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HomeMy WebLinkAboutO-2004-2781-A . e ORDINANCE NO. JlI II!' tAoo+.cP... tfl -~ AN ORDINANCE ADOPTING AN AMENDMENT TO THE CITY OF LA PORTE EMPLOYEE POLICIES HANDBOOK BY AMENDING SECTION gA, DRETIREE MEDICAL COVERAGED I PROVIDING FOR THE TERMS AND CONDITIONS OF RETIREE MEDICAL COVERAGE, PROVIDING AN EFFECTIVE DATE OF SAID AMENDMENT, PROVIDING A SEVERABILITY CLAUSE, FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW, AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City of La Porte Employee Policies Handbook is hereby amended, by amending Section 9A, "Retiree Medical Coverage", as shown on Exhibit "A" attached hereto, incorporated by reference herein, and made a part hereof for all purposes. Section 2. If any section, sentence, phrase, clause, or any part of any section, sentence, phrase, or clause, of this ordinance or amendment of the City of La Porte Employee Policies Handbook hereby adopted, shall for any reason, be held invalid, such invalidity shall not affect the remaining portions of this Ordinance, or said Employee Policies Handbook, and it is hereby declared to be the intention of this City Council to have passed each section, sentence, phrase or clause, or part thereof, irrespective of the fact that any other section, sentence, phrase or clause, or part thereof, may be declared invalid. SectioD 3. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted . e upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 4. Except as amended by this Ordinance, Section 9A, "Retiree Medical Coverage", of the City of La Porte Employee Policies Handbook, shall remain in full force and effect. SectioD 5. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 9th of May, 2005. CI,., ?~ LA PO~ ~ t::. ~~ Alton E. Porter, Mayor By: ATTEST: ~tJtUAJUCI ~ Marth A. Gillett, City Secretary APP~z0. ~ Knox W. Askins, City Attorney 2 e e Exhibit A 9 A Retiree Medical Coverage 1. The following persons are eligible for retiree medical coverage: A. Present retirees of the City of La Porte receiving retirement annuities as a qualified annuitant under the Texas Municipal Retirement System, who have retired in accordance with the City of La Porte Employee Policies Handbook; and were employed by the City of La Porte at the time of their retirement. Retirees re-employed after retirement from the City of La Porte that have employer sponsored health care coverage available through the new employer may not continue health coverage with the City of La Porte, except for those with 30 years or more tenure with the City of La Porte, or for retirees re-employed with the City of La Porte. If an employee works 30 years or more with the City of La Porte they may maintain the City of La Porte sponsored health plan as secondary, while working for a new employer offering a health plan option. All applicable costs of the Plan will still apply. Retirees who are self-employed are eligible for medical coverage, but occupational illnesses or injuries shall not be covered. Annual contributions by retirees to the health plan will be based on current active employee/dependent rates. B. City employees who retire from the City of La Porte employment on or before December 31,2005, as a qualified annuitant under the Texas Municipal Retirement System; who retire in accordance with the City of La Porte Employee Policies Handbook; who complete at least 10 years of service with the City of La Porte, and are currently employed by the City of La Porte at the time of their retirement. Retirees re- employed after retirement from the City of La Porte that have employer sponsored health care coverage available through the new employer may not continue health coverage with the City of La Porte, except for those with 30 years or more tenure with the City of La Porte, or for retirees re-employed with the City of La Porte. If an employee works 30 years or more with the City of La Porte they may maintain the City of La Porte sponsored health plan as secondary, while working for a new employer offering a health plan option. All applicable costs of the Plan will still apply. Retirees who are self-employed are eligible for medical coverage, but occupational illnesses or injuries shall not be covered. Annual contributions by retirees to the health plan will be based on current active employeeldependent rates. C. City employees who retire from City of La Porte employment on or after January 01,2006 and (I) who have a combination of years of service with the City of La Porte, plus age, totaling 80; and (2) who retire as a qualified annuitant under the Texas Municipal Retirement e e System; who retire in accordance with the City of La Porte Employee Policies Handbook; who complete at least 20 years of service with the City of La Porte, and are currently employed by the City of La Porte at the time of their retirement. Retirees re-employed after retirement from the City of La Porte that have employer sponsored health care coverage available through the new employer may not continue health coverage with the City of La Porte, except for those with 30 years or more tenure with the City of La Porte, or for retirees re-employed with the City of La Porte. If an employee works 30 years or more with the City of La Porte they may maintain the City of La Porte sponsored health plan as secondary, while working for a new employer offering a health plan option. All applicable costs of the Plan will still apply. For those retirees who are self-employed, occupational illnesses or injuries shall not be covered. Annual contributions by retirees to the health plan will be based on a cost schedule determined by years of service, as established under Section 5, "Premiums", of this chapter. D. City employees meeting the eligibility requirements for (1) disability retirement under the Texas Municipal Retirement System Act and (2) have been declared permanently disabled under the Social Security Act, and have elected to receive Medicare, Parts A and B, shall be eligible for medical benefits, which shall be secondary to Medicare benefits, provided they have worked for the City of La Porte for ten (10) continuous years at the time of disability determination. Costs associated with retirement under this tier shall be 75% of the city cost. 2. The retiree and dependent coverage will be primary for those participants not yet qualified for Medicare. The coverage will be secondary for those retirees and retirees' dependents who are Medicare eligible. The Retiree and dependent coverage will be secondary for Retirees with 30 or more years tenure with the City of La Porte, who have employer sponsored health coverage available through their new employer, or for retirees re- employed with the City of La Porte, as hereinabove provided. If a covered retiree dies, dependents may continue coverage until the earlier of the date the surviving spouse remarries, obtains group insurance, or becomes entitled to Medicare, or until any unmarried children financially dependent upon the covered retiree is 25 years of age. Surviving dependents shall pay the appropriate contribution toward dependent coverage as established in this chapter~ -D~leted; <#>Reti";; ~j,~--;~rk Co;- -1 3. ~~~~~_~~_ ~~C?.. ~~J~y- _t..~~~ ..~~..t..i!:e:!!!~!}~ _ ~~~~o/... ~..~~g ..~~! _ ~l?_~l.i..g!~!~.. KC?~.. ~.~!!~~l?.. -........ ~....... ~:~~~~Z~~~t~~e;~~:a:~ retiree I health coverage from the City. \. health coverage from the City after their subsequent employment ends, regardless of the length of service with the I LPremiums: The City of La Porte utilizes a self-funded medical plan so there .\ .. subsequenlemployer.' are no formal premiums paid for health coverage. Each year, during the ... ... <11>'/ I \.t"?~~~:'B~ile~b;r~~J '(~r!!,atted...:_B,!!!ets a~~..~~~~r.~~_..J e e budget process, an amount is determined for each employee to cover claims and administration of the medical fund. Costs to the retiree, retiring on or after January 01, 2006, shall be based on a cost schedule determined by years of service: At least 20 years of service Retiree pays 60% of city cost + Dependent premiums At least 21 years of service Retiree pays 55% of city cost + Dependent premiums At least 22 years of service Retiree pays 50% of city cost + Dependent premiums At least 23 years of service Retiree pays 45% of city cost + Dependent premiums At least 24 years of service Retiree pays 40% of city cost + Dependent premiums At least 25 years of service Retiree pays 35% of city cost + Dependent premiums At least 26 years of service Retiree pays 30% of city cost + Dependent premiums At least 27 years of service Retiree pays 25% of city cost + Dependent premiums At least 28 years of service Retiree pays 20% of city cost + Dependent premiums At least 29 years of service Retiree pays 15% of city cost + Dependent premiums At least 30 years of service Retiree pays 10% of city cost + Dependent premiums Eligible dependents include: Your lawful spouse who is legally married to and living with you; natural children; stepchildren; children who, before reaching the age of 18, are either adopted by you; or other children for whom you have care, custody and control under court decree. A dependent child must be unmarried and rely on you for primary support and maintenance. Dependent children remain eligible until age 25. 5. Retirees may not add dependents once retired. There are no qualifying events to add .-------l~~~: Bullets and N~~~~~~J dependents. Dependents may be dropped by written request at any time. LRetirees shall pay all required contributions to the City by the 151h of the month of coverage. One annual statement will be mailed to retirees for selection of payment plan: annual, bi-annual, quarterly or monthly. Failure to pay the required contribution will result in termination of the member's participation in the City of La Porte sponsored health plan. Payment delayed beyond 60 days will initiate COBRA notification for continuation of health coverage once the member is terminated from the Plan. .- -- - -- - fFor;;~: Bull;tSa-~d-N~;;:;b;~i~g--1 ,. . ..-...- ~ - --'-'--'_.'-'--"'~'-'-"" "..-. .... ......, e e Exhibit A 9 A Retiree Medical Coverage 1. The following persons are eligible for retiree medical coverage: A. Present retirees ofthe City of La Porte receiving retirement annuities as a qualified annuitant under the Texas Municipal Retirement System, who have retired in accordance with the City of La Porte Employee Policies Handbook; and were employed by the City of La Porte at the time of their retirement. Retirees re-employed after retirement from the City of La Porte that have employer sponsored health care coverage available through the new employer may not continue health coverage with the City of La Porte, except for those with 30 years or more tenure with the City of La Porte, or for retirees re-employed with the City of La Porte. If an employee works 30 years or more with the City of La Porte they may maintain the City of La Porte sponsored health plan as secondary, while working for a new employer offering a health plan option. All applicable costs of the Plan will still apply. Retirees who are self-employed are eligible for medical coverage, but occupational illnesses or injuries shall not be covered. Annual contributions by retirees to the health plan will be based on current active employee/dependent rates. B. City employees who retire from the City of La Porte employment on or before December 31,2005, as a qualified annuitant under the Texas Municipal Retirement System; who retire in accordance with the City of La Porte Employee Policies Handbook; who complete at least 10 years of service with the City of La Porte, and are currently employed by the City of La Porte at the time of their retirement. Retirees re- employed after retirement from the City of La Porte that have employer sponsored health care coverage available through the new employer may not continue health coverage with the City of La Porte, except for those with 30 years or more tenure with the City of La Porte, or for retirees re-employed with the City of La Porte. If an employee works 30 years or more with the City of La Porte they may maintain the City of La Porte sponsored health plan as secondary, while working for a new employer offering a health plan option. All applicable costs ofthe Plan will still apply. Retirees who are self- employed are eligible for medical coverage, but occupational illnesses or injuries shall not be covered. Annual contributions by retirees to the health plan will be based on current active employee/dependent rates. C. City employees who retire from City of La Porte employment on or after January 01,2006 and (1) who have a combination of years of service with the City of La Porte, plus age, totaling 80; and (2) who retire as a qualified annuitant under the Texas Municipal Retirement e e System; who retire in accordance with the City of La Porte Employee Policies Handbook; who complete at least 20 years of service with the City of La Porte, and are currently employed by the City of La Porte at the time oftheir retirement. Retirees re-employed after retirement from the City of La Porte that have employer sponsored health care coverage available through the new employer may not continue health coverage with the City of La Porte, except for those with 30 years or more tenure with the City of La Porte, or for retirees re-employed with the City of La Porte. Ifan employee works 30 years or more with the City of La Porte they may maintain the City of La Porte sponsored health plan as secondary, while working for a new employer offering a health plan option. All applicable costs of the Plan will still apply. For those retirees who are self-employed, occupational illnesses or injuries shall not be covered. Annual contributions by retirees to the health plan will be based on a cost schedule determined by years of service, as established under Section 5, "Premiums", of this chapter. D. City employees meeting the eligibility requirements for (1) disability retirement under the Texas Municipal Retirement System Act and (2) have been declared permanently disabled under the Social Security Act, and have elected to receive Medicare, Parts A and B, shall be eligible for medical benefits, which shall be secondary to Medicare benefits, provided they have worked for the City of La Porte for ten (10) continuous years at the time of disability determination. Costs associated with retirement under this tier shall be 75% of the city cost. 2. The retiree and dependent coverage will be primary for those participants not yet qualified for Medicare. The coverage will be secondary for those retirees and retirees' dependents who are Medicare eligible. The Retiree and dependent coverage will be secondary for Retirees with 30 or more years tenure with the City of La Porte, who have employer sponsored health coverage available through their new employer, or for retirees re-employed with the City of La Porte, as hereinabove provided. If a covered retiree dies, dependents may continue coverage until the earlier of the date the surviving spouse remarries, obtains group insurance, or becomes entitled to Medicare, or until any unmarried children financially dependent upon the covered retiree is 25 years of age. Surviving dependents shall pay the appropriate contribution toward dependent coverage as established in this chapter:. 3. Retirees who delay their retirement annuity shall not be eligible for retiree health coverage from the City. 4. Premiums: The City of La Porte utilizes a self-funded medical plan so there are no formal premiums paid for health coverage. Each year, during the budget process, an amount is determined for each employee to cover claims and administration ofthe medical fund. e e Costs to the retiree, retiring on or after January 01,2006, shall be based on a cost schedule determined by years of service: At least 20 years of service Retiree pays 60% of city cost + Dependent premiums At least 21 years of service Retiree pays 55% of city cost + Dependent premiums At least 22 years of service Retiree pays 50% of city cost + Dependent premiums At least 23 years of service Retiree pays 45% of city cost + Dependent premiums At least 24 years of service Retiree pays 40% of city cost + Dependent premiums At least 25 years of service Retiree pays 35% of city cost + Dependent premiums At least 26 years of service Retiree pays 30% of city cost + Dependent premiums At least 27 years of service Retiree pays 25% of city cost + Dependent premiums At least 28 years of service Retiree pays 20% of city cost + Dependent premiums At least 29 years of service Retiree pays 15% of city cost + Dependent premiums At least 30 years of service Retiree pays 10% of city cost + Dependent premiums Eligible dependents include: Your lawful spouse who is legally married to and living with you; natural children; stepchildren; children who, before reaching the age of 18, are either adopted by you; or other children for whom you have care, custody and control under court decree. A dependent child must be unmarried and rely on you for primary support and maintenance. Dependent children remain eligible until age 25. 5. Retirees may not add dependents once retired. There are no qualifying events to add dependents. Dependents may be dropped by written request at any time. 6. Retirees shall pay all required contributions to the City by the 15th ofthe month of coverage. One annual statement will be mailed to retirees for selection of payment plan: annual, bi-annual, quarterly or monthly. Failure to pay the required contribution will result in termination of the member's participation in the City of La Porte sponsored health plan. Payment delayed beyond 60 days will initiate COBRA notification for continuation of health coverage once the member is terminated from the Plan. e e REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: 5/09/05 Appropriation Requested By: Sherri Samp!llon Source of Funds: Medical Fund Department: HUlRaA R.ellourc:ell Account Number: 014-6144-515-6061 Report: Resolution: Ordinance: x Amount Budgeted: $3,403,235 Exhibits: Retiree Ordinance, Exhibit A Amount Requested: 53;403,23; Exhibits: Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION This item is intended to clarify the original intent of Section 9A, "Retiree Medical Coverage," of the Employee Policies Handbook. As written, only City employees who retire from the City of La Porte on or after January 1, 2006, and have 30 years or more tenure with the City of La Porte, can maintain the City of La Porte sponsored health plan benefits as secondary, while working for a new employer offering a health plan option. The Chapter 172 Employee Retiree Insurance and Benefits Committee would like this document amended so that any retiree from the City of La Porte with 30 years or more tenure with the City of La Porte, and meeting all other criteria, can maintain the City of La Porte sponsored health plan benefits as secondary, while working for a new employer offering a health plan option. Action Required bv Council: Please consider amending Section 9A of the Employee Policies Handbook. Aooroved for City Council A2enda Dfi!~~~~ 0- -D3 -05 Date