Vote: adopted

Item Text

31. EMPLOYEE BENEFIT TRUST – BENEFIT HOLIDAY - PAY PERIOD END 6/8/2014 Approve (1) a benefit holiday of Medical Plan related premiums paid to the Employee Benefit Trust by employees for the 6/8/2014 payroll in an amount which is estimated to be $520,821; and (2) approve a benefit holiday of Medical Plan related premiums paid to the Employee Benefit Trust by departments for the employer share for the June 8, 2014 payroll in an amount which is estimated to be $4,709,214. As benefit premiums fluctuate with each payroll, the total rebate will not exceed $5,500,000. The purpose of this premium holiday is to further reduce the fund balance in the Benefits Trust in excess of recommended reserves as of June 30, 2013, as directed by the FY 2014 Adopted Budget. The employee rebate will implemented by not charging employees for medical plan related premiums for all employees that have an active “A” status or leave status “L” or “P” at the time of the premium holiday. The employer portion of the holiday will be implemented in the same manner as the employee holiday. The Benefit premiums involved in this action will be for the following Self-Funded plans: three Medical Plans, one Pharmacy Plan, one Behavioral Health Plan and the three benefit premium incentive programs. This action will reduce Benefit Trust revenues but will not eliminate the Benefit Cost allocation to the departments for the June 8, 2014 pay period. The cost allocation was budgeted to be lower than actual benefit premium charges and thus the departments have already benefited from receiving a discounted cost allocation. (C-39-14-030-2-00)