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Ms. Sybille Noble, Chairman, called the meeting to order.
OPEB (Other Post Employment Benefits) - Mr. Mike Swift
Other
Post Employment Benefits Summary (pdf file)
Mr. Swift explained that the Governmental Accounting Standards Board has implemented new regulations effective July 1, 2007 where we will have to account for the County's liability for post employment benefits the way we account for liability under the pension plan. Our post employment benefits are retiree health and life insurance. Each year we will have to pay into a trust fund an actuarially calculated amount for future benefits earned by our employees.
As of June 30, 2006, the unfunded accrued liability is $488 million. The annual required contribution is $49 million. Currently, on a pay-as-you-go basis, we pay about $13 million per year for the pension plan. If we make no changes to the plan and we are 100% funded, we would have to increase our contributions by $36 million per year. Realistically, the Commission would not want to increase taxes to pay $36 million per year into a fund to pay these liabilities. We are looking at options of continuing benefits as they are or making changes to reduce these costs, and provide some additional funding. By July 1, 2007, we will create a trust fund and start making regular payments into the trust fund to start accumulating money to pay for OPEB. The Commission will have to make a decision of how much to pay into the trust fund and if we are going to make changes to benefits.
The administration met with the Commission at their request about a week and a half ago, and there was some indication that they wanted to make some changes to the benefits. They asked that Mr. Swift & Mr. Martin get the UPPC's ideas of what changes should be made.
Retiree Life Insurance - After presenting the possible benefit changes (see attachment) and much discussion, motion was made by Ms. Lee Wessels to recommend proposing option #1 with the opportunity for retirees to purchase any sum additional up to their current salary at the $1.73 per thousand cost, along with options #4 and #5 and offer voluntary term life insurance to new employees. Seconded by Minnie McCray. Two members voted for; two against. Motion failed.
After further discussion, motion was made by Steve Stamsom to amend the previous motion to propose option #1 with the opportunity for retirees to purchase any sum additional up to their current salary at 50% (86.5 cents per thousand) of the actual cost to the county, along with options #4 and #5 and offer voluntary term life insurance to new employees. Seconded be Minnie McCray. Motion carried.
Retiree Health Insurance - Mr. Swift presented the possible benefit changes (see attached). The committee is okay with 1a, but in 1b and 1c, they suggest changing the word "require" to "allow." The committee was in consensus with #3, but not with #4 and #5.
The committee proposed the following changes to Service Years at Retirement:
| Service Yrs. at Retirement |
Current |
Proposed |
Committee's Proposal |
Over 25 years
|
30% |
40% |
30% |
| 21 - 25 years |
30% |
50% |
40% |
| 16 - 20 years |
39% |
75% |
50% |
| 11 - 15 years |
40.5% |
100% |
100% |
| 7.5 - 10 years |
42% |
100% |
100% |
| Under 7.5 years |
N/A |
N/A |
N/A |
Mr. Stamsom further suggested that no changes should be made to Plan B retirees who are 65 years or more.
Lee Wessels made a motion to recommend the committee's proposal for Service Years at Retirement and accept Finance & Benefits' proposal for Retirees over 65, but freeze increases to Plan B retirees. Seconded by Minnie McCray. Motion carried.
SICK LEAVE - Paul Boyd
Mr. Boyd explained that the current policy on Sick Leave at Retirement states that an individual whose has never been on grades 51 and above would receive a payout of up to 75 days of sick leave based on an annual salary of $20,000.
As a result of the recent grade changes that have been made by Compensation, a number of employees are now above what the current policy states. The proposal is to make provisions to grandfather those employees who were affected by the grade change.
Ms. Lee Wessels proposed that we change the sick leave payout based on years of service rather than grade. If an employee (except elected officials) has been with County for 25 years and retire, they will get sick leave payout.
After further discussion, motion was made by Bob Patterson to accept the 25 years of service and $60,000 or less to be eligible for 75 days of banked sick leave payout at retirement. The motion was immediately amended by Steve Stamsom to $70,000 and 25 years.
After more dialogue, Sybille Noble amended the motion to employees whose annual salary is under $60,000 receive 75 days of banked sick leave at retirement with a cap of $20,000. This motion was moved by Lee Wessels. Seconded by Minnie McCray. Motion carried.
OTHER BUSINESS
Accidental Death & Dismemberment (AD&D) - Jim Martin
Mr. Martin explained that after looking over the insurance bids, they found that the AD&D offering is different from what is currently offered. He proposed that we stop offering AD&D (voluntary insurance) and grandfather in the employees that are currently enrolled in the program at the current rate.
It was moved by Bob Patterson that we accept the proposal to stop offering AD&D and grandfather the current employees that are enrolled in the current program and at the current rate. Seconded by Steven Baiel. Motion carried.
Motion was made to adjourn by Lee Wessels. Seconded by Steve Stamson. Motion carried.
Respectfully submitted,
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Shasta L. Sharp, Committee Recorder
November 16, 2006 | 
