BOARD MEETING DATE: July 11, 2003
AGENDA NO. 12

Approve Benefits Adjustment for Management, Confidential, and Attorney Employees

SYNOPSIS:

The three-year labor contracts approved by the Board in 2002 provide annual salary and benefits adjustments for union-represented employees. This recommendation is to approve a comparable benefits adjustment for management, confidential, and attorney employees for FY 2003-04. At the June meeting, the Board approved a comparable salary adjustment for non-union-represented employees, but directed staff to submit the benefits adjustment recommendation to the Personnel Committee for review.

COMMITTEE:

Administrative, April 11, 2003, Recommended for Approval
Personnel Committee, July 9, 2003, Recommended for Approval

RECOMMENDED ACTIONS:

1. Approve a ten percent adjustment to the fixed monthly benefit amount provided to management, confidential, and attorney employees, effective September 1, 2003.
    
2. Approve addition of basic long-term care insurance for management, confidential, and attorney employees, effective September 1, 2003.
    
3. Adopt the attached Resolution amending AQMD’s Administrative Code to effect these changes.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In March and June of 2002, the Board approved three-year labor contracts that included annual salary and benefits adjustments for union-represented employees. At the June 2003 meeting, the Board approved the same three-percent salary adjustment for non-union-represented employees as had been approved earlier for union-represented employees, but asked that the recommendation with respect to benefits adjustments be referred to the Personnel Committee for review. The recommendation would grant a comparable benefits adjustment to management, confidential, and attorney employees for FY 2003-04 as was approved earlier for union-represented employees.

Proposal

The benefits adjustment recommended for non-union-represented employees is for a ten percent adjustment to the agency’s contribution toward health insurance, rather than the fifteen percent adjustment approved by the Board for union-represented employees, and addition of basic long-term-care insurance. The basic long-term-care policy would provide monthly payments toward needed nursing-facility or in-home care. Those covered under this insurance could choose optional plan enhancements beyond the basic employee-only coverage provided by the District and could continue the plan after leaving District service. All optional enhancements beyond the basic employee-only coverage, including the option to continue the plan after leaving District service, are entirely at employees’ own expense, with no District contribution.

Along with the salary adjustment approved in June, this benefits adjustment would provide management, confidential, and attorney employees a salary and benefits package comparable to the FY 03-04 adjustments approved previously by the Board for union-represented employees.

Resource Impacts

The cost for management, confidential, and attorney employees, including designated deputies, of the recommended benefits adjustment for FY 2003-04 is approximately $161,419. Sufficient funds have been included in the FY 2003-04 Budget.

Attachments

Resolution
Administrative Code Amendments

                    A Resolution of the South Coast Air Quality Management District Board amending AQMD’s Administrative Code to provide long-term care insurance for management, confidential, and attorney classes, effective September 1, 2003.

                    WHEREAS, the Governing Board of the South Coast Air Quality Management District exercises its duty to review and determine appropriate wages, hours, and other terms and conditions of employment provided to employees.

                    THEREFORE, BE IT RESOLVED that the Board of the South Coast Air Quality Management District, State of California, in regular session assembled on July 11, 2003, does hereby amend AQMD’s Administrative Code to provide long-term care insurance for management, confidential, and attorney classes, effective September 1, 2003.

___________________________        __________________________
Date                                                               Clerk of the Board

ADMINISTRATIVE CODE AMENDMENT

Section 115.4-LIFE INSURANCE AND OTHER BENEFITS

…

In addition, management and confidential employees receive AQMD-paid long-term disability insurance (See Administrative Code, Section 119.3) and AQMD-paid long-term care insurance (See Administrative Code, Section 119.4). The long-term disability insurance, and the additional life insurance, and the long-term care insurance are not part of the Flexible Benefit Plan described in Section 115.1 above.

…

Section 119.4-LONG-TERM-CARE INSURANCE

AQMD will provide fully paid long-term care insurance to management and confidential employees, effective September 1, 2003. Such coverage provides a $4000 monthly benefit for nursing-facility care, $2000 per month for licensed in-home care, a 90-day elimination period, and a 6-year lifetime benefit maximum. Enhancements to these benefit levels are available on an employee-paid basis.

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