Agenda - 09-21-2004-5d - Laserfiche WebLink

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• Family leave of absence (comparable to that required under the Federal Family and Medical Leave Act) The Attachment 1 Personnel Ordinance revisions provides for the necessary changes to the County's Personnel Ordinance to implement the above coverage. Estimated Employee Participation For purposes of estimating casts, staff estimated that up to about one percent of employees might decide to participate in domestic partner coverage. This is based on participation rates for other employers and represents about seven to eight employees. Participation is impacted by such factors as: • Whether County domestic partner benefits cover same sex partners only or also cover opposite sex partners. • The criteria used to establish domestic partner eligibility. • Employee willingness to disclose information about a domestic partner relationship. • Tax consequences of participation. Tax Issue The Federal Internal Revenue Code does not recognize a domestic partner as a dependent. This means that the employee will be required to pay taxes on the "fair market value" of any contribution the County and the employee make far domestic partner coverage for that employee. Estimated Cost The County cost for domestic partner coverage will be the cost of dependent coverage for any domestic partners enrolled in the health insurance plan. If seven employees elected to participate in domestic partner coverage, the estimated annual County cost will be about $17,000 for the County s dependent health insurance contribution. There is no additional health insurance surcharge for offering domestic partner coverage so the cast is that for the dependent coverage only. FINANCIAL IMPACT: With the adoption of the 2004-2005 budget, the Board provided funding of $10,500 for implementation of domestic partner coverage effective .January 1, 2005. The projected cost of the coverage effective January 1 for 2004-05 is about $10,000 if seven employees enroll. RECOMMENDATION(S): The Manager recommends that the Board: Approve the implementation of benefits for domestic partners as provided under "Benefits Offered" above. Adopt the Attachment 1 Personnel Ordinance revisions effective January 1, 2005.