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A <br /> 8 <br /> 401(k)plan contribution State law requires for law enforcement officers. • <br /> Attachment 6 shows area local government employers and the supplemental <br /> retirement contribution amount. <br /> If the County initiated a one percent 401(k)plan contribution for general <br /> government permanent employees, the estimated cost is approximately: <br /> $75,000 effective January 1, 1996 for the period through June 30 <br /> $151,000 effective July 1, 1996 for fiscal year 1996-97 <br /> Summary <br /> Personnel has shared the information in this report with department heads and <br /> members of the County's Employee Relations Consortium. Personnel and the <br /> Manager also have met with these groups to get their feedback on the options. <br /> Based on these discussions and evaluation of the options, it is recommended that <br /> the Board pursue Option B. Under Option B,the estimated cost savings to the <br /> County on a full year basis is approximately $225,000. <br /> This recommendation results from the strong feeling expressed by employees that <br /> it is important to continue to offer HealthSource as a health plan option and the <br /> fact that approximately 200 employees currently are enrolled in this plan. The <br /> reasons expressed for this relate to established relationships with physicians and <br /> strong customer satisfaction with HealthSource. <br /> Option C is presented in response to the Board's question as to whether significant <br /> cost savings could be realized by limiting employee choice in health plans. If the <br /> Board elected to pursue Option C, it is recommended that the Board accompany it <br /> with implementation of a one percent County paid 401(k)plan contribution for <br /> each general government permanent employee effective either January 1 or <br /> July 1, 1996. Under this scenario, the net total savings to the County is <br /> approximately $180,000 on a full year basis. <br /> The reasons for combining Option C with a 401(k) contribution is that the County <br /> realizes very significant savings in health insurance compared to other options, yet <br /> at the same time it recognizes that employees may face some higher expenses <br /> depending on the employee's need or desire to maintain a relationship with a <br /> particular physician. Absent the 401(k)benefit,this option may be perceived by <br /> employees as too much of a change without an accompanying employee benefit. <br /> At the same time,the 401(k)plan is a key benefit lacking in the current benefits <br /> package. Thus this option permits the County to redistribute and enhance the <br /> impact of its benefits dollars. <br />