FROM: James D. Herberg, General Manager
Originator: Celia Chandler, Director of Human Resources
SUBJECT:
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HEALTH REIMBURSEMENT ARRANGEMENT FOR THE MANAGERS GROUP
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION:
A. Adopt Resolution No. OC SAN 22-05 entitled: "A Resolution of the Board of Directors of the Orange County Sanitation District approving the Health Reimbursement Arrangement (HRA) Plan for the Managers Group identified through the 2021 HRA Reopener Negotiations";
B. Approve implementation of an HRA plan with the Managers Group with employee-funded contributions in the form of mandatory vacation, sick, personal, and compensatory leave payouts; and
C. Authorize the Orange County Sanitation District to pay the annual administrative costs of the HRA plan for the Managers Group, for a maximum exposure of approximately $390 annually, based on current headcounts.
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BACKGROUND
In November 2021, the Board of Directors approved an agreement with the Supervisory and Professional Management Group (SPMG) to implement a Health Reimbursement Arrangement (HRA; also referenced as Health Retirement Account in MOU), the associated Resolution, and the maximum annual administrative costs to be paid by the Orange County Sanitation District (OC San) on behalf of each SPMG employee. Additionally, the Board directed staff to initiate the procurement process for an HRA consultant and/or vendor upon concluding negotiations with the remaining represented bargaining units, in order to include all negotiated HRA plans as one package.
As previously reported to the Board, OC San met and conferred in good faith with all represented groups: SPMG, International Union of Operating Engineers Local 501 (Local 501), and the Orange County Employees Association (OCEA) to determine whether they would adopt an HRA plan, in accordance with a labor contract reopener that was negotiated in 2019. OC San offered the same HRA plan to ...
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