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Home My WebLink AboutResolution No. 21-8040 - MOU between City of Downey and City Employees' Association - Miscellaneous UnitA RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY ADOPTING THE SIDE LETTER AGREEMENT TO2021-2023 MEMORANDUM OF OF DOWNEY AND THE DOWNEY CITY EMPLOYEES'• • lMISCELLANEOUS on 121, the City Council of of Downey adopted Resolution No. 21-8010 for the purpose of adopting the Memorandum of Understanding (MOU) between - City and the Downey • • -- • •n — Miscellaneous Unit (DCEA- MISC); f: Subsequent to the adoption of the MOU, the City of Downey and the DCEA-MISC agreed to changes to the MOU that are reflected in a Side Letter of Agreement between the City and the DCEA-MISC ("Side Letter Agreement") attached hereto as Exhibit A and incorporated herein by - SECTION 1. The Side Letter of Agreement attached hereto as Exhibit A is approved and adopted. SECTION 2. The Side Letter of Agreement amends the MOU between the City of Downey and the DCEA-MISC. • ' • '0 a •. • ': • • •- r S LIgrAITA R•Ti � a n I HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of the City of Downey at a Regular meeting held on th day of October,2021 by • • • • - to Council- r- Ashton,Trujillo, Pacheco,. a • NOES:• - •-None. Council Members: None. CouncilABSENT: - r-None. A. Y i is k. . • RESOLUTION NO. :01 LETTER OF AGREEMENT TO THE 2021-2023 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF DOWNEY AND THE DOWNEY CITY EMPLOYEES' ASSOCIATION — MISCELLANEOUS UVIT 1:424*911 This letter memorializes an agreement reached between the City of Downey ("City") arm 0 the Downey City Employees' Association — Miscellaneous Unit ("DCEA-MISC") to change the 2021-2023 Memorandum of Understanding ("MOU") entered into between the City and DCE MISC. All other terms and conditions of the existing MOU shall remain in full force and effect. The changes are as follows: ARTICLE XIV IM11-11% Section 1. Medical Insurance. Effective October 1, 2012, the City contracted with the California Public Employees' Retirement System (CaIPERS) to implement the CalPERS medical benefits program governed by the Public Employees' Medical and Hospital Care Act (PEMHCA). In its implementation, the City and the Association agreed that the mandated employer contributions for retirees would be structured in a manner to maintain cost savings. The City and the Association agreed that any necessary and legal modifications to the retiree medical benefits provisions in this Memorandum of Understanding would be made for compliance with the CalPERS PEMCHA program and to maintain the benefit set forth in Article XV, Section 6, without an increase to the City's minimum mandated contributions for retirees. Such provisions are updated to include. - A. CaIPERS PEMHCA Program. Employees and retirees have the option of choosing medical insurance coverage from any of the medical plans offered by CaIPERS. B. City Contribution Amount. From January 1, 2021 through December 31, 2021, the City's contribution amount will be the monthly premium amount of the employee's eligible coverage level for the second highest PPO plan offered by CalPERS at the basic premium rates designated for the Los Angeles Area. Effective January 1, 2022 through the term of this agreement, the City's monthly contribution amount will be 100% of the premium rate for medical insurance for employees plus their qualified dependent(s) up to the premium rates for the Los Angeles region Kaiser HMO medical plan offered by CalPERS. If an employee enrolls in a plan with higher premiums than the City's contribution, he/she will be responsible for the payment of the premium amount in excess of the City's contribution. 1. PEMHCA Employer Mandated Contributions. The City shall contribute on behalf • each employee the mandated minimum sum as required per • toward the payment of premiums for medical insurance under the PEMHCA program. As the mandated minimum is increased, the City shall make the appropriate • The City is mandated under PEMHCA to make a contribution to retiree medical premiums. As allowed • the • Code and the CalPERS Board, the City `• the Unequal Contribution Method to make City contributions • •` • each retiree • annuitant. The 2012 starting year `• contribution •'•. at $1.00 per month. The City's mandated contribution for each annuitant shall be increased annually in compliance with Government Code section 22892(c), until the contribution for annuitants equals the contribution paid for employees. A retiree's right to receive a City contribution, and the City's obligation to make a mandatory contribution on behalf of retirees, shall only exist as long as the City contracts with CalPERS PEMHCA for medical insurance. In addition, while the City contracts with CalPERS PEMHCA, its obligation to make mandatory contributions on behalf of retirees shall be limited to the minimum contribution required • law. C. IRS • 125 Benefit (Cafeteria) Plan. The City shall continue to provide payment of benefit premiums for employees covered by this Agreement under an IRS Section 125 Benefit Plan. The current core benefits include medical, dental, life, long-term disability insurance, and EAP coverage. Medical insurance is a core benefit which a City employee is required to be enrolled in unless he is covered by another medical insurance plan with comparable coverage and/or meets minimum essential coverage as specified by the Affordable Care Act. 1. • the term • this Agreement, the City's maximum contribution shall be the sum • the monthly • as designated • each • the following '•• Employee • Employee +1 Dependent Employee +2 or more dependents ("EE +2") The maximum City contribution shall • based • the employee's • in each plan. The employer mandated PEMHCA contribution is included in the sum of the CalPERS medical premium. If an employee enrolls in a plan wherein the costs exceed the City's maximum contribution, the employee is responsible for all additional premiums through pre-tax payroll deductions. An employee is not entitled to any excess amount of premiums paid by the City on his behalf. 2. The City continues to provide other benefits coverage under an Employee • Benefits Program fully funded • the employee • a • •. in accordance with IRS regulations. I The City agrees to permit an employee to waive City -sponsored medical coverage as follows: 1. The employee must present written proof to the Human Resources Office that he and his qualified dependent(s) are covered by another non -City -sponsored medical plan for the current plan year; 2. The employee must sign a statement acknowledging a waiver of City offered medical insurance coverage and agreement to hold the City harmless for any consequences, whatsoever, that result from the employee's waiver of City offered medical insurance coverage for employee and/or qualified dependent(s); and 3. The employee must sign a statement acknowledging his understanding that his qualified dependent(s) are not eligible to re -enroll in City sponsored medical coverage until the next announced Open Enrollment period or as otherwise required by law under COBRA provisions. The City agrees that the employee who is qualified to waive coverage shall receiv"-, three hundred dollars ($300.00) per month if waiver eligibility is for "employee only" coverage, four hundred fifty dollars ($450.00) per month if waiver eligibility is for "employee plus one" coverage, or six hundred fifty dollars ($650.00) per month if waiver eligibility is for "employee plus two or more dependents" coverage. The eligible amount will be paid to the employee as taxable earnings. A medical opt out election may only be made during an announced open enrollment period for medical insurance changes effective January 1. DATE: C17 OF5WNEY DOWNEY CITY EMPLOYEES' ASSOCIATION — MISCELLANEOUS UNIT I