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HomeMy WebLinkAboutCOD-014-19Clarftwn Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Report Number: COD-014-19 Date of Meeting: September 23, 2019 By-law Number: Submitted By: Marie Marano, Director of Corporate Services Resolution#: GG-442-19 Reviewed By: Andrew C. Allison, CAO File Number: [If applicable, enter File Number] Report Subject: Benefits Cost Containment Best Practices Recommendation: 1. That Report COD-014-19 be received for information. Page 63 Municipality of Clarington Report COD-014-19 Report Overview Page 2 Reporting to Council regarding best practices for cost containment related to health benefit programs. 1. Background Council Resolution GG-296-19 1.1. At the May 21, 2019 Council Meeting the following resolution #GG-296-19 was approved: That Report COD-006-19 be received; and That Staff be directed to report back on best practices for negotiating employee benefits to limit increases and provide an indication of other municipality's Council involvement in negotiations. 2. OMHRA Survey of Municipalities 2.1. In order to obtain an independent response from municipalities, the Ontario Municipal Human Resources Association (OMHRA) was engaged to undertake a survey of municipalities in their membership base. OMHRA represents over 200 of the 440 Ontario municipalities, and covers an employee base of over 85,000. The cost of the survey was $200. 2.2. The survey was sent out by OMHRA on May 28, 2019 and remained open for participation until June 7, 2019. A copy of the OMHRA survey is Attachment #1. 3. Survey Results 3.1. The survey produced responses from 32 municipalities. In addition, Staff reached out to Whitby and Ajax, who did not respond to the initial survey request, in order to obtain more comparisons within the Region of Durham municipalities. 3.2. The survey was intended to answer the key questions posed by Council, and was structured with only ten questions in order to encourage participation. The two key questions based on Resolution GG-296-19 were to determine 1) best practices that limit increases on premiums for employee benefits and 2) the extent of Council involvement in negotiations, in other municipalities. Municipality of Clarington Page 3 Report COD-014-19 3.3. Attachment #2 Summary of Overall Results lists the 10 questions posed in the survey. It indicates the number of responses that were received on each of the questions. In addition it lists the responses from Ajax and Whitby as a result of reaching out for information. 3.4. The key question of Council participation in negotiations indicated that 29 do not have Council participation, 2 have a member at the table, and 1 is in the process of changing to no participation. 3.5. Attachment #3 Best Practices Summary lists best practices as identified by 28 responders plus Ajax and Whitby, and includes such initiatives as wellness, mandatory generic drugs, dispensing fee caps, group buying such as the Clarington LAS Consortium plan, etc. Many of the best practices identified are represented fairly commonly amongst the municipalities, including Clarington. Two Municipalities, Sault Ste. Marie (790 employees) and Newmarket (409 employees) indicated Administrative Services Only (ASO) as a best practice. 3.6. Attachment #4 Survey Responses by Participants lists the actual responses by the 32 responding municipalities, to all ten questions. The wording in each section is taken directly from the survey in the words of the municipal representative. In addition, responses from Ajax and Whitby have been included. 4. Concurrence Not Applicable. 5. Conclusion 5.1. The benefit cost containment initiatives that Clarington has undertaken over the years, including per visit cap on some paramedical services, dispensing fee caps and mandatory generic drugs reflect the best practices listed by many of the municipalities who responded to the survey. Ajax noted "pooling benefits" as a potential way to limit costs. This option was previously explored by Clarington and the advice was that it tends to increase costs because the pooling provides a total amount to be used, often resulting in greater use for more of the popular utilized services (i.e. massage). Having a defined amount for specific benefits limits the overall cost because not every employee accesses every benefit (i.e. not everyone uses physiotherapy). 5.2. Staff will continue to monitor trends in the market and any new initiatives that may be identified by comparator municipalities, for consideration in future negotiations. 5.3. It is respectfully recommended that this report be received for information. Municipality of Clarington Report COD-014-19 Page 4 Staff Contact: Marie Marano, Director of Corporate Services, ext. 2202; Lisa Wheller, Human Resources Manager, ext. 2205 and Kerri McMullen Compensation & Benefits Supervisor ext. 2206. Attachments: Attachment 1 — OMHRA Best Practices Survey Attachment 2 — Summary of Overall Results Attachment 3 — Best Practices Summary Attachment 4 — Survey Responses by Participants Interested Parties: There are no interested parties to be notified of Council's decision. Attachment #1 to Report COD-014-19 Marano, Marie From: OMHRA <customerservice@omhra.ccsend.com> on behalf of OMHRA <customerservice@omhra.on.ca> Sent: May 28, 2019 3:35 PM To: Marano, Marie Subject: Survey - Municipality of Clarington Having trouble viewing this email? Click here tJacaeia Municipal Hun7an R.esouries.lssaca.r3on The Municipality of Clarington is surveying other Municipalities to help determine best practices for the purpose of containing escalating costs of benefits through negotiations with various employee groups (i.e, CUPE, Fire, Non-affiliated). They would appreciate your response to the following survey. This survey will take under 10 minutes to complete. To access the survey, please click here. If you are having trouble accessing the survey, please follow this link instead: httr)s://www.surveymonkey.com/r/825JWV3 Thank you for participating. OMHRA Special Benefits Insurance Services For those who are losing or are not eligible for group benefits, Special Benefits Insurance Services specializes in individual Health, Dental and Travel Insurance. For a free quote dick here. Advertise your position openings with OMHRA and your ad will reach the desk of over 400 HR Professionals in almost 200 municipalities across Ontario, plus appear on the OMHRA website which is accessible from all search engines. Contact Information: Jessica Mann Association Administrator customerservice(a)omhra.on.ca www.omhra.ca VMHRA Municipality of Clarington Survey Benefit Best Practices Name Email Organization 1. How many full-time employees do you have? 2. Does your collective bargaining team for the Corporation include any members of Council? If yes, how many and what is the involvement? (comment) FE Yes No 3. If there are no members of Council on the Corporate bargaining team, when and how often do you provide updates to Council on the progress of negotiations? Does this process differ by bargaining unit? (comment) 4. Does Council provide a mandate to the Corporate bargaining team prior to starting negotiations with a bargaining unit? If so, what mandates are specifically related to benefits and wages? (comment) 5. What benefit cost containment measures do you currently have in place? (comment) 6. What has been negotiated with your various bargaining units to assist with cost containment; i.e., deductible, medical note prescriptions, cost sharing, employee only coverage, etc.? Please specify what measures apply to which bargaining unit or employee group. (comment) 7. Do you provide early retiree benefits to employees who retire before age 65? des No 8. Do you provide benefits to retirees beyond age 65 and if so to what groups? Please specify the type of benefits provided to each group and how long they are provided. (comment) 9. Have you been successful in removing or reducing benefits through employee collective agreement negotiations? If yes, which benefit(s) and which bargaining unit? (comment) 10. What do you consider as the "best practice" you have in place to contain or limit increases of premiums for employee benefits? (comment) https://www.surveymonkey.com/r/825JWV3 29/05/2019 Attachment # 2 Benefit Best Practices Survey - Summary of Overall Results From 32 out of 200 OMHRA Municipalities Note: Clarington is Not Included in the Numbers Referenced Questions # of Responses Ajax & Whitby Results 1 How many full time employees do you have? 32 2 Noted on Chart, Attachment # 4 2 Does your collective bargaining team for the corporation include any No - 29 No Noted on Chart, Attachment # 4 (One member of Council. If yes, how many and what is the involvement? Yes - 2 municipality, Port Hope listed as #27 is changing from having 1- Changinq Council participate, to no participation. 3 If there are no members of Council on the corporate bargaining team, 32 2 Details per Attachment # 4. Generally as follows: when and how often do you provide updates to Council on the 15 - for mandate and at conclusion progress on negotiations? Does this process differ by bargaining unit? 14 - at various times as required 1 - at conclusion, after negotiations are complete 1 - no update unless possible strike 1 - no union staff Ajax - at conclusion to ratify / Whitby - periodic updates 4 Does Council provide a mandate to the corporate bargaining team 24 2 24 Mandate provided by Council, details as per chart. prior to starting negotiations with a bargaining unit? If so, what 1 Ajax - no mandate. mandates are specifically related to benefits and wages? 1 Whitby - yes - typically a financial mandate. 5 What benefit cost containment measures do you currently have in 25 Various Benefit containment measures in place over time; see place? chart for details 23 participants note specifics, 2 noted annual reviews without noting specific measures 6 What has been negotiated with your various bargaining units to assist 31 Specifics of negotiations with employee groups outlined on with cost containment; i.e., deductible, medical note prescriptions, cost chart. sharing, employee only coverage, etc.? Please specify what measures 24 noted measures in place, apply to which bargaining unit or employee group. 7 noted general comments 7 Do you provide early retiree benefits to employees who retire before 28 2 Provide early retiree benefits to age 65 age 65? 8 Do you provide benefits to retirees beyond age 65 and if so, what 10 2 Benefits post age 65, chart indicates employee groups. groups? Please specify the type of benefits provided to each group Of the 10 Groups: 3 Fire, 1 Police, 2 Sr. Mgmt. and how long they are provided. Ajax - Fire - Health Spending Account (HAS) Whitbv - Fire - Trust Fund 9 Have you been successful in removing or reducing benefits through 13 12 note success removing or reducing benefits through employee collective agreement negotiations? If yes, which benefit(s) collective agreement negotiation, see chart for details i.e. and which bargaining unit? dispensing fee cap, generic drugs, per visit cap. 1 notes Sick Days - not covered in premiums for Clarington 10 What do you consider as the "best practice" you have in place to 24 2 As described - separate table on Attachment # 2. contain or limit increases of premiums for employee benefits? (includes Wellness, generic drugs, dispensing fee cap etc. Ajax similar, added pooling benefits / Whitby working to cap unlimited paramedicals. 21 identify actions/measures 5 are cieneral comments Attachment # 3 Monday, August 26, 2019 IDENTIFIED BEST PRACTICES IN PLACE # Organization # Full- What do you consider as the best practiceyou have in place to contain or limit increases of Time premiums for employee benefits? Response as Empl. Written by Survey Participants 1 Ottawa 11,000 $2 per prescription deductible, $7 dispensing fee cap, generic substitution, 5 dispensing fees for maintenance drugs and massage referrals. The MOST important is having employees live a healthy lifestyle so they do not need to claim as much. 2 Region of Peel 4000 3 Thunder Bay 1500 4 Kingston 1375 5 Brantford 1300 6 Peterborough 1000 7 Norfolk County 800 Health and Wellness promotion resulting in reduced claim costs, and benefit consultant negotiation of annual renewals, including marketing when required. 8 Oxford County 800 The per visit limit works well. We have negotiated slight increases to that limit. We have also recently, as mentioned above, increased maximums for employees only. This was appreciated by the union because they saw that we recognized the need for them, but the understood the associated costs for us. 9 Sault Ste. Marie 790 We are ASO not premium based. We do require proof of common-law benefits; educate staff on removing those dependents no longer meeting plan definition. 10 Oshawa 704 obtaining accurate costing of benefit asks - looking at total expense of increases to wages and benefits to determine feasibility. 11 Waterloo 700 Mandatory generic drugs, caps on paramedical practitioners, dispensing fee cap, drug risk management. 12 County of Essex 650 Green Shield is doing lots of audits of vendors who might be abusing the system 13 Cornwall 550 Personal Leave and STD programs to contain absenteeism 14 County of Grey 472 we are starting with our non union group to look for savings (drug formulary, etc.) Once this is in place we plan to hit our unions next 15 Pickering 415 With limited resources, we like to make enhancements that will be most beneficial to employees and where they will notice the change, rather than increasing such items as the dispensing fee cap (which they always ask for but is a costly and insignificant change). 16 Newmarket 409 We move to self -insured, under an Administrative Services Only Agreement with our benefit provided and also made the move to Health Spending Accounts. This has all helped significantly 17 County of Huron 385 We are looking for best practices! 18 Clarington 327 Premiums - Single, Single +1 and Family rates, Reduced Dental Units (CUPE & Non - Affiliated). Benefits Consultant as part of pooled consortium buying for benefits (LAS). Wellness initiatives, Dispensing Fee Cap, Generic Drugs Mandatory, some Per Limit Visit Paramedicals 19 County of Elgin 315 we have the basics only - we would like to implement mandatory generic for SEIU and ONA - no luck thus far... 20 Halton Hills 285 Mandatory generics for all groups, for non -union we require a medical Note to access the massage benefit, orthotics require medical notes for all groups 21 Orillia 256 1 cost every request during the bargaining process and share the information at the bargaining table. Most employees are not aware of the costs of benefits and how even a minimal increases the budget. 22 Owen Sound 250 Wellness initiatives 23 County Frontenac 220 Nothing major. only as noted 24 Brantford 196 We would like more than we currently have. Prior authorization has helped a bit and generic substitution as well on some caps on massage and other paramedicals 25 Collingwood 160 None # Organization # Full- What do you consider as the best practice -you have in place to contain or limit increases of 26 Fort Erie 142 Review benefits regularly with CUPE and also our benefits broker to ensure we are aware of what is in the marketplace and at what cost. 27 Port Hope 100 Prescription drug reimbursement should be for medication 'legally' requiring a prescription i.e. not reimbursed for a prescription for over the counter drugs. 28 Huntsville 100 Our benefit administrator company (SelectPath) is very aware of costs and negotiates on our behalf that is fiscally responsible. We have done very well through this company. 29 Hawkesbury 75 The presentation was an eye opener. Costs and trends were shown 30 Bracebridge 72 The dental cap was implemented in our 2016 negotiations, and while not a significant change in itself, the goal was that it would lead to open discussions for further caps and cost containment measures in the 2021 negotiations. (which would then be applied to non -union groups also) 31 Kingsville 60 Constant review with brokers and reviews of plans, we are currently set up for refund claims pooling, which assist with having pool of money to invest back into the plan or take out if needed. Our claims are fairly low and this has worked for us in the past. If we had high claims it could be risky. 32 Renfrew 55 The Town is part of a larger Municipal Benefits Group, comprised of 14 municipalities, which improves our collective experience ratings for most renewals 33 Aylmer 50 A year to year review of usage and costs, looking at trends and discussing options available. We also pool our benefits with a number of municipalities which helps keep costs down. Ajax & Whitby - Response 34 Ajax 340 Putting annual maximums/caps, co-insurance, sometimes pooling benefits can limit costs, review your current financial model for your benefit plan, go to market. 35 Whitby 538 We have been working toward putting caps on our benefits. Many had been previously negotiated as unlimited benefits (paramedical ones mostly). We have also been working to educate our employees alongside our provider best usage ie generic vs brand name, benefits fraud etc. We also try to minimize our "exceptions to standard booklet benefits are. SURVEY RESPONSES BY PARTICIPANTS (As Written) Attachment # 4 # Organization # Full- Council Council Updates Is a Council Mandate Benefit Cost Containment Measures Details of Cost Containment Early Comments on Early Benefits Post 65 Successful Negotiating Best Containment Practices Time Involved in Provided? in Place Retiree Retiree Benefits Reductions? Empl. Negotiations Benefits Provided Questions > 1 2 3 4 5 6 7 8 9 10 Durham Municipalites Shaded Yes No Responses are Summarized on Attachment # 1. Responses Summarized on Aft.# 1. Responses Reflected on Att.# 2 1 Ottawa 11,000 No Updates provided as required, in the Yes. The bargaining teams are N/A Deductibles, medical note Yes Yes must have 10 years See prior comment. Yes we have been successful. $2 per prescription deductible, $7 normal course. Council is updated when provided one financial mandate prescriptions and cost sharing has service, collecting an CIPP now has 5 dispensing fees dispensing fee cap, generic substitution, 5 the bargaining team is seeking mandate, for all bargaining units in the been negotiated with most bargaining OMERS pension and be for maintenance drugs. dispensing fees for maintenance drugs when ratifying, and when receiving an City. From that amount, both units. covered for employee health Firefighters have a $9 dispensing and massage referrals. The MOST interest arbitration award. They may also wages and benefits must be benefits. This can occur at fee by arbitration. important is having employees live a be updated upon request. Process typically negotiated. any age based on the healthy lifestyle so they do not need to does not differ by bargaining unit. OMERS early retirement claim as much. rules for a reduced pension. Benefits only continue to age 65. Fire needs 20 years service for a lifetime benefit and Transit needs 25 years service for the same benefits as employees except No LTD. 2 Region of Peel 4000 No Prepared to provide an update at each Overall mandate for wages and 90-10 on dental. Caps on orthotics 9 90-10 dental Capon orthotics 9 Yes No CUPE Dental Costs Prescription session benefits is provided month recall Mandatory Generics month recall Mandatory Generics Drug Costs Orthotics 3 Thunder Bay 1500 No We are consistent in updating council with Yes- CPI, public sector wage Most bargaining units have: 9 month 9 month dental recall, generic drug each bargaining unit and we typically go increases, classifications, City of dental recall, generic drug substitution, sub: ATU, CUPE (Inside/Outside), about 3 times to Council for each Thunder Bay internal a dispensing fee cap (most are $8) Fire, Unifor Homes, IBEW, Unifor Bargaining Unit- maybe more if comparators, municipal EMS 9 month dental recall- ONA (Conciliation, possible strike action, comparators Arbitration). 4 Kingston 1375 No Go to get original mandate and then report No, the Director of Human We are currently not looking to Dispensing fee maximums on almost Yes Just one group, CUPE - retiree benefits based off back upon conclusion of bargaining, which Resources recommends a increase any benefit levels and have all of our groups, deductibles on a looking to remove years of service is then ratified in an open session as part mandate to council, which takes small measures in place such as handful of others, recently bargained the language from of a regular council meeting. into consideration the term of dispensing fee caps and deductibles retiree benefit levels based on years the CA and the collective agreement and on some plans. of service to ensure someone with 3 grandfathering the recent bargaining results relative years of service does not retire with group to wages and benefits of other 10 years of City paid benefits. municipalities 5 Brantford 1300 No We obtain a mandate from Council prior to Yes. The mandate is a Mandatory generic drug substitution, The information provided in #8 Yes Must have minimum 10 Fire has a Health With our CUPE bargaining units, negotiations and return to Council when a percentage adjustment for wage premium cost share dental benefits, apply to most of our bargaining units. years continuous service Care Spending two rounds of bargaining ago, we tentative settlement is reached for Council and benefit adjustments, coverage maximums. Account for 7 were able to harmonize the ratification. If the parties are at an excluding the associated impact consecutive years various benefit plans within each impasse, we report to Council to advise of statutory benefits (e.g. EHT, with eligible value ($ CUPE Collective Agreement to them of the potential labour CPP, El, etc.) amount) based on create one master plan for our disruption/move to binding arbitration or to sick leave balance at CUPE units (excluding the newest obtain a revised mandate. time of retirement one for Custodians, Caretakers and Cleaners). In our exempt group (Staff Association) we also implemented a physiotherapy maximum coverage of $1,500 annually (previously unlimited) based on usage AND implemented a dispensing fee cap of $11.00 6 Peterborough 1000 No The bargaining team gets direction from Yes. The mandate is usually an annual deductible express scripts cost sharing for part-time employees Yes No No Council via a report prior to bargaining and all -in percentage increase. So pharmacy (provider initiative) (CUPE 126 & 1833) different then takes the final settlement to Council bargaining units have flexibility maximums for employee vs. for ratification. Updates may be provided if to "buy" benefits or wages. The dependent (i.e. paramedical a work stoppage was a threat. The mandate generally does include providers, not all covered for process is generally the same for each anything related to CA dependents and annual is lower bargaining unit. language. amount) 7 Norfolk County 800 No Depending on how bargaining is going we Yes, all encompassing mandate Cost sharing of monthly premiums. Cost sharing of month premiums Yes Most groups have been No No Health and Wellness promotion resulting may provide an update, but Normally prior of total dollar amount. Through 80/20. new hires pay 20%. phased out for new hires in reduced claim costs, and benefit to an agreement. bargaining calculate how only. Most others are consultant negotiation of annual renewals, benefits can fit into the mandate. eligible to early retirement including marketing when required. benefits up to aae 65. Page 1 of 5 # Organization # Full- Council Council Updates Is a Council Mandate Benefit Cost Containment Measures Details of Cost Containment Early Comments on Early Benefits Post 65 Successful Negotiating Best Containment Practices Time Involved in Provided? in Place Retiree Retiree Benefits Reductions? Empl. Negotiations Benefits Provided 8 Oxford County 800 No The Council receives a report once there is Typically we will have a total Mandatory generic drugs, dispensing All of our groups have the mandatory No The only exception is our No. No. Just successful with some of The per visit limit works well. We have a tentative settlement, at which time they compensation mandate (ie. any fee cap. We have per visit limits on generic drugs and a dispensing fee Wastewater group, whom we the cost containment measures. negotiated slight increases to that limit. ratify the agreement. This process is the improvements/increases must most of our paramedicals. cap. With our paramedics, we inherited from the City with We have also recently, as mentioned, same for all bargaining units. We have be to a maximum of a certain recently negotiated an increase to this benefit. increased maximums for employees only. pretty positive relationships with our percentage). We have in the massage and chiro maximums, but This was appreciated by the union unionized groups, which facilitates this past been mandated to we did it for employee ONLY. We because they saw that we recognized the process. Should there be the potential of a negotiate cost containment recognize the need for them to have need for them, but the understood the strike or anything else controversial, measures (ie. mandatory chiro and massage, but wanted to associated costs for us. Council would be notified, likely in closed generic, dispensing fee caps). contain that cost as well. session. The mandate from Council would have been to contain the costs, our Director of HR would figure out how to do that. 9 Sault Ste Marie 790 No 2-3 times and more for interest Arb. Does Yes. Overall percentage of Some cost containment through All groups but Fire/Police/EMS are in Yes Extended Health to age 65 Non Union HCSA, No We are ASO not premium based. We do not differ. increase to budget. negotiations. For example massage is negotiations currently and proposed Drug, Travel, require proof of common-law benefits; heavily used so trying to bargain 50/50 50/50 copay on paramedical. $10,000 life to age educate staff on removing those copay rather than annual paramed Proposed removing EAP services 75. Police dependents No longer meeting plan dollar amount. and adding a separate Psych/MSW Officers/Civilians definition. benefit. Drug to age 70. SO, Chief, Deputy Chief as negotiated in contract. Other groups are allowed to purchase benefits beyond age 65. 10 Oshawa 704 No We present to council our direction prior to Finance and our research 3 year rolling max for benefits, the 3 year rolling max for benefits Yes We do (for all n/a obtaining accurate costing of benefit asks - negotiations and present them the provides a mandate for wages reimbursement according to usual and (between 19,500 and 20,000) is the groups) - same for looking at total expense of increases to agreement for ratification and benefits customary practices, support for greatest cost containment strategy. retirees under 65 - wages and benefits to determine benefits consultant it's a scaled back feasibility. version of the active plan. Dental is not included 11 Waterloo 700 No Periodically during negotiations, same for Yes, set mandate. Normally a Mandatory generic drugs, caps on Mandatory generic drugs, caps on Yes Fire up to age 72 No. Mandatory generic drugs, caps on all. total budget number and paramedical practitioners, dispensing paramedical practitioners, dispensing through a health care paramedical practitioners, dispensing fee sometime individual items (this fee cap, drug risk management. fee cap, drug risk management. spending account. cap, drug risk management. changes each time). 12 County of Essex 650 No get a mandate from Council, Then give an yes, we ask for a "total Comp" our biggest cost is our sick plan. We No success Yes if retire on an unreduced No No Green Shield is doing lots of audits of update when conciliator brought in, then mandate. We recommend to are trying to completely revamp it. pension vendors who might be abusing the system again at no board report time, and finally them what we think it should be. for ratification. 13 Cornwall 550 No Council provided updates as necessary; Yes; a total compensation % Generic drugs; 75% STD, See prior Yes No benefits to any Personal Leave and STD programs to usually monthly during bargaining increase target. Will also city employee contain absenteeism reporting, even if no change in status. provide overview of other beyond age 65, Also, will provide an email summary of proposals that will be sought. except for unionized items in between meetings if there is a police employees substantive change. that previously had benefits for life. Grandfathered effective 2009. 14 County of Grey 472 No usually we only provide updates if it looks yes, usually a mandate of % that try to only give improvements for employee only coverage has been Yes No No success yet we are starting with our Non union group like there is difficulty in getting an includes all in paramedicals to employee only, not successful with paramedics and LTC to look for savings (drug formulary, etc.) agreement that could lead to potential their dependents. benefit unions Once this is in place we plan to hit our strike improvements come out of the overall unions next COLA we are allowed to give 15 Pickering 415 No Council is advised of our bargaining No Annual limits on paramedical services, co -payment for dental - all groups Yes For those retiring with an Senior Management cap on physiotherapy - CUPE With limited resources, we like to make mandate prior to the start of negotiations cap on physiotherapy (CUPE and Non- note required for massage therapy - unreduced pension as (Director level only) enhancements that will be most beneficial and highlights of the unions proposal. If union only), No assignment of benefits CUPE and Fire defined by OMERS and Council with 16 to employees and where they will notice there is a contentious issue, this may be for dental, cap on dispensing fee, co- years of continuous the change, rather than increasing such discussed with them prior to bargaining. payments etc. service up to age 75. items as the dispensing fee cap (which We do not provide updates to council Health, Dental, they always ask for but is a costly and during the process, unless we were unable Vision and Travel insignificant change). to reach an agreement. Otherwise, our with caps on travel at agreement is presented at the end for their age 70. review and annroval. Page 2 of 5 # Organization # Full- Council Council Updates Is a Council Mandate Benefit Cost Containment Measures Details of Cost Containment Early Comments on Early Benefits Post 65 Successful Negotiating Best Containment Practices Time Involved in Provided? in Place Retiree Retiree Benefits Reductions? Empl. Negotiations Benefits Provided 16 Newmarket 409 We provide updates to Council as the The HR Director along with the Caps on certain services, cost sharing see prior Yes Either group health and No We did a shift in benefits to We move to self -insured, under an situation unfolds. For example, with Fire Fire Chief presents a draft on some services, maximum dental continue or the introduce a Health Spending Administrative Services Only Agreement there may be long periods without any mandate to the CAO for dispensing fee, generic drugs. employee receives a Health Account a couple of years back with our benefit provided and also made updates as the process is very slow. With discussion and with the CAO's Spending Account only. and SEIU agreed to make the the move to Health Spending Accounts. SEIU however, we may provide one update approval moves forward. With This is based on years of move as well. We eliminated a This has all helped significantly part way through the process and then the SEIU, the Commissioner has service and age at the time couple of benefits, reduced dollars final report and request for approval of the initial approval of the mandate we changed this benefit to a for naturopath and introduced a agreement. with the final approval resting Health Spending Account. HSA of $750 for full time with the CAO. In neither case We are still in that transition employees only. While very does the request go to Council. period so some retirees are hesitant at first, it has taken off like retiring with health and wildfire and represents great cost dental to age 65 and others containment for us. are retiring only with the HSA until age 65. No benefits after age 65 unless they continue to work, then it is a HSA. 17 County of Huron 385 No We have 7 unions - sometimes with See prior response. In the data None - we don't offer anything that will We have used medical notes, cost Yes No. No. We are looking for best practices! staggered expiry dates. I present data I provide, I talk about what the take a union way above one of the sharing and deductible. (current situation, comparators, what I Non union group has and what other unions or Non union. would recommend and why) and ask for a our other unions have. I give However... often if we end up going to mandate from Council prior to going into as much detail to Council as arbitration - the union will get the bargaining. I do the bargaining and come needed so they can make the benefit anyways - or close to it. back to Council after the union has ratified decision on the mandate - for the draft agreement. Then I present the total compensation. Example: if final agreement to Council on one date and mandate for total comp is 1.5% - on the next meeting date they pass the by- I have to try and get a deal that law, then its final signatures all around and 'all in' - everything that is tied to its ratified officially. money, comes in at 1.5%. 18 Clarington 327 No CUPE - Council is updated if issues arise, Annual limits on paramedical services, Reduced dental scaling to 8 units per Yes Yes must have 15 years of No Premiums - Single, Single +1 and Family and presented for ratification at conclusion. (cap on physiotherapy for CUPE and year from 16 units. Per visit cap of full time service with rates, Negotiated Reduced Dental Units Fire - update to Council if proceeding to Non affiliated only), co -payments on limit per visit on Paramedicals. Municipality. Benefits only (CUPE & Non -Affiliated). Mediation or Arbitration. major dental, generic drug substitution, Dispensing Fee cap $12. continue to age 65. Benefits Consultant and part of consortium etc. Premiums set up as single, single buying for benefits (LAS). Wellness +1 and family initiatives, Dispensing Fee Cap, Generic Drugs Mandatory, some Per Limit Visit Paramedicals 19 County of Elgin 315 No updates provided depending on action - No yes - long history that mandate some groups have a co -pay per SEIU - No semi -private hospital Yes Non -union only with qualifier No SEIU - removed semi -private we have the basics only - we would like to "required" timeline/events to be reported is maximum percentage prescription; some groups have coverage (removed a few years ago that have worked for hospital and agreed to generic first implement mandatory generic for SEIU increase on wages only -- all mandatory generic; some have a cap for savings); capped on dispensing minimum of 20 years with language and ONA - No luck thus far... other items are left to the on the dispensing fee; dental coverage fee; per prescription charge; generic the County prior to discretion of the HR negotiations is one-year lag on rates first (with ability for doc to write No retirement team substitutions on prescription); basic dental only - No ortho ONA - per prescription fee; capped dispensing fee; ortho coverage is 50/50 to $1500 lifetime Non -union and CUPE - cap on dispensing fee 20 Halton Hills 285 No We seek Council approval to enter into Yes. Council provides us with a Mandatory generics, caps on all other CUPE: brought down cap on Yes end at age 65 No See Q9 answer Mandatory generics for all groups, for Non - negotiations and for direction on money percentage that is inclusive of benefits except physio for CUPE and orthotics to 2 pair & $750 max union we require a medical note to access available. If negotiations run smoothly and all benefit, wage or other psychologist for Non-union/CUPE annually (saved us a lot of money on the massage benefit, orthotics require we are able to negotiate an agreement monetary items to stay within. premiums). FIRE: We have been medical notes for all groups freely and within the approved budget, we unsuccessful bringing any savings to don't report to Council until we are ready to this group lately but did introduce sign the agreement. If there are any generics a number of years ago hiccups (such as needing to go to arbitration) we do an update to Council at the appropriate time. 21 Orillia 256 No I request a mandate and then report at the Yes - the mandate is Generic vs. brand name. Dispensing Dispensing fee caps for all units. Yes No Adding a dispensing fee cap and I cost every request during the bargaining end of bargaining for IBEW Units. For Fire, recommended by the Director of fees. Generic vs. brand names for all unit changing to generic from brand process and share the information at the I report more often as it often involves HR to Council and includes except Fire. We do not pay for name. bargaining table. Most employees are not updated Council regarding what stage we wages only. I then provide the medical notes for any unit. aware of the costs of benefits and how are at. complete monetary costing even a minimal increases the budget. when negotiations are complete. Page 3 of 5 # Organization # Full- Council Council Updates Is a Council Mandate Benefit Cost Containment Measures Details of Cost Containment Early Comments on Early Benefits Post 65 Successful Negotiating Best Containment Practices Time Involved in Provided? in Place Retiree Retiree Benefits Reductions? Empl. Negotiations Benefits Provided 22 Owen Sound 250 No There is No set schedule of providing Yes. An overall mandate is mandatory generic, per visit caps on Yes No No Wellness initiatives updates to Council. We provide updates to provided in a percentage ie 2% paramedicals (some not all groups) Council if reaching an agreement means and we bargain total going outside of the mandate provided by compensation. council, and get permission for the new mandate. We also provide updates if matters are referred to mediation or arbitration. 23 County of 220 No Prior to bargaining we review our strategy our mandate is for the total dispensing fee cap with Non -union and deductible increase to $20/$40 in No No. No. only increasing deductible and nothing major. only as noted Frontenac with Council. Following settlement, we compensation package to not 2/3 unionized groups; ODB for one CUPE 109; OPSEU 462 and Non- implementing dispensing fee cap attend Council to ask for ratification. exceed the budgeted amount. unionized group; $20/$40 deductible union group; After 6th occasion of with CUPE 109; OPSEU 462 and e.g. 2% for Non -union and 2/3 unionized illness - in all but CUPE 2290 Non -union groups; sick time - after the 6th occasion of illness, the first two days of each subsequent absence will be unpaid - this is in all but one unionized group; dispensing fee cap in all but 24 Brantford 196 No I will seek a bargaining mandate prior to The mandate is all about Prior authorization, some annual Only what has been mentioned in the Yes Only for fire and that was We currently do not We have tried on numerous We would like more than we currently bargaining and will go back to council if benefits and wages. maximums, generic substitution previous question awarded through arbitration provide this benefit occasions but have yet to be have. Prior authorization has helped a bit bargaining extends beyond the mandate. If successful and generic substitution as well on some not, I update council and seek ratification caps on massage and other paramedicals of the memorandum of settlement from council in order to finalize the agreement. 25 Collingwood 160 No We ask for a mandate to begin and report Yes - generally with respect to prior authorization, mandatory generic None Yes Life insurance to None None back as needed (e.g., Memorandum of wages IBEW-Water group - Settlement, at impasse and going to declining scale conciliation etc. 26 Fort Erie 142 No We only have 1 bargaining unit. We meet yes and yes We have a Joint Benefits Committee We went to a combined paramedical Yes 50% of total cost of benefit No The Joint Benefit Committee, we Review benefits regularly with CUPE and with Council prior to the start of who meet separately, so benefits aren't maximum for family and single rates in place moved coverage money from also our benefits broker to ensure we are negotiations to get guidelines, then usually considered during the coverage. This got us away from so benefit to benefit. So if they aware of what is in the marketplace and at periodic updates depending on length of negotiations, unless of great much for massage, so much for wanted something new, they had what cost. time and tone of negotiations, then to ratify significance. chiropractor and really sold the to decide what to give up or members on a lot of the opportunities reduce. from it. 27 Port Hope 100 1 / Changing We are changing from having a Council Yes. Staff provide Council with 9 month dental recall; generic drugs; None of these cost containment Yes Same benefit coverage as Active employees change from 6 month to 9 month Prescription drug reimbursement should representative on the NC to not having proposed topics for discussion don't bundle paramedical with a higher measures have been included in the they had before they retired - working beyond 65 dental recall be for medication 'legally' requiring a Council on the NC. Prior to negotiations and Council gives feedback and maximum value i.e. provide $500 for plans. WE have same benefits for No cost to Employee and No are eligible for prescription i.e. not reimbursed for a we ask for the total compensation decision on total compensation massage and physiotherapy early retirees and would suggest that minimum service benefit continuation prescription for over the counter drugs. percentage and provide summary of percent to be offered. Any individually and not $1000 for total of arrangement change to cost sharing to age 70 for the negotiations for ratification amounts negotiated above either of these services proportional to years of service. CUPE Union and would require Council approval Non -Union before getting agreement by employees. Retiree both parties. benefits end at age 65. 28 Huntsville 100 No We provide a bargaining mandate report to This year we tried something Our benefit program is a well rounded We have looked into flex benefits in Yes Employees who retire early No We have just recently negotiated a Our benefit administrator company Council with recommendations and then different. We met with the union program already. They have asked for the past but as noted before it isn't a (before age 65) and achieve cap on sick days, previously there (SelectPath) is very aware of costs and negotiate within those parameters that are first to obtain their bargaining increases in maximum however we huge issue for us. a factor number of 85 with was No stipulation. IBEW negotiates on our behalf that is fiscally adopted. Should we require more we then objectives that way we had an have always taken the stand that this is the municipality at the time responsible. We have done very well would have to go back to Council however idea of what they were looking part of the overall compensation of retirement and who take a through this company. that has not happened yet. for and then could develop a increase so what you ask for in benefit retirement pension, will be better rounded bargaining increases will affect increases to base provided with 50% of the mandate for council based on wage increases. We do have a great cost of an extended health our needs as well. benefit provider who keeps our costs and dental program up to the manageable so we are not in a position age of 65. that our benefit costs are "out of hand". 29 Hawkesbury 75 No It was the first time that No member of Mandate is accepting our We did an annual presentation of costs We have refused demands No Fire only. From 60 to na The presentation was an eye opener. Council was present. Regular (prior to presentation to employees prior to negotiation 65 Costs and trends were shown negotiations, on road blocks, following votes) presentations were done. Will be more important for Fire negotiations 30 Bracebridge 72 2 at usually a net zero increase $2100 cap on Level 1 and Level 11 Dental caps as prior $100 annual Yes Retiree benefits are provided No. OPSEU is the only union here, The dental cap was implemented in our table dental for union $2000 cap on Level 1 deductible for EHC only if the employee has 25 and the only reduction of benefits 2016 negotiations, and while not a and Level 11 dental for all others years of service. was the dental cap noted prior. significant change in itself, the goal was Few employees went beyond that that it would lead to open discussions for cap amount in their annual usage further caps and cost containment so it was promoted as cost measures in the 2021 negotiations. (which containment rather than a would then be applied to Non -union reduction. groups also) Page 4 of 5 # Organization # Full- Council Council Updates Is a Council Mandate Benefit Cost Containment Measures Details of Cost Containment Early Comments on Early Benefits Post 65 Successful Negotiating Best Containment Practices Time Involved in Provided? in Place Retiree Retiree Benefits Reductions? Empl. Negotiations Benefits Provided 31 Kingsville 60 Mayor Currently give updates at our Personnel Complete regular benefit cost reviews The cost sharing method is a $10 Yes No not currently, but will be continue Constant review with brokers and reviews at table Meeting and will give updates on process every 3 to 5 years deductible for prescriptions. All other to review the cost of benefits at of plans, we are currently set up for refund in Closed Session costs are covered by the employer negotiations. claims pooling, which assist with having pool of money to invest back into the plan or take out if needed. Our claims are fairly low and this has worked for us in the past. If we had high claims it could be risky. 32 Renfrew 55 No Monthly - more frequently as required as Yes. Usually a percentage 'bap" None nothing has been negotiated at this Yes based on qualifying years of Benefits beyond age No The Town is part of a larger Municipal negotiations progress on the total wages and benefits time - five-year agreements expire at service with the Town 65 are provided only Benefits Group, comprised of 14 package, over the term of an the end of 2019 for the Senior municipalities, which improves our agreement Management Team collective experience ratings for most (5 years post renewals retirement or age 65, whichever is later). Dental, EHC, Life insurance 33 Aylmer 50 No We are Non -union so there are No n/a Annual review by the CAO with Mosey n/a Yes Must have a minimum of 15 No n/a A year to year review of usage and costs, bargaining teams. and Mosey, the benefits consultant. years of service with the looking at trends and discussing options Town prior to retirement. available. We also pool our benefits with a number of municipalities which helps keep costs down. Requested Response from Ajax & Whitby 34 Ajax 340 No After negotiations are completed, to ratify No Mandate. Yes To age 65. Fire - Health Putting annual maximums/caps, co - the collective agreement. Spending Account insurance, sometimes pooling benefits $2,750 paid annually can limit costs, review your current from 65 to age 75. financial model for your benefit plan, go to market. 35 Whitby 538 No Periodic updates depending on how long Yes, typically it is a financial Yes We provide benefits to Fire - Trust Account. We have been working toward putting bargaining is drawn out for. mandate. employees who retire with an Association paid caps on our benefits. Many had been unreduced OMERS pension $10,000 per new previously negotiated as unlimited benefits until age 65. Aside from Fire hire. Associaton (paramedical ones mostly). We have also if the employee retirees with administers trust for been working to educate our employees a reduced OMERS pension retirees. alongside our provider best usage ie: they do not qualify. Fire is generic vs. brand name, benefits fraud slightly different if they go on etc. We also try to minimize our a reduced pension — there is "exceptions" to what the standard booklet a formula where the benefits are. employee has to pay for a portion and the employee portion reduces each year. Page 5 of 5