Truckee staff outline options to extend CalPERS health coverage to council members

Town of Truckee staff presented options at a council workshop to extend health and welfare benefits available through CalPERS to current and future council members, and council members directed staff to return to a regular meeting with a resolution in January.

Staff presented multiple funding models — including full family coverage, employee-only coverage and a flat monthly stipend — and estimated the maximum annual cost to the town if all five council members elected full family coverage at about $166,000. "So the town participates in the CalPERS health program," said Bonnie, a town staff member who led the benefits overview, explaining that two primary plans are available in the Truckee area: PERS Gold and PERS Platinum. Bonnie also noted staff budgeted a 10% annual increase in premiums for planning purposes.

The presentation explained the practical differences between the two plans: Platinum generally has a lower deductible, lower maximum out-of-pocket and broader specialist access, while Gold is the lower-cost, more commonly selected plan. Bonnie told the council that most town employees (about 92%, excluding sworn police officers) are enrolled in the Gold plan, and that Blue Shield will be the CalPERS provider starting Jan. 1 under a recent RFP.

Town legal guidance clarified the limits and mechanics of offering benefits. Andy, a town staff member who addressed legal questions at the workshop, summarized relevant legal limits: "The government code says that you can have benefits that are equivalent to benefits that are available to 'large numbers of employees.'" He added that the statutory definition of health and welfare benefits is broad and can include medical, dental, vision, life and related protections, provided the benefits mirror those available to substantial numbers of town employees. Andy also noted that an Attorney General opinion has limited some approaches to cash reimbursement for outside coverage because such payments can count against statutory compensation caps.

Staff outlined several funding approaches: 1) the town pays up to the full premium for family coverage (the highest-cost model), 2) the town covers employee-only premiums and council members pay the difference for dependents, 3) the town provides a fixed monthly stipend toward premiums (an example shown was $500 per month), or 4) council members simply enroll under the same cost-sharing terms as town employees. Bonnie explained how each approach would affect the town's budget and individual council members differently.

Steve Conway, interim administrative services director, answered administrative questions about enrollment and post-service options, and confirmed a council member who leaves office could continue coverage through COBRA for up to 18 months, saying a "council member would be able to go on COBRA for 18 months after separating from, or leaving office." COBRA was described to the public as the federal provision that allows continuation of employer-group coverage while the former enrollee pays the full premium.

One member of the public, Barney Dewey, who identified himself as serving on the chief's advisory committee and the citizens tax oversight board, urged the council to adopt benefits for equity and continuity reasons. "I support the health benefits for the the town council," Dewey said, adding that providing coverage could reduce the chance that an uninsured council member would be unable to attend or focus on meetings because of health problems.

Council members generally signaled interest in moving forward while asking staff to return in January with more detailed comparators. Council members asked staff to include local peer agencies in the follow-up report — examples mentioned during the workshop included Mammoth Lakes, Nevada City/County and other towns used in the town's comp-and-class comparisons — and to provide fuller detail on which agencies offer the same benefits to elected officials that they offer employees.

Staff explained the resolution process and timing: if the council adopts an opt-in resolution and the paperwork is submitted to CalPERS before the 10th of a month, coverage would begin on the first of the following month. Staff said their intent is to return to a regular meeting on Jan. 14 with a resolution so that, if the council adopts the resolution at that meeting and the town meets CalPERS deadlines, coverage could be effective March 1.

The workshop produced no formal vote because workshops do not permit final action; councilmembers asked staff to assemble additional jurisdictional comparisons and detailed benefit tables and to draft a resolution for the January meeting. The council asked staff to attempt to complete the work in a single regular meeting cycle so any new coverage could be implemented as soon as administratively possible.

The council cancelled its December meeting and staff confirmed the next regular meeting opportunity to consider formal action is Jan. 14, 2025. Staff said the January packet will include the comparison materials discussed at the workshop and a draft resolution to opt into CalPERS health coverage if the council wishes to proceed.

Ending

Staff will return with a fuller staff report and a draft resolution in January; if the council adopts an opt‑in resolution and the town meets CalPERS filing deadlines, the earliest possible enrollment date mentioned by staff is March 1.