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2022-20 RESOLUTION NO. 2022-20 FIXING THE EMPLOYER CONTRIBUTION UNDER THE PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT AT AN UNEQUAL AMOUNT FOR EMPLOYEES AND ANNUITANTS WITH RESPECT TO A RECOGNIZED EMPLOYEE ORGANIZATION WHEREAS, (1) City of Grand Terrace is a contracting agency under Government Code Section 22920 and subject to the Public Employees' Medical and Hospital Care Act(the "Act")for participation by members of 002 General Members;and WHEREAS, (2) Government Code Section 22892(a) provides that a contracting agency subject to Act shall fix the amount of the employer contribution by resolution; and WHEREAS, (3) Government Code Section 22892(b) provides that the employer contribution shall be an equal amount for both employees and annuitants, but may not be less than the amount prescribed by Section 22892(b)of the Act; and WHEREAS, (4) Government Code Section 22892(c) provides that, notwithstanding Section 22892(b),a contracting agency may establish a lesser monthly employer contribution for annuitants than for employees, provided that the monthly employer contribution for annuitants is annually increased to equal an amount not less than the number of years the contracting agency has been subject to this subdivision multiplied by five percent of the current monthly employer contribution for employees, until the time that the employer contribution for annuitants equals the employer contribution paid for employees; now, therefore be it RESOLVED, (a) That the employer contribution for each employee shall be the amount necessary to pay the full cost of his/her enrollment, including the enrollment of family members, in a health benefits plan up to a maximum of Kaiser Region 3 Single Party Basic(PR 1) per month; and,be it further RESOLVED, (b) That the monthly employer contribution for annuitants is annually increased to equal an amount not less than the number of years the contracting agency has been subject to this subdivision multiplied by five percent of the current monthly employer contribution for employees, until the time that the employer contribution for annuitants equals the employer contribution paid for employees; And that the contributions for employees and annuitants shall be in addition to those amounts contributed by the Public Agency for administrative fees and to the Contingency Reserve Fund; and be it further RESOLVED, (C) City of Grand Terrace has fully complied with any and all applicable. provisions of Government Code Section 7507 in electing the benefits set forth above; and be it further CalPERS Health Resolution(Change),Revised November 2019 RESOLVED, (d) That the participation of the employees and annuitants of City of Grand Terrace shall be subject to determination of its status as an "agency or instrumentality of the state or political subdivision of a State"that is eligible to participate in a governmental plan within the meaning of Section 414(d)of the Internal Revenue Code, upon publication of final Regulations pursuant to such Section. If it is determined that City of Grand Terrace would not qualify as an agency or instrumentality of the state or political subdivision of a State under such final Regulations, CalPERS may be obligated, and reserves the right to terminate the health coverage of all participants of the employer; and be it further RESOLVED, (e) That the executive body appoint and direct, and it does hereby appoint and direct,the City Clerk to file with the Board a verified copy of this resolution, and to perform on behalf of City of Grand Terrace all functions required of it under the Act; and be it further RESOLVED, (f) That coverage under the Act be effective on June 1, 2022. Adopted at a regular meeting of the City Council at the City of Grand Terrace, this 26th day of April, 2022. Signed: Mayor of e I o and Terrace Attest: — City Clerk of the City of Grand Terrace CalPERS Health Resolution(Change),Revised November 2019 STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) CITY OF GRAND TERRACE ) I Debra L. Thomas, City Clerk of the CITY OF GRAND TERRACE, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 2022-20 was duly passed, approved and adopted by the City Council, approved and signed by the Mayor, and attested by the City Clerk, at the regular meeting of said City Council held on the 26t" day of April 2022, and that the same was passed and adopted by the following vote: AYES: Council Members Allen, Wilson, Robles; Mayor Pro Tern Hussey; Mayor McNaboe NOES: None. ABSENT: None. ABSTAIN: None. Executed this 27th day of April 2022, at Grand Terrace, California. Debra L. Thomas_= _ City Clerk -