08-09-04 Chapter 172 Employee Retiree Insurance and Benefits Board Meeting

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EXEIBIT <(A" CITY OF LAPORTE RETIREE :rv.rRDICAL COV~R.AGE Retiree medical coverage ou-clined below shall have an effective date of May 22,2000. ELIGIBILITY Medical Plan shall be changed as follows: You- may also participate in this plan if you are a retiree of the City of La Porte receiving retirement annuities as a qualified annuitant under the Texas Municipal Retirement System, have completed at least ten (10) years of service with La Porte and currently employed by the City at the time of retirement, and do not work for another employer after retiring from the City. Disa.bility retirement requires at least five (5) years of service. Tne retiree and retiree 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. Retiree paid premiums shall be reduced by 50% at the time the retiree becomes Medicare eligible. If a covered retiree dies, dependents may continue coverage until the earliest of ,the date the surviving spouse remarries, obtains group msurante, or becomes entitled to Medicare. Surviving dependents shall pay the same dependent coverage rate that they paid, prior to death. For those retirees who are actively employed and have employer sponsored health care coverage available through their employer, the retiree :health benefit through the City shall cease. For those retirees who are self-employed, occupational illnesses or injuries shall not be covered. Employees retiring from the City, and wh.b work for another employer offering health care 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. Employees retiring from the City who delay their retirement annuity shall not be eligible for retiree health coverage from the City. Employees who retire with veteran benefits from the federal government, and, otherwise meet the requirements for retiree coverage with the City, may waive their coverage with the City and choose tei cover their dependent only. The cost for this dependent coverage shall be the same as the active employee rate. PREMIDMS The City of La Porte utilizes a self-funded medical plan so there are no formal premiums paid for health insurance. Each year, duriIig the budget process, an amount is determined for each employee to cover claims and administration of the medical fund. Cost to the retiree shall be based on a two-tier plan: