City Council Agenda
Memo to:
Manteca City Council
From:
Stephanie Van Steyn, Director of Human Resources
Date:
November 19, 2024
Subject:
Approve budget appropriations for Fiscal Year 2024-25 to cover an increase of the City's contribution towards medical insurance premiums effective January 1, 2025
Recommendation:
title
Adopt a resolution approving budget appropriations for Fiscal Year 2024-25 to cover an increase of the City's contribution towards medical insurance premiums effective January 1, 2025
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Background:
The memorandums of understanding (MOUs) between the City and respective bargaining units include a fixed City contribution towards medical premiums. However, the City also has a Medical Contribution Policy, which indicates the City will complete an annual evaluation to contribution rates, and any recommended changes will be presented to a public Council meeting for consideration.
The City participates in the CalPERS Health Plans, and our participants are covered under Region 1 plan options and premium rates. In July 2024, the CalPERS Board of Administration approved health plan premiums for calendar year 2025. These approved premiums included significant increases across all plans offered.
Due to the City's fixed premium contribution under the MOUs, the increases would be completely borne by City employees. As an example, approximately 66% of the City's employees are enrolled in the Kaiser Plan, and those individuals would experience a 40% to 53% premium increase. An increase to the City's contribution is recommended in order for the City to continue to offer a competitive benefits package, which will assist with recruitment and retention efforts.
Human Resources reviewed plan participation rates and collaborated with the Finance Department and the City Manager's Office on determining an affordable, but practical increase to the City's contribution towards medical premiums. Below is the recommended increase to the City's cont...
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