2006-10-09 Regular Meeting and Workshop Meeting of La Porte City Council

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City Council Regular and Workshop Meeting —October 9, 2006 Page 4 have proposed, in those cases they couldn't bring dependents only their spouse. This Council had directed that in the case of a retiree who gains subsequent employment elsewhere and decides to re -participate in the City of La Porte health plan as a retiree, Council directed if you had a spouse when you retired you could add a spouse when you re- enter the plan. It was noted it would be limited to that dependent. This sentence clarifies that where in general any eligible dependents would include beyond a spouse but also children. In that case, if they are participating in the plan, under the one time deferral (which is under consideration) they would be limited in terms of dependents to their spouse. This is if they had a spouse when the left the program with La Porte. That outlined the changes that were made. Robert Swanagan advised Council the next issue being discussed has to do with the cost of retirees over/under 65. * The next item discussed was the letter from Barry Beasley regarding the 80 point issue. Robert Swanagan discussed active employee costs vs. retiree costs. Robert Swanagan discussed fund subsidy issues. * Robert Swanagan advised Council why a person retiring is paying more than an active employee. * Councilmember Louis Rigby inquired as to why certain costs on diagram were being added together. Robert Swanagan advised they were added together because that was the subsidy amount and they have to pay both.* Councilmember Rigby noted if you are a single employee you have to pay both or the City is paying both for employees. Robert Swanagan noted the City is paying both for employees. When you retire Councilmember Rigby inquired as to why the City would be placing money in the plan for a spouse that a single employee did not have. Robert Swanagan advised he did not know who did the calculation. Councilmember Rigby noted the person who did the calculation should be doing the presentation. Robert Swanagan noted the Welch Group was not available this evening. Councilmember Moser noted concerns with the numbers not being accurate due to two people being factored in rather than one person. Robert Swanagan noted each one depends on the plan. Mayor Porter noted this example was just an example that includes a spouse.