Agenda - 09-14-2010 - 3 - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS • ACTION AGENDA ITEM ABSTRACT Meeting Date: September 14, 2010 Action Agenda Item No. ~_ SUBJECT• Employee Benefits Preliminary Recommendations and Update DEPARTMENT: Human Resources PUBLIC HEARING: (YIN) No ATTACHMENT(S): 1. The Impact of Health Care Reform on Orange County 2. Health Insurance Overview 3. Comparison of Fully-Insured vs. Self- Insured Health Care Coverage 4. Dental Insurance Overview 5. Flexible Spending Account Overview 6. Supplemental Benefits Overview 7. Leave Accruals Overview INFORMATION CONTACT: Michael McGinnis, HR Director, 245- 2552 Diane Shepherd, Benefits Manager, 245-2558 Clarence Grier, Financial Services Director, 245-2453 • PURPOSE: To provide the Board with an update on employee benefits and background information related to 2011 employee benefits renewal and leave accruals. BACKGROUND: The County provides permanent employees with an attractive and excellent comprehensive benefits plan including health, dental, life insurance, an employee assistance program, flexible compensation plan, supplemental retirement plans, and paid leave to permanent employees. For the past two years economic stresses have significantly challenged Orange County's ability to continue to maintain the level of benefits expected by our employees. In response, the County implemented a number of personnel services cost saving reduction programs, including suspension of the County 401(k) contribution to permanent employees, no salary increases (Merit or COLA), voluntary furloughs, instituted a hiring freeze and eliminated many vacant positions. Through these cost saving programs and cutting costs across the organization, the County has been able to retain all permanent employees. As the County reduces its total employee base at the same time that demand for County services is increasing, it is important to review ways to demonstrate the County's commitment to employees without significant increases in cost. The County benefits package helps attract and retain employees. Employees have shown their willingness to engage in healthy, or healthier, activities to keep health insurance benefits at • current levels and minimize their costs, as demonstrated by the 85% of employees who completed the Health Assessment between October 2009 and March 2010. Additionally, throughout 2010, the County held several successful wellness challenges, employee walking events, and a well attended Wellness/Employee Appreciation Day. Over 200 employees