Attachment 1 - Proposed CalPERS Health ResolutionCalPERS Health Resolution (Change), Revised November 2019
RESOLUTION NO. Number
FIXING THE EMPLOYER CONTRIBUTION
UNDER THE PUBLIC EMPLOYEES’ MEDICAL AND HOSPITAL CARE ACT
AT AN UNEQUAL AMOUNT FOR EMPLOYEES AND ANNUITANTS
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 five percent of the current monthly employer
contribution for employees, until the time that the employer contribution for
annuitants equals the employer contribution paid for employees; now,
therefore be it
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 up to a maximum of 100% Self/90%
Dependents Kaiser Region 1 Basic/Medicare/Combination per month; and be it
further
RESOLVED, (b) 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 five percent of the current
monthly employer contribution for employees, until the time that the employer
contribution for annuitants equals the employer contribution paid for
employees;
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, (c) 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
ATTACHMENT 1
CalPERS Health Resolution (Change), Revised November 2019
RESOLVED, (d) 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; and be it further
RESOLVED, (e) That the executive body appoint and direct, and it does hereby appoint and
direct, 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; and be it further
RESOLVED, (f) That coverage under the Act be effective on January 1, 2020.
Adopted at a regular meeting of the Town Council at the Town of Los Gatos, this
3rd day of December, 2019.
Signed: _________________________________
Mayor
Attest: _________________________________
Town Clerk