O-2013-3461 revisions to clarify Retiree Medical Benefits

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REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: April 25.2011 Requested By: Weather Wegm. Department: Human Reseurces Report: Resolution: Ordinance: Exhibits: Chapter 172 Committee Retiree Medical Recommendation Exhibits: Retiree Medical Benefits Policy Exhibits ud e Source of Funds: Account Number: Amount Budgeted: Amount Requested: Budgeted Item: YES NO SUMMARY & RECOMMENDATION On December 14, 2010 the Chapter 172 Committee met to discuss Retiree Benefits. The Committee agreed to hire an actuary to determine the cost associated with allowing employees who have 30 years of service with the City and who qualify for Retiree Medical Insurance to pay the active employce/dependent rate at the time of their retirement. Currently, employees with 30 years of service pay 10% of the Total Cost to the City of the Medical Plan and the Rill amount of dependent premiums. The actuary report shows the cost as follows: 2011- $11,755 2012 - $21,401 2013 - $34,967 On March 31, 2011 the actuary report was presented to lite Committee. The Committee voted unanimously to make a recommendation that employees with 30 years of service to the City, who qualify for Retiree Medical Coverage through the City be allowed to pay the active employee/dependent rate at ilia time of their retirement. In addition, Staff would like to modify the Retiree Medical Policy to include allowing the continuation of coverage for dependents of employees who NVbuld have otherwise qualified for the Retiree Medical Coverage through the City, but did not retire prior to their death. Currently, this change would affect 30 employees. Under current policy, if an employee, who is eligible for Retiree Coverage, dies prior to their retirement their dependents would have to go on COBRA regardless of whether the employee was eligible for the Retiree Medical Coverage, Action Required by Council: Approve the Chapter 172 Committee's recommendation to modify the Retiree Policy to allow employees with 30 or more years of service to lite City, who also qualify for the Retiree Medical Insurance to pay lite active employee/dependent rate at the time of their retirement. Approve Stairs recommendation to allow dependents to continue coverage under the Retiree Medical Policy if the employee would have otherwise qualified for the Retiree Coverage prior to their death. Approved for City Council Agenda Ron Bottoms, City Manager Date