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HomeMy WebLinkAboutElect Public Employees' Medical and Hospital Care Act - PEMH Council/Agency Meeting Held: /Z— 1 :4-20/6 DegerreA/Continued to: *App.oved Ll onditionallV/�pprove ❑ Denied Cy CI s Sign , re - is Council Meeting Date: November 15, 2010 Department ID Number: HR 10-023 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Administrator PREPARED BY: Michele Carr, Director of Human Resources SUBJECT: Adopt Resolution No. 2010-93 electing Public Employees' Medical and Hospital Care Act (PEMHCA) for the Huntington Beach Firefighters Association (HBFA) Statement of Issue: The Huntington Beach Firefighters Association (HBFA) has elected to migrate away from the City-sponsored health plans offered through the California Association of Schools and Counties (CSAC) Excess Insurance Authority (EIA) and have elected to utilize the PEMHCA health plans administered by CalPERS. Financial Impact: Funding for the Employer's contribution to health plans for HBFA association enrollees and HBFA retirees is provided for in the City of Huntington Beach :`010-11 fiscal year budget. Recommended Action: Motion to: Adopt Resolution No. 2010-93, "A Resolution of the City Council of the City.of Huntington Beach Electing To Be Subject To Public Employees' Medical and Hospital Care Act Only With Respect to Members of the Huntington Beach Firefighters' Association and Fixing the City's Contribution for Employees and the Employer's Contribution for Annuitants at Different Amounts." Alternative Action(s): Do not Adopt Resolution No. 2010-93, "A Resolution of the City Council of the City of Huntington Beach Electing To Be Subject To Public Employees' Medical and Hospital Care Act Only With Respect to Members of the Huntington Beach R=-efighters' Association and Fixing the City's Contribution for Employees and the Employer's Contribution for Annuitants at Different Amounts." HB -59- Item 26. - 1 - ) CITY OF HUNTINGTON BEACH ®7 Interdepartmental Memo d TO: Joan Flynn, ~ity Clerk FROM: Michele Carr, eso c DATE: November 15, 01 SUBJECT: Late Communication Regarding the Resolution Electing Public Employees' Medical and Hospital Care Act (PEMHCA) for the Huntington Beach Firefighters Association (HBFA) The Human Resources Department submitted RCA HR 10-023 for Council Action. At the time the documents were submitted, attachment #2 - the final actuarial report from AON, was not available. The purpose of this late communication is to submit attachment #2 and provide a PowerPoint presentation for tonight's Council meeting. Thank you in advance for your assistance. Attachments: Attachment#2 —Actuarial Report from AON PowerPoint presentation Late Comm Memo-HBFA PEMCHA Actuarial report -1- F November 9, 2010(supersedes June 9, 2010 version) Mr. Bob Wingenroth Director of Finance City of Huntington Beach 2000 Main Street Huntington Beach, California 92648 Re: Postretirement Health Benefits Study—Projected Impact of CalPERS Health Plans on GASB 45 OPEB Results Dear Bob: We are pleased to present results of a projection study of the City of Huntington Beach Post-retirement Health Benefits Plan(including Retiree Subsidy Medical Plan). The study reviews the projected impact if all City bargaining units were to obtain retiree healthcare coverage under CalPERS Health Plans and receive a benefit at least equal to the PEMHCA minimum for the retiree's lifetime. Background/Recap of Preliminary Study The December 8, 2009 study("single valuation study") discussed a change to CalPERS health plans for all bargaining units and benefit coverage under the minimum PEMHCA benefit. As a single valuation study, it did not discuss future years' results. A valuation forecast extends the single valuation study by projecting results to analyze the impact on a long term basis. This forecast utilizes the plan provisions and actuarial assumptions reflected in the 2009 actuarial valuation report and considers new employees entering the program. As well as looking at the long term impact, an important distinction in this study is consideration of the perspective of the implicit subsidy,which is discussed further below. For this version,we were asked to project results based on the following alternative criteria: 1) Annual Required Contributions (ARC)—annual OPEB costs under GASB, and 2) Net City Contributions—ARC less current year implicit subsidy cost under existing program; ARC only under CalPERS Health Plans, since no implicit subsidy required under CalPERS. Summary of Results During the 45 year projection period, overall results differ depending on which criteria above are considered. A change to retiree healthcare coverage under the CalPERS health plans results in decreases in ARC, but increases in the Net City Contributions(which is adjusted for the implicit subsidy). Aon Hewitt 1 Retirement Practice 707 Nilshire Boulevard I Suite 2600 i Los Angeles,CA 90017 t+IL213.6301900 ; t+1.213.996.1762 I aonhewitt.com Proprietary&Confidential i 42 _ens t Mr. Bob Wingenroth City of Huntington Beach November 9, 2010 Page 2 The following is a brief summary by group: • Fire-City Plans—Under the proposed CalPERS plan,the ARC is lower over all years. However,the Net City Contributions are larger over all years under the Ca1PERS plan. ■ Miscellaneous—Under the proposed CalPERS plan, the ARC is lower in the short term, but similar over the long term. However,the Net City Contributions are larger over all years under the CalPERS plan. ■ Other Groups (Police, Fire-Non City, Lifeguards)—These groups already benefit under CalPERS and are not impacted by this proposed change. For the proposed CalPERS plan,the overall ARC is lower for all years. However,the Net City Contributions are larger over all years for the CalPERS plan. In review of results, it's important to consider that the cost of the implicit subsidy(which is affected by healthcare inflation) increases on a relative basis over time compared to the ARC (which includes some non-inflation adjusted benefits). Therefore,Net City Contribution costs are higher under the CalPERS plan primarily because the current program is reduced by the(relatively higher) implicit subsidy. The attached exhibits show the ARC and Net City Contribution results, separately by group, as if the actuarial valuation were performed in each future year based on a 7.75%discount rate. Similar to the valuation methodology,the unfunded liabilities are assumed to be amortized over the 30 year period ending September 30, 2037. Issues Impacting Results The following factors impact the results and are helpful in considering the effect on the various groups as discussed above: — City Paid Subsidy—The City's service based subsidy is a flat dollar amount(not inflation adjusted), and is paid until age 65. — PEMHCA Minimum Benefit—A contract with CalPERS will require a minimum City paid benefit equal to a percentage(5% in 2010, plus 5%each year; 100% maximum) of the PEMHCA minimum($105 for 2010),which increases with healthcare inflation. The larger of this benefit and the City's service based subsidy (up to $344/month)would be paid by the City for each retiree. It should be noted that the PEMHCA minimum is required as long as the retiree is covered(i.e., lifetime),while the City subsidy stops at age 65. Although the PEMHCA benefit is not currently greater than the subsidy for most retirees today, it is projected to exceed the City subsidy over time. Mr. Bob Wingenroth City of Huntington Beach November 9, 2010 Page 3 Implicit Subsidy—Participation in Ca1PERS health plans results in no implicit subsidy under GASB rules due to the"community rated"nature of the program. This results in a lower GASB 45 liability for the City when comparing Ca1PERS benefits to City plan benefits. Assumptions and Plan Provisions Except as otherwise noted, this study is based on the assumptions, plan provisions, and plan costs used in the 2009 actuarial valuation report, in addition to the results shown in our December 8, 2009 study. In order to project future valuation results,the forecast assumes a level active population (i.e., no annual growth or net attrition). Employees that terminate employment or retire are replaced by newly hired employees according to the following new entrant profile: Safety Non-Safety Hire Age 25 65% 35% 35 30% 35% 45 5% 20% 55 0% 10% Gender Assumption 90%Males/ 60%Males/ 10%Females 40%Females Percent Married 70% 70% Finally, it should be noted that this analysis only pertains to retiree coverage and does not consider the impact of active heathcare costs. Please let us know if you have any questions or would like to discuss further. Sincerely, Bradley J. A A,MAAA Senior Vice President Enclosures c: Josh Brooks Shella Phan Heather Huang VACal\City of Huntington Beach\Cmr\2010\OPEB Projections_I10910 Final.doc City of Huntington Beach - Postretirement Health Benefits Current vs. Proposed Program (All in CalPERS) Forecast Annual Required Contributions (ARC) $2,000,000 \\ ,� $1,800,000 NT 1,600,000 r On i� V $1,400,000 1,200,000 - v $1,000,000 \ !" \ % r Fire-City(Current) r ,/ ° / N \ y \ / %y yr` ' / -e—Fire-City(Proposed) O -- $800,000 e'�­ in's % i%j $600,000 $400,000 � ti $200,000IN / 4 , / off`, Fiscal Year Ending 09/30 1 City of Huntington Beach-Postretirement Health Benefits Current vs.Proposed Program(All in CalPERS) Forecast Annual Required Contributions(ARC) FYE 9130 Fire-City Current Proposed Impact 2010 $ 369,000 $ 73,000 $ (296,000) 2011 $ 386,000 $ 75,000 $ (311,000) 2012 $ 400,000 $ 78,000 $ (321,000) 2013 $ 412,000 $ 81,000 $ (331,000) 2014 $ 426,000 $ 84,000 $ (342,000) 2015 $ 441,000 $ 88,000 $ (353,000) 2016 $ 454,000 $ 91,000 $ (363,000) 2017 $ 469,000 $ 95,000 $ (374,000) 2018 $ 487,000 $ 100,000 $ (386,000) 2019 $ 503,000 $ 104,000 $ (399,000) 2020 $ 522,000 $ 110,000 $ (412,000) 2021 $ 539,000 $ 114,000 $ (424,000) 2022 $ 558,000 $ 120,000 $ (438,000) 2023 $ 578,000 $ 126,000 $ (453,000) 2024 $ 599,000 $ 132,000 $ (467,000) 2025 $ 620,000 $ 138,000 $ (482,000) 2026 $ 642,000 $ 145,000 $ (498,000) 2027 $ 665,000 $ 152,000 $ (513,000) 2028 $ 690,000 $ 159,000 $ (531,000) 2029 $ 715,000 $ 167,000 $ (548,000) 2030 $ 740,000 $ 174,000 $ (566,000) 2031 $ 770,000 $ 183,000 $ (587,000) 2032 $ 801,000 $ 192,000 $ (609,000) 2033 $ 833,000 $ 201,000 $ (632,000) 2034 $ 867,000 $ 211,000 $ (656,000) 2035 $ 904,000 $ 222,000 $ (682,000) 2036 $ 942,000 $ 232,000 $ (710,000) 2037 $ 986,000 $ 243,000 $ (743,000) 2038 $ 563,000 $ 262,000 $ (302,000) 2039 $ 579,000 $ 274,000 $ (306,000) 2040 $ 605,000 $ 287,000 $ (318,000) 2041 $ 633.000 $ 301,000 $ (332,000) 2042 $ 662,000 $ 316,000 $ (346,000) 2043 $ 693,000 $ 332,000 $ (362,000) 2044 $ 727,000 $ 349,000 $ (376,000) 2045 $ 762,000 $ 367,000 $ (396,000) 2046 $ 800,000 $ 385,000 $ (414,000) 2047 $ 839,000 $ 406,000 $ (434,000) 2048 $ 881,000 $ 427,000 $ (454,000) 2049 $ 925,000 $ 449,000 $ (476,000) 2050 $ 970,000 $ 472,000 $ (496,000) 2051 $ 1,018,000 $ 496,000 $ (522,000) 2052 $ 1,068,000 $ 521,000 $ (546,000) 2053 $ 1,120,000 $ 548,000 $ (572,000) 2054 $ 1,175,000 $ 576,000 $ (600,000) 2 �. REQUEST FOR COUNCIL ACTION MEETING DATE: 11/15/2010 DEPARTMENT ID NUMBER: HR 10-023 Analysis: The Huntington Beach Firefighter's Association (HBFA) MOU-Article VIII (D) — Health and Other Insurance Benefits reads: Public Employees'Medical and Hospital Care Act (PEMHCA) OPTION - Notwithstanding the above, the Association has the right to select Public Employees'Medical and Hospital Care Act (PEMHCA) medical insurance coverage under the same terms and conditions as other participating employee associations representing safety employees of the City, provided the City continues to offer PEMHCA insurance to any of its safety employees. The option must be exercised within thirty(30) days after receipt by HBFA of the initial premium rates for the following year, as provided by the City. This language has been present in the HBFA MOU beginning with the MOU dated September 25, 2004 — September 24, 2007, and has been continued in the current (unexpired) agreement beginning September 25, 2007. Annually, upon receipt of the City's health plan costs, HBFA has thirty (30) days in which to notify the City of Huntington Beach of its decision to elect to exercise the option to elect PEMHCA for its health plans. In October 2010, HBFA notified the City that it wished to exercise the right to choose this option. This option is to be effective as soon as possible following the implementation of all required procedures, the first of which is the adoption of the Resolution. The expected date of implementation is January 1, 2011. [HB Police Officers' Association (POA), HB Police Management Association (PMA), and HB Marine Safety Officers' Association elected this option in May, 2004.] The City's Employer-paid contribution to health plan premiums will not increase for active employees. The Employer's contribution toward active employee premiums has been fixed (no increases) since 2008. For the proposed CalPERS plan, the overall Actuarial Required Contribution (ARC) is lower for all years. However, the Net City Contributions are larger over all years for the CalPERS plan. In review of results, it's important to consider that the cost of the implicit subsidy (which is affected by healthcare inflation) increases on a relative basis over time compared to the ARC (which includes some non-inflation adjusted benefits). Therefore, Net City Contribution costs are higher under the CalPERS plan primarily because the current program is reduced by the (relatively higher) implicit subsidy. The actuarial projected cost to the City of Huntington Beach for the next 40 years is: 2010-2020 $(877,000) 2021-2030 $1,260,000 2031-2040 $1,870,000 2041-2050 $3,804,000 Total over 40 years: $6,057,000 [The actuarial report is attached and is compliant with Government Code Section 7507.] Environmental Status: N/A Item 26. - 2 HB -560- REQUEST FOR COUNCIL ACTION MEETING DATE: 1 1/1 51201 0 DEPARTMENT ID NUMBER: HR 10-023 } Strategic Plan Goal: Maintain financial viability and reserves. Maintain public safety. r Attachment(s): 2 P - o 0 1. Resolution 2010- 93 "A Resolution Of.The City Council Of The City Of Huntington Beach Electing To Be Subject To Public Employees' Medical And Hospital Care Act Only With Respect To Members Of The Huntington Beach Firefighters' Association And Fixing The City's Contribution For Employees And The Employer's Contribution For Annuitants At Different Amounts." 2. Actuarial Report from AON HB -561- Item 26. ® 3 ATTACHMENT # 1 RESOLUTION NO. 2010-93 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNT►NGTON BEACH ELECTING TO BE SUBJECT TO PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT ONLY WITH RESPECT TO MEMBERS OF THE HUNTINGTON BEACH FIREFIGHTERS' ASSOCIATION AND FIXING THE CITY'S CONTRIBUTION FOR EMPLOYEES AND THE EMPLOYER'S CONTRIBUTION FOR ANNUITANTS AT DIFFERENT AMOUNTS WHEREAS, Government Code Section 22922(b) provides that a contracting agency may elect upon proper application to participate under the Public Employees' Medical and Hospital Care Act with respect to a recognized employee organization only; and Government Code Section 22892(c) provides that a contracting agency may fix the amount of the employer's contribution for employees and the employer's contribution for annuitants at different amounts provided that the monthly contribution for annuitants shall be annually increased by an amount not less than 5 percent of the monthly contribution for employees, until such time as the amounts are equal-, and The City of Huntington Beach, hereinafter referred to as Public Agency is a-local agency contracting with the Public Employees' Retirement System, and The Public Agency desires to obtain for the members of the Huntington Beach Firefighters' Association, who are employees and annuitants of the agency, the benefit of the Act and to accept the liabilities and obligations of an employer under the Act and Regulations, NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: 1. That the Public Agency elect, and it does hereby elect, to be subject to the provisions of the Act. 2. That the employer's contribution for each employee shall be the amount necessary to pay the full cost of his enrollment, including the enrollment of his family members in a health benefits plan up to a maximum of$108 per month. 3. That the employer's contribution for each annuitant shall be the amount necessary to pay the cost of his enrollment, including the enrollment of his family members, in a health benefits plan up to a maximum of$1.00 per month. 1 08-1441.001/54032 Resolution No. 2010®93 4_ That the employer's contribution for each annuitant shall be increased annually by 5 percent of the monthly contribution for employees, multiplied by number of years of employer's participation in PEMHCA, until such time as the contributions are equal. 5. 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. 6. That the City of Huntington Beach has fully complied with any and all applicable provisions of Government Code Section 7507 in electing the benefits set forth above. 7. That the executive body appoint and direct, and it does hereby appoint and direct, the Human Resources Director to file with the Board of Administration of the Public Employees' Retirement System a verified copy of this Resolution, and to perform on behalf of said Public Agency all functions required of it under the Act and Regulations of the Board of Administration. 8. That the coverage under the Act be effective on January 1, 2011. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 15th day of November 2010. if M or ATTEST: iTi 9 P E City Cler REterector of man Resources REVI D ND APPROVED: PP OVED AS TO FORM: ity Administrator City Attorney 2 08-1441.001/54032 Res. No. 2010-93 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) 1, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on November 15, 2010 by the following vote: AYES: Carchio, Coerper, Hardy, Green, Bohr, Hansen NOES: None ABSENT: None ABSTAIN: Dwyer CV Clerk and ex-offici Jerk of the City Council of the City of Huntington Beach, California ATTACFIMENI' #2 ---------Jl „e 565 Item zs - , Actuarial Report will be provided as a Late Communication Item 26. - 8 H -566- City of Huntington Beach - Postretirement Health Benefits Current vs. Proposed Program (All in CalPERS) Forecast Net City Contributions (ARC less Implicit Subsidy) $2,000,000 $ $1,800,000 pg ON TZ $1,400,000 // %/ $1,200,000 /� Fire-City(Current) $1,000,000 / —� \ , e •:: , , —♦—Fire-Cit (Proposed): Y( P $800,000 $400,000 $200,000 OHO O0 ON' ONb ONO OHO O�� 1k O0O OHO 000 03� 00� 000 Or,�O OHO O�� O�� ONO OHO OHO 09� Ohl ti ti ti ti ti ti ti ti ti ti ti ti ti ti 4 ti ti ti Fiscal Year Ending 09/30 *City pays greater of the implicity subsidy and ARC. 3 City of Huntington Beach-Postretirement Health Benefits Current vs.Proposed Program(All in CalPERS) Forecast Net City Contributions(ARC Less Implicit Subsidy) FYE 9/30 Fire-City Current Proposed Impact Implicit Net City Net Contributions- ARC Subsidy Contributions* ARC ARC 2010 $ 369,000 $ 170,000 $ 190,000 $ 73,000 $ (117,000) 2011 $ 386,000 $ 193,000 $ 193,000 $ 75,000 $ (118,000) 2012 $ 400,000 $ 195,000 $ 205.000 $ 78,000 $ (127,000) 2013 $ 412,000' $ 181,000 $ 231,000 $ 81,000 $ (150,000) 2014 $ 426,000 $ 205,000 $ 221,000 $ 84,000 $ (137,000) 2015 $ 441,000 $ 215,000 $ 226,000 $ 88,000 $ (138,000) 2016 $ 454,000 $ 259,000 $ 195,000 $ 91,000 $ (104,000) 2017 $ 469,000 $ 324,000 $ 145,000 $ 95,000 $ (50,000) 2018 $ 487,000 $ 376,000 $ 111,000 $ 100,000 $ (11,000) 2019 $ 503,000 $ 409,000 $ 94,000 $ 104,000 $ 10,000 2020 $ 522,000 $ 477,000 $ 45,000 $ 110,000 $ 65,000 2021 $ 539,000 $ 507,000 $ 32,000 $ 114,000 $ 8Z,000 2022 $ 558,000 $ 551,000 $ 7,000 $ 120,000 $ 113,000 2023 $ 578,000 $ 615,000 $ - $ 126,000 $ 126,000 2024 $ 599,000 $ 622,000 $ - $ 132,000 $ 132,000 2025 $ 620,000 $ 675,000 $ - $ 138,000 $ 136,000 2026 $ 642,000 $ 666,000 $ - $ 145,000 $ 145,000 2027 $ 665,000 $ 668,000 $ - $ 152,000 $ 152,000 2028 $ 690,000 $ 654,000 $ 36,000 $ 159,000 $ 123,000 2029 $ 715,000 $ 666,000 $ 49,000 $ 167,000 $ 118,000 2030 $ 740,000 $ 697,000 $ 43,000 $ 174,000 $ 131,000 2031 $ 770,000 $ 722,000 $ 48,000 $ 183,000 $ 135,000 2032 $ 801,000 $ 758,000 $ 43,000 $ 192,000 $ 149,000 2033 $ 833,000 $ 811,000 $ 22,000 $ 201,000 $ 179,000 2034 $ 867,000 $ 835,000 $ 32,000 $ 211,000 $ 179,000 2035 $ 904,000 $ 831,000 $ 73,000 $ 222,000 $ 149,000 2036 $ 942,000 $ 848,000 $ 94,000 $ 232,000 $ 138,000 2037 $ 986,000 $ 861,000 $ 125,000 $ 243,000 $ 118,000 2038 $ 563,000 $ 869,000 $ - $ 262,000 $ 262,000 - 2039 $ 579,000 $ 888,000 $ - $ 274,000 $ 274,000 2040 $ 605,000 $ 921,000 $ - $ 287,000 $ 287,000 2041 $ 633,000 $ 985,000 $ - $ 301,000 $ 301,000 2042 $ 662,000 $ 1,053,000 $ - $ 316,000 $ 316,000 2043 $ 693,000 $ 1,107,000 $ - $ 332,000 $ 332,000 2044 $ 727,000 $ 1,143,000 $ - $ 349,000 $ 349,000 2045 $ 762,000 $ 1,141,000 $ - $ 367,000 $ 367,000 2046 $ 800,000 $ 1,182,000 $ - $ 385,000 $ 385,000 2047 $ 839,000 $ 1,293,000 $ - $ 406,000 $ 406,000 2048 $ 881,000 $ 1,390,000 $ - $ 427,000 $ 427,000 2049 $ 925,000 $ 1,541,000 $ - $ 449,000 $ 449,000 2050 $ 970,000 $ 1,744,000 $ $ 472,000 $ 472,000 2051 $ 1,018,000 $ 1,846,000 $ - $ 496,000 $ 496,000 2052 $ 1,068,000 $ 1,956,000 $ - $ 521,000 $ 521,000 2053 $ 1,120,000 $2,064,000 $ - $ 548,000 $ 548,000 2054 $ 1,175,000 $2,145,000 $ $ 576,000 $ 576,000 *City pays greater of the implicit subsidy and ARC. 4 e 11/15/2010 untintn Beach Firefighters Association PEMHCA Option Election 2010 \u\ r \ \,;,, • 2t104�F�B Poflce OfflCeCs� sociation� HB� ice s\ MT Maria ei dhf , gsociation and HB filar, e Safe Officers Association elected to utilize the Public Employees'Medica�l aP Hospital Cel Act (PEMHCA) for health'benefits` 2004 HB Firefighters Association negotiated the OPTION to make this election in the future (with notice to the City). d 1 11/15/2019 no Is NINE PU 02 \$..,. MEMI-ICm3 PUb(lC Employees ed1Ca1 Hospl aI Care Act7;,"RIF lJnde PEMHCA de rid""' ernpl4yis and Q Njg retirees are rovided access to rQuo health I"Jp � g p insurance. — CaIPERS administers the health benefits Program and determines the benefitsdesign; co-pays, deductibles, providers and premiums. Ff 4 , Ca1PERS ad mini stersthe Ci ` �ouppAdministratp p an (CSACEIA).administers i the plan Rate structure;and opti©rs determined b Rite strut#ure end CaIPERS options ma". lmoified by,influencedRetiree•couerage yH, contributions for life„ Future employer Retiree coverage contributions to achieve . contributions capped at panty between actives age 65 and retirees ° .Future-.contributions for actives and retirees subject to bargaining F ��� ` - s 2 11/15/2010 \ . Curreriity �a s c p ecy age , �► PCAi CaIPERS\ lan p�rovMdes�enet City retiree benefit rren�tly Iirnjtedt to $ per (� 4 rnorlth \ \ ,'. City contribution to became equal for actue em' to eesand retirees undergo used lane y p Y� t? p v� After 2019, City costs of proppsed plan projected Oo Xceed cost of current program h� r • Based upon actu aria l,assumptbons:faverage, annual 'costs for program years;2010 2050 are approximated at $151.MO \ IE City o{_R a ington Beach-Postretrrement Heard,Be—fits Current vs Proposed Program(All in CaIPERS) Farecast Net City Com ibrduais(ARC tes Implicit Subsidy) Affimv � 2 G � E vare�n,�ceno 3