Page 426 - FY 2020-21 Blue Book Volume II

Human Resources Benefits
Direct Costs
PROGRAM CHANGES 2019-20 Program Level $ 743,564,377

1. Civilian FLEX Program. Funding is provided for health, dental, life, and disability insurance 21,037,750
benefits. Rates for 2020-21 will increase by 2.3 to 7.0 percent for health benefits with no rate
increase for dental benefits. An overall increase in this program reflects the elimination of
civilian employee contributions for health premium costs for the majority of civilian
employees in accordance with approved Memoranda of Understanding (MOUs) between the
City and employee labor organizations. The projected cost assumes a one percent decrease
in enrollment.

2. Contractual Services. Funding is provided for the Civilian FLEX Benefits and Workers' 894,310
Compensation Third Party Administrators (TPAs) and for workers' compensation claims bill
review, utilization review, claims management system, and the Alternative Dispute
Resolution Program. Funding is increased for services relating to Human Resources and
Payroll System Interface Conversion and increased contract rates of the Workers'
Compensation TPAs offset by a reduction in service costs for Affordable Care Act tax
reporting.

3. Employee Assistance Program. Funding is provided for Employee Assistance Program 179,436
services for all civilian and sworn employees. Funding is increased to reflect negotiated City
contributions for Police and Fire Employee Assistance Programs in accordance with
approved MOUs between the City and employee labor organizations. The projected cost
assumes a one percent decrease in civilian enrollment and no growth in Police and Fire
sworn enrollment.
4. Fire Health and Welfare Program. Funding is provided to cover the cost of health, dental, 2,147,357
life, and disability insurance benefits for sworn employees. Rates for 2020-21 are projected
to vary from decreasing by 0.17 percent to increasing by eight percent for health benefits and
two percent for dental benefits. The projected cost assumes no growth in enrollment.

5. Police Health and Welfare Program. Funding is provided to cover the costs of health, 674,248
dental, life, and disability insurance benefits for sworn employees. Rates for 2019-20 will
increase by 0.35 to 4.8 percent for health benefits and two percent for dental benefits. The
projected cost assumes no growth in enrollment.
6. Supplemental Civilian Union Benefits. Funding is provided to cover the cost of 796,491
union‐sponsored benefit plans, negotiated in MOUs, that are supplemental to the City’s
health benefits. Funding is increased pursuant approved MOUs between the City and
employee labor organizations. The projected cost assumes a decrease of one percent in
civilian enrollment.
7. Unemployment Insurance. Funding is provided to pay State-mandated unemployment (500,000)
insurance costs for current and former employees (full-time and part-time) who have
separated from City service or had their wages reduced. Funding is decreased to reflect the
2018-19 actual costs.

8. Workers’ Compensation. Funding is provided to cover the cost of workers' compensation 31,800,000
benefits and rehabilitation bills, claims, and awards ($217.6 million) and the fee that the
State of California assesses to self-insured employers ($12.5 million). Funding is increased
to reflect projected increases to expenditures including anticipated impacts of COVID-19.
TOTAL CHANGES $ 57,029,592

Amount
2019-20 Program Budget $ 743,564,377
Changes $ 57,029,592

PROPOSED 2020-21 PROGRAM BUDGET $ 800,593,969

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