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

Browse Search

Retirees shall pay all required contributions to the City by the 15 of the month of coverage. One annual statement will be mailed to retirees for selection of payment plan: annual, bi- annual, quarterly or monthly. Failure to pay the required contribution will result in termination of the member's participation in the City of La Porte sponsored health plan. Payment delayed beyond 60 days will initiate COBRA notification for continuation of health coverage once the member is terminated from the Plan. Years of Service Percentage Retiree Pays 20 60% of the Total Plan Cost + dependent coverage 21 55% of the Total Plan Cost + dependent coverage 22 50% of the Total Plan Cost + dependent coverage 23 45% of the Total Plan Cost + dependent coverage 24 40% of the Total Plan Cost + dependent coverage 25 35% of the Total Plan Cost + dependent coverage 26 30% of the Total Plan Cost + dependent coverage 27 25% of the Total Plan Cost + dependent coverage 28 20% of the Total Plan Cost + dependent coverage 29 15% of the Total Plan Cost + dependent coverage 30 Active Employee /Dependent Rate COBRA Coverage for Retirees As mandated by Texas Local Government Code Chapter 175, City employees meeting eligibility requirements under the Texas Municipal Retirement System Act to receive retirement benefits, may, regardless of age or years of service with the City, purchase at their own expense, the combined City and employee cost of continued health benefits coverage for the employee and the employee's dependents, unless the employee is eligible for group health benefits coverage through another employer. To purchase continued health benefits coverage the employee must inform the City of their election not later than the day on which the employee retires from the City. A person who elects to purchase continued coverage who subsequently discontinues coverage, is no longer eligible for coverage; likewise, a dependent for whom coverage is discontinued is no longer eligible for continued coverage. A person who was not covered under the employee's plan at the time of retirement is not eligible for continued coverage. The City may substitute Medicare supplemental health benefits coverage as the coverage provided to a retiree under this section, including a dependent, after the date the retiree becomes eligible for federal Medicare benefits.