HomeMy WebLinkAboutAgenda Report - January 16, 1991 (40)COUNCIL COMMUNICATION
TO: THE CITY COUNCIL COUNCIL MEETING DATE
FROM: THE CITY MANAGER'S OFFICE JANUARY 16, 1991
SUBJECT: POSSIBLE AMICUS CURIAE BRIEF
PREPARED BY: City Attorney
RECOMMENDED ACTION:
Council consideration of joining as amicus curiae in
Orange County Employees Assn., Inc. et al. v. County
of Orange (Superior Court No. 47-14-49)
BACKGROUND INFORMATION: A lawsuit which could have significant impact on Lodi
is the Orange County case noted above. The central
issue is whether Government Code Section 53205.2
(attached) requires local government agencies to approve health benefit pians
which have the same coverage for retirees as that available for active
employees, with no increase in out-of-pocket costs to retirees.
An Orange County Superior Court has ruled that it may.
If that ruling stands, health care costs for Looi can be expected to increase
subst'ntially.
The City's sick leave conversion policy would no longer be viable, since there
would be no incentive for employees to "bank" sick leave if they would still
be eligible for the same coverage at no increase in costs after retirement.
Under our sick leave conversion program, the City continues to pay for health
insurance what was being paid when the employee retired, or an amount
determined through negotiations. For insurance for an employee who retires
today, the City will pay $291.90 toward sick leave until the bank is empty.
As prices of insurance go up, the retirees costs will likewise increase. This
is the heart of our sick leave conversion program.
It is recommended that the Council approve adding the City of Lodi to the list
of amici curiae. There would be no cost to the City other than postage, etc.
in that event.
Respectfully submitted,
BOB McNATT
City Attorney
attachment
AMICUSCC/TXTA.OIV
§ 53205.2. Preference of local agency or governing beard to cer-
tain health benefit plans
In granting the approval specified in Sections 53202 and 53202.1
the local agency or governing board shall give preference to such
health benefit plans as (10 not terminate upon retirement of the em-
ulovees affected. and which provide the same benefits for retired per-
sonnel as for active personnel at no increase in costs to the retired
person, provided that the focal agency or governing board makes a
contribution of at least five dollars (.t.5) per month toward the cost of
providing a health benefits plan for the employee or the employee
and the dependent members of his family. In the case of retired per-
sonnel who receive retirement benefits under the State Employees' Re-
tirement System, the health benefits coverage provided ;or annui-
tants by a health benefits plan under the Meyers -Geddes State Em-
ployees' Medical and Ilospitai Care Act shall satisfy the requirements
of this section.
(Added 1►v Stats.1903, c. 1403, p. 2942, § 1. Amended by Stats.1965, c.
1745, p. 3904, § 1.)