2000-05-15 Special Called Workshop Meeting

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City Council Minutes 5-15-00 — Page 3 Employees retiring from the City, and who work for another employer, 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 to cover their dependents only. The cost for this dependent coverage shall be the same as the active employee rate. Premiums The City of La Porte utilizes a self -funded medical plan so there are no formal premiums paid for health insurance. Each year, during the budget process, an amount is determined for each employee to cover claims and administration of the medical fund. Costs to the retiree shall be based on a two-tier plan: Tier 1 The percentages paid by the retiree shall be based on the budgeted amount discussed in paragraph one of this section. Years of Service with La Porte Retiree Cost City Cost At least 10 but less than 15 55% 45% At least 15 but less that 20 25% 75% At least 20 0% 100% Dependent coverage shall be charged at the active dependent rate. Tier 2 Any employee meeting the eligibility requirements for disability retirement under the Texas Municipal Retirement System Act shall be eligible for medical benefits, provided they have worked for the City of La Porte for (5) continuous years. Costs associated with retirement under this tier shall be the same as Tier 1, with the addition of: At least 5 but less than 10, retiree cost shall be 75%. Dependent coverage shall be charged at the active employee rate.