Human Resources
www.SBCounty.gov
The Modified Benefit OptionSpecial Open Enrollment Dates:
September 23 – October 4, 2019
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The Modified Benefit Option
• The Modified Benefit Option (MBO) is an alternative benefit package available to select job classifications throughout the County that provides a higher wage in lieu of some County-paid benefits.
• MBO was first established in December 2015, and is now available to you effective September 14, 2019.
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MBO Overview
Higher pay
Paid Time Off (PTO) instead of separate use-specific leave banks (i.e., sick, vacation, and holiday)
Double-time for all hours worked on holidays, not limited to 8 hrs./holiday*
Slightly reduced Medical Premium Subsidy (MPS), while maintaining the same health coverage
Higher pensionable salary
The MBO
provides
employees:
*For employees who are regularly scheduled to work holidays. All other employees receive 13 paid holidays.
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Potential Benefits of the MBO
Higher Pay
Additional pay is included in:
- Overtime
- Qualified differentials that are paid on a percentage basis
- Retirement Benefit Amount
- County contribution to the Retirement Medical Trust (RMT)
- Sick leave cash-outs pursuant to RMT
- Leave cash-outs
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Potential Benefits of the MBO
Higher Pay
(cont.)
Employees can increase their pay while maintaining their current HMO Platinum plan (i.e. Kaiser HMO, Blue Shield HMO Plans),
Employees can increase their pay even more by electing the low-premium, high-deductible Blue Shield PPO Bronze Plan.
OR
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Potential Benefits of the MBO
Employee Only example: Eligibility Worker II enrolled in Employee-Only medical plan may
increase pay by approximately $2,000 to $4,500 per year.
Annual
TBO -
HMO Platinum Plan
MBO -
HMO Platinum Plan
MBO –
HMO Gold Plan
MBO -
PPO Bronze Plan
A) Salary $49,296 $52,936 $52,936 $52,936
Medical Premium (2019/20) $6,745 $6,745 $5,860 $3,835
Medical Premium Subsidy (MPS)
Provided by County -$5,923 -$4,206 -$4,206 -$4,206
B) Employee's Share of Premium $822 $2,539 $1,654 $0
C) Approximate Pay After
Employee's Share of Premium $48,474 $50,397 $51,282 $52,936
Potential Annual Increase $1,923 $2,808 $4,462
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Potential Benefits of the MBO
FSA enrollment is not available for this special open enrollment, however, employees can enroll in
FSA during 2020 open enrollment or due to a qualifying event to receive the County’s match.
FSA County Match
Employees have the option to select the Blue Shield PPO Bronze Plan with a FSA County match of up to $650 per year* to help pay medical plan deductibles, co-insurance payments, and other eligible medical expenses, with election of the Bronze Plan**
FSA County match of up to $260 per year with election of the Blue Shield Access + or Kaiser Choice Plan
Employees who elect one of these eligible plans and currently enroll in FSA will receive County’s match.
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Potential Benefits of the MBO
Paid Time Off (PTO)
In lieu of separate specific-use leave banks. PTO allows employees:
Greater flexibility in use
To maintain and utilize existing leave balances (i.e., sick, holiday, vacation)
To accrue PTO hours beyond the max allowed unused vacation balance
Greater cash-out value
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Potential Benefits of the MBO
Greater cash-out value
• 100% of PTO hours can be cashed-out upon separation
• No minimum years-of-service requirement for cash-out of PTO
Example: Employees can cash-out 100% of
PTO regardless of years of service, unlike sick
leave which requires employees to have 10
years of service and only converts up to 60%
of its value to the Retirement Medical Trust.
Employees can maintain and use
existing leave balances
Example 1: An employee who needs to code time
for not working on a fixed holiday can code existing
unused vacation and holiday hours for that holiday.
Example 2: An employee who is ill and has a
significant amount of sick leave hours and wants to
preserve PTO hours for their cash-out value or to
use for vacation/personal time can use existing
unused sick time instead of PTO.
Paid Time Off (PTO) (cont.)
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Paid Time Off (PTO) (cont.)
Comparison of Teamsters Units’ Leave Banks and PTO Annual Accruals*:
NOTE: EMPLOYEES ELIGIBLE FOR ANNUAL/ADMIN/ATTORNEY LEAVE WILL CONTINUE ACCRUING SUCH LEAVE.
Potential Benefits of the MBO
*Employees who work less than 80 hrs per pay period will accumulate PTO on a pro-rata basis.
Approximate Years of
County Service
TBO
Leaves
MBO
PTO
Max Allowed
Unused PTO
Max Allowed Combined
Vacation and PTO Balance
Leaves < 4 Years
PTO: < 4 Years
Sick - 88 hrs
Vacation - 80 hrs
Holiday - 112 hrs
Total - 280 hrs
PTO - 112 hrs
Holiday - 104 hrs
Total - 216 hrs
PTO - 169 hrs PTO - 201 hrs
Leaves 4 - 9 Years
PTO: 4 - 9 Years
Sick - 88 hrs
Vacation - 120 hrs
Holiday - 112 hrs
Total - 320 hrs
PTO - 152 hrs
Holiday - 104 hrs
Total - 256 hrs
PTO - 229 hrsPTO - 272 hrs
Leaves: 9+ Years
PTO: 9+ Years
Sick - 88 hrs
Vacation - 160 hrs
Holiday - 112 hrs
Total - 360 hrs
PTO - 192 hrs
Holiday - 104 hrs
Total - 296 hrs
PTO - 289 hrs PTO - 343 hrs
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Potential Benefits of the MBO
Paid Time Off (PTO) (cont.)
Employees can accrue PTO hours beyond the max allowed unused vacation balance
Example: An employee with 11 years of service who has reached the maximum allowed unused vacation time
(i.e., 320 hrs.), may accrue PTO hours under the MBO until a combined total of 343 hours is reached.
Consequently, the employee’s bank of hours and the amount that may be cashed-out upon separation also
increases.
Vacation/PTO Hours
TBO - Max Allowed Unused Vacation 320
MBO - PTO Hours Employee Is Able To Accrue Until Combined Max is Reached 23
Max Combined Unused Leave/PTO Hours 343
Note: Holiday and sick time
are not included in the total
maximum combined unused
leave/PTO hours.
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Potential Benefits of the MBO
Retirement Benefit Amount
Examples of potential retirement benefit amount for a Tier 1 (hired before 1/1/2013) Eligibility Worker Supervisor
I when MBO is elected:
Retire at 55
Rate 60%
• Annual Pension Increase = $2,184
• Monthly Pension Increase = $182
Retire at 59
Rate 74.19%
• Annual Pension Increase = $2,701
• Monthly Pension Increase = $225
Retire at 65
Rate 94.01%
• Annual Pension Increase = $3,422
• Monthly Pension Increase = $285
*Assumes a Tier 1 EWS I with 30 years of service at top step upon retirement. Highest Annual Salaries:
Traditional salary = $58,510.40 and MBO = $62,150.40 based on 9/14/2019 rates.
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Other Benefits You Remain Eligible for if Electing MBO
Employees who select the MBO remain eligible for all other County benefits including:
Dental Premium Subsidy (same
amount)
Opt-out/Waive pay (same amount)
Vision insurance
(100% County paid
for Employee Only
Coverage)
Life Insurance
refer to your BBOU for Coverage amount
Short-Term Disability
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Employee Considerations When Electing MBO
Is the employee a frequent user of their medical plan and do they have a
lot of medical expenses?
• If so, they may want to consider MBO while keeping a Platinum plan, paying slightly more for
health premiums, which would be offset by the increase in income.
Does the employee utilize most of their leave bank hours (vacation, sick,
and holiday)?
• MBO provides approximately 2/3 of hours provided by the TBO.
• The employee must consider if the PTO hours provided by the MBO and any existing
unused leave hours are sufficient for their time-off needs.
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Employees Who May Benefit From MBO
Need extra income
Are near retirement and want to
maximize their pension and lifetime
earnings
Want the flexibility provided by PTO
Do not exhaust their leave banks
Often work holidaysOpt-out/waive
medical coverage
Are low health-care consumers/have low
medical expenses (may benefit from
Bronze Plan)
Employees
who may
benefit from
MBO: