2019-058 - Fixing the Employer Contribution Under the Public Employees' Medical & Hospital care Act at an Unequal Amount for Employees & AnnuitantsRESOLUTION NO.2019-058
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
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, CaIPERS 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: �Z /, -I
Mar a Jen en, Mayor
Attest:
Shelley Neis, T n Clerk
CalPERS Health Resolution (Change), Revised November 2019
Please staple on top of your health resolution(s) or cover letter.
This will ensure that the CalPERS mailroom expedites delivery to our office.
Mail packet to either:
Overnight Mail Service
California Public Employees' Retirement System
Health Resolutions & Compliance Services, HAMD
400 Q Street
Sacramento, CA 95811
Regular Mail
California Public Employees' Retirement System
Health Resolutions & Compliance Services, HAMD
PO BOX 942714
Sacramento, CA 94229-2714
HEALTH
RESOLUTION
CAPERS ID # 14589482285
Agency Name I Town of Los Gatos
Desired Effective Date I January 1, 2020
CalPERS Health Resolution (Change), Revised November 2019
Health Resolution Template Packet
Contract vs. Resolution
The CalPERS Health Program is governed by the Public Employees Medical and Hospital Care Act
(PEMHCA), and the California Code of Regulations (CCR), of the California Public Employees Retirement
Law (PERL). PEMHCA contains all the rules and regulations that a contracting agency must adhere to. We
define PEMHCA as the actual health contract, and the resolution as the method by which an agency
elects to become subject to PEMHCA.
Resolution Type (Enclosed)
Change Resolution
Purpose
Format:
An agency must file a change resolution to change the monthly employer
All, Equal
health contribution. Contracting agencies may change their employer
❖ All, Unequal
contribution anytime in the contracting year. A change resolution
By Group, Equal
becomes effective on the first day of the second month in which the
By Group, Unequal
resolution is filed and received by CaIPERS. It is the agency's responsibility
to notify its active and retired employees of the change.
Instructions
• The enclosed resolution should be completed by filling in the editable fields with the information
requested in the field tab. Contracting agencies may not add, edit, or remove language in the
enclosed resolution, other than the editable fields. CalPERS may reject resolutions that are
submitted with additional changes.
• The certification shown following the resolution is to be completed by those individuals authorized
to sign for the contracting agency in legal actions and is to include the name of the governing body
(i.e. Board of Directors, Board of Trustees, etc.), and the location and the date of signing.
• This resolution serves as a legally binding document, and we require the original resolution,
certified copy with original signatures, or a copy of the resolution with the agency's raised seal.
Please complete and include the enclosed cover sheet when mailing the resolution.
Questions or Additional Information
The Health Resolutions & Compliance Unit is responsible for authoring and maintaining this document.
The unit can be contacted directly at HealthContracts@calpers.ca.eov.
,Oi,, CAPERS