2003 AGN AUG 19 I08 - Laserfiche WebLink

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who provide greater access to medical facilities—some of which are nationwide. Given the city's younger workforce. ABDI was able to provide the City of Colton with lower rates than those quoted by CalPERS. As such, our future rates should continuously be lower than those provided by CalPERS in coming years. The rates provided to the City of Colton are based on the assumption that all of the City's CalPERS contracting groups will vote to terminate the CalPERS Health Insurance Program. At this time, the Fire Safety Unit has not decided when they will vote; should this group opt to remain with CaIPERS, the monthly premium will rise somewhat but still remain well below the rates provided by CalPERS for the January 2004 plan year. In addition to providing the City's employees with lower insurance costs, ABDI will also assist the City in educating the employees about the new insurance plans and benefits. Staff has been in contact with the City's ABDI representative to establish a time frame as to when to open the enrollment period. City staff estimates this process to begin in late October. The City's retirees will also be able to participate with the non-CaIPERS medical insurance carriers. The monthly amount currently provided to retirees is $440 with a 5% cost of living increase, which is effective January 1 of every year. There are 71 retirees who will be affected by these changes. Upon approval of the resolutions, staff will send letters to all retirees notifying them of the changes to occur on January 1, 2004. The retiree may use the allotted dollar amount to purchase medical insurance for themselves and their legal dependents. The percentage is based on the monthly Cafeteria Plan allowance (proposed to be $915 on January 1, 2004) for active City employees in the bargaining unit. If the premium cost is less than the amount allocated by the formula, the retiree does not receive the difference. Additionally, there is no opt -out money paid to the retiree. Staff has developed a percentage formula based on the number of years of service with the City of Colton. The following is for mid -management retirees: Years of Service Percentage of Cafeteria Dollars 5 30% 10 40% 15 50% 20 60% 25 70% 30 80% For the City's Executive staff, the following will be made available: Years of Service Percentage of Cafeteria Dollars 5 40% 10 50% 15 60% 20 70% 25 80% 30 90% The above formulas will also be made available to future retirees effective January 1, 2004. The percentages differ given that the Mid -Management group is typically afforded higher cost of living increase than the Executive Group. Page 2 of 3 Adg 081903 Teminate CaIPERS Health