05-23-11 Regular Meeting of La Porte City Council

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8.04 Retiree Medical Benefits The following persons are eligible for retiree medical coverage: • City employees who retire from City of La Porte employment who have a combination of years of service with the City of La Porte, plus age, totaling 80; and • who retire as a qualified annuitant under the Texas Municipal Retirement System; • who retire in accordance with the City of La Porte Employee Policies Handbook; • who complete at least 20 consecutive years of service with the City of La Porte, and are currently employed by the City of La Porte at the time of their retirement. Retirees re- employed after retirement from the City of La Porte that have employer sponsored health care coverage available through the new employer may not continue health coverage with the City of La Porte, except for those with 30 years or more tenure with the City of La Porte. Retirees who delay their retirement annuity shall not be eligible for retiree health coverage from the City. Retirees who are self - employed are eligible for medical coverage, but occupational illnesses or injuries shall not be covered Retirees with Thirty (30) or More Years of Service If an employee works 30 years or more with the City of La Porte they may maintain the City of La Porte sponsored health plan as secondary, while working for a new employer offering a health plan option. All applicable costs of the plan will still apply. In the case of Retirees that are reemployed by a new employer, and who subsequently separate employment from the new employer, a one time deferral shall be allowed whereby the retiree may rejoin the City of La Porte health plan as a retiree participant, regardless of age. If a qualifying retiree carried a spouse as a dependent at the time of their initial retirement, a retiree who rejoins the City of La Porte health plan as a retiree participant under the one time deferral may include their spouse as a dependent, consistent with allowances made under Federal COBRA law. 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. City employees meeting the eligibility requirements for • disability retirement under the Texas Municipal Retirement System Act and • have been declared permanently disabled under the Social Security Act, and have elected to receive Medicare, Parts A and B, shall be eligible for medical benefits, which shall be secondary to Medicare benefits, provided they have worked for the City of La Porte for ten (10) continuous years at the time of disability determination. Costs associated with retirement under this tier shall be 75% of the city cost.