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S' ~ t>) 0 - - o 'e Cll 0.. I CZl ::l"' o 3. CZl ] Vol o ::s 00 o ~ 0.. S o g. ~ Vol lE Cll - (") o S o po '1;1 o ::s 0.. s. 0Cl iC Cll Vol o - <: o 0.. ~ o ~ ~~:>oo ~..I 0 :::: 0 ::l"' agS~ -. 0.. S - Jg Cll :::.' ~ CZl~ct- _ .. Cll -..J ~~~N . _. _. 00 _ (") ::s 0 _::l"'~~ 6~cto.. VI_Vol 0 d I -. tT.l0-~ ::s 0: ~ a ~':< ~~ _CZlN~ N::l"'O . Cll 0 oS~ VI . CZl t>) .g Vol o F '1;1 a ::0 o ~ Cll 9 Cll :-' ~ ~ rJj ~ z ~ ~ ::0 ~ ~ rJj ~ e rJj rJj ~ o z ~ rJj o ~ < ~ ~ o - P:l ~ :> Vol ;:>;' S' Y' ~ 3' ~ Cll -. Vol 9 Cll ""t -.. 00 '< '1;1 ::l"' o ::s Cll '-" ~ ~ z ~ ~ z ~ 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. 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 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. 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 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. If an employee works 30 years or more with the City of La Porte they may maintain the City of La Porte sponsored health care ifre-employed after retirement with the City. 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 the same as other retirees. 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. 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. Surviving dependents shall pay the same percentage dependent coverage rate that they paid prior to death of the spouse. 3. Retirees who work for another employer offering health coverage shall not be eligible for retiree health coverage from the City after their subsequent employment ends, regardless of the length of service with the subsequent employer. 4. Retirees who delay their retirement annuity shall not be eligible for retiree health coverage from the City. 5. 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. Costs to the retiree shall be based on a cost schedule determined by years of servIce: At least 20 years of service At least 21 years of service At least 22 years of service At least 23 years of service At least 24 years of service At least 25 years of service At least 26 years of service At least 27 years of service At least 28 years of service At least 29 years of service Retiree pays 60% of city cost + Dependent premiums Retiree pays 55% of city cost + Dependent premiums Retiree pays 50% of city cost + Dependent premiums Retiree pays 45% of city cost + Dependent premiums Retiree pays 40% of city cost + Dependent premiums Retiree pays 35% of city cost + Dependent premiums Retiree pays 30% of city cost + Dependent premiums Retiree pays 25% of city cost + Dependent premiums Retiree pays 20% of city cost + Dependent premiums 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 19, or until age 25 if enrolled as a full-time student in a university, college, vocational or secondary school. A dependent child under the age of 25 who has graduated from a university, college, vocational or secondary school but has not become gainfully employed will be covered for an additional 2 months from graduation. Failure to pay part or all of the required contribution will result in termination of the member's participation in the City of La Porte sponsored health plan. 6. Retirees may not add dependents once retired. There are no qualifying events to add dependents. Dependents may be dropped at any time.