RES-2006-114
RESOLUTION NO. 2006- 114
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM
APPROVING A LETTER OF UNDERSTANDING BETWEEN THE
ANAHEIM MUNICIPAL EMPLOYEES ASSOCIATION, GENERAL UNIT, AND
THE CITY OF ANAHEIM
WHEREAS, the City of Anaheim and the Anaheim Municipal Employees
Association, General Unit, have met and conferred and reached an understanding to amend
Article 51 (Post Retirement Medical Benefits) of the Memorandum of Understanding; and
WHEREAS, the Anaheim Municipal Employees Association, General Unit, is in
agreement with the recommendation contained in said Letter of Understanding; and
WHEREAS, as a result thereof, the Letter of Understanding dated May 22, 2006
between the parties has been prepared and signed; and
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WHEREAS, the City Council of the City of Anaheim does find that it is in the best
interest of the City of Anaheim to approve said Letter of Understanding.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of
Anaheim that the Letter of Understanding dated May 22, 2006 between the Anaheim Municipal
Employees Association, General Unit and the City of Anaheim, a copy of which is attached
hereto and incorporated by reference herein, is hereby approved.
BE IT FURTHER RESOLVED that the effective date of this Resolution shall be
June 13, 2006.
THE FOREGOING RESOLUTION is approved and adopted by the City Council
of the City of Anaheim this 13th day of June , 2006, by the following roll call vote:
AYES:
Mayor Pringle, Council Members Sidhu, Hernandez, Galloway, Chavez
NOES:
None
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ABSENT: None
ABSTAIN: None
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MAYOR OF THE CI OF NAHEIM
r CITY C
APPROVED AS TO FORM:
JACK L. WHITE, CITY ATTORNEY
BY
F:\OT3652CS.DOC
LETTER OF UNDERSTANDING
between the
ANAHEIM MUNICIPAL EMPLOYEES ASSOCIATION, GENERAL EMPLOYEES
and the
CITY OF ANAHEIM
The Anaheim Municipal Employees Association (AMEA), General Employees, and the Oty
of Anaheim (ANAHEIM) after meeting and conferring have agreed to amend certain sections of
the Memorandum of Understanding that is in effect from July 1, 2005 through January 8, 2009.
Article 51 of the Memorandum of Understanding is hereby amended as follows:
ARTICLE 5:1
POST RETIREMENT MEDICAL BENEFrTS
51.1 Retired employees who are receiving a post-retirement medical benefit from
ANAHEIM on the date the aty Council approves this Memorandum of
Understanding shall continue to receive such benefit in accordance with the
provisions of the Memorandum of Understanding between ANAHEIM and AMEA
that was in effect at the time of their retirement
51.2 Regular, full-time employees in the dassified service in dassifications listed in
Appendix ':4 ~ who are enrolled as subsaiber in an ANAHEIM sponsored health plan
at the time of separation from ANAHEIM service shall be eligible to partidpate in
any ANAHEIM sponsored health plan (medical and dental) as a retiree subject to
the following tenns and conditions:
51.2.1 The employee must be credited with at least ten (10) yeatS of continuous,
full time ANAHEIM service on the date of retirement, and
51.2.2 The employee must have been awarded a retirement from the Public
Employees' Retirement System ("PERS") as the reason for separation from
ANAHEIM service, and
51.2.3 PERS retirement benefits must commence no later than the first day of the
month following the date of separation from ANAHEIM service, OR
51.2.4 The employee must have been awarded a disability retirement (Ordinary or
Industrial) from PERS as the reason for separation from ANAHEIM service.
51.2.5 ANAHEIM shall provide separate contributions towards the premium costs
of the ANAHEIM sponsored medical and/or dental plans elected by the
employee according to the following schedule:
51.2.5.1
For Service Retirements, the contributions shall be a percentage
of the annual contributions made by ANAHEIM on behalf of
active employees, the percentage equal to one and one-half
(1.5) times the miscellaneous 296 at 60 PERS retirement
schedule to a maximum contribution of 9596 based on the
employee's age and consecutive years of Anaheim service at the
time of retirement ANAHaM service and the retiree's age shall
be calculated to the nearest complete one-quarter year.
51.2.5.2 For Disability Retirements, the contribution shall be a percentage
of the annual contributions made by ANAHEIM on behalf of
active employees, the percentage equal to 296 for each year of
service to a maximum contribution of 9596 based on the
employee's consecutive years of Anaheim service shall be
calculated to the nearest complete one quarter year.
51.2.5.3 In the event an employee is eligible for both a Service and a
Disability Retirement benefit under this ARTICLE, the employee
shall receive the Service Retirement benefit.
51.2.5.4 The ANAHEIM contribution shall be based on the Two party or
Family rate only for those employees who properly enroll a
dependent spouse and/or other family members prior to
retirement, and shall continue only as long as the retiree
maintains coverage for such dependents in ANAHEIM sponsored
health plans. Nothing in this ARTICLE shall prevent a retiree
ftom properly enrolling new dependents at the retiree's cost.
51.2.5.5 The filII value of any Medicare credits provided to ANAHaM or
Medicare surcharges imposed on ANAHaM by virtue of a
retiree's partidpation or non-partidpation in Medicare shall be
passed on to the retiree in the fonn of reduced or inaeased
premium costs.
51.2.5.6 The survMng spouse or registered domestic partner of the
retiree may continue coverage under the same terms and
conditions provided that the survMng spouse was properly
enrolled at the time of the employee's retirement and that
dependent coverage was continuously maintained during the
employee's retirement
51.2.6 Employees who retire on or after January 1, 2006 shall be credited with
ANAHaM service acaued through December 31, 2005 for the purpose of
determining eligibility and benefit levels under the provisions of Section
52.2 above. No employee who has less than ten (10) complete years of
credited ANAHaM service as of December 31, 2005 shall be provided
benefits under Section 52.2 above.
51.2.7 The following provisions shall apply to employees who retire on or after
January 1, 2006 and who are receiving post-retirement medical benefits
under the provisions of Section 52.2:
51.2.7.1 Only ANAHEIM service acaved through December 31, 2005
shall be credited to the employee in detennining ANAHEIM's
perr:entage contribution towards the premium costs of the
plan(s) elected by the retiree.
51.2.7.2 Retirees shall be required to enroll in MediCare parts A and B
upon establishing eligibility. Failure to enroll when eligible will
result in cancellation of coverage.
51.2.7.3 lJmJa 1KJ fifCl:JmstaMES shall the City fJ6fItFII1t1tc mKeRIs the
msts sf any dcpcndcRl:s, execpt a SfJ81:/5C 8(" FCgistcFcd
tfI8mestk /fJiJfI!RCY wR8 MaS JN6pa/y CII!6l1ctJ at IN: time sf IN:
CffIfJ/SYCC's reliFcmcflt
51.2.8 The following conditions shall apply to all retirees who have post retirement
medical benefit coverage under this Section:
51.2.8.1 Once canceled for any reason, coverage shall not be reinstated.
51.2.8.2 Coverage shall be canceled for non-payment of fees after three
months in arrears.
51.2.8.3 There shall be Coordination of Benefits where other insurance
exists.
51.2.8.4 Retirees may change plans and add dependents only during the
annual open enrollment period, except that the surviving spouse
or registered domeslic partner of a retiree may not enroll a new
spouse or registered domestic partner.
51.3 Regular, full-time employees in the dassified service in dassifications listed in
Appendix ':4 ~ hired on or after January 1, 1996 shall partidpate in an Integral Part
Trust f'RHS plan' designed to provide reimbursement of qualified medical
expenses upon retirement or separation firJm aty service. ''Qualified medical
expensesH are those expenses authorized under the provisions of Internal Revenue
Code Section 213, excepting only those expenses the parties mutually agree to
exdude.
51.3.1 K1Ien an employee is hired into a dassification represented by the AMEA,
ANAHEIM shall make an initial employer contribution of three thousand
dollars ($3,000) into the employee's Retirement Health Savings f'RHS'
account.
51.3.2 On December 24 2008, and annually thereafter, the aty shall make a
contribution to the individual account of each employee in dassification
represented by the AMEA who has an established RHS account. The
contribution shall be equal to one percent (1.096) of the average annual
base compensation of all full time employees in the miscellaneous servi~
excepting employees in dassifications represented by the ISEW. The
average annual base compensation shall be calculated by annualizing the
includable biweekly payroll for the pay period that includes the first of
December each year, and dMding by the number of includable employees.
51.3.3 Employees shall be fully vested for all ANAHEIM contributions made on their
behalf induding contributions made pursuant to Section 51.6 below, after
five (5) full years of continuous ANAHEIM service.
51.3.4 Except as modified by Section 52.4 below, ANAHEIM and AMEA agree that,
effective Januaty 13, 2006, each eligible employee shall be required to
contribute three percent (3.096) of hiS/her gross biweekly pay to his/her
indMdual RHS Account
51.3.5 Employees shall be given an opportunity each year to elect to contribute (in
inaements of ~ hour) sick leave hours to be earned prospectively in the
upcoming calendar year. Employees shall be required to acaue a minimum
of one (1) hour of eamed Sick Leave time per pay period. The remaining
balance eamed per pay period shall be available for deferral to the
indMdual employee's RHS Account as designated by the employee. Such
deferrals shall be converted to cash at the employee's regular hourly rate of
pay, and deposited to the employee's indMdual RHS Account as they are
earned. Contributions under the provisions of this paragraph shall be
designated as pre-tax contributions.
51.3.6 Employees shall be given an opportunity each year to elect to contribute (in
inaements of ~ hour) vacation leave hours to be eamed prospectively in
the upcoming calendar year. Employees shall be required to acaue a
minimum of three (3) hours of eamed Vacation Leave time per pay period.
717e remaining balance eamed per pay period shall be available for deferral
to the indMdual employee's RHS Account as designated by the employee.
Such deferrals shall be converted to cash at the employee's regular hourly
rate of pay, and deposited to the employee's indMdual RHS Account as they
are earned. Contributions under the provisions of this paragraph shall be
designated as pre-tax contributions.
51.3.7 Any employee who separates City service for any reason will be eligible to
withdraw funds for reimbursement of eligible medical expenses without
regard to the employee's age or years of service. Employee premium
contributions for employer-provided group health insurance provided by
other employers are not an eligible medical expense.
51.3.8 Employees hired on or after Januaty 1, 1996 who have completed ten (10)
years of consecutive ANAHEIM service, and who are awarded a retirement
from PERS as the reason for separation fiTJrn ANAHEIM service shall be
allowed access to ANAHEIM sponsored group health plans as a retiree.
51.4 Employees hired on or after Januaty 1, 1996 and before Januaty 1, 2002 shall
make an employee contribution to their individual RHS Account according to the
following schedule:
51.4.1 Effective January 13, 2006, such employees shall contribute one percent
(1.0%) of hisjher gross biweekly pay to his/her individual RHS Account
51.4.2 Effective January 12, 2007, such employees shall contribute fiK1 percent
(2.0%) of hisjher gross biweekly pay to his/her indMdual RHS Account
51.4.3 Effective February 4 2008, such employees shall contribute three percent
(3.0%) of his/her gross biweekly pay to his/her indMdual RHS Account
51.5 Employees hired prior to January 1, 1996 may elect to partidpate in a voluntary
Retirement Health Savings plan. An election to partidpate shall be irrellOCiJbIe. All
provisions of Section 52.3 of this Artide shall apply to the voluntary plan, except
that employees shall be required to contribute one perr:ent (1.0%) of their gross
biweekly pay to their individual RHS Account
51.6 In addition to the employer obligations outlined in Section 52.3 above, ANAHEIM
shall make a one time employer contribution to the RHS Account of each employee
in a dassification in Appendix '~N who was hired on or after January 1, 1996 and
prior to January 1, 2002 and who is an active employee on January 13, 2006. The
contributions required by this Section shall be deposited to each eligible employee's
account no later than January 24 2006. The contribution shall be seventy dollars
($70.()()) for each complete month offull time service calculated from the
employee's date of hire to December 31, 2005; except that under no drr:urnstances
shall the contribution be less than three thousand dollars ($3,000.00).
STAFF OFFICIALS of the CZTY OF
ANAHEIM, a Nunicipal Corporation
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ANAHEIN NUNZaPAL ENPLOYEES
ASSOCIATION, GenenJl Employees
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