Minutes 06-11-2013 - Laserfiche WebLink

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Preserving employee pay and benefits continues to be a priority. The County's financial condition continues to improve. Commissioner Price arrived at 7:30pm. Referring to the retiree health benefits, Nicole Clark said the average age of the 297 retirees is 65.9 years, compared with the average age of the 820 active employees, which is 45.6. She said the County provides coverage based on the retiree's age. She said those who have not reached 65 remain on the group health insurance plan and are eligible for the dependent subsidy. Retirees then enroll in Medicare Part A at age 65, which is of no cost to the retiree or the County, and part B, which deducts a premium from Social Security benefits. She said the County pays for both a Medicare supplement to cover gaps left by Medicare, and part B, which covers prescription medication. She said changes were made last year to address the increasing liability for retiree health insurance. She said these changes increase eligibility requirements, require retirees eligible for Medicare due to disability to enroll in Medicare, and cap the individual County payout for Medicare supplements in part D. Commissioner Dorosin asked how many of the County employees earn the living wage. Nicole Clark said there are no employees making that amount. She said this is for permanent employees and most of the positions have a minimum salary or hourly rate that is higher. Commissioner Dorosin asked about retiree benefits. He noted that the recommendation is to increase the flat amount. Nicole Clark said the County currently offers $715 per employee per year for the 401 K. She said the recommendation is, for those employees that do contribute to their 401 K, that the county matches up to an additional $1200. Commissioner Dorosin asked how he should compare that with these percentages. He asked what percentage range this puts the County in. Frank Clifton said Orange County is very low and the 401 k has never grown, even as salaries or contributions grew. Commissioner Dorosin questioned the usefulness of this information. He would like to see Orange County's percentage for the 401 k contribution compared to the other counties. He would like to see what 3% or 4% cost would look like. Chair Jacobs suggested staff omit the department heads and look at the remaining mean salary. Nicole Clark said the average annual salary for an Orange County employee is approximately $45,000; so $715 is 1.57%, including department heads. She said the true number is likely closer to 3%. Frank Clifton said 3% is the new recommendation only if the employee contributes, and that is not true in a lot of other governmental entities. Commissioner Gordon said there was a time when staff looked at Orange County benefits compared to others, and at that time the County looked good. She said a comprehensive comparison of all benefits would need to be done in order to get the overall picture. Chair Jacobs agreed with Commissioner Gordon, and said that Orange County usually does better than the state and other counties. He said it is difficult to compare when only one area is considered, versus looking at the overall picture. Commissioner Rich asked where the $1200 figure comes from. Frank Clifton said the staff looked at other entities, both governmental and private/public entities, and considered what benefits are being offered. Commissioner Pelissier referred to the hiring delays and asked why there were longer delays for Emergency Services personnel.