability Retirement Group Health Plan 50% None • • 13 under age 65 between 10 -20 years of total Orange County service Retiree 65 and over Medicare Supplement 50% None with between 10 -20 Prescription Coverage years of total Orange County service *The County pays the percentage shown of the cost not to exceed the amount it contributes for individual /dependent coverage for current employees. For employees hired on or after July 1 2012 the County cost may not exceed 50% of the amount it contributes for individual /dependent coverage for current employees. The retiree pays the cost for any group health insurance or Medicare supplement coverage for the retiree or the dependent costing more than the County contribution. If the retiree waives coverage, the County provides no cash payment in lieu of such coverage. (5) Payment of Premiums for Which the Retiree Is Responsible. The retiree pays Orange County any required premiums monthly. With appropriate notice, the County terminates coverage when premiums are more than 30 days past due. The health insurance provider bills the retiree directly for any Medicare supplement coverage for a dependent. (6) Dependent Under Age 65 at Death of Eligible Retiree. Upon the death of the • retiree enrolled in the County retiree health insurance, the County offers a dependent on group health insurance continuation of coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA). The dependent is eligible for such coverage for up to 36 months (or until attaining age 65) provided the dependent pays the full cost of this coverage. (7) Eligible Retiree Returning to Work in NC Local Government. If the retiree returns to work with another North Carolina Local Government employer in a position which offers group health insurance coverage (whether the employee elects it or not), Orange County cancels the retiree's health insurance coverage through Orange County and such coverage may not be reinstated. (c) COBRA Coverage. Under the Consolidated Omnibus Reconciliation Act (COBRA), Orange County continues health care coverage to persons who would otherwise lose coverage under a health care plan due to specific events provided the employee, covered spouse, domestic partner a 4' - • pol+-.y, and /or dependent child agrees to pay, and pays, the cost of this coverage. (1) When coverage ceases due to termination or reduction in hours of employment, the employee, covered spouse, domestic partner, and /or dependent child is entitled to up to 18 months of coverage. (2) If the employee, covered spouse, domestic partner, or dependent child is • determined disabled under Social Security at the time of termination or reduction in hours, he or she is entitled to purchase coverage for up to 29 months. 14 (3) The spouse, domestic partner, or dependent child of an employee is entitled to up to 36 months of coverage if any of the following occurs: a. Death of the covered employee • b. Divorce or legal separation of the covered employee from the employee's spouse or termination of a domestic partner relationship c. A covered employee becomes entitled to Medicare benefits d. A covered dependent is no longer a dependent. (Ord. of 06 -07 -1976, eff. 08 -01 -1976: 09 -16 -1997, Art. IV§ 7.0, eff. 09 -01 -1997; 09 -21 -2004, eff. 01 -01 -2005: 06 -24- 2008, eff. 07 -01 -2008) • •