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