HomeMy WebLinkAboutAgenda - 11-03-1999 - 8iOrange County
Board of Commissioners
Action Agenda Item Abstract
Meeting Date: November 3, 1999
Subject: Benefits for County Commissioners
Action Agenda
Item No. $-1
Department: Personnel
Public Hearing:
Budget Amendment
Needed:
Yes No X
Yes No X
Attachment(s):
Draft Policy -County Contribution
For Commissioners' Benefits
Information Contact:
Elaine Holmes, Personnel Director
Extension 2550
Telephone Number:
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 227-2031
Purpose: To consider adopting a policy effective July 1, 2000 providing for the County to
make the same contribution for benefits for which County Commissioners are eligible that it
makes for permanent County employees receiving those same benefits.
Background: Under State law, the Board of Commissioners fixes the compensation of its
members. It may do so annually by inclusion of the amount of compensation in the annual
Budget Ordinance and by adoption of the Ordinance. The purpose of the attached. draft
policy is to direct how the Budget Ordinance is to be prepared each year.
Specifically, the. draft policy would .change Commissioners' compensation to add the same
County contribution amount for heal#h insurance, dental insurance, life insurance and
supplemental retirement that is provided for permanent County employees, provided the
Commissioners are eligible for this coverage under the insurance contracts and other
contracts affecting these benefits. Outlined below for each involved benefit is the present
policy and the impact of the draft policy change.
1. Health Insurance
Presently Commissioners may participate in Orange County's health insurance
(Healthsource Plan only) by paying the full cost of coverage (both the employee cost
and the County contribution amount)..
Under the draft policy, the County would provide the same contribution for
Commissioners' health insurance that it provides for permanent employees. The North
Carolina Association of County Commissioners' health insurance trust advises that
Commissioners would become eligible to participate in the Blue Cross plans (Preferred
Provider Plan or Personal Care Plan) if the County makes such a contribution.. This
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would be effective with the initiation of the contribution (July 1, 2000), if adopted.
If the Board elects to pursue the draft policy and contingent on adoption of the County
contribution through the Budget Ordinance, a County Commissioner could:
^ Enroll in the Healthsource plan during the current open enrollment (through
November 15, 1999), pay the full cost of coverage (County and employee share)
through June 30, 1999 and then begin receiving the County contribution for health
insurance coverage effective July 1, 2000, or
^ Enroll in a health insurance plan effective July 1, 2000 with the initiation of the
County contribution for health insurance coverage.
2. Dentallnsurance
Presently Commissioners may participate in Orange County's dental insurance by
paying the full cost of coverage (both the employee cost and the County contribution
amount). Under the draft policy, the County would provide the same contribution for
Commissioners dental insurance that it provides for permanent employees.
If the Board elects to pursue the draft policy and contingent on adoption of the County
contribution through the Budget Ordinance, a County Commissioner could:
^ Enroll in the dental plan during the current open enrollment (through November 15,
1999), pay the full cost of coverage (County and employee share) through June 30,
1999 and then begin receiving the County contribution for dental insurance coverage
effective July 1, 2000, or
^ Enroll in the dental plan effective July 1, 2000 with the initiation of the County
contribution for dental insurance coverage.
3. Life Insurance
Presently Commissioners may participate in Orange County's life insurance by paying
the full cost of coverage (both the employee cost and the County contribution amount).
If the Commissioner did not enroll in the life insurance when first elected as a
Commissioner and the Commissioner then decides to enroll later, the insurance
company requires satisfactory evidence of insurability before enrollment may occur.
Under the draft policy the County would provide the same contribution for
Commissioners' life insurance that it provides for permanent employees. The life
insurance coverage amount would be one times the Commissioners annual salary for
service as a Commissioner. The Commissioners could enroll at the time of initiation of a
County contribution without providing evidence of insurability.
4. Local Government Employees' Retirement System
The Retirement System advises that County Commissioners are not eligible to
participate in the Retirement System under State law.
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5. Supplemental Retirement
Presently Commissioners may join and make a voluntary supplemental retirement
contribution to the Deferred Compensation (457) plan as may County employees. The
County makes no contribution for employees to the Deferred Compensation 457 plan.
The County makes a $15 per pay period ($390 annually) supplemental retirement
contribution for each permanent, non-law enforcement employee to the. State 401(k)
Plan. The State 401(k) plan advises that that Commissioners are not eligible to
participate in that plan and that it is necessary to be a member of the Local Government
Employees' Retirement System in order to participate.
Under the draft policy, the County would make the same supplemental retirement
contribution to the 457 plan for each County Commissioner that it makes to the 401(k)
plan for each permanent employee, since Commissioners may not participate in the
401(k) plan. Because employer contributions to a 457 plan require a matching social
security. contribution for that benefit [unlike the 401(k) plan employer contribution], .the
estimated cost shown under Financial Impact includes the matching social security.
6. Flexible Spending Accounts and Supplemental Insurance
Presently Commissioners may participate in Flexible Spending Accounts (Medical or
Dependent Care) and Supplemental Insurance (Life, Accident, Disability) by making a
voluntary contribution on the same basis as County employees. The draft policy makes
no change in this handling.
Financial Impact: The estimated annual cost for the County contribution for health, dental
and life insurance and a supplemental retirement contribution for County Commissioners is
show below. The estimate is based on health and dental rates effective January 1, 2000
and assumes all Commissioners participate in a plan.
Benefit Coverage Annual County Cost
Per Commissioner Total Annual Cost
Health $2, 399 to $4, 319* $11, 995 to $21, 595*
Dental $166 $830
Life $35 to $45 $190
Supplemental Retirement (457) $420 $2,100
Total $3,020 to $4,950 $15,115 to $24,715
* Depending on coverage type selected (individual, individual/children, individual/spouse,
individual/family).
Recommendation: The Manager recommends the Board approve the attached policy
effective July 1, 2000.
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Attachment
Policy for Insertion into the Policy Manual
Meeting Date: November 3, 1999 Policy Number: 483
Effective Date: July 1, 2000 Revisions:
Policy: County Contribution for Commissioners' Benefits
The Board of County Commissioners authorizes that the compensation of the County
Commissioners will include the County contribution for health insurance, dental
insurance, and life insurance that is provided for permanent County employees,
provided the Commissioners are eligible for this coverage under the insurance contracts
and other contracts affecting these benefits.
2. The Board of County Commissioners further authorizes that the compensation of the
. County Commissioners will include a County contribution for each Commissioner to the
Deferred Compensation (457) Supplemental Retirement Plan that is the same as the
County contribution for non-law enforcement County employees to the State 401 (k)
Plana
3. The Board of County Commissioners directs the County Manager to incorporate in the
Budget Ordinance each fiscal year a County contribution amount for each
Commissioner's health, dental and life insurance equivalent to the County contribution
amount for permanent County employees.
4. The Board of County Commissioners further directs the County Manager to incorporate
in the Budget Ordinance each fiscal year a County supplemental retirement contribution
for each Commissioner that is the same as the County contribution for non-law
enforcement County employees to the State. 401(k) Plan.
5. The Board of County Commissioners adopts the County contribution for Commissioners'
health, dental and life insurance and supplemental retirement for the fiscal year through
the adoption of the Budget Ordinance for that year.
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October 27, 1999