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1 <br />ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: September 5, 2013 <br />Action Agenda <br />Item No. 7 -a <br />SUBJECT: Employee Benefits Updates and Preliminary Recommendations Regarding <br />Calendar Year Benefits for 2014 <br />DEPARTMENT: Human Resources <br />ATTACHMENT(S): <br />1. Benefits Report <br />2. 2014 Renewal Option Costs Detail for <br />Active Employees and Pre -65 Retirees <br />3. Health Insurance History <br />4. Benefits Survey Responses by <br />Jurisdiction <br />5. Benefits Presentation <br />PUBLIC HEARING: (Y /N) No <br />INFORMATION CONTACT: <br />Nicole Clark, Human Resources <br />Director, 245 -2552 <br />Diane Shepherd, Benefits Manager, 245- <br />2558 <br />PURPOSE: To receive information and provide feedback to staff on employee pay and benefits <br />for calendar year 2014. <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 />Staff provided information regarding FY 2013 -14 employee benefits at the April 11, 2013 Board <br />work session and during the FY 2013 -14 budget process. The County conducted a Request for <br />Proposals (RFP) process for health insurance administration and requested responses for both <br />a fully insured and self- funded plan. Retiree health insurance was discussed at the June 19, <br />2013 regular meeting. The FY 2013 -14 Approved Budget includes funds for up to an 8.0% <br />($226,444) health insurance premium increase effective with the January 1, 2014 renewal. An <br />overview of current benefits and proposed changes to health benefits are discussed in <br />Attachment 1. <br />United Healthcare has provided options for the 2014 employee health insurance benefits, <br />including the renewal of the existing 2013 fully insured plan and a self- insured option. <br />Attachment 2 provides cost details of current and alternate plan designs. A recommendation to <br />consider and approve the self- insured option will be presented at the September 17, 2013 Board <br />of County Commissioners' Regular Meeting. <br />