HomeMy WebLinkAboutResolution No. 24-8261 - Electing to be Subject to the Public Employees' Med & Hospital Care Act for Employees and AnnuitantsRESOLUTION NO. 24-8261
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY
ELECTING TO BE SUBJECT TO THE PUBLIC EMPLOYEES' MEDICAL AND
HOSPITAL CARE ACT AT AN UNEQUALAMOUNTFOR EMPLOYEES AND
ANNUITANTS WITH RESPECT TO A RECOGNIZED EMPLOYEE
ORGANIZATION
WHEREAS, A contracting agency meeting the eligibility requirements set forth in
Government Code Section 22920, may obtain health benefit plan(s); as defined under
Government Code Section 22777, by submitting -a resolution to the Board of Administration of
the California Public Employees' Retirement System (the "Board"), and upon approval of such
resolution by the Board, become subject to the Public Employees' Medical and Hospital Care
Act (the "Act"); and
WHEREAS, City of Downey is a contracting agency eligible to be subject
to the Act under Government Code Section 22920; and
WHEREAS, Government Code Section 22892(a) provides that a contracting agency
subject to the Act shall fix the amount of the employer contribution by resolution; and
WHEREAS, Government Code Section 22892(b) provides that the employer contribution
shall be an equal amount for both employees and annuitants, but may not be less than the
amount prescribed by Section 22892(b) of the Act; and
WHEREAS, Government Code Section 22892(c) provides that, notwithstanding Section
22892(b), a contracting agency may establish a lesser monthly employer contribution for
annuitants than for employees, provided that the monthly employer contribution for annuitants is
annuallyincreased to equal an amount not less than the number of years the contracting
agency has been subject to this subdivision multiplied by five percent of the current monthly
employer contribution for employees; until the time that the employer contribution for annuitants
equals the employer contribution paid for employees; and
WHEREAS, City of Downey desires to obtain for its employees and annuitants who are
members of Employees' Association — Maintenance Unit the benefit of the Act and to accept
the liabilities and obligations of an employer under the Act; now, therefore, be it
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES
HEREBY RESOLVE AS FOLLOWS.
SECTION 1. City of Downey elects to be subject to the provisions of the Act; and be it
further
SECTION 2. That the employer contribution for each employee shall be the amount
necessary to pay the full cost of his/her enrollment, including the enrollment of family members,
in a health benefits plan up to a maximum of the PEMHCA Minimum' per month, plus
administrative fees and Contingency Reserve Fund assessments; and be it further
SECTION 3. That the initial employer contribution for each annuitant shall be the
amount necessary to pay the full cost of his/her enrollment, including the enrollment of family
members, in a health benefits plan up to a maximum of $102.70 per month, plus administrative
fees and Contingency Reserve Fund assessments; and be it further
RESOLUTION NO. 24-8261
PAGE 2
SECTION 4. That the monthly employer contribution for annuitants is annually
increased to equal an amount not less than the number of years the contracting agency has
been subject to this subdivision multiplied by five percent of the current monthly employer
contribution for employees, until the time that the employer contribution for annuitants equals
the employer contribution paid for employees; and be it further
SECTION 5. That this annual adjustment to the minimum monthly employer
contribution for annuitants shall not exceed one hundred dollars ($100.00); and be it further
SECTION 6. City of Downey has fully complied with any and all applicable
provisions of Government Code Section 7507 in electing the benefits set forth above; and be it
further
SECTION 7. That the participation of the employees and annuitants of
City of Downey shall be subject to determination of its status as an "agency or instrumentality of
the state or political subdivision of a State" that is eligible to participate in governmental plan
within the meaning of Section 414(d) of the Internal Revenue Code, upon publication of final
Regulations pursuant to such Section. if it is determined thatCityof Downey would not qualify
as an agency or instrumentality of the state or political subdivision of a State under such final
Regulations, CalPERS may be obligated, and reserves the right to terminate the health
coverage of .all participants of the employer; and be it further
SECTION 8. That the executive body appoint and direct, and it does hereby appoint
and direct Director of Human Resources to file with the Board a verified copy of this resolution,
and to perform on behalf of City of Downey all functions required of it under the Act; and be it
further
SECTION 9. That coverage under the Act be effective on January 1, 2025.
SECTION 10. The City Clerk shall certify to the adoption of this Resolution.
APPROVED AND ADOPTED this 13th day of August, 2024.
MARIO TRUJILLO, Mayo
ATTEST:
AR ALICIA DUARTE,
City Clerk
i
RESOLUTION NO. 24-8261
PAGE 3
APPROVED AS TO FORM.
JOHN M. FUNK
City Attorney
1 HEREBY CERTIFY that the foregoing Resolution was adopted by the City Counci► of the
City of Downey at a Regular meeting held on the 13th day of August, 2024, by the following vote,
to wit:
AYES: Council Members: Frometa, Ortiz, Pemberton, Mayor Trujillo
NOES: Council Member: None.
ABSENT: Council Member: Soso
ABSTAIN: Council Member: None.
AR ° ALICIA DUARTE, MC
City Clerk