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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
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Department of Housing
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DATE:
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May 28, 2009
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BOARD MEETING DATE:
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June 9, 2009
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SPECIAL NOTICE/HEARING:
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None
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VOTE REQUIRED:
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Majority
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TO:
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Honorable Board of Supervisors (Sitting as the Board of Commissioners of the Housing Authority)
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FROM:
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Duane Bay, Director, Department of Housing
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SUBJECT:
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Agreement with Ceridian Benefits Services to Provide Flexible Spending Account Services and an Amendment of the Memorandum of Understanding with the American Federation of State, Municipal and County Employees Council 57
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RECOMMENDATION:
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Adopt a Resolution
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1) Authorizing the Director of the Department of Housing to execute contract documents with Ceridian Benefits Services to provide Flexible Spending Account (FSA) services to Housing Authority employees and,
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2) Authorizing the Director of the Department of Housing to sign an amendment to the Memorandum of Understanding (MOU) with the American Federation of State, Municipal and County Employees (AFSCME) Council 57.
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VISION ALIGNMENT:
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Commitment: Responsive, effective and collaborative government.
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Goal 20: Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain.
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BACKGROUND:
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The MOU between the Housing Authority of the County of San Mateo (HACSM) and AFSCME contains a provision calling for the exploration of the feasibility of establishing a Flexible Spending Account benefit for HACSM employees. FSA plans enable participants to set aside specified amounts of their salaries on a pre-tax basis for payment of various medical and dependent care expenses. Individual participation in the plan is completely voluntary. SST Benefits Consulting was engaged to solicit options from qualified FSA plan administrators. Establishment of an FSA plan is also intended to replace a provision of the MOU with AFSCME that provides for a hardship fund that reimburses employees for medical co-pays when a specified volume of family visits is exceeded each year. Because the Director of the Department of Housing (Director) acts on behalf of HACSM in negotiating and execution of the MOU (rather than the County Human Resources Department), the requested authority to execute a modification of the MOU is on behalf of the Director.
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DISCUSSION:
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Ceridian Benefits Services was selected as the best qualified provider of FSA plan benefits. Through a meet and confer process, AFSCME representatives have agreed to substitute the FSA plan for the hardship fund. Very few employees ever became eligible for hardship reimbursements and the dollar limits were small. The new FSA plan will provide a much greater benefit to all employees who choose to participate.
The contract is a standard form that Ceridian uses with all its clients, under which the term is for one year and it is renewable annually.
County Counsel has reviewed the service contract as to form.
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FISCAL IMPACT:
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There is no Net County Cost associated with this action. The plan will cost the Housing Authority approximately $2,100 per year in administrative fees. This amount will most likely be completely offset by savings realized through decreases in the employer’s portion of FICA tax liabilities.
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