talk about the loss ratio and how well the plan was doing >> absolutely the loss ratio is the full premium as the denominator and the numerator is the expense which is the egg wip premium when you take that the loss ratio is very low that means that the plan is technically over funded so the employer paid too much into the trust for that program does that clarify >> somewhat. how much of this money went back to the employer? >> actually none of the money goes back to the employers it's all going back to members >> when it was 4 million i saw back in the previous -- >> what we have done for this rate path i can can clearly state that the money is being used on behalf of the members.

when we did the buy-down last month. >> that is fine. >> that is sufficient? any comments? >> i don't have the information from the last meeting there say statement there that 1 million or something went back to the employers and 4 million went back to the members. >> when i have last -- >> it was the may presentation. and that was not the regular reserve that is the extra reserve. 5 5 million yours respectfully >> yeah the 5 million. i want to be clear unless you want to move on >> no i don't want to move on unless we got further clarification about this point. our controller? yes. controller? >> with the buy down there was a savings roughly like

2.1 million. of that some of that was employer savings and some of it is -- so the city doesn't have to pay as much into the premiums for the participants for the members and some of it was for the employees or the members the city got some of the savings and the members got some of the savings, and that's what you are thinking about i think. >> all right. is there further clarification? >> i didn't bring it -- >> all right. >> 4,000,002 something went to the members and one something went to the employer. it should be in may. >> okay hold on just a second. >> while you are searching for that piece of information i will

turn to the attorney and ask a broadly asked or counsel he doesn't have to answer this question today i always give you a header you know that counsel. it is immensely confusing to me as a comparatively new person on the city government scene in terms of health plans and coverage and sources of funds, and so forth. my broad understanding is that when moneys come into the trust no matter their source they're under the jurisdiction of the trust unless they're specifically designated to a purpose. and it's not like i put a penny in as a member therefore i ought to get a penny out. i don't think it works that way. you can tell me differently. some things may come to the trust that have very designated purposes we can by policy

reserve and act on those purposes regardless of where the money came from i blaef but you can tell me if i'm wrong if that isn't correct at a future meeting i would like to have you expound on that point about sources of funds and policy parameters if you will that we as a board would have regarding this. i think the intent is we have tried to look at rates and sub acid seas at least during my tenure to support those groups from whom the sources of funds have come. and we have done that broadly but if we try to get into some level of precision about exactly how many pennies came in one point to another i think we're going to find ourselves in a mess here there say broader principle of trying to do support for certain membership categories that i think we have broadly adhered here to.

it may mean in some cases we're quote cross subsidizing one group for another but the idea of sub acid sea is the principle if we can can in deed mitigate the cost increase premiums to members be they actives early retirees or regular retirees that is the broad operating principle i thought we were trying to act on -- i will look to you to clarify that when counsel comes back with a response to the broader question if i didn't say that precisely enough i will put it in writing to you i'm trying to get at the business of is ownership retained in the trust because of sources of funds is that the case >> that's what i would like to know once the money goes into the trust who does it belong to? >> if you have the answer to

that you can answer if you would like to research it a bit you certainly have liberty to do that >> at some point -- is this mic on? >> no. >> hello? okay i think it's a good idea to set this as a discussion item for a future session i think in a high level what you are saying is generally accurate that this board is not thought to trace specific funds from specific 41ed groups and saying this money came from this source therefore it has to fund that source the purposes are set in the charter 12.203 where it says in the health service system fund should be the trust fund in accordance with the provisions of this charter solely for the benefit for the active and retired members of the service system and their covered dependents

>> by my lights and reading i don't take that answer as being definitive we're here for the mutual benefit of the members of this plans that happens to be city employees or community college or school district employees when we deviate from that i think we're going to get in deep yogurt >> you have to make decisions with how you set term and rates employee + 1 and 2 decisions with retirees and actives and you have this general trust purpose to make decisions for the best interest of both the active and retired members at a fairly high level we can get into some of the details as to your question i think your question is once the money goes into the trust that is the fiduciary >> that is my question -- >> and i think your question to the extent there was confusion i

think we were talking about what was happen in a future year in terms of this rate buy back and how that effects next year >> that is different >> maybe that's where the confusion is coming >> i pause at that for future meeting and would like to target that to happen before we begin the next benefit renewal cycle so that gives us the fall to come back to this point but it's one worth making all right. executive director dodd? >> thanks. i will point out from a personnel perspective that both stephanie fisher who is here today our wellness manager and pamela levin our chief financial officer they completed the leadership trains by the department of human resources and executives association that's an accomplishment in and of itself we filled some of our

positions we still have a couple vacant. we're finishing up interviews tomorrow on the member services manager hopefully at the next meeting you will be meeting a new member services manager when you look at the graphs you will noticed that the delinquencies increased that is due to increased retirement so that when someone leaves active employee and goes to retirement their premium goes to delinquent. so it's not as these people will be terminated the first deduction will occur from their pension checks and they will have continuous coverage i wanted to let you know that. we have begun to load the historic eligible file into the

data base which say long time and coming and exciting xhoon indications wise besides open enrollment communication rose mary will be developing she's also been working on a lot of wellness projects including concepts for the diabetes prevention study we're doing with kaiser r that you voted on some time ago. in terms of finance. we worked on rates and benefits but i think probably the significant thing you can listen for when pamela gives her report is the budget i have to stay out of all the things that are frustrating in this job the budget process is the greatest. gregg a former cfo is hodding his head. we balance the budget the mayor's office generously did

not take any cuts from us this year then we go to the board of supervisors and they cut from each budget so they can put together a little pot to give back to the supervisorers so they can fund special things in their districts pamela has worked and continued to work cooperatively with the budget analysis staff we =ed and skwooeked out little pots here and there they will have a better understanding of exactly what our budget cuts will be tomorrow. the first hearing is on monday. i don't anticipate us being in agreement by monday it's a frustrating process i will leave it at that otherwise i will say too much.

in terms of wellness i don't want to really draw your attention to an abbreviated report from the stephanie well being assessment my highlights are 22%over the employees participated which is very high for an initial well being assessment. we scored five points higher in general than the rest of california and seven points higher in well being in the united states we're doing better in terms of basic access which is attributed to the health service system and board we scored higher in termed of life evaluation and work environment the areas lower are emotional and physical health and health behaviors. yet another reason we need a

strong employee assistance program that our physical activity works needs to continue to work and the healthy behavior classes that happen are so important. so we justified the activities we're already under taking i want to highlight commissioner lim who par piss tated in the shape up team. the hss soul team and a shout out to 40 members who walked almost 5,000 miles sh and thank our transcription nis kim clay who does the minutes who is in new jersey and got two friends to participate in shape up team. thank you kim clay. lastly you can skate through the other parts of my report but i wanted to report on yesterday's retiree meeting as you know the

first retiree meeting we had last month was over sold so we scheduled the second one rose mary arranged for it to be held at the coret auditorium unfortunately it was the same time as the rcc meeting the library is difficult to schedule we had had over 160 people. we lost track because everybody wanted to sit down and want sign in there were over 70 questions asked after the presentation. they were very good questions we asked things like if you could have -- if you are a kaiser member raise your hand. if you could get your optometry through kaiser would you do that? almost all the hands -- we have never been able to gage where people are on those questions all the hands stayed up i think three people came up to me afterwards and said my

optometrist lives across the street that is more convenient than driving to kaiser. i can understand. then we also asked about the item that before you today the blue shield national ppo after explaining it thoroughly and answering numerous numerous questions about it. there were again of the people in blue shield only four people who wanted to stay with the status quo. the rest of the crowd wanted to move to a national ppo so i did not hear one negative comment about the meeting itself. lots of thank yous this is a great meeting you should do this more often. i think retirees and active members are hungry for information i will call out aon brent crane who is our

accounting exec on the plans and david david rue presented on medicare 101 which he does for aon all over the country. it was substantive the majority of time was spent answering questions it was well done i wanted to thank people involved lany signed people in richard pamela -- if you haven't checked the website there are a couple new things. there is a new eap page which is very attractive and the presentation and the questions from the may meeting are all up on the website. so that concludes my report thank you. >> i had the good fortune of attending the first meeting one of the points that came out of

the meeting on the website since you mentioned it we wanted to be sure there is an e-mail address not only on the website but on the open enrollment materials that will come to the attention of this board. it's also been suggested that there be a phone number identified that would obviously ring at the secretary's desk for this board i want to put this at the tail end of your report today catherine as quickly as we can get those two items attended to that would be helpful >> are these in the open enrollment material? >> yeah the open enrollment material on the website is what i requested. and neill our great act -- >> as a matter of record for aon hewitt as your acutary this is just for public recard when we

gained the $5.4 million the actives it's all the employees benefits the employ yes and employers benefit you correctly spoke to and asked the question to me it's $5.4 million for the people who are early retirees the employer does gain money of your number it's $1.2 million in the public document. thank for allowing us to go on public record to do that i don't want to belabor that. thank you very much. >> thank you. all right. anything catherine? >> no thank you. >> is there public comment on the president or the director's report? >> thank you for recognizing i was ready for public comment claire vanski representing rccf

a number of members were concerned they could not attend today's meeting at the correct center. to my delivery to the groups in the may meeting i want to incorporate i want to thank a couple of you i take that information and i share it with retirees so i referred them to a website and also said that they will probably hear more about this during open enrollment. but people are interested. members are interested and they want to know what is going on so some of us are trying to help spread the word on that. i wanted to acknowledge yesterday margaret sulivan is part of the program again from your wellness center she brought rubber band things i kept wanting to use as a slingshot but i guess they're for exercise

after the speaker and before swearing in we had a session we got up and moved around she was fantastic and gave out prizes now she's part of our program for 3-4 months it has been a very specific activity that our members have enjoyed they have commented and looked forward to it has really added a level of -- i don't know -- excitement to our group but it has encouraged more retirees to get up and be active understand even if you sit in your chair, there say lot of things you can do har gret was outstanding on that i wanted to complement margaret on that. this meeting conflicted but it's a meeting a lot of our members would like to attend if you wanted to do another one we would probably get more members to that that. thank you >> thank you

>> i should point out yesterday's meeting was video taped and will be on the website. >> dennis cruger active retired firefighters i heard you said vsp and kaiser don't mix together is that correct >> no all members have vsp but kaiser offers optometry services was there a question whether members would like to get optometry at kaiser members ask why can't we go downstairs and get it because we provide vsp i queried the 106 people there after that the kaiser members if they prefer getting their vision in one place rather than going to vs p. is that clear?

>> okay just a follow up to that. if you are in kaiser you use kaiser's -- >> no if you are in kaiser you use vsp >> you use vsp >> yes >> being a beneficiary of both blue shield and kaiser. kaiser says you can can submit your kaiser bills to the vsp for reimbursement >> but they don't pay 100% >> but there is some way to get reimbursement back from them correct? >> yes >> thank you. >> other public comment on the president or director's report hearing none we're now going to go back to the committee of the whole on rates and benefits. the reasons why i'm doing this is because it's critical that we get this portion of our business done today because we have a deadline to go before the board of supervisors with a complete package of rates for actives and

retirees in jewel at this point i'm -- july at this point i'm going to go back to the approval of minutes which is item number one >> item one action item approval with possible modification of the minutes set below remember meeting of may 142015. >> i would call for a motion to adopt the minutes >> i have a correction on page six under a on hewitt's report. this says approximately 6500 retirees in the city plan have nonmedicare dependents there are only 6,221 retiree members in the city plan. so i think that figure is wrong

maybe it was heard wrong or something. any way it's not right. i'm not sure what was said but that is not. it would be more like a follow up. 1,540 dependents out of the whole. so it's more like 20% i'm not sure what figure ou put out that day but that is not right. >> secretary? >> i will follow up and listen to see exactly what was said >> we have the numbers before us we can add them up. that is in the document >> yeah okay. just doesn't make any sense when there is only 6500 retirees then there is one about -- let's see. supervisor farrell's appoint for five years that is the only one

that isn't for five years. i guess that is at the discretion but that's the only board member not for five years >> according to the letter given by president reid she did put the date in there a five year term >> that is something new and not in our policies either. >> all right. i can't find the specific section where that falls. >> that's under regular meeting matters page 21. >> page 21. it's at the top of the page a letter from board of supervisors president lan dan braed supervisor farrell has been

reappointed to the supervisorer board expiring may 152020. >> that is correct. with those corrections i move to approve. >> already it's been moved is there a second. it's been moved and seconded. is there any further discussion or edits >> i wanted to request that you edit page 7 and 8 with the numbers that are in the beginning of the director's report in terms of majority of the contribution coming from the employer not from the retiree members. are theretiree >> but this is what was said at the meeting are you talking about the minutes? >> yeah >> this is what was said at the

meeting >> p it's an error it needs to be appended that it was said in error the corrected information is -- and we can take the paragraph from the director's report to put it in a bracket if you will with the section of the minutes >> thank you. >> it's been properly moved and seconded. that the minutes be adopted as edited. is there any further comment from the board? is there any public comment? seeing no public comment we're now ready to vote. all those in favor, say, "aye." >> (multiple voices): aye. >> all opposed? so ordered. all right. we're now ready to move to item three >> aye team three action item. approve resolution to board of supervisors the tin county

survey results for the 2016 plan year president scott. >> yes as we begin this item i would like the ak wear -- actuary to approach for the presentation here. i just want to make a broad comment. we have approved the active rates in a prior meeting the last meeting we're going to be addressing retiree rates in this meeting. and nowhere do we have a summary of that information and that is of concern to me. i have shared it with director dodd in a prior leadership we made a change we didn't bring all of the rate cords together in one document at this meeting the mrooeding that it would save trees there by enlighten the

planet or whatever but it leaves a gap in the information i asked director dodd to the board of supervisors as the rate cards are completed that some time during the month of july that all of that information get posted on the website as a common reference until such time as it is published in the open enrollment materials so if members are tries to figure out what their rates are going to be in advance and they have been approved they can go to one common source source an official source and find the information for active and retirees we would come back to this meeting and there would be a bundle of act rate cards we don't see that i think the point is taken if we can can post this stuff our final decision and people have

access to it. we accomplish the same thing without slaying a forest we will continue to follow the same principle i'm suggesting in the inter imperiod of time we make these decisions and open enrollment that these card will be posted on the website that will be the protocal moving forward >> aon hurt actuary correct me if i'm wrong i have presented the 10-county results in a prior meeting >> yes you have >> as a matter would you like me to repeat the results >> no. you will not repeat the results he turn to director dodd standby >> the resolution before you we present annually to the board of supervisors so they can approve the