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CITY OF LA PORTE, TEXAS <br />NOTES TO THE FINANCIAL STATEMENTS (continued) <br />Note 11 - Post-employment Benefits (continued) <br />Employees who are eligible for the post employment benefits are employees who retire after January 1, <br />2006 and who have a combination of years of service with the City of La Porte plus age totaling 80 and <br />who retire as a qualified annuitant under the Texas Municipal Retirement System; who retire in <br />accordance with the City of La Porte Employee Policies Handbook; who complete at least 20 years of <br />service with the City of La Porte are currently employed by the City of La Porte at the time of their <br />retirement. The total premium cost is the total annual dollar allocated by budget as approved by City <br />Council for the City of La Porte for health insurance for each employee, including employee and <br />employer contributions. The cost allocation shall be as follows: <br />Years of service with the CityRetiree CostCity Cost <br />at least 20 years60%+dependent premiums40% <br />21 years55%+dependent premiums45% <br />22 years50%+dependent premiums50% <br />23 years45%+dependent premiums55% <br />24 years40%+dependent premiums60% <br />25 years35%+dependent premiums65% <br />26 years30%+dependent premiums70% <br />27 years25%+dependent premiums75% <br />28 years20%+dependent premiums80% <br />29 years15%+dependent premiums85% <br />30 yearsActive employee/dependent rate <br />Retirees who are entitled to receive retirement benefits under the City’s retirement plan may purchase <br />continued health benefits for the retiree and the retiree’s dependents. The person must inform the City no <br />later than the day on which the person retires that the person elects to continue coverage. If the retiree <br />elects to continue coverage for himself and/or his dependents, once he decides to drop either type of <br />coverage, the person and/or his dependents become eligible for coverage at the next open enrollment <br />period. The level of coverage provided is the same level of coverage provided to current employees. The <br />City’s coverage is secondary to Medicare when the person becomes eligible for those benefits. Payment <br />for dependent coverage will be at the same rate as payments for current employees. <br />51 <br /> <br />