HomeMy WebLinkAbout08-04-04 Chapter 172 Employee Retiree Insurance and Benefits Board Meeting
Chapter 172 Employee Retiree Insurance and Benefits
Board Meeting Minutes 08/04/2004
The Chapter 172 Employee Retiree Insurance and Benefits Board meeting was called to order at
5:40 p.m.
Attendance: Clark Askins, Michael Dolby, Sherri Sampson, Pat Rothermel, Mayor Porter
Sherri Sampson welcomed Board members.
Routine Business - No discussion
Business - Health Plan Contribution schedules - Sherri Sampson provided group with an
updated proposed employee Contribution schedule. Group discussed accepting this proposal.
Sherri Sampson to continue working.
Retiree contributions - Michael Dolby asked group about several less expensive options for
funding retiree health benefits. Board members discussed a number of options.
Routine Business - Michael Dolby made a motion to adopt 80-point eligibility factor
requirement for employees to be eligible for Retiree Health. Mr. Askins seconded the motion.
Employees would need to have a total of 80 points, between age and tenure, with a minimum of
20 years service to the City of La Porte. This would become effective on January 1,2006. After
30 years of service the Retiree may continue with the City of La Porte health benefit regardless
of employment with new employer. Ifthe new employer offers a health benefit the employee
must accept new employer insurance as primary. Any employee retiring with less than 30 years
of service may not continue Retiree Health benefit with City of La Porte if re-employed by self
or other business. Board voted and approved 4/0.
Retiree Contributions to Health Fund - Michael Dolby made a motion to accept a graduated
contribution schedule for Retirees. Mr. Askins seconded the motion. In this recommendation
retirees would pay a portion of the City cost for their coverage, in addition to the appropriate
active employee contribution. At 20 years of employment or more the City would pay 50% of
the City cost; Each year above 20 the City would pay an additional 5%, up to 30 years = 0 City
contribution. Retiree would pay active employee contribution rates for self and dependant.
Board voted 4/0 in favor.
Meeting adjourned at 7:05 p.m.
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HEALTH PLAN STATS
Current Number of Employees on Plan
Current Number of Retirees on Plan
Out of 47 Retirees, How many
he 65 or over 19
Under 65 28
356 X $5,000 = $1,780,000
47 X $5,000 = $ 235,000
Number of additional Employees eligible to Retire with Health Benefits:
With 20 years or more
YEAR TOTAL EE
2004 47
2005 47+39= 86
2006 86 + 9 ~ 95
2007 95 +7 = 102
2008 102 + 9 = III
2009 III + 8 = 119
2010 119 + 13=132
2011 . 132 + 11=143
2012 143 + 9 = 152
2013 152 + 16=168
2014 168 + 10=178
2015 178 + 11=189
Additional Cost
$235,000 (47X $5,000)
$442,900 (86X$5, 150)
$489,250
$525,300
$571,650
$612,850
$679,800
$736,645
$782,800
$865,200
$916,700
$973,350
Additional Retiree Medical Cost at 3 yr X $5,150
Additional Retiree Medical Cost at 5 yr X $5,150
Additional Retiree Medical Cost at 10 yr X $5,150
Retiree Average Expense:
65 or older
Under 65
80-Point Analysis:
With 10 years or more
Total EE Additional Cost
151 $777,650
167 C $860,050
185 $952,750
2Q7 $1,066,050
235 $1,210,250
268 $1,380,200
298 $1,534,700
372 $1,915,800
447 $2,302,050
= $525,300
= $612,850
= $ 916,700
(TML running new calculations)
By 12/31/2005 approximately 151 employees would be eligible under the current
Plan to retire with Health benefits. It is highly unlikely that many would retire that
early, but the potential remains under the existing eligibility plan.
If the eligibility requirement changed effective on January 01,2006, for age + service
to equal 80 points you would reduce the number of employees eligible to retire with
health benefits significantly.
We currently have 12 employees with 80 or more points, and in 2005 we would add 2
more. The following numbers of employees would become eligible with 80 points:
2004 - 12
2005 -2
2006 - 6
2007 - 6
2008 - 7
2009 - 11
2010 -12
2011 -12
2012 - 4
2013 - 10
2014 - 6
2015 - 8
2016 - 7
2017 - 8
2018 -7
2019 - 3
2020 - 6
14 X $5,150 = $72,100
20
26
33
44 X $5,150 = $226,600
56
68
72
82 X $5,150 = $422,300
88
96
103
111 X $5,150 = $571,650
118
121
127