HomeMy WebLinkAboutIR 10074 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10074
To the Mayor and Members of the City Council December 12, 2017
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*a SUBJECT: FIRE FIGHTER HEALTHCARE UPDATE
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This Informal Report is the third in a series of updates regarding the negotiations with the International
Association of Fire Fighters Local 440 ("Association")regarding their proposal to manage a healthcare
plan for the benefit of firefighter recruits, actives and pre-Medicare retirees, plus their spouses and
dependents. As a reminder, the guiding principles of the negotiation are:
• Association will assume responsibility of healthcare for all recruits, active fire fighters and pre-
Medicare retirees
• Separation of firefighter plan will not have a negative financial impact on the City; Association will
cover all transition costs
• City's exposure to liability will be minimized to every extent possible
• Association assumes all accountability for the success of their plan
The City and the Association held a collective bargaining session on 12/6/2017. One of the key conclusions
of the meeting is that the target date for implementation is tentatively scheduled for April 1, 2018 based on
the myriad of remaining activities for the Association, with the cooperation of the City, for a successful
implementation. The City also encouraged the Association to be concurrently working on tasks 6 — 10
because many of them will be time-consuming and many of the decisions about roles and responsibilities
are relevant to the final Healthcare Contract. Below is the status of the various tasks.
Action Item Responsible Complete Status
Party
1. City City This continued to be discussed on 12/6/2017. The
contribution Association had previously indicated that clarification
and transition of the contract language is necessary but has not
costs finalized provided that at this point. In addition, the City agreed
to have further discussion about the runoff claims at
the next session scheduled for 12/20/17.
2. CBA City and At the 12/6/17 bargaining session, the City and the
amendment Association Association tentatively agreed on the final versions of
language the Trust Agreement and the amendments to the
approved Collective Bargaining Agreement Articles 13 and 14.
The final document is the Healthcare Contract which
will continue to be discussed at the next bargaining
session that is scheduled on 12/20/17.
3. Employee vote Association
to amend CBA
4. Waiver City and
language Association
approved
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10074
To the Mayor and Members of the City Council December 12, 2017
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5. Retiree waivers Association At last report, the Association has received 199 of 210
received required signatures. On 11/30/17, the City requested
(100%) copies of the correspondence to retirees for our records
and has not yet received that.
6. City Council City Will be scheduled for City Council once 1-5 are
approval of complete.
CBA and
healthcare
contract
7. Association Association
create Trust
including
fiduciary
coverage,
contract with
trust company,
fidelity bond
and banking
arrangement.
8. Association Association • At the Association's request, the City added
plan contracts language to the Healthcare Contract to allow the
(TPA, PBM, Association to be a sub-recipient of dental benefits
RBP); offered through the City's contract. The City has
premiums shared the questions from Delta Dental about
finalized setting up appropriate billing.
• The Association is responsible for all other
contracts. However, the City has requested clear
documentation of roles, scopes of services, etc.
from LBG, the Association's consultant.
9. Data interfaces City and • The Association's vendors held their first meeting
with City and Association with the Retirement Fund on 12/4/17. They were
FWERF advised that it could require months of work for the
Fund's system to be configured to allow a new
recipient of premiums. The Association is now
considering their options, including asking the City
to retain this responsibility with the assumption
that the Trust will pay those administrative costs
retained by the City.
• Maestro, the Association's proposed TPA,
committed to providing a draft schedule of tasks,
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10074
To the Mayor and Members of the City Council December 12, 2017
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SUBJECT: FIRE FIGHTER HEALTHCARE UPDATE
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timelines and responsibilities in order to confirm
the April 1st feasibility and ensure that appropriate
resources and time are reserved for the various
tasks. This document will replace the client sample
that was provided last week as well as the
December calendar that suggested the feasibility of
a 1/1/18 implementation date that were attached to
last week's informal report.
10. Transition and City and See 99.
enrollment Association
plan
If you have any additional questions,please let me know.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS