Page 386 - FY 2021-22 Blue Book Volume 2

Human Resources Benefits

Direct Costs
PROGRAM CHANGES 2020-21 Program Level $ 800,593,969

1. Civilian Program. Funding is provided for health, dental, life, and disability (11,984,383)

insurance benefits. Rates for 2021-22 are projected to increase by 1.0 percent for health
benefits and 2.0 percent for dental benefits. An overall decrease in this program reflects the
reduction of enrollment during 2020-21. The projected cost assumes a 1.0 percent increase in
enrollment.

2. Contractual Services. Funding is provided for the Civilian LAwell Benefits Program and (332,700)

Workers' 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 contract rates of the Workers' Compensation

TPAs offset by a reduction of one-time costs relating to Human Resources and Payroll System
Interface Conversion.

3. Employee Assistance Program. Funding is provided for Employee Assistance Program (19,180)
services for all civilian and sworn employees. An overall decrease in this program reflects the
reduction of enrollment during 2020-21. The projected cost assumes a 1.0 percent increase in

civilian enrollment, a 1.0 percent increase in Police sworn enrollment, and a 2.5 percent

increase in Fire sworn enrollment.

4. Fire Health and Welfare Program. Funding is provided to cover the cost of health, dental, 1,592,861

life, and disability insurance benefits for sworn Fire employees. Rates for 2021-22 are

projected to vary from no change to increasing by 10.83 percent for health benefits and

increasing by 2.0 percent for dental benefits. The projected cost assumes 2.5 percent growth
in enrollment.
5. Police Health and Welfare Program. Funding is provided to cover the costs of health, dental, (1,540,619)
life, and disability insurance benefits for sworn Police employees. Rates for 2021-22 will vary
from decreasing by 5.0 percent to increasing by 2.65 percent for health benefits and

increasing by 2.0 percent for dental benefits. An overall decrease in this program reflects the

reduction of enrollment during 2020-21. The projected cost assumes 1.0 percent growth in

enrollment.

6. Supplemental Civilian Union Benefits. Funding is provided to cover the cost of 762

union‐sponsored benefit plans, negotiated in Memoranda of Understanding (MOUs), that are
supplemental to the City’s health benefits. Funding is increased pursuant to approved MOUs
between the City and employee labor organizations. The projected cost assumes an increase
of 1.0 percent in civilian enrollment.

7. Unemployment Insurance. Funding is provided to pay State-mandated unemployment 3,700,000

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 increased to reflect costs
for continuing claims initiated in 2020-21.

8. Workers’ Compensation. Funding is provided to cover the cost of workers' compensation (17,633,000)

benefits and rehabilitation bills, claims, and awards ($200.5 million) and the fee that the State

of California assesses to self-insured employers ($12.0 million). Funding is decreased to

reflect projected expenditures including reduced impacts of COVID-19.
TOTAL CHANGES $ (26,216,259)
Amount
2020-21 Program Budget $ 800,593,969
Changes $ (26,216,259)
PROPOSED 2021-22 PROGRAM BUDGET $ 774,377,710
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