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<br />e <br /> <br />e <br /> <br />The Welch Company <br />Employee Benefits Consulting and Brokerage <br /> <br />Memorial City Plaza <br />820 Gessner, Suite 1470 <br />Houston, Texas 77024 <br />(713) 827-8755 <br />Fax (713) 461-5788 <br /> <br />September 13, 1999 <br /> <br />Louis Rigby <br />Director of Administrative Services <br />City of La Porte <br />P.O. Box 1115 <br />La Porte, Texas 77572-1115 <br /> <br />RE: Retiree Health Insurance <br /> <br />Dear Louis, <br /> <br />If the City Council's agenda on the above issue is fairly voiced by Mr. Porter, then the <br />objective of this study and the resulting recommendations will concentrate on the <br />removal of as much retiree health liability as allowed by the law. My outline of <br />recommendations is based on my interpretation of Chapter 175 of the Local Government <br />Code. Your City Attorney and/or outside counsel must review my opinions and <br />recommendations for legal compliance. <br /> <br />Based on my letter of July 28, 1999, I would recommend approaching the question of <br />retiree health coverage using four disciplines: Law, Eligibility, Contributions, and Risk. <br />Disciplines within each of these categories will contribute to the solution. With this <br />approach in mind the following observations and recommendations are presented with <br />the goal of eliminating as much retiree health liability as possible. <br /> <br />Law (See Enclosurre) <br /> <br />Section 175.001 Apylicability <br /> <br />1. Any retiree whose employment was based in a municipality with a population <br />of25,000 or more <br />2. Any retiree entitled to retirement benefits from a retirement plan <br /> <br />From these two requirements, it appears that anyone qualifying for retirement <br />benefits (TMRS) in the City of La Porte would be eligible. <br />