O-2006-2781-B (original in 2004)

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* {~6ert health plan as secondary, while working for a new employer offering a health plan option. All applicable costs of the Plan will still apply. For those retirees who are self-employed, occupational illnesses or injuries shall not be covered. Annual contributions by retirees to the health plan will be based on a cost schedule determined by years of service, as established under Section 5, "Premiums", of this chapter. D. City employees meeting the eligibility requirements for (1) disability retirement under the Texas Municipal Retirement System Act and (2) have been declared permanently disabled under the Social Security Act, and have elected to receive Medicare, Parts A and B, shall be eligible for medical benefits, which shall be secondary to Medicare benefits, provided they have worked for the City of La Porte for ten (10) continuous years at the time of disability determination. Costs associated with retirement under this tier shall be 75% of the city cost. 2. The retiree and dependent coverage will be primary for those participants not yet qualified for Medicare. The coverage will be secondary for those retirees and retirees' dependents who are Medicare eligible. If a covered retiree dies, dependents may continue coverage until the earlier of the date the surviving spouse remarries, obtains group insurance, or becomes entitled to Medicare, or until any unmarried children financially dependent upon the covered retiree is 25 years of age. Surviving dependents shall pay the appropriate contribution toward dependent coverage as established in this chapter.:. 3. Retirees who work for another employer offering health coverage shall not be eligible for retiree health coverage from the City after their subsequent employment ends, regardless of the length of service with the subsequent employer. 4. Retirees who delay their retirement annuity shall not be eligible for retiree health coverage from the City. 5. Premiums: The City of La Porte utilizes a self-funded medical plan so there are no formal premiums paid for health coverage. Each year, during the budget process, an amount is determined for each employee to cover claims and administration of the medical fund. ~osts to the retiree, retiring on or after January 0 I, 2006, shall be based on a cost schedule determined by years of service: At least 20 years of service Retiree pays 60% of city cost + Dependent premiums At least 21 years of service Retiree pays 55% of city cost + Dependent premiums At least 22 years of service Retiree pays 50% of city cost + Dependent premiums