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8 <br /> 1 • Average contribution is 3.6% <br /> 2 • Cities: Chapel Hill 5.0%, Carrboro 3.0%, Durham 4.5%, Mebane 5.0% <br /> 3 • Counties: Alamance 2.0%, Chatham 4.5%, Durham 5.0%, Wake 5.0% <br /> 4 <br /> 5 Employee and Retiree Health Insurance <br /> 6 0 Potential 8.0% premium increase, based on early claims data, effective <br /> 7 January 1, 2014 with the same level of coverage <br /> 8 0 RFP responses are not firm due to limited plan year performance data <br /> 9 0 Fully insured and self-funded responses provided <br /> 10 0 Actual plan designs, premium structure and total cost will be presented at <br /> 11 the September 5, 2013 Regular Meeting with a decision needed by the <br /> 12 Commissioners <br /> 13 0 Decision is needed on September 5 in order to comply with federal <br /> 14 notification requirements <br /> 15 <br /> 16 Orange County Living Wage <br /> 17 . Recommend maintaining the Living Wage of$10.97 an hour <br /> 18 - Most recent calculation would result in a decrease to $10.89 <br /> 19 • Calculation based on the region including Orange, Durham, Alamance, and <br /> 20 Wake Counties <br /> 21 <br /> 22 Six-Month Hiring Delay <br /> 23 . Recommend extending the six-month hiring delay that was implemented in <br /> 24 FY 2010-11. <br /> 25 . Total savings from the hiring freeze is projected to be more than $2.0 million. <br /> 26 <br /> 27 Voluntary Furlough <br /> 28 . Recommend extending the voluntary furlough program that was initially <br /> 29 implemented in FY 2009-10. <br /> 30 . Anticipate cost savings of$50,000 in FY 2013-14. <br /> 31 - Fewer participants with longer furlough periods <br /> 32 <br /> 33 Retiree Health Benefits <br /> 34 . The County Manager recommends restricting 50.0% of the increase in the <br /> 35 FY 2012-13 fund balance for the long-term liability of funding retiree health <br /> 36 benefits <br /> 37 • As retiree health care costs increase due to the increase in retirees and the <br /> 38 increase in health care costs, the County must plan for its future liability <br /> 39 <br /> 40 Summary <br /> 41 0 Focus is on retaining a talented workforce that is committed to serving <br /> 42 the residents of Orange County. <br /> 43 Employees are very concerned about pay and health insurance. <br /> 44 Preserving employee pay and benefits continues to be a priority. <br /> 45 The County's financial condition continues to improve. <br /> 46 <br /> 47 Commissioner Price arrived at 7.30pm. <br /> 48 <br /> 49 Referring to the retiree health benefits, Nicole Clark said the average age of the <br /> 50 297 retirees is 65.9 years, compared with the average age of the 820 active employees, <br /> 51 which is 45.6. She said the County provides coverage based on the retiree's age. <br /> 52 She said those who have not reached 65 remain on the group health insurance <br /> 53 plan and are eligible for the dependent subsidy. Retirees then enroll in Medicare Part A <br /> 54 at age 65, which is of no cost to the retiree or the County, and part B, which deducts a <br />