Budget Message / Highlights - Metropolitan Water Reclamation ...

METROPOLITAN WATER RECLAMATION DISTRICT OF GREATER CHICAGO
2009 BUDGET
2. Make the MWRD an employer of choice and a good place to work.
The District provides health care benefits for all District employees, approximately 1,930 retirees and eligible dependents.
Employees and eligible retirees can select either the Blue Cross PPO or a health-maintenance organization (HMO). There is
one HMO available for employees and retirees. The District is self-insured for both medical plans. Employees are also offered
a choice of dental plans.
The District’s costs for the benefits programs are partially offset by employee and
Distribution of Health Plan Membership retiree contributions. For 2009, employee and retiree contributions for health and
Employees Retirees dental insurance are projected to be $7.2 million.
% in HMO 42% 20%
The Disease Management Program implemented in 2003, and administered by
% in Blue Cross 58% 80%
Blue Cross, continues to identify employees with chronic health conditions and
provides them with programs to defer or prevent high cost admissions for acute medical conditions.
The 2009 Human Resources Department budget includes $10,000,000 that will be allocated to a trust fund for the purpose of
pre-funding retiree health care expenses. This is in response to the Government Accounting Standards Board (GASB)
Statement No. 45 covering OPEB costs. These funds will be invested and eventually used to pay the District’s portion of retiree
health care expenses in the future.
By Federal regulation, the District makes matching employee Medicare contributions, which are equal to 1.45 percent of gross
earnings, for employees hired after March 31, 1986. Effective July 2, 1991, the District was also required to begin matching the
entire 7.65 percent FICA contribution for all employees, such as relief workers, who are not eligible for coverage under the
District’s retirement plan.
The table below shows the growth both in cost and in number of employees subject to these payroll taxes between 2002 and
2008, with a projection for 2009. As the number of covered employees grows due to turnover, the District’s expense will
correspondingly increase.
The Administration/EEO Section manages the administration of the District’s EEO/Affirmative Action (AA) Programs, as well
as ensuring compliance with the Americans with Disabilities Act (ADA), and the Family and Medical Leave Act (FMLA).
Social Security and Medicare Program Cost and Participation
2002 2003 2004 2005 2006 2007 2008 2009
Projected
Number of Employees Subject to Medicare Tax 1,725 1,992 1,970 1,970 1,970 1,984 2,004 2,100
Medicare and Social Security Tax Costs ($000s) $1,537.0 $1,615.0 $1,686.4 $1,686.4 $1,686.4 $1,984.4 $2,100.0 $2,205.0
3. Provide processes and procedures for employee representation, internal complaints and investigations in alignment
with the District’s regulatory environment.
The Labor and Employee Relations Section administers collective bargaining agreements for all represented employees,
including contract administration, advice and counseling for managers and supervisors regarding investigations, and
disciplinary matters for both represented and non-represented employees. Approximately 850 of the District’s employees are
represented by unions certified by The Illinois Labor Relations Board for the purpose of negotiating wages, hours, and other
terms and conditions of employment and resolution of disputes arising under collective bargaining agreements. There are 15
different unions representing District employees in six different bargaining units. All six collective bargaining agreements
expired on June 30, 2008. Negotiations for new three-year agreements have been completed. The Administration/EEO Section
is responsible for receiving and processing complaints of discrimination, sexual harassment and other forms of harassment; and
conducting inquiries and investigations, including advice and counseling for employees and supervisors.
In 2009, a consultant will be selected to provide workplace violence training for supervisors and for individuals who will serve
on a crisis management team.
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