- Payment of Healthcare Premiums
The County and covered employees share in the cost of health care premiums. The County will pay 85% of the total premium for the Kaiser HMO, Blue Shield HMO, or Kaiser High Deductible Health Plans(employees pay 15% of the total premium), and the County pays 75% of the total premium for the Blue Shield POS Plan (employees pay 25% of the total premium).
- Part Time Employees
For County employees occupying permanent part-time positions, who work a minimum of forty(40), but less than sixty(60) hours in a biweekly pay period, the County will pay one-half(½) of the hospital and medical care premiums described above. For County employees occupying permanent part-time positions who work a minimum of sixty(60), but less than eighty(80) hours in a biweekly pay period, or qualify for health benefits under the Affordable Care Act(ACA), the County will pay eighty five percent(85%) of the Kaiser High Deductible Health Plan(HDHP) or three-fourths(3/4) of the County contribution to hospital and medical care premiums described above. Upon request from the County or the Union, the parties will reopen Section 21 during the term of the agreement if necessary to address changes required under the ACA or other healthcare legislation.
- Sick Leave Conversion to Health Coverage Upon Retirement – Tier One
Unless otherwise provided in this MOU, employees_hired prior to January 1, 2011 whose employment with the County is severed by reason of retirement during the term of this MOU shall be reimbursed by the County for the unused sick leave at time of retirement on the following basis:
- For each 8 hours of unused sick leave at time of retirement, the County shall contribute towards one(1) month’s premium for health coverage or for dental coverage for the employee and eligible dependents(if such dependents are enrolled in the plan at the time of retirement). The County shall not be obligated to contribute at a rate in excess of $165.00 per 8 hours of unused sick leave per month for the retired employee to continue health or dental coverage(e.g., if an employee retires with 320 hours of unused sick leave, the County will continue to pay the health or dental premiums on said employee for a period of 40 months). For employees who retire with 45% or more of the total amount of sick leave they could have
accrued during their career with the County of San Mateo, the conversion rate for each 8 hours of unused sick leave shall be $195.00.
Employees may increase the number of hours per month to be converted up to a maximum of 14 hours of sick leave per month. Such conversion may be in one full hour increments above a minimum of eight hours (e.g., if a worker converts 12 hours, they would be reimbursed $247.00 instead of $165.00). The number of hours to be converted shall be set upon retirement and can be changed anp.ually during open enrollment, or upon a change in family status that impacts the number of covered individuals (e.g., death of spouse, marriage and addition of spouse).
For employees who retire on or after January 1, 2008, the conversion rate for each 8 hours of sick leave will be increased from $165.00/$195.00 to $420. In no event will changes in the Kaiser premium or application of the 2% or 4% increases listed below result in the $420 rate being reduced.
For employees who retire with 20 or more years of service with the County of San Mateo, the $420 rate will be increased by 4% effective January 1, 2009 and each January 1st thereafter, the rate will be increased by 4%. Such contribution shall not exceed 90% of the Kaiser Employee-only premium non-Medicare rate.
For employees who retire with at least 15 but less than 20 years of service with the County of San Mateo, the $420 rate will be increased by 2% effective January 1, 2009 and each January 1st thereafter, the rate will be increased by 2%. Such contribution shall not exceed 90% of the Kaiser Employee-Only premium non-Medicare rate.
For employees who retire after January 1, 2007 with less than 15 years of service with the County of San Mateo, the conversion rate for each 8 hours of sick leave will be increased to $400. For employees who retire after January 1, 2008 with less than 15 years of service with the County of San Mateo, the conversion rate for each 8 hours of sick leave will be increased to $420. For employees who retire after January 1, 2009 with less than 15 years of service with the County of San Mateo, the conversion rate for each 8 hours of sick leave will be increased to $440.
Should a retired employee die while receiving benefits under this section, the employee’s spouse and eligible dependents shall continue to receive coverage to the limits provided above.
Employees hired on or after 1�1-2011 receive $400 per 8 hours of accrued sick leave. No inflation factor and no conversion at a lower number of hours. Section 21.6 remains in effect.
- The County provides a specified contribution to retirees who have unused sick leave at the time of retirement. For each unused eight hours of sick leave at time of retirement the County will make a specified contribution, as defined above, to the monthly premium for the retiree. If the cost of the premium is greater than the County’s contribution, the retiree pays the difference through their retirement
pay wa?’ant. If the cost of the premium is less than the County’s contribution, the County will apply the difference to the retiree’s Medicare Part B premium cost.
- The County
will provide up to a maximum of 288.6 hours of sick leave (3 years of retiree
health coverage) to employees
who receive a disability retirement. For example, if an employee
who receives a disability
retirement has 100 hours of sick leave
at the time
of retirement, the County will add another
188.6 hours of sick
leave to their balance.
- For employees who retire on or after January 1, 2007 with 20 or more years of service with the County of San Mateo, the 8 hours of sick leave converted for each month’s retiree health contribution by the county shall be reduced to 6 hours.
- Sick Leave Conversion to Health Coverage Upon Retirement-Tier Three
Employees hired on or after January 1, 2011, whose employment with the County is severed by reason of retirement during the term ofthis MOU shall be reimbursed by the County for the unused sick leave at time of retirement on the following basis:
For each 8 hours ofunused sick leave at time ofretirement, the County shall contribute toward one month’s premium for health or dental coverage for the worker and eligible dependents (ifsuch dependents are enrolled in the plan at the time ofretirement.) The County shall not be obligated to contribute at a rate in excess of
$400 per 8 hours ofunused sick leave per month for the retired worker to continue health or dental coverage (e.g., ifa worker retires with 320 hours ofunused sick leave, the County will continue to pay the health or dental premiums for a period of40 months.)
Should a retired worker die while receiving benefits under this section, the worker’s spouse and eligible dependents shall continue to receive coverage to the limits provided above.
None ofthe provisions ofSection 21.3 shall apply to employees hired on or after January 1, 2011, unless specifically provided in this Section
- Sick Leave Conversion to Health Coverage Upon Retirement-Licensed Vocational Nurses
Employees in the Licensed Vocational Nurse Unit shall be reimbursed by the County for unused sick leave at the time ofretirement on the following basis:
For each day ofunused sick leave at the time ofretirement, the County shall pay for one (1) month’s premium for health coverage for the nurse only, to a maximum of180 months ofcontinued health coverage. Should a retired nurse die while receiving benefits under this section, the employee’s spouse and eligible dependents shall continue to receive coverage to the limits provided above.
- Sick Leave Conversion-Survivor Benefit
The surviving spouse ofan active employee who dies may, ifthey elects a retirement allowance, convert the employee’s accrued sick leave to the above specified limits providing that the employee was age 55 or over with at least twenty years (20) ofcontinuous service.
- Additional Sick Leave Credit
Employees who retire after March 31, 2008 will, upon exhaustion ofaccrued sick leave, be credited with additional hours ofsick leave as follows:
- With at least 10 but less than 15 years ofservice with the County ofSan Mateo – 96 hours
- With at least 15 but less than 20 years ofservice with the County ofSan Mateo – 192 hours
- With 20 years or more ofservice with the County ofSan Mateo – 288 hours
County and the
Unions shall convene
a special committee within the first twelve (12) months following adoption ofthe successor MOU between the parties, to discuss the concept ofelimination ofthe Additional Sick Leave Credit
described in Section
21.7 ofthe MOU,
and establishing a County contribution to a Health Reimbursement Account.
Retirees who live in areas where no County Health plan coverage is available, and who are eligible for conversion of sick leave credits to a County contribution toward health plan premiums, may receive such contribution in cash while continuously enrolled in an alternate health plan in the area of residence. It is understood that such enrollment shall be the sole responsibility of the retiree.
This option must be selected either:
,· 1) At the time of retirement or
2) During the annual open enrollment period for the County’s health plans, provided the retiree has been
continuously enrolled in one of the County’s health plans at the time of the switch to this option.
Payment to the retiree will require the submission to the County of proof of continuous enrollment in the alternate health plan, which proof shall also entitle the retiree to retain the right to change back to any County offered health plan during a subsequent open enrollment period.
An out-of-area retiree who has no available sick leave credits for conversion to County payment of health plan premiums may also select the option of enrollment in an alternate health plan in the area of residence, provided that no cash payment will be made to the retiree in this instance. Should such retiree elect this option during an open enrollment period, rather than at the time of retirement, s/he must have had continuous enrollment in a County-offered health plan up to the time of this election. Continuous enrollment in the alternate plan will entitle the retiree to re-enroll in a County-offered health plan during a subsequent open enrollment period.
It is understood that the County is actively seeking coverage for out-of-area retirees under a nationwide HMO or other health insurance plan and that, should such coverage become available during the term of this Memorandum of Understanding, the County will meet with the Up.ions regarding substitution of this plan for the arrangement described in this subsection. Upon agreement by both the County and employee organizations such new plan will replace the cash option.
The County shall continue its practice of calculating employee contributions for health and dental premiums on a pre-tax basis consistent with Section 125 of the IRS Code.
21.10. Dependent Grandchildren
Effective October 20, 1996 grandchildren of custodial grandparents will be eligible dependents on all health, dental, and vision plans, whether or not formal adoption has occurred. This eligibility is contingent on documentation which is acceptable to the Health Plan.
21.11. Deferred Compensation Automatic Enrollment For New Employees
Subject to applicable federal
regulations, the County agrees to provide a deferred compensation plan that allows employees to defer
compensation on a pre-tax
basis through payroll
January 1, 2016, each new employee
will be automatically enrolled
in the County’s Deferred Compensation program, at the rate of one percent(1%) of their pre-tax wages, unless they
choose to opt out or to voluntarily change deferrals to greater
than or less
than the default
one percent(>1%) as allowed in the plan or as allowed by law. The pre-tax deduction will
be invested in the target
fund associated with
the employees’ date of birth.
All deferrals are fully
vested at the time of deferrals; there
will be no waiting
periods for vesting
- Retiree Health Coverage Committee
Within the first six (6) months of this MOU and contingent upon the agreement of the majority of the major County labor groups to participate the County and Union shall form a Retiree Health Coverage Committee to review Sections 21.3 – 21.8 of the MOU related to sick leave conversion upon retirement for health coverage/contributions to premiums and identify alternative or supplemental retiree medical options, including potential variations on the current program. Within thirty (30) calendar days of the formation of the Retiree Health Coverage Committee, the parties shall schedule committee meetings. The parties agree to review the current terms of the MOU and develop alternatives for consideration. Alternatives identified should include information (as applicable) on potential outside vendors, a timeline for implementation, identified opportunities and challenges with the alternative, and the funding methodology.
A Retirement Health Saving Program (RHSP) will be evaluated for its feasibility as one of the alternatives for the committee to review. RHSP programs that permit both employer and employee contributions along with options for leave conversions will be requested and reviewed by the committee. Should an alternative allow for the replacement of the existing sick leave conversion process and elimination of the additional sick leave credit in Section 21.7, those options will be evaluated for inclusion in an alternative contemplated by the committee.
To the extent that an evaluation on the impact to the County’s OPEB liability can be identified for any alternatives identified, the committee will provide this information or identify a proposal for obtaining this data.
In addition to the alternatives identified, if necessary, the committee should suggest a transition process for active employees (at the time a transition is made) from the current sick leave conversion program, to be reviewed in conjunction with any alternative identified by the committee.
Upon the County’s approval of a replacement and/or supplemental benefit, the Additional Sick Leave benefit described in Section 22.6 of this MOU will be eliminated, unless otherwise mutually agreed by the parties.
The Retiree Health Coverage Committee will consist of up to two (2) representatives from AFSCME, up to two (2) representatives from SEIU and one (1) representative from every other union/association in the County. The County may designate representatives to serve on the committee at its discretion.
In addition to the above:
The County Manager will attend the committee kick off meeting.
- The parties will prepare regular reports to the County Manager and Board of Supervisors regarding the committee’s activity.
- The parties will jointly endeavor to complete the committee process within twelve (12) months from the first meeting, conditioned on active participation of all parties.
- If the committee does not reach a set of recommendations supported by a majority of the participating labor organizations as a result of the committee process, the County will agree to reopen with the Human Services Unit over the issues of the sick leave conversion plan and the additional sick leave credit. The parties agree that AFSCME does not preserve its right to strike during the term of the agreement if the parties fail to reach agreement over the reopener. The “No Strike” provision of the MOU will remain in effect during the full term of the agreement, including in relation to the reopener.