2000-04-17 Special Called Workshop Meeting

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SPECIFIC CONCEcRNS FROM RETIREES/EMPLOYEES • The current plan allows an employee with 20 years of service with the City to retire with fully paid benefits for the retiree. The new plan, which goes into effect January 'I , 2001 states that the same employee, assuming his or her age plus years of service total less than 80, would pay $2,250 per year for the same insurance. • An employee with 15 years of service with the City, but enough time in the TMRS system to retire, would currently pay $450 per year which would change to $2,700 under the new system. • An employee with 10 years of service with the City, but enough time in the TMRS system to retire, would currently pay $900 per year which would change to $3,1;50 under the new plan. ACTUAL EXAMPLES • We have a retiree, who retired in 1994 with 15 years, 4 months service with the City of La Porte. He actually retired and did not seek employment elsewhere. He currently pays $450 per year for his coverage and $598 per year for his spouse's coverage, a total of $1,048. Under the new system, this amount would increase to $3,298 per year. He has stated that his fixed income would riot cover this increase. • We have a current employee who is planning to retire in May of this year with 11 years, 4 months service with the City. Under the current system he would pay $900 per year for his coverage and $598 per year for his spouse, a total of $1,498 per y~aar. Under the new system, this amount would increase to $3, 748 per year.