To: Contra Costa County Housing Authority Board of Commissioners
From: Joseph Villarreal, Executive Director
Report Title: APPROVE HEALTH CARE BENEFIT ENHANCEMENTS FOR REPRESENTED AND UNREPRESENTED EMPLOYEES
☐Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
ADOPT Resolution No. 5264 approving the health care benefits portion of the Successor Memorandum of Understanding with Public Employees Union, Local #1/AFSCME, for the term of July 1, 2024, through June 30, 2027.
ADOPT Resolution No. 5265 approving health care benefits for the unrepresented employees of
the Housing Authority of the County of Contra Costa.
BACKGROUND:
On July 9, 2024, this Board adopted Resolution No. 5260 approving the Successor Memorandum of Understanding (MOU) with Public Employees Union, Local #1/AFSCME (Union), providing for wages, non-healthcare benefits, and other employment conditions for the term of July 1, 2024, through June 30, 2027. Similarly, on July 9, 2024, this Board adopted Resolution No. 5261 regarding compensation and non-healthcare benefits for the unrepresented employees of the Housing Authority of the County of Contra Costa.
On June 26, 2024, a Tentative Agreement with the Union was signed that included a change to the health care subsidy paid by HACCC from a flat amount to a percentage payment. Specifically, the TA provided that HACCC will pay the following percentages of the premium for the CalPERS Kaiser Premium plan, towards all health plans offered by CalPERS:
• 71% Effective January 1, 2025
• 73% Effective January 1, 2026
• 75% Effective January 1, 2027
Any excess amounts necessary to pay the health care premium in full shall be paid for by the Employee through payroll deductions. The proposed change to the health care subsidy was not included in either the Successor MOU or the compensation package for unrepresented employees, because HACCC was awaiting an actuarial analysis of the change as required by State law.
As required by California Government Code, Section 7507, the actuarial report that considered the future costs of changes in retirement benefits, or other post-employment benefits was provided to this Board at the September 10, 2024, meeting. This meeting was more than two weeks ago, so it is appropriate to consider adoption of the proposed health care benefit changes for current employees and current and future retirees who are eligible for health care coverage at today’s meeting. HACCC’s Actuary will be in attendance if there are any questions about the report.
FISCAL IMPACT:
As shown in the attached actuarial valuation, the result of the health care plan changes described herein, if implemented for all current and future eligible retirees, will create a $21,292 increase in the Annual Required Contribution, a $8,433 increase in the Normal Cost, and a $144,838 increase in the total Actuarial Accrued Liability.
CONSEQUENCE OF NEGATIVE ACTION:
It is expected that the Union will seek to reopen negotiations concerning health care reimbursements.