Item Coversheet
Pittsfield Charter Township

6201 West Michigan Avenue, Ann Arbor, MI 48108
Phone: (734) 822-3135  I  Fax: (734) 944-6103
Website: www.pittsfield-mi.gov

Office of the Supervisor
 
 


MEMORANDUM  


TO:
Pittsfield Charter Township Board of Trustees
 
THROUGH:
Mandy Grewal, Township Supervisor

FROM: 
Patricia Denig, Director of Human Resources

DATE:

October 27, 2021

SUBJECT:

Adopt a Resolution to Reaffirm Compliance with the Requirements of PA 152 of 2011 for Fiscal Year 2021 by Adopting the Hard Cap Option, Resolution #21-52

BOARD ACTION REQUESTED:
Adopt a Resolution to Reaffirm Compliance with the Requirements of PA 152 of 2011 for Fiscal Year 2021 by Adopting the Hard Cap Option, Resolution #21-52
BACKGROUND:
Public Act 152 of 2011 established new restrictions on the annual amount public employers can pay toward the cost of medical benefit plans offered to their employees. Any amount over these state mandated limits, which are adjusted each year based on the Consumer Price Index medical care component, must be covered by the employee. 
IMPACT ON TOWNSHIP'S HUMAN RESOURCES:
Human Resources is responsible for implementing and administering PA 152 as part of the annual open enrollment for health care insurance benefits for employees.

IMPACT ON TOWNSHIP'S BUDGET:
PA 152 has been budgeted for as part of the Fringe Benefits provided to Township employees.

IMPACT ON INDIRECT COST:
No impact

IMPACT ON OTHER TOWNSHIP DEPARTMENTS OR OUTSIDE AGENCIES:
No impact

CONFORMITY TO TOWNSHIP POLICIES:
Conforms

PITTSFIELD CHARTER TOWNSHIP
WASHTENAW COUNTY, MICHIGAN

#21-51

RESOLUTION TO REAFFIRM BOARD OF TRUSTEES COMPLIANCE

WITH THE REQUIREMENTS OF PA 152 OF 2011



October 27, 2021


At a Regular Meeting of the Township Board of Pittsfield Charter Township, Washtenaw County, Michigan, located at the Township Administration Building, 6201 W. Michigan Avenue, in said Township, on October 27, 2021 at 6:30 PM.

 Present:
 Absent: 

WHEREAS, Public Act 152 of 2011 (hereinafter “the Act”) establishes new restrictions on the amount public employers, including Pittsfield Charter Township, can pay toward the cost of medical benefit plans offered to employees; and

 

WHEREAS, the Act also requires that an agreement “executed” after September 15, 2011 shall not include terms which are inconsistent with the requirements of the Act and that the collective bargaining agreement and “other contract” exemption last until the contracts expire, and

 

WHEREAS, the Act provides three options for complying with all provisions of the Act; and

 

WHEREAS, the stated maximum payment limits have been adjusted by the state treasurer for 2022, to those noted in the following Whereas, based on the applicable medical care component consumer price index factor (showing an increase of 3.7% from 2021 rates); and

 

WHEREAS, unless the Board of Trustees, by majority vote, selects another option, the  Township shall pay no more for the “total annual costs” of the medical benefit plans it offers to employees than an amount equal to $7,304.51 times the number of employees with single person coverage, $15,276.01 times the number of employees with individual and spouse coverage, and $19,921.45 times the number of employees with family coverage, for a medical benefit plan coverage year beginning on or after January 1, 2021 (the “Hard Cap” option); and

 

WHEREAS, the Act does not apply to medical benefit plans that include benefits provided to individuals retired from a public employer; and

 

WHEREAS, the Act applies to medical insurance (including prescription drugs) but does not apply to dental, vision or other insurance plans, such as life or disability insurance; and

NOW THEREFORE BE IT RESOLVED that the Pittsfield Charter Township Board of Trustees hereby reaffirms its adoption of the “Hard Cap” option for all Class I: Full-time Employees of the Township not covered by collective bargaining agreements and Class II: Full-time employees of the Township covered by collective bargaining agreements to become effective January 1, 2022.

ROLL CALL VOTE:

AYES:
NAYS:
ABSENT:
ABSTAIN: 

RESOLUTION DECLARED ________________.

___________________________
Mandy Grewal, Supervisor
Pittsfield Charter Township

DATED:
 

CERTIFICATE


I, Michelle L. Anzaldi, hereby certify that the foregoing is a true and complete copy of a resolution adopted by the Township Board of Pittsfield Charter Township, County of Washtenaw, State of Michigan, at a Regular Meeting held on October 27, 2021 and that said meeting was conducted and public notice of said meeting was given pursuant to and in full compliance with the Open Meetings Act, being Act 267, Public Acts of Michigan, 1976, and that the minutes of said meeting were kept and will be or have been made available as required by said Act.


___________________________
Michelle L. Anzaldi, Clerk
Pittsfield Charter Township
 
DATED:
 
ATTACHMENTS:
Description
Attachment 1 -- PA 152 State of Michigan Hard Cap Rates for 2022
Attachment 2 -- Public Employee Medical Benefit Plan Hard Cap vs 80-20 Table 2012 through 2022 comparison