1999-10-25 Regular Meeting and Workshop Meeting

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e e The Welch Company Employee Benefits Consulting and Brokerage Memorial City Plaza 820 Gessner, Suite 1470 Houston, Texas 77024 (713) 827-8755 Fax (713) 461-5788 October 13, 1999 Louis Rigby Director of Administrative Services City of La Porte P.O. Box 1115 La Porte, Texas 77572-1115 RE: Retiree Health Insurance Dear Louis, In response to background information provided on September 13th, and our meeting with the City's staff on October 6th, I am providing the following thoughts for your consideration. Two Tier ElieihilDtv I believe the two-tier eligibility concept as introduced by Bob Herrera and refined by the staff is a sound one. It accomplishes the goals of the City as relates to retention of long term valued employees in Tier I. In Tier II, benefits are also extended to valued employees, while protecting City contribution dollars. The combination of Tier I and Tier II may meet with some resistance from existing and future retirees, but its design compares favorably to other municipal plans in the area. Other Benefit Questions In response to Mr. Herrera's questions sighted on the second page of his September 28th meeting outline, I offer the following thoughts for consideration. 1. If a retired employee obtains full time employment after they retire from the City, they forfeit this benefit. The City has no obligation to continue retiree coverage in this event. Yes. Per Section 175.002, Right to Purchase Continued Coverage, a person is entitled to purchase continued health benefits unless the person is eligible for group health benefits coverage through another employer.