City Council

E. RESOLUTION NO. 24-24 ADOPTING RETIREE MEDICAL VESTING UNDER\nSECTION 22904 OF THE PUBLIC EMPLOYES’ MEDICAL AND HOSPITAL\nCARE ACT\nIn November 2022, the City and its five distinct employee bargaining groups\nmutually agreed upon successor labor agreements. An important part of these\nagreements was the restructuring of the City’s retiree medical benefit provided\nby Section 22893 of the Public Employees’ Medical and Hospital Care Act\n(PEMHCA). Resolution No. 24-24 adopts Section 22904 of the Public\nEmployees’ Medical and Hospital Care Act and establishes a multi-tiered retiree\nmedical benefit system for the City of San Gabriel for employees starting service\non January 1, 2023 and after. Resolution No. 24-24 and Section 22904 of\nPEMHCA are expected to markedly reduce the City’s $44.1 million Other Post\nEmployment Benefits Liability over the next 10-15 years as the number of\nretiree medical beneficiaries subject to Section 22904 (Tier 3) increases.\nCalifornia Environmental Quality Act (CEQA) Determination: Not a Project as\ndefined in Section 15378 of the State CEQA Guidelines.\nRecommended Action:\nStaff recommends that the City Council adopt Resolution No. 24-24, which\napproves the implementation of Section 22904 of Public Employees’ Medical\nand Hospital Care Act and establishes a third tier of retiree medical benefits for\nemployees first hired on a full-time basis on or after January 1, 2023, and\nelected officials who first served as elected officials on or after January 1, 2023.