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RESOLUTION NO. 2014-074 <br />FIXING THE EMPLOYER CONTRIBUTION AT UNEQUAL AMOUNTS FOR EMPLOYEES AND ANNUITANTS <br />UNDER THE PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT <br />WITH RESPECT TO A RECOGNIZED EMPLOYEE ORGANIZATION <br />WHEREAS, (1) The Town of Los Gatos (Non PERS) is a contracting agency under Government Code <br />Section22920 and subject to the Public Employees' Medical and Hospital Care Act (the "Act') for <br />participation by members of All Employees; and <br />WHEREAS, (2) Government Code Section 22892(a) provides that a contracting agency subject to Act <br />shall fix the amount of the employer contribution by resolution; and <br />WHEREAS, (3) Government Code Section 22892(b) provides that the employer contribution shall be an <br />equal amount for both employees and annuitants, but may not be less than the amount <br />prescribed by Section 22892(b) of the Act; and <br />WHEREAS, (4) Government Code Section 22892(c) provides that, notwithstanding Section 22892(b), a <br />contracting agency may establish a lesser monthly employer contribution for annuitants <br />than for employees, provided that the monthly employer contribution for annuitants is <br />annually increased to equal an amount not less than the number of years the <br />contracting agency has been subject to this subdivision multiplied by 5 percent of the <br />current monthly employer contribution for employees, until such time as the amounts <br />are equal; and <br />RESOLVED, (a) That the employer contribution for each employee shall be the amount necessary to pay <br />the full cost of his /her enrollment, including the enrollment of family members, in a <br />health benefits plan or plans up to a maximum of 100% Kaiser Bay Basic Premium per <br />month, and be it further <br />RESOLVED, (b) That the employer contribution for each annuitant shall be the amount necessary to pay <br />the full cost of his /her enrollment, including the enrollment of family members, in a <br />health benefits plan or plans up to a maximum of Kaiser Bay Basic /Kaiser Bay <br />Supplemental Premium (1,2,3 party rates) per month, and be it further <br />RESOLVED, (c) That the employer contribution for each annuitant shall be increased annually by <br />5 percent of the monthly contribution for employees, multiplied by the number of years <br />the contracting agency has been subject to the Act, until such time as the contributions <br />are equal; <br />And that the contributions for employees and annuitants shall be in addition to those <br />amounts contributed by the Public Agency for administrative fees and to the <br />Contingency Reserve Fund; and be it further <br />RESOLVED, (d) The Town of Los Gatos has fully complied with any and all applicable provisions <br />of Government Code Section 7507 in electing the benefits set forth above; and be it <br />further <br />RESOLVED, (e) That the participation of the employees and annuitants of <br />CHANGE - BY GROUP, UNEQUAL, 1 FIXED (REV. 5/2015) <br />