To: Board of Supervisors
From: Ann Elliott, Human Resources Director
Report Title: Resolution establishing a Health Reimbursement Arrangement (HRA) for Rodeo-Hercules Fire Protection District Retirees.
?Recommendation of the County Administrator ? Recommendation of Board Committee
RECOMMENDATIONS:
ADOPT a Resolution which establishes a health reimbursement arrangement to provide Rodeo-Hercules Fire Protection District (RHFPD) retirees with the same post-retirement health benefits as they were receiving prior to the annexation of RHFPD to the Contra Costa County Fire Protection District, as recommended by the County Administrator.
FISCAL IMPACT:
The anticipated costs of providing healthcare benefits to the former RHFPD retirees is $425,000 for FY 2025-2026. This was included as a forecasted recurring cost in the annexation fiscal analysis and was included as a cost factor in the approved FY 2025-2026 Fire District Budget.
BACKGROUND:
Prior to the annexation of Rodeo Hercules Fire Protection District (RHFPD) to Contra Costa County Fire Protection District (CCCFPD) on July 1, 2025, RHFPD offered its retirees and their beneficiaries certain post-retirement health benefits. These benefits differ somewhat from those that were offered by CCCFPD. During the lead up to the annexation, RHFPD and its retirees sought to maintain the same level of post-retirement health benefits for retirees and their
beneficiaries post-annexation as they had received prior to the annexation.
Through a Health Reimbursement Arrangement (HRA) within the meaning of Internal Revenue Service Notice 2002-45, CCCFPD can offer RHFPD retirees and their beneficiaries the same level of health benefits that they received prior to the annexation. Under the HRA, retirees can submit claims for reimbursement of qualified medical expenses, which CCCFPD reimburses up to a preset level. The HRA would be effective as of the date of annexation on July 1, 2025, and only benefit those retirees and their benefi...
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