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,~ <br />• • <br />~s BErieFits <br />FRED. S. JAMES 8~ CO. <br />350 Glenborough Drive, Suite 100, Houston, Texas 77067-3699 (713) 444-7509 <br />July 17, 1985 <br />Mr. Richard T. Hare <br />Assistant City Manager <br />City of La Porte <br />P.0. Box 1115 <br />La Porte, TX 77571 <br />Re: Dependent Coverage of Retirees and Employees <br />Dear Richard: <br />As we discussed, coverage of dependent children for employees currently <br />continues through age 25, provided that the child is enrolled full-time in <br />school. This coverage is by far the predominant method employed to provide <br />coverage for dependent children. <br />An exclusion of children beyond the age of 19 who are students would yield, <br />on the average, minimal plan savings and potentially could create signifi- <br />cant employee relations problems. Nowhere in my experience is this exclu- <br />sion made. Coverage for student children between the ages of 19 and 25 is <br />actuarially funded through the rating process and currently presents no <br />adverse risk to The City Plan. <br />It is therefore our recommendation that this coverage be continued and that <br />such coverage apply, where appropriate, to retiree dependents as well. <br />If any questions arise concerning this, please contact me. <br />Sincerely, <br />~~ <br />Stanley R Self <br />Account E ecut' e <br />SRS:dv <br />cc: Jack Owen <br />}~{~ ~~~~ <br />Consultants, Administrators 8 Actuaries <br />