Title
Approve a report summarizing enhancements to the dental and vision benefit plans previously authorized by the Board of Supervisors in 2013 and implemented effective January 1, 2014.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Approve a report summarizing enhancements to the dental and vision benefit plans previously authorized by the Board of Supervisors in 2013 and implemented effective January 1, 2014.
SUMMARY/DISCUSSION:
On June 11, 2013 and July 16, 2013 the Board of Supervisors provided authority to County labor negotiators to include certain benefit plan enhancements in negotiated agreements with the County's labor organizations. These enhancements included:
1. Increasing the annual limit on dental benefits to $2000 annually, per covered employee or family member, at an additional projected annual cost to the County of approximately $349,289;
2. Adding orthodontic coverage up to a $1500 lifetime maximum, per covered employee or family member, at an additional projected annual cost to the County of approximately $182,238
3. Increasing vision benefits to include a frame and/or contact lens allowance of $140 annually, and the availability of progressive lenses, at an additional projected annual cost to the County of approximately $181,177.
These enhancements were ultimately authorized and granted for all eligible represented and unrepresented employees, at no additional cost to the employees, and were implemented effective January 1, 2014.
Approval of this report ensures that the record is complete and accurate regarding the authorization and implementation of these benefits.
OTHER AGENCY INVOLVEMENT:
The CAO's Office concurs with this recommendation.
FINANCING:
The increased benefit costs are funded utilizing existing reserve funds in the dental and vision programs, totaling $5,237,845. It is anticipated that annual premiums and reserves will be sufficient to fund program benefits for the next two years. Prior to depletion of reserves, the Department will bring a report back to the Board on options for program changes or premium payment adjustments.
Approval of this action has no fiscal impact as the projected costs of the benefits have already been included in the FY14/15 recommended budget.
Prepared by: Konstanze Assaad, Human Resources Program Manager, 5119
Approved by: James May, Human Resources Director, 5129