Year 2006 SACRS Legislative Platform Worksheet

Please Complete and Return by August 31, 2005

Title of Issue:Retiree medical Reimbursement Trust

Association:San Joaquin County ERA

Contact Person:Robert R. Palmer

Phone No.:(209) 468-2163

FAX:(209) 468-0480

Please answer the following questions as fully as possible:

  1. Description of issue.

With the implementation of GASB 43 and GASB 45, public employers are now required to financially report post-employment benefit plans other than pension plans. With those requirements many public employers are rethinking their continuation to provide health benefits to present and future retirees.

  1. Recommended solution.

There is a need to create a structure in the 1937 Act to allow continuation of employer participation in retiree health premiums yet allow public employers to limit their financial burden required by the GASB requirements.

The proposed solution is to allow for the creation of a separate defined equity benefit trust fund to collect and invest funds to be used for reimbursement of medical expenses and health plan premiums for retirees on a pre-tax basis.

  1. Specific language that you would like changed in, or added to, ’37 Act Law, and suggest code section numbers.

See attached

  1. Why should proposed legislation be sponsored by SACRS rather than by your individual retirement association?

Subject to local option and collective bargaining proposed solution could assist each of the counties under the ’37 Act.

  1. Do you anticipate that the proposed legislation would create any major problems, such as conflicting with Proposition 162 or create a problem with any of the other 19 SACRS retirement associations?

None, creates another funding alternative for retiree health care benefits.

  1. Who will support or oppose this proposed change in the law?

All those who understand the impact of GASB 43 and 45 would move to support this defined equity approach.

  1. Who will be available from your association to testify before the Legislature?

J.C. Weydert, General Member Trustee for San Joaquin County Employees’ Retirement Association. Robert R. Palmer, Retirement Administrator for SJCERA.

Sincerely,

Robert R. Palmer

Retirement Administrator

RRP:tsa sacrs med reimburs_050812.doc

SJCERA / SACRS Legislative Proposal / August 12, 2005 / Page 1 of 1