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Board of Trustees Meeting August 14, 2007 |
Agenda Item: New Business
Discussion and/or approval for District to increase health care contribution for represented staff.
Background:
Last year the Board of Trustees adopted a cafeteria plan for District employees for health care benefits. As part of this plan the District agreed to provide represented staff with a contribution level which would provide 100% of the cost for the least expensive health care plan, dental and vision insurance. If the employee selected a higher priced plan they would incur out of pocket expense equal to the amount of the difference in cost.
Health care expenditures for CalPERS health are expected to increase by 6.3% on January 1, 2008 with an open enrollment period during the month of September. As required by the existing M.O.U. the District attended a meet and confer session with CSEA representatives to discuss changes in health care. At this session a tentative agreement was signed, pending Board of Trustee approval, which allows represented staff to receive an increase in the District contribution for health care in the amounts shown below. This increase will allow represented staff to select the lowest cost health care option without receiving a payroll deduction.
|
Contribution Level |
FY 2006/07 Contribution |
Proposed FY 2007/08 Contribution |
Amount of Increase |
|
Single |
$420 |
$466 |
$46 |
|
Single +1 |
$815 |
$904 |
$89 |
|
Family |
$1,070 |
$1,182 |
$112 |
Contract negotiations are expected to begin in January 2008 where more detailed discussions about health care benefits will occur.
Staff Recommendation:
Recommend approval of awards.
Fiscal Impact:
District benefit expense will increase $1,725 per month or $20,700 annually with this change. Increased health care costs were anticipated and have been budgeted for FY 2007/08.