Under the Consolidation Ominbus reconcilation Act known as (COBRA), an employee and enrolled dependents may pay to continue medical, dental or vision coverage for a limited period of time if City paid coverage ceases for reasons recognized under the law. the cost for COBRA coverage equals the same premium amount the city pays monthly plus a 2% administrative fee.
Financial Security
Retirement
While employed by the City of Oakland an individual participates in the State of California Public Employees' Retirement System (CalPERS). The City pays 100% of both the employee and employer contribution. Retirement benefits are calculated using an employee's age, years of service and the amount contributed to the system in the final year of compensation. Retirement benefits are portable, meaning, upon separation from the City service, funds may be rolled over into a qualified Individual Retirement Account (IRA). If leaving the City to work for another jurisdiction that also participates in CalPERS, the retirement benefit may remain continous.
Deferred Compensation
This program allows a employee to take an incom out of pre-taxed earnings and set it aside for retirement years. Currently the annual maximum amount is $8,500 or 25% of an employee's gross salary; whichever is less. Several investment options are available through the third party administrator. When leaving the City employment, the participant may take distribution without the early withdrawal penalty that applies to most other retirement plans. If retiring, a participant may choose a variety of payment methods to supplement retirement income.
Dependent Care Assistance Plan
If an employee is responsible for paying child or dependent care in order to work, they may be eligible to use pre-taxed dollars to address this expense. The annual maximum allowance under the Dependent Care Assistance plan (DCAP) is $5,000. After the participant estimates their annual dependent care cost, the city is directed to withhold contributions through bi-weekly payroll deductions plus a $5.00 monthly administrative fee. Once eligible dependent care expenses are incurred, the participant submits a claim to the party administrator for reimbursement and a check is mailed directly to the home.
Life Insurance
The life insurance plan provides another important source of financial security for employees and those who depend on them. In the event of an employee's death, a benefit is payable equal to the employee's current annual salary rounded up to the nearest $1000 (i.e. the annual salary is $35,500 the life insurance benefit would be equal to $36,000). If the death is the result of an accident, the designated beneficiary will receive an additional benefit equal to the life insurance amount. The City pays the full premium cost for coverage. There is no employee contribution and this benefit is not extended to dependents.
