O-2009-3129 approving updated Employee Policy Handbook

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8.06 Retiree Medical Benefits The following persons are eligible for retiree medical coverage: • Present retirees of the City of La Porte receiving retirement annuities as a qualified annuitant under the Texas Municipal Retirement System • Who have retired in accordance with the City of La Porte Employee Policies Handbook; and were employed by the City of La Porte at the time of their retirement. • Retirees re-employed after retirement from the City of La Porte that have employer sponsored health care coverage available through the new employer may not continue health coverage with the City of La Porte, except for those with 30 years or more tenure with the City of La Porte. If an employee works 30 years or more with the City of La Porte they may maintain the City of La Porte sponsored health plan as secondary, while working for a new employer offering a health plan option. All applicable costs of the plan will still apply. In the case of Retirees that are reemployed by a new employer, and who subsequently separates employment from the new employer, a one time deferral shall be allowed whereby the retiree may rejoin the City of La Porte health plan as a retiree participant, regardless of age. If a qualifying retiree carried a spouse as a dependent at the time of their initial retirement, a retiree who rejoins the City of La Porte health plan as a retiree participant under the one time deferral may include their spouse as a dependent, consistent with allowances made under Federal COBRA law. Retirees who are self-employed are eligible for medical coverage, but occupational illnesses or injuries shall not be covered. Annual contributions by retirees to the health plan will be based on the total cost per employee of the plan to the City. City employees who retire from City of La Porte employment on or after January 01, 2006 and o who have a combination of years of service with the City of La Porte, plus age, totaling 80; and o who retire as a qualified annuitant under the Texas Municipal Retirement System; who retire in accordance with the City of La Porte Employee Policies Handbook; who complete at least 20 years of service with the City of La Porte, and are currently employed by the City of La Porte at the time of their retirement. 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. City employees meeting the eligibility requirements for disability retirement under the Texas Municipal Retirement System Act and 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. 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 50