COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Human Resources Department

 

DATE:

June 13, 2011

BOARD MEETING DATE:

June 28, 2011

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

 

TO:

Honorable Board of Supervisors

FROM:

Donna Vaillancourt, Human Resources Department Director

SUBJECT:

Memorandum of Understanding with Law Enforcement Unit (LEU)

 

RECOMMENDATION:

Adopt a Resolution adopting the successor Memorandum of Understanding with the Law Enforcement Unit (LEU) for the provision of salary and benefits for the term of June 13, 2010 through June 7, 2014.

 

BACKGROUND/DISCUSSION:

The current MOU expired on June 12, 2010, and the County concluded negotiations with LEU on April 4, 2011. The membership has ratified the County’s offer, which will achieve ongoing structural changes in wages, health benefits, retirement and retiree health. This will contribute long-term savings toward eliminating the County’s $100+ million structural deficit. LEU represents less than one percent of County employees in bargaining units. The following summarizes the major elements in the Memoranda of Understanding.

Term

June 13, 2010 – June 7, 2014 (Four years)

Wage Increase
No wage increases for the duration of the agreement.
Health Benefits

Effective April 1, 2011, the health premium cost sharing ratio decreased from 90% to 85% County paid for the HMO plans and from 80% to 75% County paid for the Point of Service (POS) plan.

Effective May 1, 2011, all three medical plans had increases in co-pays.

Effective April 4, 2011 and January 1, 2012, each LEU employee will receive a $200 credit to their flexible health care spending account.

Retirement

New employees hired on or after July 10, 2011 will be offered two retirement tiers; 1.7255% @ 58, or a non-contributory plan. The current plan of 2% @ 55.5 will be closed, however, will remain available for an employee to purchase after the completion of ten years of service if the employee elects to pay all costs retroactive to their date of hire.

Upon implementation with all bargaining units in the retirement plan, new employees hired after July 10, 2011 will pay up to fifty percent of the retirement cost of living adjustment.

An actuarial report describing the changes (reductions) in retirement costs was presented to you on June 7, 2011.

Retiree Health

Employees hired on or after July 10, 2011 will receive $400 per eight hours of accrued sick leave to utilize for retiree healthcare premiums.

Approval of this Memorandum of Understanding contributes to Shared Vision 2025 of a Prosperous Community by ensuring cost-effective compensation structures for County employees.

 

FISCAL IMPACT:

During the four-year term of this agreement, the County will realize savings of approximately $184,000. The ongoing structural savings will be approximately $93,000 per year. Retirement savings are estimated to be more than $163,000 (cumulative) by year ten.