Butte County Grand Jury
• 2008-2009
Butte County Grand Jury Report 2008-2009 Payment of Medical Insurance Premiums for Butte County Retirees
⚠️ Translation Notice: This content has been automatically translated. The original English text is the official version. Translation may contain errors.
⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Findings and Recommendations 6 findings
F1
When negotiating the recently expired bargaining unit MOUs, the County reviewed the compensation packages of twelve other counties. Some of the counties did not have com- parable cost of living or socio-economic parameters.
Related Recommendations (1)
R1
When comparing employee compensation packages, negotiate to replace counties such as Sacramento, Santa Cruz, Sonoma, Napa, with counties having comparable cost of living and socio-economic parameters to those of Butte County.
F2
As an incentive to save sick leave, the County offers three options for converting unused sick leave upon retirement. The rationale for offering incentives to save sick leave appears valid.
No recommendations for this finding
F3
Under the nine recently expired bargaining unit MOUs, the County pays the full cost of medical insurance premiums for retirees who qualify for CalPERS retirement and have accumulated sick leave savings. During open enrollment, the retiree may elect to change to a higher benefit plan with the County paying the increased premium.
No recommendations for this finding
F4
In most cases, the medical insurance benefit exceeds the hourly rate paid to the employee prior to retirement. Medical insurance premiums for about 120 County retirees are cur- rently costing the County nearly one million dollars per year. As medical premiums rise and more employees retire with accumulated sick leave, these costs will increase.
Related Recommendations (2)
R2
Continue to offer cash payments and length of service extension for unused sick leave, but negotiate to change the medical insurance premium benefit to a shared cost, similar to that formula used to determine the portion of the medical insurance premium paid by the County for employees prior to retirement. For example, in the new Bargaining Unit MOUs being negotiated, fix the County’s monthly contribution for retiree medical insur- ance premiums and require the retiree to pay the remainder.
R3
For current retirees with vested retirement rights, continue to have the County pay the total cost of health insurance premiums. For future retirees, negotiate to modify the current practice which permits retirees to move to a higher plan at the County’s expense. Negoti- ate to have the retiree pay the difference in premiums. 77
F5
It is difficult for the County to predict or budget for retiree medical insurance premiums, due to the County’s lack of control over insurance premium increases and employee deci- sions to retire.
Related Recommendations (2)
R2
Continue to offer cash payments and length of service extension for unused sick leave, but negotiate to change the medical insurance premium benefit to a shared cost, similar to that formula used to determine the portion of the medical insurance premium paid by the County for employees prior to retirement. For example, in the new Bargaining Unit MOUs being negotiated, fix the County’s monthly contribution for retiree medical insur- ance premiums and require the retiree to pay the remainder.
R3
For current retirees with vested retirement rights, continue to have the County pay the total cost of health insurance premiums. For future retirees, negotiate to modify the current practice which permits retirees to move to a higher plan at the County’s expense. Negoti- ate to have the retiree pay the difference in premiums. 77
F6
The County is in the process of negotiating new agreements with the nine bargaining units, which provides an opportunity to renegotiate this benefit.
No recommendations for this finding
No Responses Found 2
Government entities assigned to respond to this report. No response documents have been linked in our database.
Butte County Board of Supervisors
Elected County Office
County of Butte
Agency