AgdaPkt 2018-10-01 Joint SA PFA - Laserfiche WebLink

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The City is in the process of negotiating new agreements regarding public employee compensation. These negotiations are occurring over time; some bargaining groups are close to completing the negotiations process, while others are expected to be complete in the next few months. At this time, the City and the Redwood City Police Supervisors Association (PSA) have tentatively agreed to changes to the Memorandum of Understanding’s (“MOU”) provisions on retiree health benefits. The City has also proposed the same changes to the MOUs with the Redwood City Police Officer’s Association (POA), Chief Officers Association (COA), International Association of Firefighters Local #2400 (IAFF), and Redwood City Management Employees Association (RCMEA). The City will present the proposal to Service Employees International Union Local 521 (SEIU) when MOU negotiations begin in October 2018. The changes to retiree health benefits are subject to the meet and confer process. No changes will be made until after the City has complied with its obligations under the meet and confer process. The City also proposes to apply the same changes to the Executive Management Summary of Benefits and to unrepresented employees (management confidential employees and elected officials); these changes are not subject to the meet and confer process as these employees are not represented by bargaining groups. The City’s proposal to bargaining groups corrects previous MOU language to describe current practices more accurately. It also creates a second tier with lesser benefits for retirees hired after September 1, 2018 in order to reduce future retiree health costs to the City. Employees in the second tier will receive a stipend that shall not exceed 90% of the CalPERS Bay Area Kaiser Premium for employee only coverage. The City will pay the Public Employees’ Medical and Hospital Care Act (PEMHCA) minimum employer contribution to CalPERS and reimburse the retiree for the remaining difference in the City’s contribution amount. Retirees in higher priced regions will be required to pay the additional premium amount that is in excess of Bay Area rates. Employees hired before September 1, 2018, will remain in the first tier. These employees will receive the premium for employee only coverage in the plan selected by the retiree not to exceed the amount of the CalPERS Bay Area Kaiser Premium for family coverage. Retirees in higher priced regions will be required to pay the additional premium. Once an employee in Tier One or Tier Two becomes eligible for Medicare the City will pay a stipend that shall not exceed the cost of the Kaiser Permanente Senior Advantage Plan. 8.A. - Page 2