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• • <br /> <br />~'~ <br />CITY OF LA PORTE <br />RETIREE MEDICAL PLAN COVERAGE <br />OBJECTIVES: <br />1. Provide continued medical plan coverage for retiring employees who have <br />qualified for the City's state-sponsored pension plan. <br />2. Initiate coverage for existing retirees who were previously covered <br />during active employment with the City. <br />3. Amend the medical plan to address coverage issues which are especially <br />sensitive to retirees; including benefit integration with Medicare where <br />applicable. <br />4. Establish adequate mechanisms for actuarially sound funding of the new <br />benefit. <br />COVERAGE: <br />1. Eligibility - Current and future retirees who are eligible for and vested <br />in the Texas Municipal Retirement System or who, by City policy, are <br />otherwise eligible. <br />2. Benefits -Parallel those which are provided for active employees. For <br />retirees covered by Medicare, provide appropriate integration with <br />government benefits to ensure equal but not greater benefits than those <br />afforded active employees. <br />Amend the Plan Document to place a lifetime benefit limit for private <br />duty nursing of $20,000. (This service, if unchecked, may result in <br />extremely large liabilities for plans covering retirees.) <br />FUNDING: <br />1. It is proposed that the City can provide contributions for retiree <br />coverage that are equal to those made for active employees, for those <br />retirees age fifty and over who are not yet eligible for Medicare <br />coverage. However, due to the fact that actuarially this age group <br />presents approximately 25K greater risk than the overall active <br />workforce, it is also proposed that the contributions to fund this addi- <br />tional risk be made by those retirees electing coverage. These can be <br />allocated as monthly contributions (shown on the attached schedule). <br />2. For retirees covered by Medicare (where Medicare is the primary insurer) <br />the actuarial risk is approximately 50~ less than the risk for active <br />employees and their dependents. It is proposed that the City's contribu- <br />tion on behalf of these retirees be equal to 50~ of the active rates. <br />~rt1E~ BErlEfltS <br />