Official Statement Airport Commission City and County of San ...

Determination of Employer and Employee Contributions for Medical Benefits. Contributions by the
participating employers and HSS Beneficiaries to HSS Medical Plans are determined according to applicable
provisions of the Charter. To the extent annual medical premiums exceed the contributions made by employers and
HSS Beneficiaries as required by the Charter, such excess must be paid by HSS Beneficiaries or, if elected by the
Health Service Board, from net assets held in the Health Service Trust Fund.
All City Beneficiaries receive a base contribution from the City toward the monthly cost of their medical
benefits calculated pursuant to the Charter. Pursuant to the Charter, in January of each year, the Health Service
System conducts a survey of the 10 most populous counties in the State (other than the City) to determine “the
average contribution made by each such county toward the providing of health care plans, exclusive of dental or
optical care, for each employee of such County.” Under the Charter, the City, including the Airport, is required to
contribute to the Health Service Trust Fund an amount equal to such “average contribution” for each City
Beneficiary.
In addition to the average contribution described above, the City, including the Airport, makes additional
medical and other benefit contributions on behalf of City Beneficiaries who are active employees as negotiated and
agreed to by such employees’ applicable collective bargaining units. City bargaining units have negotiated
additional City contributions for enhanced single medical coverage, dependent medical coverage and for additional
benefits such as dental care for the members of such bargaining units. These contribution amounts are also paid by
into the Health Service Trust Fund.
Medical benefits for City Beneficiaries who are retired or otherwise not employed by the City, including
the Airport (e.g., surviving spouses and domestic partners of City employees) (the “Nonemployee City
Beneficiaries”) are funded through contributions from such Nonemployee City Beneficiaries and the City as
determined pursuant to the Charter. The Health Service System medical benefit eligibility requirements for
Nonemployee City Beneficiaries are described below under “–Post-Employment Health Care Benefits.”
Contributions relating to Nonemployee City Beneficiaries include the contribution of the “average
contribution” corresponding to such Nonemployee City Beneficiaries as described in the Charter along with the
following:
• Monthly contributions from Nonemployee City Beneficiaries in amounts equal to the monthly
contributions required from active employees excluding health coverage or subsidies for health
coverage paid for active employees as a result of collective bargaining. However, such monthly
contributions from Nonemployee City Beneficiaries covered under Medicare are reduced by an amount
equal to the amount contributed monthly by such persons to Medicare.
• In addition to the average contribution described in the second paragraph of this subsection, the City
contributes additional amounts in respect of the Nonemployee City Beneficiaries sufficient to defray
the difference in cost to the Health Service System in providing the same health coverage to
Nonemployee City Beneficiaries as is provided for active employee City Beneficiaries, excluding
health coverage or subsidies for health coverage paid for active employees as a result of collective
bargaining.
• After application of the calculations described above, the City contributes 50% of City retirees’
remaining monthly contributions.
In addition, the City contributes 50% of the monthly contributions required for the first dependent of a
retired City participant.
Further information on Health Service System funding can be found in the Health Plan’s audited financial
statements, which are available through Fiscal Year 2007-08. The Health Plan’s audited financial statements are not
incorporated by reference.
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