EMPLOYEE HANDBOOK

Your Employee Benefits

Medical Insurance | Dental Insurance | Continuation of Medical and Dental Insurance Benefits Employee Assistance Program | Benefit Allowance | Flexible Spending Plan | Retirement Plans | Retiree Health Insurance Benefit | Deferred Compensation Plan | State Disability Insurance SDI | Basic Term Life Insurance | Long-term Disability (LTD) Plan | Child Care | Coastal Housing Parnership | Credit Union

The benefits you receive are an important part of your overall compensation. The County offers a comprehensive benefits program. Your employee benefits support your health and well being in addition to providing valuable income protection and financial security for you and your family. Be sure to share information about your employee benefits with your family members so that in case of emergency they may know how to access the benefits to which you are entitled.

A comparison of the medical and dental insurance plan benefits is available on the County Intranet site under Personnel-Salaries and Benefits. You can also call the Employee Benefits Division at 568-2814/2818.

There is an annual enrollment period each year in June when employees can change medical or dental insurance plans and enroll dependents. Any medical or dental insurance plan changes you make are effective the first pay period of the fiscal year (approximately July 1). Dependents can be added outside of the open enrollment period with a change in family status (e.g. marriage, birth, adoption, or loss of spouse’s health coverage through employer or child support order).

The following is a brief description of each employee benefit.

Medical Insurance

Your medical insurance provides comprehensive, quality health care, including a wide range of services, for you and your family through Health Maintenance Organizations (HMO), a Point-of-Service (POS) plan or PPO plans.

Regular employees (full- and part-time) may enroll themselves and their eligible dependents in any of the medical plans offered by the County. The County contributes toward the cost of each employee’s enrollment in the medical insurance plan of his or her choice. Employees may pay for their dependents on a pre-tax basis through the County’s Flexible Spending Plan.

The County provides you with five comprehensive medical insurance options from Blue Shield, all of which include prescription drug, mental health and vision benefits:

* Two HMOs
* Point of Service Plan
* Two PPO's - a low deductible and a high deductible PPO

Health Maintenance Organizations (HMOs)

County employees may choose from two HMO options:

Each provides the following comprehensive services through its network of hospitals, physicians, pharmacies, laboratories and other providers:

* medical;
* vision;
* prescription drug;
* mental health; and
* chiropractic services (not included on low option HMO)

Also, you can get information on a variety of health-related subjects from workshops and classes that are part of each plan’s wellness program.

When you enroll in a Blue Shield HMO, you and each member of your enrolled family members will receive all of your health care from a Participating Medical Group (PMG) or an Independent Physicians Association (IPA) that you select. In addition, you will choose a Primary Care Physician (PCP) who will manage your medical care, provide routine and preventive health care, and refer you to specialists when necessary.

With both Blue Shield HMOs, there is no annual deductible and a $10 charge for office visits and most other services. On the high option HMO, there is no charge for inpatient hospital care but on the low option, hospital service include a $250 charge plus 20% of the room and board charges. Other plan benefits include periodic health evaluations, maternity care, immunizations and vaccinations.

There is a small charge for chiropractic visits (high option HMO only), mental health services, and prescription drugs (all of which must be obtained from HMO contracted providers).

For a more detailed listing of the HMO benefits offered, check the HR-Employee Division Health Benefits webpage or consult the Medical Plan Comparison Chart.

Point of Service (POS) Plan

The County has chosen Blue Shield to offer a Point of Service Plan option for employees.

This plan combines managed care features with freedom of selection. It features three levels of benefits: an HMO level (Tier 1), a preferred provider level (Tier 2), and an

You select a provider from any tier each time you need medical care. The provider you go to for services determines which level of care in the plan you are accessing as well as the level of benefits you will receive. You do not need to enroll in Tier 1, 2 or 3; they are all available to you by enrolling in the Blue Shield Point of Service plan.

Tier 1: HMO-Type Services: When you enroll in the plan, you and each member of your family must choose a Primary Care Physician (PCP) at an affiliated Participating Medical Group (PMG) or Independent Physicians Association (IPA). When you decide to receive care from your PCP and PMG or IPA, or when they coordinate services with other health care providers, there is no charge for many services and only a small co-payment for others. No deductible or claim forms are required in this tier.

Tier 2: Preferred Provider Organization (PPO) Services: You may also choose to receive care through a preferred provider network without your PCP’s referral. To do so, you select a doctor from any participating Blue Shield physician or medical group at the time of service. There is no need to pre-designate this provider in advance. There is no annual deductible to meet and no claim form to fill out; you pay a small co-payment for services. Benefits are at a lower level of coverage.

Tier 3: Out-of-Network Benefits: Your last plan option is to receive care on a fee-for-service basis without a referral from any medical provider. There is an annual deductible, a 20% co-payment depending on the type of service, and claim forms to be filed.

Mental health, vision care, and prescription drug services are only available through Blue Shield providers. Check their online directories for up-to-date listings.

Dental Insurance

The County’s dental insurance plans offer a full range of dental services to help you and your family members maintain good oral health. Coverage is included for preventive care as well as for treatment of dental disease.

All regular employees (full- and part-time) may enroll themselves and their eligible dependents. The County contributes toward the cost of employee enrollment. Employees may pay for their dependents on a pre-tax basis through the County’s Flexible Spending Plan. You and your dependents must be enrolled in a County-sponsored medical insurance plan to be eligible for dental coverage.

The County offers you two dental insurance options:

* Dental HMO (Golden West); and
* Self-funded PPO Dental Plan.

Dental HMO

Golden West "Pacesetter" Dental HMO is a statewide dental program consisting of a network of dental professionals who provide:

* diagnostic, preventive and restorative services;
* endodontics, periodontics, prosthodontics and oral surgery.

When you enroll in Golden West Dental HMO, you and each member of your family choose a participating dental office. Your participating dentist provides you with dental care and determines when you need to be referred to specialty care. All services must be authorized by your participating dentist.

To receive benefits, you must use the network’s providers. There is no annual deductible and no charge for diagnostic or preventive services (oral exams, X-rays, cleanings). There are co-payments for other services; the amount you must pay depends on the type of service you receive.

Self-Funded Indemnity Dental Plan

If you elect coverage under this plan, you may go to any dental provider for care. There is no annual deductible for preventive services. For other services, the deductible is $50 per person and $100 per family.

Benefits are based on reasonable and customary charges. Services are covered as follows:

* preventive services (oral exams, X-rays, cleanings): 100%
* basic services (fillings, oral surgery, root canal therapy): 80%
* major services (inlays, crowns, dentures, bridges): 60%

Your dentist should submit a treatment plan for all treatment expected to cost more than $300.

Continuation of Medical and Dental Insurance Benefits (COBRA): Under federal law, employees who leave County employment for reasons other than gross misconduct can, at their own cost, continue medical and dental insurance plan coverage for themselves and their family for up to 18 months. This is known as COBRA coverage. The 18-month limit is extended under certain circumstances for persons deemed permanently disabled. This extended coverage is offered for an additional premium.

Your spouse and/or dependent child(ren) may also continue medical and/or dental plan coverage for up to 36 months if they are already covered and:

* you die;
* you become legally separated or divorced, or your marriage is legally annulled;
* you become entitled to Medicare during the 18-month continuation period; or
* your dependent child loses eligibility.

It is your responsibility to notify the County of a divorce, legal separation or annulment, or a child losing dependent status. Also, if you have a newborn child, adopt a child, or have a child placed with you for adoption while COBRA is in effect, you may add this child to your coverage within 30 days. You must notify the County in writing. Please contact the Employee Benefits Division for specific details.

Employee Assistance Program

For more information, obtain an EAP booklet from your payroll clerk or the Employee Benefits Division.

The County recognizes that personal problems can have an impact on your effectiveness at work and makes professional counseling services available through the Employee Assistance Program (EAP). If you have medical insurance through the County, you and your family members may take advantage of the Employee Assistance Program (EAP), which is administered by Managed Health Network (MHN). This program offers professional and referral counseling services, free of charge. The full cost of the EAP is covered as part of your medical insurance, and there are no employee co-payments, co-insurance or deductibles.

You may have three free counseling sessions per incident per plan year for:

* marital and family problems;
* alcoholism and drug dependency;
* emotional problems; and
* stress and interpersonal conflicts.

To schedule an in-person counseling appointment or telephone consultation, call the MHN toll-free phone number: (888) 227-3334. Telephone consultations are also available for financial and credit concerns, child care and elder care issues, and pre-retirement planning as well as problems with federal taxes and organizing personal records.

Counselors are located throughout Santa Barbara County and the United States. All counseling is provided on a strictly confidential basis.

Supervisor Referrals

If your supervisor becomes aware of a health, behavioral, and/or personal problem you may have, he or she may informally remind you of the EAP services that are available.

In situations where your work performance is unacceptable, your supervisor will work with the Personnel Department and MHN to determine if a formal "management referral" to the EAP is necessary. If it is, you will be referred to the EAP to resolve your performance problems. You may accept or refuse the referral. However, whether or not you accept the referral, your work performance must improve according to County standards. If it doesn’t, other appropriate action will be taken.

Benefit Allowance

The County understands that people have different financial, family, and personal situations. Rather than provide one type of "benefit" to fit all of its employees, the County provides all regular full- and part-time employees with a benefit allowance to customize their own "benefit package" by buying a variety of employee benefits or take as cash. The amount you receive is displayed on your biweekly earnings statement. The amount of this allowance varies according to bargaining unit (part-time employee benefits are prorated). Employees can use this benefit allowance to:

* "buy" employee and dependent medical and dental insurance premiums;
* "buy" Flexible Spending Plan options listed below; or
* take as cash.

Flexible Spending Plan

The County provides you with a "cafeteria"-type benefit program under IRS Section 125 called the "Flexible Spending Plan" that lets you buy insurance and other benefits with pre-tax dollars, resulting in significant tax savings for you. This plan lets you "customize" your benefit package by letting you select the specific benefits that meet your needs; you can participate in some benefits and choose not to elect others.

The Flexible Spending Plan is available to all regular full- and part-time County employees.

There is an annual enrollment period each year during which you can sign up for plan options or change your coverage. Your plan selections are effective the first pay period of the calendar year (approximately January 1) and continue until the end of the calendar year. All of the following benefits are purchased on a pre-tax basis with the exception of life insurance coverage over $50,000.

The Flexible Spending Plan is made up of:

* the pre-tax medical and dental insurance premiums paid by employees for themselves and their dependents in County plans;
* spending account plans, including the Health Care Spending Account and the Dependent/Child Care Spending Account;
* term life insurance; and
* personal accident insurance.

Pre-Tax Medical and Dental Insurance Premiums

The premiums you pay for yourself and/or your dependents for a County of Santa Barbara medical or dental insurance plan are automatically deducted in equal installments from your bi-weekly pay before taxes are withheld. If you wish, you may elect to have these deductions made on an after-tax basis. However, you will lose tax savings if you do.

Flexible Spending Account (FSA) Plan Options

The spending account plans established by the County under IRS Section 125 let you save before-tax dollars from your paycheck and use them to pay for certain health care and/or dependent/child care expenses, as described below. This before-tax feature lowers the amount of pay on which you are taxed, which results in tax savings.

* The Health Care Spending Account is used to pay deductibles, co-payments, expenses above the reasonable and customary amounts for medical and dental services, and charges for services or supplies not included in your medical or dental insurance plan.
* The Dependent/Child Care Spending Account is used to pay eligible dependent care expenses so you (and your spouse) can work. Care may be for qualifying dependent children under age 13 or adults. Eligible expenses include in-home care provided by a baby-sitter, nursing aide or attendant as well as care provided at a day care center

Contact your personal tax advisor if you need help in determining whether you should contribute to the spending accounts and in figuring out eligible expenses.

To participate in one or both spending account plans, estimate your health care and/or dependent child care expenses for the next calendar year and decide how much money you want to contribute to each account for that year. The minimum biweekly contribution is $5 and the maximum is $5,000 for each type of spending account. Your contribution will be deducted in equal installments from each of your biweekly paychecks on a before-tax basis during the year.

After you pay for an eligible health care or dependent/child care expense, you file a claim form (Request for Spending Account Reimbursement) and submit it with proof of payment and any other relevant documents (claim administrator’s Explanation of Benefits or child care invoice, for example) to the Auditor-Controller’s Office. You will be reimbursed from your account. Claims are paid for eligible expenses you incur up to the total amount you designate for the calendar year. Spending Account Reimbursement Forms are available from your payroll clerk, the Payroll Division of the Auditor-Controller’s Office or on the County Intranet site under Personnel.

Since spending accounts provide tax advantages, they are subject to IRS rules and limitations. The most important of these states that you must use all the money in your heath care and/or dependent/child care spending account for services you received during the calendar year. If you don’t, any funds that remain must be forfeited. Therefore, you should estimate your expenses carefully.

Group Term Life Insurance

Group policies are often more affordable than individual policies. For that reason, the County offers employees the opportunity to buy group term life insurance through pre-tax biweekly payroll deductions. You may purchase up to $500,000 of coverage for yourself and your spouse, and up to $5,000/$10,000 for your children, subject to plan restrictions. Coverage is available for:

* yourself, if you are under age 70 and actively at work;
* your spouse, if he or she is under age 70; and
* your dependent children under age 19 (or age 25 if they are full-time students).

Premiums for life insurance coverage over $50,000 and dependent life insurance coverage are deducted from your salary on an after-tax basis. (If you receive a management life insurance policy, that coverage level is included in this $50,000 pre-tax amount.) This group insurance can also be converted to a permanent individual policy if your employment with the County ends. However, you must apply for an individual policy within 30 days after separation.

This group insurance can also be converted to a permanent individual policy if your employment with the County ends. However, you must apply for an individual policy within 30 days after separation.

Contact the Employee Benefits Division for more details on converting to an individual policy after employment.

Personal Accident Insurance

Employees may also purchase voluntary personal accident insurance for themselves, their spouse, and eligible children. (Children must be unmarried and under age 19, or under age 25 if they are full-time students.) This insurance provides accidental death, dismemberment or paralysis benefits for injuries caused by any accident that occurs:

* in the course of business or pleasure;
* on or off the job; or
* while traveling anywhere in the world.

For both employee only and family coverage, you may choose any amount of insurance from $25,000 to $500,000. However, amounts above $150,000 cannot exceed 10 times your annual salary.

The benefit paid depends upon the loss suffered; the amount will be a percentage of the principal sum.

For more details about Personal Accident Insurance, call the Benefits Office and ask for a detailed plan booklet.

Travel assistance services are part of personal accident insurance if you are at least 100 miles from home. These services include pre-departure planning, travel medical emergency assistance, medical evacuation and repatriation, and other help with insurance and personal matters.

Retirement Plans

Retirement means different things to different people. For some, it’s a chance to rest and relax. For others, it’s the time to travel, take up a hobby, or devote energy to a favorite cause. Whatever you decide to do when you stop working, retirement income will play a large role in your plans.

The County provides all regular employees and some contractors on payroll with retirement benefits administered by the Santa Barbara County Retirement System. Retirement representatives in the Treasurer’s Department can assist you with any questions you may have. There are two retirement plans for new employees:

General (Plan 5a,5b) - a contributory plan for general employees, in which both the County and employees "contribute" to the plan. The benefit formula for this plan is 2% of your final average salary at age 57. The difference between the two plans is the difference in employee contribution rate depending on the employee's hire date. See the SBCERS website for details.

Safety (Plan 4a,4b) - a contributory plan for safety employees that covers specific classifications in the departments of the District Attorney, Sheriff, Fire and Probation. The benefit formula for this plan is 3% of your final average salary at age 55. The difference between the two plans is the difference in employee contribution rate depending on the employee's hire date. See the SBCERS website for details.

For more information on these plans, obtain a Santa Barbara County Employees Retirement Association Retirement Plan
Booklet, which is available from your department payroll clerk or Santa Barbara County Employment Retirement System (SBCERS). If you have questions about the Retirement System or the retirement plans, please call SBCERS at 568-2940.

Costs

The majority of Retirement System costs are paid by the County for active members based on a percentage of their salary. Employees in both General and Safety Plans contribute a small portion of the cost of their retirement plan. Members’ contribution rates are based upon participants’ ages when they enter the Retirement System and may be adjusted periodically after an actuarial study.

Previous County Service

Employees may purchase additional service time under certain circumstances. Under both plans you may:

* purchase credit for previous County service (such as extra help) for which you had not been credited; or

* redeposit withdrawn contributions and regain credit for previous County service.

Members on medical leave of absence may purchase service credit for the leave period (up to one year) upon returning to work.

Reciprocity

The County’s Retirement Plan maintains a reciprocity agreement with Public Employees Retirement System (PERS) which covers most other counties, cities and special districts, State Teachers Retirement System (STRS) and other 1937 Act Retirement Systems. Employees who have worked for other agencies in these systems should notify the Retirement Office.

Vesting/Withdrawals

In order to be eligible to receive a retirement allowance you must have ten (10) years of service credit.

If you leave County employment before you "vest" (i.e., complete five (5) years of service), your own contributions and the interest they have earned are refunded to you. If you leave County employment after "vesting," you may either withdraw your contributions or take a deferred retirement (i.e., retire at a later date).

Applying for Retirement

Employees planning to retire should apply for a service retirement up to 60 days before the date they plan to retire. You must meet the age and service credit requirements of your Plan. (e.g., general employees must be at least 50 years old and have ten (10) years of service.) Check with the Retirement Office regarding your Plan’s requirements.

Retirement Allowance

The retirement allowance you receive is calculated according to a formula based on three factors:

* your age at retirement;
* your total service credit; and
* your final average monthly salary based on the highest 12 or 36 consecutive months of employment, depending on your plan.

Because there are different payment options and allowances, it is important that you meet with a retirement representative prior to filling out your retirement application so as to ensure you are fully advised.

Other Retirement Features

Disability Retirement - If you become permanently disabled on or off the job, you may be entitled to a disability retirement allowance.

Death Benefits - All retirement plans provide a death benefit allowance under various conditions.

Retiree Health Insurance Benefit

Retirees may continue to receive medical and dental insurance coverage from the County-sponsored medical and dental insurance plans. The Retirement System contributes toward the cost of this insurance based on your number of years of service.

In addition to the five health plans available to active employees, retirees are also eligible for:

Medicare HMOs - Pacificare Secure Horizons, high and low options are plans with reduced rates and additional benefits over other HMO's; and

Out of Area PPO Medical Plan - Blue Shield offers an out-of-area plan available to retirees not living in the California Blue Shield Service area.

Deferred Compensation Plan

Since having enough income is a major part of a comfortable retirement, the County has implemented a plan under IRS Section 457 that lets you save and invest for retirement. This is in addition to the County’s retirement plan benefit. Contact the Hartford Insurance Representative at (866) 429-0382 , ext 5 to get more information on this plan.

All regular full- and part-time County employees and contractors on payroll are eligible for this benefit. Under this plan, you contribute a portion of your salary on a before-tax basis to a special retirement account. Your contributions and investment earnings grow tax-free until you retire and have them distributed to you.

Contributions

For 2007, you may contribute any amount up to $15,000 per calendar year. Employees who are within three years of being eligible to retire may defer up to and additional $15,500 per year if they have not previously contributed the maximum amount (Pre-retirement catch-up). Also, if you are over age 50, you can contribute an additional $5,000 as long as you are not in a catch-up phase.

Investment Options

This plan allows you to decide how the money in your deferred compensation account is to be invested. Nineteen different fixed-interest, mutual fund, and stock and bond options are available to you. Each option carries a certain degree of risk as well as earnings potential.

The County’s program gives you a great deal of flexibility in managing your deferred compensation account according to your personal needs and plans for retirement. In managing your account, at any time during the year you can:

* increase or decrease the amount of your contributions;
* stop contributions and restart them at a later date;
* change how your future contributions will be invested; and
* transfer existing account balances from one fund to another.

Withdrawals

Because of federal restrictions regarding deferred compensation funds, money from your account can be withdrawn only in the event of:

* the end of your County employment;
* retirement;
* extreme financial hardship, or
* death.

Several payment options are available when you are ready to receive a distribution. By law, money from your account cannot be rolled over into an IRA.

State Disability Insurance (SDI)

State Disability Insurance (SDI) is a valuable source of financial security for you and your family if a non-work-related illness or injury leaves you temporarily unable to work.

If your disability is permanent or expected to continue for more than a year, you should contact the U.S. Social Security Administration for information on disability benefits.

This program is limited to employees in bargaining units represented by SEIU Local 535, SEIU Local 620, the Engineers and Technicians Association, and Probation Peace Officers Association as well as Unit 32, confidential-unrepresented employees.

Employees in these bargaining units have voted to enroll themselves in SDI, a state-administered short-term disability policy paid for by the employee. If you are in one of these bargaining units, SDI covers you for up to one year if you are sick or disabled for more than seven consecutive calendar days for a non-work-related illness or injury. A disability is defined as any physical or mental illness or injury that prevents you from doing your regular or customary work. This includes elective surgery, pregnancy, childbirth, or related medical conditions. You are required to apply for SDI when illness or injury causes you to miss work for more than 12 consecutive calendar days.

SDI benefits are integrated with your sick leave to a maximum combined total of 80% of your gross salary. When your sick leave runs out, you may use any other leave balances (vacation time, overtime and holiday credits) to supplement SDI.

To obtain benefits, you must fill out a claim form, have your doctor certify the disability, and submit the claim to the State of California Employment Development Department. Application materials are available from your payroll clerk.

Basic Term Life Insurance

Life insurance helps increase your family’s financial security in the event of your death.

County executives, managers, attorneys, and confidential-unrepresented employees are eligible for this benefit.

If your job is in one of the categories listed above, you will be covered by basic term life insurance provided by the County. Coverage is as follows:

* department heads and elected officials: $50,000;
* assistant department heads: $30,000; and
* all other eligible employees: $20,000.

Features

Your life insurance has several features:

Conversion Option - This option allows you to convert your coverage to a permanent individual policy if your employment ends or if this basic plan is discontinued.

Terminal Illness Accelerated Benefit Option - This option allows terminally ill employees to cash in a portion of their death benefit while they are still living to aid them and their families.

For more information about basic term life insurance, contact the Employee Benefits Division 568-2814 or 2818. For conversion information at time of separation, call ING at 888-238-4840.

Long-Term Disability (LTD) Plan

Long-term disability insurance provides income for you and your family if you cannot work for an extended period of time due to a non-work-related injury or illness.

County executives, managers, attorneys, and confidential-unrepresented employees are eligible for this benefit.

This "income protection"-type insurance is provided by the County to employees in the above classifications. After the first 60 days of continuous total disability, LTD insurance pays 60% of your monthly earnings, up to a maximum of $5,400 per month. You may receive LTD benefits up to age 70, depending on the type of disability and your age at the time of disability.

To file a claim for LTD benefits, call the Employee Benefits Division.

Child Care

In order to assist you in locating suitable child care providers in Santa Barbara County, you are encouraged to call the Children’s Resource and Referral Program at 962-8988 in Santa Barbara, 925-1989 in Santa Maria, and 737-0073 in Lompoc. For general information on the County Child Care Plan, contact either the Santa Barbara County Child Care Planning Council Coordinator (969-4924) or the Human Services Division of the Public Health Department at 681-4075. In addition, the Employee Assistance Program (EAP) offers advice on provider selection and can send you a useful handbook if you call (800) 227-3310. Finally, if you have child care expenses, you can arrange to have some of your pre-tax salary deposited in an account to pay for them. See the Dependent/Child Care Spending Account section of the Spending Account Plan on page 15.

Coastal Housing Partnership

As a member of this partnership, the County of Santa Barbara has made the following housing assistance programs available to its employees:

Homebuyer Assistance Program - This program can assist the first-time or relocating homebuyer in making a home purchase more affordable, through the down payment loan program and by reducing the closing and other costs associated with the purchase of a home. You must obtain a letter of authorization from Coastal Housing to be eligible for benefits.

Mortgage Refinance Program - Many lending institutions have agreed to discount their services to reduce your overall loan costs.

For more information on the Coastal Housing Partnership and to obtain a letter of eligibility, call 969-1025. Program descriptions are available from your Payroll Division or the Personnel Benefits Division.

Credit Union

All regular County employees are eligible for membership in the County credit union. The Santa Barbara County Employees Federal Credit Union is an independent organization owned by Santa Barbara County employees and operated under federal regulations. The Credit Union offers members a full range of accounts and services.

For more information, you can contact the Credit Union at 682-3357.