Orange County NC Website
Browse       Search
ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: June 24, 2008 <br />Action Agenda , <br />Item No. ~- - I <br />SUBJECT: Amendment to Article IV, Section 7.2.4 of the Orange County Personnel <br />Ordinance Eliminating the Dependent Health Care Subsidy for Retiring <br />Employees Hired After July 1, 2008 <br />DEPARTMENT: Human Resources PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />INFORMATION CONTACT: <br />Michael McGinnis, Human Resource <br />Director (919) 245-2552 <br />PURPOSE: To consider adopting an amendment to Article IV, Section 7.2.4 of the Orange <br />County Personnel Ordinance eliminating the dependent health care subsidy for retirees hired <br />after July 1, 2008. <br />BACKGROUND: The cost of providing health care insurance to employees and retirees <br />continues to increase. In the five year period 2002-2007, the cost for retiree health care <br />insurance has more than doubled from $326,102 to $841,110. The Human Resources <br />Department has been researching ways to lessen the financial impact of health care on the <br />organization without reducing benefits to current employees and retirees and without affecting <br />the organizations ability to hire and retain the best employees. <br />Currently, the County provides health insurance coverage for retirees with at least 10 years of <br />service. Retirees, under the age of 65, have the option of covering one or more dependents <br />under the County's. health care plan. The County subsidizes the cost of retiree dependent <br />health care by paying 52% of the dependent's monthly premium. Twenty-six retirees currently <br />have dependent health coverage. In calendar year 2008, the annual County cost to provide <br />dependent health coverage will be approximately $83,000. <br />Staff is recommending that the Board consider amending Article IV, Section 7.2.4 of the Orange <br />County Personnel Ordinance to eliminate the subsidy the County provides to retirees for <br />dependent heath care for those employees hired after July 1, 2008 who subsequently retire <br />from County Service. This would not affect current employees or retirees who are receiving the <br />dependent health care subsidy; this amendment would only apply to employees hired after July <br />1, 2008. <br />Article IV, Section 7.2.4 can be amended to add the following language: <br />Effective July 1, 2008, Orange County will not subsidize the cost of retiree dependent <br />health care for employees hired after July 1, 2008. <br />