Presentation on theme: "Impact of GASB 45 on Chesterfield County Employees"— Presentation transcript:
1Impact of GASB 45 on Chesterfield County Employees Presented by Greg BeasleyPresidentChesterfield Professional Firefighters AssociationIAFF Local 2803
2INTRODUCTIONThe information in this presentation is to demonstrate how the implementation of GASB 45 affected the employees of Chesterfield County, Virginia.It will also cover what IAFF Local 2803 is working on to get back what was taken away from our members.
3PROFILE OF CHESTERFIELD COUNTY, VA Located in Central Virginia, suburb of Richmond, VirginiaFourth largest county in VirginiaPopulation in 2007 estimated at 306,000Median household income $69,409Metro area $56,739State $59,562
4PROFILE OF CHESTERFIED COUNTY, VA Employs 4,496 people: 3,451 full time/1,045 part time (this does not include the County school system)2010 Budget over 1.2 Billion Dollars (includes school system)One of fewer than 25 counties in the nation to hold a AAA bond rating from the top three rating services
5Retiree Medical Benefits prior to 7-1-06 Once an employee retired from Chesterfield County, meeting the requirements set by the Virginia Retirement System (VRS), the County would continue to pay the employee’s portion of any medical insurance premiums.
6Changes to Retiree Benefits due to GASB 45 There are now five different eligibility categories for people retiring after July 1, 2006.Grandfathered BenefitCapped BenefitAccess BenefitDisabilityNo Benefit
7Changes to Retiree Benefits due to GASB 45 GRANDFATHERED BENEFITProposed ChangeEmployees who will reach a combination of age and service equal to, or exceeding 60 years as of July 1, 2007, including at least 10 years of service, will be “grandfathered” into the current plan with slight revisions. The employer contribution will be based on years of service similar to what is available now.Final ChangeMore employees may be grandfathered because we have changed the break-in-service rules. Employees with a break-in-service prior to July 1, 2006 will receive credit for all County service before and after the break, regardless of the length of the break. Breaks-in-service following July 1, 2006, will follow the 5-year rule.
8Changes to Retiree Benefits due to GASB 45 CAPPED BENEFITProposed ChangeEmployees who are not grandfathered as of July 1, 2007 will receive retiree health benefits if they retire at age 55, or greater, with at least 15 years of service. The county contribution will be based on years of service on a sliding scale.
9Changes to Retiree Benefits due to GASB 45 CAPPED BENEFIT (continued)Final ChangeSince full retirement can occur at age 50 with 30 years of service for non-public safety employees, or 25 years of service for public safety employees, the following change has been made to allow retirement before age 55 with health care benefits: Non-grandfathered employees who are eligible for full VRS retirement before age 55 are no longer required to work until 55 to receive retiree health benefits. They will have access to the County’s group rate, with no County contribution, from the time of retirement until age 55. Once they turn 55, they will begin to receive the County contribution of $300 per month + a 3% increase annually for inflation. Only years of service with Chesterfield County will be considered. This change will protect public safety employees’ eligibility to receive the LEOS supplement during the years before they reach age 55.
10Changes to Retiree Benefits due to GASB 45 CAPPED BENEFIT (continued)Non-grandfathered employees who were hired prior to July 1, 2006, will receive a contribution toward retiree health benefits at age 55 or more with at least 15 years of service. County contributions:0-14 years of service: $ .0015-19 years of service: $154.50/month20-24 years of service: $231.75/month25+ years of service: $309.00/month
11Changes to Retiree Benefits due to GASB 45 ACCESS BENEFITProposed ChangeEmployees hired, rehired or reinstated after an absence of more than 30 days on or after July 1, 2006 who retire at age 55 or more, with 15 or more years of full-time County service, will be permitted to purchase retiree health benefits for themselves and their dependants at the County’s group rate; however, they will not receive a County contribution toward the cost.Final ChangeNone
12Issues being addressed by IAFF Local 2803 For years, County employees were told they were paid less than everyone in the region because of the generous retiree health care benefits offered.We have worked hard to get the Board of Supervisors to address our pay issues. The current Board had started to implement improvements to our salaries prior to the economic downturn.We still need the Board of Supervisors to approve over $6 million dollars to bring Fire Department employees salaries up to the regional average.
13Issues being addressed by IAFF Local 2803 The County needs to close the 5 year gap for public safety employees who retire at age 50 but are not eligible for retiree medical benefits until they are 55.Retirees who opt out of health coverage at either their initial retirement date or during an open enrollment period are ineligible to re-enroll in County sponsored health coverage.
14SuccessesMore involvement of Local members and a better understanding of what the Local can accomplish through political action.Four of the five candidates that were endorsed by the Local were elected to the Board of Supervisors; only one incumbent remains on the Board.
15SuccessesAs a Local, we have achieved several successes because of the change to the Board of Supervisors:Public Safety pay increasesUnion involvement in Regional Pay ComparisonCounty hired first outside Fire ChiefBetter working relationship between Union and Fire AdministrationRegular meetings with Board Members to address our concerns
16WHY WE NEED TO STAY INVOLVED We work in a Right-to-Work state and it is imperative we are involved in the political process.Retiree Benefits (County Policy)Introduction – This administrative procedure establishes policies and procedures governing healthcare, dental care and deferred compensation for retirees of Chesterfield County and their dependents. The County reserves the right to modify or eliminate retiree benefits at any time.