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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: March 29, 2016 <br /> Action Agenda <br /> Item No. 2 <br /> SUBJECT: Employee Benefits and Pay Review <br /> DEPARTMENT: Human Resources Department <br /> ATTACHMENT(S) INFORMATION CONTACT: <br /> A. Benefit Highlights Brenda Bartholomew, Human Resources <br /> Director, (919) 245-2552 <br /> B. Current Premium Equivalent Cost Share for Diane Shepherd, Benefits Manager, (919) <br /> Medical, Dental and Vision Benefits 245-2558 <br /> PURPOSE: To receive relevant information regarding the Manager's recommendations for <br /> employee health and dental insurance and other employee benefits effective July 1, 2016 <br /> through June 30, 2017 and to receive relevant information on pay compression and meritorious <br /> service awards. <br /> BACKGROUND: The County provides employees with a comprehensive benefits plan, <br /> including health, dental and life insurance, an employee assistance program, flexible <br /> compensation plan and paid leave for permanent employees. Additionally, the County <br /> contributes to the Local Governmental Employees' Retirement System and a supplemental <br /> retirement plan. <br /> The County has been self-funded since January 1, 2014 for medical and pharmacy plans and <br /> continues to be self-insured for the dental plan. The County transitioned from a twelve-month <br /> calendar plan year to a twelve-month fiscal plan year in 2015 aligning with the County's fiscal <br /> year. In February 2015, the Board of County Commissioners approved Gallagher Benefit <br /> Services (GBS) as Broker of Record for the administration of benefit programs, which include <br /> health, dental, vision, and other voluntary programs for employees and retirees. <br /> Health Insurance <br /> Almost all full time and part time employees participate in the County's group health insurance <br /> plan. As of January 16, 2016, the plan covered 871 employees and 160 County retirees under <br /> the age of 65. Enrollment data is detailed in Attachment A. <br /> Since the County's insurance plan is self-funded, the County uses a third party administrator <br /> (TPA) to administer and manage claims. To take advantage of changing market dynamics and <br /> services, the County periodically solicits proposals from companies offering TPA services. The <br /> County conducted a competitive solicitation this year through its broker and is in the process of <br /> negotiating a final contact with the most responsive and qualified provider for FY2016/2017. A <br />