Title
Agenda Item:
LEOFF 1, Medical Benefits
Body
Issue:
Informational report to committee regarding LEOFF 1 medical benefits.
City Manager’s Recommendation:
None, informational report only.
Staff Contact:
Dean Walz, Fiscal Services Director, Administrative Services Department, 360.753.8465
Background and Analysis:
The City is required by state law to pay medical costs of Law Enforcement Officers and Firefighters employed between March 1, 1970 and September 30, 1977. These employees are referred to as LEOFF 1 employees. The City has two LEOFF 1 members still employed and 74 who are retired from the City.
Medical costs to be paid by the City are determined by the City LEOFF Disability Board. The Board is comprised of 5 members (2 council members, 1 each LEOFF member from fire and police, plus 1 member at-large selected by the other 4). Attached are guidelines used by the Board in determining costs to be paid by the City. The City purchases insurance which covers most medical costs. The City is responsible for costs not covered by insurance. Costs for LEOFF 1 members still employed are paid from the General Fund. Medical cost of retired LEOFF 1 law enforcement officers is paid from the General Fund. The Firemen’s Pension Fund pays for medical costs of retired LEOFF 1 firefighters.
Options:
None, information only.
Financial Impact:
2012 medical cost for retired LEOFF 1 members was $1.1 million. $574,000 was paid from the General Fund and $522,000 from the Fire Pension Fund. See attachment of projected costs. Funding for these costs are from general revenues (e.g. property tax) and fire insurance premium tax. Included in the costs and projections is a firefighter who retired prior to the LEOFF system and is receiving benefits from the Firemen’s Pension Fund.
The highest year of projected costs is 2030 at $2.26 million. This is an increase of about 6% per year. In addition to the current pay as you go funding for medical costs, the City has been...
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