RES-2006-115RESOLUTION NO. 2006- 115. .. ~,
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM
APPROVING A LETTER OF UNDERSTANDING BETWEEN THE
ANAHEIM MUNICIPAL EMPLOYEES ASSOCIATION, CLERICAL 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 52 (Post Retirement Medical Benefits) of the Memorandum of Understanding; and
WHEREAS, the Anaheim Municipal Employees Association, Clerical 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
..-- 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, Clerical 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, Couacil Members Sidhu, Hernandez, Galloway, Chavez
NOES: None
.-~•
ABSENT: None
ABSTAIN: None
ATTEST:
ITY CL K OF T E CITY OF EIM
APPROVED AS TO FORM:
JACK L. WHITE, CITY ATTORNEY
BY:
MAYOR OF THE F ANAHEIM
F:10T3653CS.DOC
LETTER OF UNDERSTANDING
between the
ANAHEIM MUNICIPAL EMPLOYEES ASSOCIATION, CLERICAL EMPLOYEES
and the
CITY OF ANAHEIM
The Anaheim Municipal Employees Association (AMEA), Clerical Employees, and the City
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 52 of the Memorandum of Understanding is hereby amended as follows:
ARTIGYE52
52. i Retired employees who are receiving apart-retirement medics/ benefit from
ANAHEIM on the date the (Sty Cound/ approves this Memorandum of
Understanding shall continue to receive sash benefit in acrordanc~e with the
provisions of ttre Memorandum of Understanding between ANAHEIM and AMEA
that was in etTict at the time oftheir retirement.
52.2 Regular, fu//-time employees in itre dassiRed servic7e in dassilrcations listed in
Appendix "A ; who are enrn/led as subsa-iber in an ANAHEIM sponsored health plan
at the time of separation from ANAHEIM ser~c~ shall be eligibVe to poartidpate in
any ANAHEIM sroonsored health ,clan (medics/ and dents/) as a retiree sublet to
the fol%wing terms and conditions.•
52.2.1 The employee must be aedited with at least ten (10) years of continuous,
fu//time ANAHEIMservice on the date ofretiremen~ and
52.2.2 The ~ employee must have been awarded a retirement from the Public
Employees' Retirement System ("PERS") as the reason for seyaaratian from
ANAHEIM service, and
52.2.3 PIERS retirement benefits must commend no later than the first day of the
month fallowing ttre date of separation from ANAHEIM services, OR
52.2.4 The employee must have been awarded a disability retirement (Ordinary or
Indusiria/) from PERS as 6he reason Jfir seaaration from ANAHEIM s~erviae.
52.2.5 ANAHEIM sha// provide separate cnniribubons lbwards dre premium cis
of the ANAHEIM sponsia~d medics/ and/or dents/ plans a%rted by Ghe
employee amw~ding to Ghe fiv//owing sd~du/e:
52.2.5.1 For Service Retirements, the contributions sha// be a pemeniage
of the annual contributions made by ANAHEIM on behalf of
aclme employees, tine percentage aqua/ t, one and one-half
(1.5) rimes the miscellaneous 2% at 60 PERS retirement
schedule to a maximum conbibution of 9596 based on the
empMyees age and awrsecut~ve yeears ofAnaheim service at the
time of retirement ANAHEIM service and the retirees age she/l
be calculated to the nearest complete one-quarter year.
52.2.5.2 l nor ~sabi/ity Retirements, tfie mniribution shall be a perrc~ntage
of the annual coniribcrt'ons made by ANAHEIM on behalf of
active employees, the percentage equal to 296 for each yeear of
servicae to a ma~dmum contribution of 9596 bid on the
employees cnnsecuahve years of Anaheim service shall be
calculated t, the nearest complete one quarter y+ean
52.2.5.3 In the event an employee is e/igib/e for boar a Service and a
Disability Retinerrrent benefit under this ARTIGYty the employee
she//receive tine Services Retirement benefit.
52.2.5.4 The ANAHEIM carhibution she// be biased on the Tway party or
Family rate only for chase employees who properly enroll a
dependent spouse anc(/or other (amity members prior to
retinernena;, and shall continue only as long acs the retirrge
mainta/ns coverage for srxa~r deoendenLs in ANAHEIM rored
health p/arns Nothing in this ARTIaCLE shall prevent a retiree
from properly enrolling new depena~en~ at the retirees ciast:
52.2.5.5 The full value of any Medicare rnedits provided to ANAHEIM or
Medicare surcharges impaled on ANAHEIM by virtue of a
retirees pan3apatorr or non partiapaat~on /n Medicare she// be
passed on to the ra°tiree in the form of reduced or increased
premium casa"s
52.2.5.6 The surviving spouse or registered domestic partner of the
retiree may continue coverage under the same terms and
rnndrtions provided that the surviving spouse was properly
enrolled at .the time of the employees retirement and that
dependent coverage w~ continuously maintained during the
employees retineynent
52.2.6 Employees who reline on or after January 1, 2006 shall be credited wits
ANAHEIM service accrued through Diecember 3i, 2005 for the purpose of
determining eligibylity and benefit levels under the provrsions of Section
52.2 abotie No employee who has less than ten (10) complete years of
credited ANAHEIM service as of December 31, 2005 she// be provided
benefits under Section 52.2 above.
52.2.7 The fo/%wing provisions she// apply to employees who retire on or a1~r
January 1, 20106 and who are receiving post-retirement medics/ benefits
under the provisions of Section 52.2:
52.2.7.1 Only ANAHEIM service aoaved through Dieaember 31, 2005
steal/ be credited to the employee in determining ANAHEIMs
peroeniage contribution towards the premium ao~s of the
plan(s) e%ted by the retiree.
52.2.7.2 Retirees steal/ be required !b enro/l in Medicare parts A and B
upon establishing eligibility. Failure to enroll when eligible will
result in cancellation of c~vverage.
~~
52.2.8 The fol%wing aatdib%ons steal/ apply to all redrew rwho have past retirement
medical benefit cnverdge under this Section:
52.2.8.1 Once canc~e%d for any reason, coverage shall not be reinstates!
52.2.8.2 Coverage sha// be cane/ed for non ,payment of fees agar tfiree
months in arrears
52.2.8.3 There sha// be Coordination of Benefits where other in~suranc~e
eadsts
52.2.8.4 Retirees may change plans and add devendents only during the
annual open enrollment period, except that the surviving spouse
or registered domestic partner of a retiree may not enroll a new
spouse or registered domes6'c partner:
52.3 Regular, fu//-time employees in the domed s~evvic~e in dassiTications listed in
Appendbr 'A ; hired on or after January 1, 1996 sha// p~artidpate in an Intagia/ Part
Trust ("RHS plan ~ designed to puvvide reimbursement of qualifted medics/
expenses upon retirement or sepoaration from Gify service "Qualifted medical
expenses"are thane expenses authonied under the provisrons of Totems/Revenue
Code Section 213, excepting only those expenses the p~arb'es mutually agree to
exclude.
52.3.1 When an employee is hired into a classification represented by the AMEA,
ANAHEIM sha// make an initial employer cnniril~an of three thousand
do//ars ($3,OOI0) into die employees Retirement Hea/bh Savings ("RHS~
account:
52.3.2 On L7iec~ember 26, 20108, and annua//y thereaRer; die Gty sha// make a
rnniribution to the individual aaapunt of each employee in dassificatwn
represented by the AMEA who has an established RHS account. The
contribution sha// be equal to one percent (1.09b) of the average annual
base avmpensation of all fu// time employ in the mis~c~e/laneous service,
excepting emp/oyeees in classifications re~wesented by the IBEW. The
average annual base compensation steal/ be ca/c~ulated by annualizing tt~e
includable biweekhr payroll for the pay period that includes the first of
Derember each year, and dividing by the number of includable employees
52.3.3 Employees sha/l be fully vested for all ANAHEIM avniributions made on ifr~r
behalf including contributions made pursuant to Section 52.6 be%w, aRer
five (5) full years ofcontinuousANAHEIMservice:
52.3.4 Except as modified by Section 52.4 be%w, ANAHEIM and AMEA agree that;
et~Ctive January 13, 101016, eacah eligible employee sha// be required in
contribute three percent (3.096) of his//her gross bid pay io his/her
individual RHSAccouni:
52.3.5 Employees shall be given an opportunity eacah year try e%t to aontribule (in
increments of ~z hour) sick leave hours to be earned prospectively in the
up~.oming calendar year. Emp/oyees shall be required to aarue a minimum
of one (1) hour of earned Sick Leave time per pay period. The remaining
bia/ante earned per paY period shall be available for deferral to tfie
individual employees RHS Amount as designated by the employee. Suc/i
deferrals shall be converted in cash at the employees regular hourly late of
pay, and deoosited to the employees individual RHS Amount as they are
earned. Contributions under the provisions of this paragraph shall be
designated as p+re-tax contributions:
52.3.6 Employeessteal/ be given an opportunity eadt year tro e%t fo contribute (in
increments of rz hour) vacation leave hours in be earned prospectively in
the upcoming calendar }mar. Employees shall be required tb aarue a
minimum of ifiree (3) hours of earned Iacation Leave time per pray perio~o!
The remaining ba/anc~e earned per p~aY period shall be available f~ defenal
to the indiv/dua/ employees RHS Amount as designated by the empmloy+ee
Such deferrals shall be converted to cash at the employees regular hourly
rate ofpay, and deposited to the employees individual RHSAmvuntas they
are eame~d Contributions under the provisions of this paragraph shall be
designated aspre-tax contributions
52.3.7 Any emp/oyee who separates aty service for any reason will be eligible in
withdraw funds for reimbursement of eligible medical expenses without
regard to the employees age or years of service. Employee premium
contributions for employer-provided group hea/bh insurance provided by
other emp/oyers are not an eligible medical expense
52.3.8 Employees hired on or alterJanuary 1, 19~ who have comp/etLd ten (10)
years of conseruGve ANAHEIM service, and who are awarded a retirement
from PERS as the reason for separation from ANAHEIM service sha// be
a/lowed acres to ANAHEIM sponsored group hea/Gh plans as a rebre~e
52.4 Employees hired on or alter January 1, 19~ and before January i, 2002 steal/
make an emp/oyee cioniribution to their individual RHS Amount according to die
fo/%wing srhedu/e:
52.4.1 Effective January 13, ZOIQ6, suds employees shall contribute one percent
(i.0%) ofhis/hergrass biweeklypay to his/herindividua/ RHSAcirount.
52.4.2 El9~ctive January 1~ Z007, such emp/off sha/l contribute twn percent
(Z.0%) of his/her grass biweekly pay Mhis/her individual RHS Ac~avunt.
52.4.3 Ef>ecriv+e February 8, 2008, soli employees shall contribute tfiree percent
(3.0%) ofhis/hergrass biweekly pay fo his/her individual RHSAarount.
SZ.S Employees hired prior to January i, 1996 may e%t to pariidpate in a voluntary
Retirement Health Savings plan. An e%tion to partidpate shall be irrevocable. Al/
provisions of Section 52.3 of this Artide shall apply to the voluntary plan, exalt
that employees shall be required in contribute one percent (1.0%) of their grays
biweekly pay to their individual RHS Aanunt.
SZ.6 In addition tv the employer obligations outlined in Section SZ.3 above, ANAHEIM
sha/l make a one lime employer contribution trr tfie RHS Aaavunt of each employee
in a dassiFication in Appendix 'A"who was hired on or aRer January 1, 19~ and
prior to January 1, 2002 and who is an alive employee on January 13, 201016. The
contributions required by this Section sha// be ~ to eacafi eligible employees
account no later than January Z0, Z006. The contribution sha// be seventy dollars
($70.010) for each complete monifi of roll tme service ca/cu/ated fmm the
employee s date of hire try December 31, 2005; except that under no droumstanaes
sha// tfie contribution be leis than three ttrousand dollars (.$3,0OO.OIO).
STAFF OFFICIALS of the CITY OF
ANAHEIM, a Municipal Corporation
By
By.
By:
ANAHEIM MUNICIPAL EMPLOYEES
ASSOCIATION, Cle ca E oyees
By:
•.• F
gy; .,/
By.
By:
By:
By:
Dated. ~"'~~
By:
By:
Dated: ~S ~- •~