Health Insurance

[Gromatici]

When I set up my health insurance a couple years ago at my company I was told paying 100% for an employee and their spouse was unheard of. Is that percentage a typical benefit for a land surveying/engineering company? I'd like to know with an informal poll as an owner. Do you pay 100% of the employees premiums? Do you pay 100% of their spouse is premiums? I also pay 25% of any dependents.

My rates are going up 25% this next year and I have to look at options for better plans for my employees while keeping costs down.

[DWoolley]

D. Woolley & Associates has always paid 100% of a top notch medical for employees, spouses and dependants. We have dental and vision which is not the best plan though. I do not remember an annual increase of less than 15% in the last 15 years.

If the employee is on the non-employee spouse's plan we pay their additional charge, if any, per the plan.

D. Woolley

[pls7809]

For the bigger firms, I have found it is not uncommon for the employee to be paid for 100% and then a portion of spouse or dependents. For smaller firms, it seemed to be a hit or miss as far as what was covered. But I think the firms that wanted a great shot to hold on to some great employees, paying 100% for employee, spouse and dependents is a great employee retention (and draw, if you're looking for someone) tool, given the uncertainty of the healthcare system in this country.

[khuerth]

I actually work in your area (Santa Barbara County) and my boss pays 100% of my whole family's Health Insurance (just me and the Mrs. now, but children will also be covered.)

[DWoolley]

Ryan Versteeg hit the nail on the head. In order to compete with public agencies and other firms for qualified staff we have to offer the same or better packages.

D. Woolley

[Proud7191]

Dave, how are you doing matching Cal Pers retirement benefits? Last letter I got from Local 12 was that their retirement benefits were in the dumps. No guarantee for the private sector retirement benefits like there seems to be with Cal Pers, which means that is very hard for private sector to compete with the public sector! My 2 cents. Merry Christmas, Jp

[Mr. Smith]

Job satisfaction and good bonus package is all we have to compete with the public sector
but looking forward to a day of work is worth a huge amount of money.

Brian

[DWoolley]

Jon Proud: 

You have a million dollar question or rather, a $300 billon dollar question.  For the sake of the 2 million members I hope CalPERS can stabilize (a snowball’s chance in …).  CalPERS is the Hindenburg of our time.  They budgeted around unrealistic returns; I believe 7 to 8%, and realized less than 1%.  I believe I read they are upside down in that they distribute more than they take in and earn.   The 85 year old retired Division of Highways man will get the gift of death with a pension – his 35 year old successor?  I wouldn’t take that bet. 

Never mind the fact they recently terminated services with a fiduciary attorney - with unanswered questions in his past - that wasn’t licensed in California or the fact there are allegations of the board being captured by private equity partners which soak them for fees or the poor fellow that offed himself in a Reno hotel room while being prosecuted for a CalPERS bribery charge. 

Oh, oh, I just remembered, have you tried to speak at a CalPERS meeting?  A recognized expert recently flew in from New York to offer advice about their cozy relationship with private equity partners – the President or Chairman, whichever, cut her off after 3 minutes or so.  That is interesting in that they have no rules in place which create speaking time limits – pesky problem is that is inconsistent with California law.  She was cut off over the objections of fellow board members. Watch the video, I did. Guessing that was in August or September of this year.

This is off the top of my head. Fact check me, please. You tell me, is CalPERS stable? I end where I began, I hope so for the 2 million or so people in the system. If the system fails the burden falls on the taxpayers.

 Last thought, we can all thank Gray Davis for spiking the pensions back in 98-99. Thanks pal.

DWoolley