O-2009-3129 approving updated Employee Policy Handbook

Browse Search

Medicare eligible. The Retiree and dependent coverage will be secondary for Retirees with 30 or more years tenure with the City of La Porte, who have employer sponsored health coverage available through their new employer, or for retirees reemployed with the City of La Porte, as hereinabove provided. 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. 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. Retirees who delay their retirement annuity shall not be eligible for retiree health coverage from the City. 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. The Total Plan Cost is the Total annual dollar allocated each year by budget as approved by City Council for the City of La Porte for Health Insurance for each employee, including employee and employer contributions. Costs to the retiree, retiring on or after January 01, 2006, shall be based on a cost schedule determined by years of service, outlined below. Under this schedule, a retiree pays a percentage of the city's contribution to the plan participant's health coverage, based on years of service, but pays the entire cost of dependent coverage, regardless of years of service. As mandated by Texas Local Government Code Chapter 175, City employees meeting eligibility requirements under the Texas Municipal Retirement System Act to receive retirement benefits, may, regardless of age or years of service with the City, purchase at their own expense, the combined City and employee cost of continued health benefits coverage for the employee and the employee's dependents, unless the employee is eligible for group health benefits coverage through another employer. To purchase continued health benefits coverage the employee must inform the City of their election not later than the day on which the employee retires from the City. A person who elects to purchase continued coverage who subsequently discontinues coverage, is no longer eligible for coverage; likewise, a dependent for whom coverage is discontinued is no longer eligible for continued coverage. A person who was not covered under the employee's plan at the time of retirement is not eligible for continued coverage. The City may substitute Medicare supplemental health benefits coverage as the coverage provided to a retiree under this section, including a dependent, after the date the retiree becomes eligible for federal Medicare benefits. 51