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2 <br /> earning policy for employees with prior service. <br /> It greatly simplifies Longevity Pay <br /> administration. Approximately four employees <br /> not presently eligible for Longevity Pay would <br /> become eligible. <br /> 3) Effective Date - Item 19.4 has been added to <br /> provide a clear effective date as to when <br /> payments are made. This change allows for more <br /> consistent salary administration between <br /> Longevity Pay and Merit Pay policies. <br /> It also is proposed the Board consider making the <br /> Longevity Pay change effective July 1, 1993 rather <br /> than January 1, 1994. The approved budget for <br /> Fiscal Year 1993-94 included funding for up to a 14 <br /> percent health insurance increase effective January <br /> 1, 1994 . The actual health insurance renewal rates <br /> for 1994 now have been received and the rate <br /> increase is approximately six percent. The <br /> improved renewal rate results from several factors <br /> including a shift in enrollment from the Blue Cross <br /> Personal Care Plan (a health maintenance <br /> organization) , the improved health cost experience <br /> under the Personal Care Plan and the lower trend <br /> generally in health care cost increases. <br /> The resulting estimated cost savings in health <br /> insurance for Fiscal Year 1993-94 over the amount <br /> budgeted is approximately $45,000. <br /> In adopting the 1993-94 budget, the Board approved <br /> extending Longevity Pay eligibility to permanent <br /> employees with 10 years County service effective <br /> January 1, 1994. The Board- budgeted $28,935 for <br /> this purpose. The Board considered an effective <br /> date of July 1, 1993, but was not able to fund this <br /> within the funding amount targeted for <br /> compensation. <br /> The additional funding required to begin Longevity <br /> Pay at 10 years effective July 1, 1993 rather than <br /> January 1 is estimated at approximately $18, 700. <br /> It is recommended that the Board consider using a <br /> portion of the budget savings in health insurance <br /> to begin the Longevity Pay change to 10 year <br /> eligibility effective July 1, 1993. <br /> RECOMMENDATION: The Manager recommends the Board adopt the <br /> Longevity Pay revision to the Personnel Ordinance <br /> effective July 1, 1993. <br />