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<br />COUNCILMEMBER BEASLEY'S QUESTION <br /> <br />An employee considering retirement has thirty (30) years with the City and <br />age combined with service time equal 80 points. <br /> <br />The employee's calculated retiree insurance cost for his PPO $500 with discount is <br />$58.94. <br /> <br />However, as a current active employee his cost is $50.23. <br /> <br />Question #1: Why is he paying $8.71 more as a retiree than he is paying as an active <br />employee? <br /> <br />$58. 94 Retiree cost only <br />$50.23 Active Employee Cost <br />8.71 Difference Cost between Retiree and Active <br /> <br />As a current Active employee his Total Insurance Cost for employee and spouse <br />is $165.74 per Month. <br /> <br />The employee's calculated retiree Total Insurance Cost for employee and spouse <br />is 264.55. <br /> <br />Question #2: Why is he paying 98.81 more as a retiree than he is paying as an active <br />employee? <br /> <br />When employee retires from the City he is no longer entitled to the fund subsidy <br />of $168 per month ($39.18 subsidy employee only + $129.28 fund subsidy for <br />employee & spouse) paid by the City. SEE ATTACHED PREMIUM AND <br />CONTRIBUTION SCHEDULE C EFFECTIVE JANUARY 1, 2006 <br /> <br />Councilmember Beasley's Comments: <br />I thought our idea/intent was that a retiree would never pay more <br />than an active employee for insurance. <br />