Minutes 06-11-2013 - Laserfiche WebLink

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The Manager recommends: • Continuing the 5.0% contribution employer contribution to the Local Government Employees' Retirement System 401(k) program for sworn law enforcement officers • Maintaining the $715 annual County minimum contribution and matching employees' contributions up to an additional $1,200 annually for all employees • Fifty-four of the 100 counties contribute to the NC Supplemental Retirement Plans through Prudential • McDowell and Orange contribute a flat dollar amount • Average contribution is 3.6% • Cities: Chapel Hill 5.0%, Carrboro 3.0%, Durham 4.5%, Mebane 5.0% • Counties: Alamance 2.0%, Chatham 4.5%, Durham 5.0%, Wake 5.0% Employee and Retiree Health Insurance • Potential 8.0% premium increase, based on early claims data, effective January 1, 2014 with the same level of coverage • RFP responses are not firm due to limited plan year performance data • Fully insured and self-funded responses provided • Actual plan designs, premium structure and total cost will be presented at the September 5, 2013 Regular Meeting with a decision needed by the Commissioners • Decision is needed on September 5 in order to comply with federal notification requirements Orange County Living Wage • Recommend maintaining the Living Wage of$10.97 an hour - Most recent calculation would result in a decrease to $10.89 • Calculation based on the region including Orange, Durham, Alamance, and Wake Counties Six-Month Hiring Delay • Recommend extending the six-month hiring delay that was implemented in FY 2010-11. • Total savings from the hiring freeze is projected to be more than $2.0 million. Voluntary Furlough • Recommend extending the voluntary furlough program that was initially implemented in FY 2009-10. • Anticipate cost savings of$50,000 in FY 2013-14. - Fewer participants with longer furlough periods Retiree Health Benefits • The County Manager recommends restricting 50.0% of the increase in the FY 2012-13 fund balance for the long-term liability of funding retiree health benefits • As retiree health care costs increase due to the increase in retirees and the increase in health care costs, the County must plan for its future liability Summary • Focus is on retaining a talented workforce that is committed to serving the residents of Orange County. • Employees are very concerned about pay and health insurance.