Title
Recommendation to Receive an Informational Report Regarding the Actuarial Impact of a Change in Dental Benefits for Public Safety Retirees Who Currently Receive Dental Benefits Through Memorandums of Understanding with the City of Alameda's Four Public Safety Bargaining Units (International Association of Firefighters, Alameda Fire Chiefs Association, Alameda Police Officers Association and Alameda Polices Management Association), and Direct the City Clerk to Provide Public Access to its Contents for a Period of at Least Two Weeks from February 5, 2019 to February 19, 2019. (City Manager's Office 2110)
Body
To: Honorable Mayor and Members of the City Council
From: Dave L. Rudat, Interim City Manager
EXECUTIVE SUMMARY
The City is considering an adjustment to safety retiree dental benefits. Government Code Section 7507 requires an actuary to provide a statement of the actuarial impact upon future costs prior to authorizing changes in public retirement plan benefits or other post-employment benefits. The statement must be available for public review at least two weeks prior to the meeting at which adoption of the changes in the retirement plan are considered. The attached actuarial valuation provides the impact of this change in dental benefits. The completed actuarial report anticipates an increase of $630,177 or a little over a half-a-percent in the City's total other post-employment benefit (OPEB) liability for the proposed adjustment in retiree dental benefits.
BACKGROUND
The City provides retiree medical and dental benefits to its Public Safety employees. These benefits are outlined in the Memorandums of Understanding with the City's four Public Safety bargaining units:
* International Association of Firefighters (IAFF)
* Alameda Fire Chiefs Association (AFCA)
* Alameda Police Officers Association (APOA)
* Alameda Polices Management Association (APMA)
The City and the four Public Safety bargaining units negotiated an increase in dental benef...
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