Orange County NC Website
Browse       Search
ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: August 30, 201.1 <br />Action Agenda <br />Item No. ~_ <br />SUBJECT: Employee Benefits Updates and Preliminary Recommendations <br />DEPARTMENT: Human Resources .PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />1. Benefits Report <br />2. Health Insurance History <br />3. 2012 Renewal Option Costs Detail for <br />Active Employees and Pre-65 Retirees <br />INFORMATION CONTACT: <br />Katherine Cathey, Interim Human <br />Resources Director, 245-2553 <br />Diane Shepherd, Benefits Manager, 245- <br />2558 <br />PURPOSE: To receive information and provide feedback to staff on employee pay and <br />benefits for FY 2011-12. <br />BACKGROUND: The County provides employees with a comprehensive benefits plan <br />including County-paid health, dental and life insurance, an employee assistance program, <br />flexible compensation plan and paid leave for permanent employees. Additionally, the County <br />contributes to the Local Governmental Employees' Retirement System and a supplemental <br />retirement plan. <br />An overview of current benefits and proposed changes to dental and vision benefits are <br />discussed in the attached report (Attachment 1). Depending on the type of health plans the <br />County implements in 2012, modifications to the Flexible Compensation Program Plan Year <br />may be required to comply with federal legislation because employees are prohibited from <br />participating in a Flexible Spending Account and Health Savings Account simultaneously. <br />Staff provided. information relating to FY 2011-12 employee benefits at work sessions on May <br />10, 2011 and June 9, 2011 and in the County Manager's recommended budget for FY 2011-12. <br />The FY 2011-12 Approved Budget includes funds for up to a 15.0% ($552,598) premium <br />increase. Over atwelve-month period, this increase is equivalent to a 3% salary increase for all <br />permanent employees. The most significant consideration for 2012 health insurance is the loss <br />of the current coverage with the Health Insurance Risk Pool of the North Carolina Association of <br />County Commissioners (NCACC) which will end December 31, 2011. <br />As previously noted, health insurance costs are growing more rapidly than the cost of living. <br />Staff, in consultation with benefits consultant Mark III, obtained quotes for 2012 health <br />insurance premiums from three major insurers (CIGNA, UnitedHealthcare, and Blue Cross Blue <br />Shield) which were presented to the Board at the work sessions earlier this year. While the <br />