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Adopt Resolutions Fixing Employer’s Contribution Under Public Employees’ Medical and Hospital Care Act (PEMHCA)
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Summary: The California Public Employees Retirement System (CalPERS) requires agencies participating in the health program that it administers under the Act to submit a resolution establishing the employer’s monthly contribution towards medical premiums. The Districts’ maximum monthly contributions to the CalPERS health plans were set at $2,680.44 for the period of January 1, 2027, to December 31, 2027. All employees share in increased premium costs under the cost-sharing formula, thereby reducing the Districts’ prorated maximum net contribution to approximately $2,530.44. The cost-sharing amount per employee remained the same as last year’s cost-sharing amount because the maximum cumulative employees’ cost-sharing contribution of $150 per month was reached. The Districts’ average monthly contribution is approximately $1,559.35. The allotments are in accordance with current labor agreements previously approved by the Collective Committee. All health plan costs in excess of the Districts’ contribution are the employees’ responsibility. The proposed resolutions are attached to the agenda. This item is consistent with the Districts’ Guiding Principles to maintain salaries and benefits, based on metrics, to attract and retain a dedicated and talented staff; and commitment to fiscal responsibility and prudent financial stewardship.