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HomeMy WebLinkAboutAgenda - 01-18-2000 - 8gOrange County Board of Commissioners Action Agenda Item Abstract Meeting Date: January18, 2000 Action Agenda Item No. Subject: ABC Board Retiree Health Insurance Department: Personnel and Finance Public Hearing: Yes No X Budget Amendment Needed: Yes No X Attachment(s): Information Contact: Elaine Holmes, Personnel Director Draft Resolution Extension 2550 Ken Chavious, Finance Director Extension 2453 Telephone Number: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 227-2031 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 a pay-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. It 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.