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Aliso Viejo council approves modest increase to employee health benefit allowance
Summary
City Council voted to increase the tiered monthly employee health benefit allowance for plan year 2026—$35 for employee and employee+1 tiers and $100 for the family tier—estimating a current‑year budget impact of about $7,000 and an annual cost just under $14,000.
City Manager Mitzi Ortiz presented a staff recommendation to adjust the city’s tiered monthly health benefit allowance to offset projected CalPERS premium increases for plan year 2026.
Staff recommended a $35 per month increase for the employee‑only and employee‑plus‑one tiers and a $100 per month increase for the family tier, with no change for employees who opt out of coverage. Ortiz told the council CalPERS had announced premium increases of 4%–11% depending on plan selection and that the estimated monthly employee impact ranged from about $43 for employee‑only up to about $271 for family coverage.
Staff estimated the current fiscal‑year impact at approximately $7,000 and an annualized cost just under $14,000; council members said the amount could be accommodated within the budget. A council motion to adopt the resolution passed by roll call vote.
What happens next: staff will budget the change in future years and return to council with any further plan enrollment details that affect cost projections.
