The Modified Benefit Option Special Open Enrollment Dates: September - - PowerPoint PPT Presentation
Human Resources The Modified Benefit Option Special Open Enrollment Dates: September 23 October 4, 2019 www.SBCounty.gov The Modified Benefit Option Page 2 The Modified Benefit Option (MBO) is an alternative benefit package available
Human Resources
www.SBCounty.gov
Special Open Enrollment Dates: September 23 – October 4, 2019
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The Modified Benefit Option
(MBO) is an alternative benefit package available to select job classifications throughout the County that provides a higher wage in lieu of some County-paid benefits.
December 2015, and is now available to you effective September 14, 2019.
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MBO Overview
Higher pay Paid Time Off (PTO) instead of separate use-specific leave banks (i.e., sick, vacation, and holiday) Double-time for all hours worked
hrs./holiday* Slightly reduced Medical Premium Subsidy (MPS), while maintaining the same health coverage Higher pensionable salary
The MBO provides employees:
*For employees who are regularly scheduled to work holidays. All
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Potential Benefits of the MBO
Additional pay is included in:
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Potential Benefits of the MBO
Employees can increase their pay while maintaining their current HMO Platinum plan (i.e. Kaiser HMO, Blue Shield HMO Plans), Employees can increase their pay even more by electing the low-premium, high-deductible Blue Shield PPO Bronze Plan. OR
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Potential Benefits of the MBO
Employee Only example: Eligibility Worker II enrolled in Employee-Only medical plan may increase pay by approximately $2,000 to $4,500 per year.
Annual TBO - HMO Platinum Plan MBO - HMO Platinum Plan MBO – HMO Gold Plan MBO - PPO Bronze Plan
A) Salary $49,296 $52,936 $52,936 $52,936 Medical Premium (2019/20) $6,745 $6,745 $5,860 $3,835 Medical Premium Subsidy (MPS) Provided by County
B) Employee's Share of Premium $822 $2,539 $1,654 $0 C) Approximate Pay After Employee's Share of Premium
$48,474 $50,397 $51,282 $52,936
Potential Annual Increase $1,923 $2,808 $4,462
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Potential Benefits of the MBO
FSA enrollment is not available for this special open enrollment, however, employees can enroll in FSA during 2020 open enrollment or due to a qualifying event to receive the County’s match.
Employees have the option to select the Blue Shield PPO Bronze Plan with a FSA County match of up to $650 per year* to help pay medical plan deductibles, co-insurance payments, and other eligible medical expenses, with election of the Bronze Plan** FSA County match of up to $260 per year with election of the Blue Shield Access + or Kaiser Choice Plan Employees who elect one of these eligible plans and currently enroll in FSA will receive County’s match.
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Potential Benefits of the MBO
In lieu of separate specific-use leave banks. PTO allows employees: Greater flexibility in use To maintain and utilize existing leave balances (i.e., sick, holiday, vacation) To accrue PTO hours beyond the max allowed unused vacation balance Greater cash-out value
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Potential Benefits of the MBO
Greater cash-out value
separation
for cash-out of PTO
Example: Employees can cash-out 100% of PTO regardless of years of service, unlike sick leave which requires employees to have 10 years of service and only converts up to 60%
Employees can maintain and use existing leave balances
Example 1: An employee who needs to code time for not working on a fixed holiday can code existing unused vacation and holiday hours for that holiday. Example 2: An employee who is ill and has a significant amount of sick leave hours and wants to preserve PTO hours for their cash-out value or to use for vacation/personal time can use existing unused sick time instead of PTO.
Paid Time Off (PTO) (cont.)
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Paid Time Off (PTO) (cont.)
Comparison of Teamsters Units’ Leave Banks and PTO Annual Accruals*:
NOTE: EMPLOYEES ELIGIBLE FOR ANNUAL/ADMIN/ATTORNEY LEAVE WILL CONTINUE ACCRUING SUCH LEAVE.
Potential Benefits of the MBO
*Employees who work less than 80 hrs per pay period will accumulate PTO on a pro-rata basis.
Approximate Years of County Service TBO Leaves MBO PTO Max Allowed Unused PTO Max Allowed Combined Vacation and PTO Balance Leaves < 4 Years PTO: < 4 Years Sick - 88 hrs Vacation - 80 hrs Holiday - 112 hrs Total - 280 hrs PTO - 112 hrs Holiday - 104 hrs Total - 216 hrs PTO - 169 hrs PTO - 201 hrs Leaves 4 - 9 Years PTO: 4 - 9 Years Sick - 88 hrs Vacation - 120 hrs Holiday - 112 hrs Total - 320 hrs PTO - 152 hrs Holiday - 104 hrs Total - 256 hrs PTO - 229 hrs PTO - 272 hrs Leaves: 9+ Years PTO: 9+ Years Sick - 88 hrs Vacation - 160 hrs Holiday - 112 hrs Total - 360 hrs PTO - 192 hrs Holiday - 104 hrs Total - 296 hrs PTO - 289 hrs PTO - 343 hrs
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Potential Benefits of the MBO
Paid Time Off (PTO) (cont.)
Employees can accrue PTO hours beyond the max allowed unused vacation balance Example: An employee with 11 years of service who has reached the maximum allowed unused vacation time (i.e., 320 hrs.), may accrue PTO hours under the MBO until a combined total of 343 hours is reached. Consequently, the employee’s bank of hours and the amount that may be cashed-out upon separation also increases.
Vacation/PTO Hours TBO - Max Allowed Unused Vacation 320 MBO - PTO Hours Employee Is Able To Accrue Until Combined Max is Reached 23 Max Combined Unused Leave/PTO Hours 343 Note: Holiday and sick time are not included in the total maximum combined unused leave/PTO hours.
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Potential Benefits of the MBO
Retirement Benefit Amount
Examples of potential retirement benefit amount for a Tier 1 (hired before 1/1/2013) Eligibility Worker Supervisor I when MBO is elected:
Retire at 55 Rate 60%
Increase = $2,184
Increase = $182
Retire at 59 Rate 74.19%
Increase = $2,701
Increase = $225
Retire at 65 Rate 94.01%
Increase = $3,422
Increase = $285 *Assumes a Tier 1 EWS I with 30 years of service at top step upon retirement. Highest Annual Salaries: Traditional salary = $58,510.40 and MBO = $62,150.40 based on 9/14/2019 rates.
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Other Benefits You Remain Eligible for if Electing MBO
Dental Premium Subsidy (same amount) Opt-
pay (same amount) Vision insurance (100% County paid for Employee Only Coverage) Life Insurance refer to your BBOU for Coverage amount Short-Term Disability
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Employee Considerations When Electing MBO Is the employee a frequent user of their medical plan and do they have a lot of medical expenses?
health premiums, which would be offset by the increase in income.
Does the employee utilize most of their leave bank hours (vacation, sick, and holiday)?
unused leave hours are sufficient for their time-off needs.
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Employees Who May Benefit From MBO
Need extra income Are near retirement and want to maximize their pension and lifetime earnings Want the flexibility provided by PTO Do not exhaust their leave banks Often work holidays Opt-out/waive medical coverage Are low health-care consumers/have low medical expenses (may benefit from Bronze Plan)
Employees who may benefit from MBO:
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Summary of MBO
Increase employee’s pay Maximize employee’s pension and lifetime earnings Accrue PTO hours, providing flexible time-off and the opportunity to accrue time-off hours beyond the allowed maximum unused leave balance