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2014-074 - Fix Employer Contribution Under PEMHCARESOLUTION NO. 2014-074 FIXING THE EMPLOYER CONTRIBUTION AT UNEQUAL AMOUNTS FOR EMPLOYEES AND ANNUITANTS UNDER THE PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT WITH RESPECT TO A RECOGNIZED EMPLOYEE ORGANIZATION WHEREAS, (1) The Town of Los Gatos (Non PERS) is a contracting agency under Government Code Section22920 and subject to the Public Employees' Medical and Hospital Care Act (the "Act') for participation by members of All Employees; and WHEREAS, (2) Government Code Section 22892(a) provides that a contracting agency subject to Act shall fix the amount of the employer contribution by resolution; and WHEREAS, (3) Government Code Section 22892(b) provides that the employer contribution shall be an equal amount for both employees and annuitants, but may not be less than the amount prescribed by Section 22892(b) of the Act; and WHEREAS, (4) Government Code Section 22892(c) provides that, notwithstanding Section 22892(b), a contracting agency may establish a lesser monthly employer contribution for annuitants than for employees, provided that the monthly employer contribution for annuitants is annually increased to equal an amount not less than the number of years the contracting agency has been subject to this subdivision multiplied by 5 percent of the current monthly employer contribution for employees, until such time as the amounts are equal; and RESOLVED, (a) That the employer contribution for each employee shall be the amount necessary to pay the full cost of his /her enrollment, including the enrollment of family members, in a health benefits plan or plans up to a maximum of 100% Kaiser Bay Basic Premium per month, and be it further RESOLVED, (b) That the employer contribution for each annuitant shall be the amount necessary to pay the full cost of his /her enrollment, including the enrollment of family members, in a health benefits plan or plans up to a maximum of Kaiser Bay Basic /Kaiser Bay Supplemental Premium (1,2,3 party rates) per month, and be it further RESOLVED, (c) That the employer contribution for each annuitant shall be increased annually by 5 percent of the monthly contribution for employees, multiplied by the number of years the contracting agency has been subject to the Act, until such time as the contributions are equal; And that the contributions for employees and annuitants shall be in addition to those amounts contributed by the Public Agency for administrative fees and to the Contingency Reserve Fund; and be it further RESOLVED, (d) The Town of Los Gatos has fully complied with any and all applicable provisions of Government Code Section 7507 in electing the benefits set forth above; and be it further RESOLVED, (e) That the participation of the employees and annuitants of CHANGE - BY GROUP, UNEQUAL, 1 FIXED (REV. 5/2015) The Town of Los Gatos shall be subject to determination of its status as an "agency or instrumentality of the state or political subdivision of a State" that is eligible to participate in a governmental plan within the meaning of Section 414(d) of the Internal Revenue Code, upon publication of final Regulations pursuant to such Section. If it is determined that The Town of Los Gatos would not qualify as an agency or instrumentality of the state or political subdivision of a State under such final Regulations, CalPERS may be obligated, and reserves the right to terminate the health coverage of all participants of the employer. RESOLVED, (f) That the executive body appoint and direct, and it does hereby appoint and direct, the Town Manager to file with the Board a verified copy of this resolution, and to perform on behalf of The Town of Los Gatos all functions required of it under the Act. Adopted at a regular meeting of the Town Council at Los Gatos, California, this 16`h day of December. 2014. Signed: Mayo of the ow of Los Gatos, California Attest: �3J� Clerk of the To"of Los Gatos, California CHANGE -BY GROUP, UNEQUAL, 1 FIXED (REV. 5 /2015) RESOLUTION NO. 2014 -074 FIXING THE EMPLOYER CONTRIBUTION AT UNEQUAL AMOUNTS FOR EMPLOYEES AND ANNUITANTS UNDER THE PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT WHEREAS, (1) Town of Los Gatos is a contracting agency under Government Code Section 22920 and subject to the Public Employees' Medical and Hospital Care Act (the "Act "); and WHEREAS, (2) Government Code Section 22892(a) provides that a contracting agency subject to Act shall fix the amount of the employer contribution by resolution; and WHEREAS, (3) Government Code Section 22892(b) provides that the employer contribution shall be an equal amount for both employees and annuitants, but may not be less than the amount prescribed by Section 22892(b) of the Act; and WHEREAS, (4) Government Code Section 22892(c) provides that, notwithstanding Section 22892(b), a contracting agency may establish a lesser monthly employer contribution for annuitants than for employees, provided that the monthly employer contribution for annuitants is annually increased to equal an amount not less than the number of years the contracting agency has been subject to this subdivision multiplied by 5 percent of the current monthly employer contribution for employees, until such time as the amounts are equal; and RESOLVED, (a) That the employer contribution for each employee shall be the amount necessary to pay the full cost of his /her enrollment, including the enrollment of family members, in a health benefits plan or plans up to a maximum of 100% Self / 90% Dependents Kaiser Bay Basic /Medicare /Combination per month, plus administrative fees and Contingency Reserve Fund assessments; and be it further RESOLVED, (b) Town of Los Gatos has fully complied with any and all applicable provisions of Government Code Section 7507 in electing the benefits set forth above; and be it further RESOLVED, (c) That the participation of the employees and annuitants of Town of Los Gatos shall be subject to determination of its status as an "agency or instrumentality of the state or political subdivision of a State" that is eligible to participate in a governmental plan within the meaning of Section 414(d) of the Internal Revenue Code, upon publication of final Regulations pursuant to such Section. If it is determined that Town of Los Gatos would not qualify as an agency or instrumentality of the state or political subdivision of a State under such final Regulations, CalPERS may be obligated, and reserves the right to terminate the health coverage of all participants of the employer. RESOLVED, (d) That the executive body appoint and direct, and it does hereby appoint and direct, the Town Manager to file with the Board a verified copy of this resolution, and to perform on behalf of Town of Los Gatos all functions required of it under the Act. CHANGE - ALL, UNEQUAL, 1 FIXED - ACTIVE ONLY (REV. 5/2015) Adopted at a regular meeting of the Town Council of the Town of Los Gatos at Los Gatos, California, this 16`" day of December, 2014. Signed: (r (ident, Chairrnan, etc.) Attest: JU a � (Secretary or a *ropriate officer) CHANGE - ALL, UNEQUAL, 1 FIXED - ACTIVE ONLY (REV. 5/2015)