Item B2
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BOARD OF COUNTY COMMISSIONERS
AGENDATIEMSUMMARY
Meeting Date: September 4. 2002
Division:
BOCC
Bulkltem: Yes
No XX
Department: Cornm. Bert Jimenez
AGENDA ITEM WORDING; Proposal to require retirees to contribute to their health insurance
premium costs a monthly amount equal to the Florida Retirement System subsidy paid to
employees who have retired with 20 years of service.
ITEM BACKGROUND: The County sends to Florida Retirement System a subsidy to defray health
insurance, which the retirees are presently keeping. lbis subsidy equals $5.00 per month per year
served. An employee who retired with 10 years of service receives $SO/month subsidy. For 20 years
service the subsidy is SIOO/month; for 30 years, SI50/month.
This proposal would require retirees who have served the least to contribute the $50 subsidy (originally
paid into FRS by the county) plus $50 of their own funds. Retirees with 20 years of service would
contribute the full $100 tbey receive, and those with 30 years service would keep $50 of their
$150/month subsidy. It is estimated that this will reduce expenses by $314,400.
PREVIOUS REVELANT BOCC ACTION:
CONTRACT/AGREEMENT CHANGES:
ST AFF RECOMMENDATIONS:
TOTAL COST:
BUDGF.TF.D: Yes
No XX
COST TO COUNTY:
REVENUE PRODUCING: Yes
No
AMOUNTPERMONTH_ Year
DMSION DIRECTOR APPROVAL:
APPROVED BY: County Atty _
DOCUMENT AnON:
Included XX To Follow_
Not Required _
AGENDA ITEM #
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DISPOSITION:
Revised 2/27/01
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PROPOSAL: to require county retirees to conm'bute to their health insunmcc costs a monthly amount
equal to the FRS subsidy paid to employees who retired after working 20 years for 1he county.
BACKGROUND: Since 1988, retirees receive free health insurance. This is not an entitlement. but rather
a decision that can be rescinded at any rime. At the time this decision was originally made, there were 12
retirees. That number has grown to 262. In addition, the county sends to Florida Retirement System a
subsidy to defi'ay health insurance, which the retirees are presently keeping. This subsidy equals $5.00 per
month per year served. An employee who retired with 10 years of service receives SSO/montb subsidy.
For 20 years service the subsidy is Sloo/month; for 30 years, $J50Imonth.
This proposal would require retirees who bave served the least to contnbute the $50 subsidy (originally
paid into FRS by the county) plus $SO of their own funds. Retirees with 20 years of service would
contribute the full $100 they receive, and those with 30 years service would keep $50 of their S1501month
subsidy.
It is estimated that this will offset budget increases by $314,400.
, Proposal Annual Annual I Annual
i Savings (I) Savings (II) ,Savings (III)
A Adiust Rate for Dependent coverage 191,9561 191.956 191 ,956
8 !MandatoTv Generic Program 36,000 36,000 36,000
C ; 1. Change co-pay from 801201 to 70/30 400,000
2. Change co-pay from 801201 to 75/25 ." n. 200,000
3. Keep co-pav at 80120, charge retirees 314,400
0 Eliminate Dental and VISion 690,0001 690,000 690,000
,Total savings 1.317,956 1.117.956 1.232.356
Plan III incorporates keepin~ employees coveraee at 80120. which is apparently highly desin:d by our
workforce, together with achieving substantial ad valorem tax rcductign., at the expense of charging
retirees. However, (a) retirees were not promised free health care in perpetuity, and (b) it is still It great
benefit to acquire health insllf'llJlCe allhese low rates of SIOO1month. ~l1y when some or all of that
premium is subsidized.