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- The General Assembly increased the employer contributions to the LGERS, effective <br /> July 2010 and again July 2011. <br /> - The employee contribution remains the same at 6%. <br /> - Effective January 1, 2011, the County reinstated the $27.50 per pay period ($715 <br /> annually) 401(k) contribution for general employees and provided a choice of three <br /> supplemental retirement plans. <br /> - For each law enforcement officer, the County makes the 5% of salary 401(k) plan <br /> contribution required by State law. <br /> Summary <br /> - Focus is on retaining a talented workforce that is committed to serving the residents of <br /> Orange County. <br /> - Employees are very concerned about pay and health insurance. <br /> - Preserving employee pay and benefits continues to be a priority. <br /> - Employees understand the fiscal situation and have been cooperative and supportive <br /> through three difficult years. <br /> Tracy McCarty from Mark III made a PowerPoint presentation. <br /> Medical Plan PerFormance And Projections <br /> Medical Plan Renewal — Overview and Results <br /> - The NCACC did not charge the County the required rates (underfunded). <br /> - The Orange County medical plan has performed poorly. <br /> - The plan was sent to out for bid. <br /> - Current plan initial proposals came back with 27% - 31% increases. <br /> - Two firm fully insured quotes came back from both Cigna and United Healthcare. <br /> - BCBS quote was non-competitive: illustrative only. Claims data through September <br /> required for final rates. <br /> Plan Considerations <br /> - Current plan running over 100% of the amount of premium paid. <br /> - Plans costs will continue to escalate in the next year without changes. <br /> Medical Plan Renewal — In Summary <br /> - Plan modifications mitigate the 2012 increase and build in stability for 2013. <br /> - Plan changes are within the FY 2011-12 budgeted amount. <br /> - Employee education is required because all employees will be affected by the change <br /> in insurance carrier and/or plan design. <br /> Tracy McCarty went through the quotes from the firms. She said that before the <br /> renewal was received, they were projecting about a 33% increase on the current plan. There <br /> were some recommendations on a PPO, high-deductible, HSA plan that should bring the <br /> increase to around 6-7%. However, CIGNA, which manages the plan for the NCACC, came in <br /> at about 27-28% on the current plan with no changes. If the alternate plans are put in, CIGNA <br /> came in at a 10% increase. <br />