HomeMy WebLinkAboutO-2013-3461 revisions to clarify Retiree Medical BenefitsORDINANCE
AN ORDINANCE ADOPTING AMENDMENTS TO THE CITY OF LA PORTE EMPLOYEE
POLICIES HANDBOOK; 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 Polices Handbook is
hereby amended by amending Section 8.06, relating to retiree
medical benefits, in form attached hereto as Exhibit "A",
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 the is
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 tnereor,
irrespective of the fact that any other section, sentence, phrase
or clause, or part thereof, may be declared invalid.
Section 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
1
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
upon. The City Council further ratified, approves and confirms such
written notice and the contents and posting thereof.
Section 4. This Ordinance shall be effective after its
passage and approval, and it is so ordered.
PASSED AND APPROVED, this 14TH day of January, 2013.
EST:
Patrice Foga&ty
City Secretary
APPROVED:
C rk T. Askins
Assistant City Attorney
KI
�� ►
�` -• '�
8.06 Retiree Medical Benefits
The following persons are eligible for retiree medical coverage:
• City employees who retire from City of LaPorte employment who have a combination of
years of service with the City of La Porte, plus age, totaling 80; and
• 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 consecutive 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. Retirees who
delay their retirement annuity shall not be eligible for retiree health coverage from the City. Retirees
who are self-employed are eligible for medical coverage, but occupational illnesses or injuries shall
not be covered.
Retirees with Thirty (30) or More Years of Service
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. In the case of Retirees that are reemployed by
a new employer, and who subsequently separate employment from the new employer, a one-time
deferral shall be allowed whereby the retiree may rejoin the City of La Porte health plan as a retiree
participant, regardless of age. If a qualifying retiree carried a spouse as a dependent at the time of
their initial retirement, a retiree who rejoins the City of La Porte health plan as a retiree participant
under the one time deferral may include their spouse as a dependent, consistent with allowances
made under Federal COBRA law. 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.
City employees meeting the eligibility requirements for
disability retirement under the Texas Municipal Retirement System Act and
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.
Medicare Eligible Retirees
The coverage will be secondary for those retirees and retirees' dependents who are Medicare
eligible.
Death of an Emplovee
An employee who would have otherwise qualified for Retiree Medical Coverage, but dies prior to
their retirement, will be allowed to continue coverage for dependents who were covered at the time
of the Retiree's death under this policy until the earlier of the date the surviving spouse remarries,
obtains group insurance, or becomes entitled to Medicare, or until any dependent children turn 26
years of age. Surviving dependents shall pay the appropriate contribution toward dependent
coverage as established in this chapter.
Death of a Retiree
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
dependent children turn 26 years of age. Surviving dependents shall pay the appropriate
contribution toward dependent coverage as established in this chapter.
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.
• Grandchildren, if they are listed as dependents on your tax return.
Dependent children remain eligible until age 26. 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.
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 of the medical fund.
The Total Plan Cost, as that term is used in this chapter, is defined as the cost for Employee Only
coverage, including the employee and employer contributions, as approved each year by budget, but
does not include the dependent coverage portion of employee and employer contributions.
Costs to the retiree shall be based on a cost schedule determined by years of service, outlined
below. Under this schedule, a retiree pays a percentage of the total plan cost for Employee Only
coverage, based on years of service and the active employee rate for dependent coverage,
regardless of years of service.
Retirees shall pay all required contributions to the City by the 15`" 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.
Years of Service
Percentage Retiree Pays
20
60% of the Total Plan Cost +active employee rate for
dependent coverage
21
55% of the Total Plan Cost + active employee rate for
dependent coverage
22
50% of the Total Plan Cost + active employee rate for
dependent coverage
23
45% of the Total Plan Cost + active employee rate for
dependent coverage
24
40% of the Total Plan Cost + active employee rate for
dependent coverage
25
35% of the Total Plan Cost + active employee rate for
dependent coverage
26
30% of the Total Plan Cost + active employee rate for
dependent coverage
27
25% of the Total Plan Cost + active employee rate for
dependent coverage
28
20% of the Total Plan Cost + active employee rate for
dependent coverage
29
15% of the Total Plan Cost + active employee rate for
dependent coverage
30
Active Employee/Dependent Rate
COBRA Coverage for Retirees
As mandated by Texas Local Government Code Chapter 175, City employees meeting eligibility
requirements under the Texas Municipal Retirement System Act to receive retirement benefits, may,
regardless of age or years of service with the City, purchase at their own expense, the combined
City and employee cost of continued health benefits coverage for the employee and the employee's
dependents, unless the employee is eligible for group health benefits coverage through another
employer. To purchase continued health benefits coverage the employee must inform the City of
their election not later than the day on which the employee retires from the City. A person who elects
to purchase continued coverage who subsequently discontinues coverage, is no longer eligible for
coverage; likewise, a dependent for whom coverage is discontinued is no longer eligible for
continued coverage. A person who was not covered under the employee's plan at the time of
retirement is not eligible for continued coverage. The City may substitute Medicare supplemental
health benefits coverage as the coverage provided to a retiree under this section, including a
dependent, after the date the retiree becomes eligible for federal Medicare benefits.
2011 revision of Seca 8.06
8.06 Retiree Medical Benefits
The following persons are eligible for retiree medical coverage:
• City employees who retire from City of La Porte employment who have a combination of
years of service with the City of La Porte, plus age, totaling 80; and
• 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 consecutive 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. Retirees who
delay their retirement annuity shall not be eligible for retiree health coverage from the City. Retirees
who are self-employed are eligible for medical coverage, but occupational illnesses or injuries shall
not be covered.
Retirees with Thirty (30) or More Years of Service
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. In the case of Retirees that are reemployed by
a new employer, and who subsequently separate employment from the new employer, a one-time
deferral shall be allowed whereby the retiree may rejoin the City of La Porte health plan as a retiree
participant, regardless of age. If a qualifying retiree carried a spouse as a dependent at the time of
their initial retirement, a retiree who rejoins the City of La Porte health plan as a retiree participant
under the one time deferral may include their spouse as a dependent, consistent with allowances
made under Federal COBRA law. 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.
City employees meeting the eligibility requirements for
disability retirement under the Texas Municipal Retirement System Act and
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.
Medicare Eligible Retirees
The coverage will be secondary for those retirees and retirees' dependents who are Medicare
eligible.
Death of an Employee
An employee who would have otherwise qualified for Retiree Medical Coverage, but dies prior to
their retirement, will be allowed to continue coverage for dependents who were covered at the time
of the Retiree's death under this policy until the earlier of the date the surviving spouse remarries,
obtains group insurance, or becomes entitled to Medicare, or until any dependent children turn 26
years of age. Surviving dependents shall pay the appropriate contribution toward dependent
coverage as established in this chapter.
Death of a Retiree
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
dependent children turn 26 years of age. Surviving dependents shall pay the appropriate
contribution toward dependent coverage as established in this chapter.
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.
• Grandchildren, if they are listed as dependents on your tax return.
Dependent children remain eligible until age 26. 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.
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 of the medical fund.
The Total Plan Cost, as that term is used in this chapter, is defined as the cost for Employee Only
coverage, including the employee and employer contributions, as approved each year by budget, but
does not include the dependent coverage portion of employee and employer contributions.
Costs to the retiree shall be based on a cost schedule determined by years of service, outlined
below. Under this schedule, a retiree pays a percentage of the total plan cost for Employee Only
coverage, based on years of service and the active employee rate for dependent coverage,
regardless of years of service.
Retirees shall pay all required contributions to the City by the 15t' 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.
Years of Service
Percentage Retiree Pays
20
60% of the Total Plan Cost + active employee rate for
dependent coverage
21
55% of the Total Plan Cost + active employee rate for
dependent coverage
22
50% of the Total Plan Cost + active employee rate for
dependent coverage
23
45% of the Total Plan Cost + active employee rate for
dependent coverage
24
40% of the Total Plan Cost + active employee rate for
dependent coverage
25
35% of the Total Plan Cost + active employee rate for
dependent coverage
26
30% of the Total Plan Cost + active employee rate for
dependent coverage
27
25% of the Total Plan Cost + active employee rate for
dependent coverage
28
20% of the Total Plan Cost + active employee rate for
dependent coverage
29
15% of the Total Plan Cost + active employee rate for
dependent coverage
30
Active Employee/Dependent Rate
COBRA Coverage for Retirees
As mandated by Texas Local Government Code Chapter 175, City employees meeting eligibility
requirements under the Texas Municipal Retirement System Act to receive retirement benefits, may,
regardless of age or years of service with the City, purchase at their own expense, the combined
City and employee cost of continued health benefits coverage for the employee and the employee's
dependents, unless the employee is eligible for group health benefits coverage through another
employer. To purchase continued health benefits coverage the employee must inform the City of
their election not later than the day on which the employee retires from the City. A person who elects
to purchase continued coverage who subsequently discontinues coverage, is no longer eligible for
coverage; likewise, a dependent for whom coverage is discontinued is no longer eligible for
continued coverage. A person who was not covered under the employee's plan at the time of
retirement is not eligible for continued coverage. The City may substitute Medicare supplemental
health benefits coverage as the coverage provided to a retiree under this section, including a
dependent, after the date the retiree becomes eligible for federal Medicare benefits.
Redlined Version
8.06 Retiree Medical Benefits
The following persons are eligible for retiree medical coverage:
• City employees who retire from City of La Porte employment who have a combination of
years of service with the City of La Porte, plus age, totaling 80; and
® 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 consecutive 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. Retirees who
delay their retirement annuity shall not be eligible for retiree health coverage from the City. Retirees
who are self-employed are eligible for medical coverage, but occupational illnesses or injuries shall
not be covered.
Retirees with Thirtv (30) or More Years of Service
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. In the case of Retirees that are reemployed by
a new employer, and who subsequently separate employment from the new employer, a one-time
deferral shall be allowed whereby the retiree may rejoin the City of La Porte health plan as a retiree
participant, regardless of age. If a qualifying retiree carried a spouse as a dependent at the time of
their initial retirement, a retiree who rejoins the City of La Porte health plan as a retiree participant
under the one time deferral may include their spouse as a dependent, consistent with allowances
made under Federal COBRA law. 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.
City employees meeting the eligibility requirements for
• disability retirement under the Texas Municipal Retirement System Act and
• 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.
Medicare Eligible Retirees
The coverage will be secondary for those retirees and retirees' dependents who are Medicare
eligible.
Death of an Employee
An employee who would have otherwise qualified for Retiree Medical Coverage, but dies prior to
their retirement, will be allowed to continue coverage for dependents who were covered at the f:irn
of the Retiree's death under this policy until the earlier of the date the surviving spouse rem<arri.--z�,,
obtains group insurance, or becomes entitled to Medicare, or until any ,,nmar^ed ehildFen dependent
children m;G;a:;ydependent upon the Gevered retiree—+sturn 2526 years of age. Surviving
dependents shall pay the appropriate contribution toward dependent coverage as established in this
chapter.
Death of .a Retiree
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
unmar,eec dependent children kanE;ialy dependent ,,pes the G eFed .e+tree turn 2526 years of
age. Surviving dependents shall pay the appropriate contribution toward dependent coverage as
established in this chapter.
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.
• Grandchildren if they are listed as dependents on your tax return.
Dependent children remain eligible until age 2526 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.
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 of the medical fund.
The Total Plan Cost is the Total annual dellaF alleGated eaeh yeaF by budget as appFeved by Got
eFnplOyeF tribution . The Total Plan Cost, as that term is used in this chapter a we is
defined as the cost for t#e Employee Only coverage including the employee and employer
contributions, as approved each year by budget and but does not include the dependent coverage
aatie+eated portion of -employee and employer contributions
Costs to the retiree shall be based on a cost schedule determined by years of service, outlined
below. Under this schedule, a retiree pays a percentage of the total plan cost for eEmployee GOnly
coverage, based on years of service but pays -and the active
employee rate for dependent coverage, regardless of years of service.
Retirees shall pay all required contributions to the City by the 15th 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 ["Ian.
Years of Service
Percentage Retiree Pays
60% of the Total Plan Cost + dependent eever-ageactive
20
employee rate for dependent coverage
55% of the Total Plan Cost + active employee
rate for
21
dependent coveragedependent eeveF^^ee
50% of the Total Plan Cost + active employee
rate for
22
dependent coverage
23
-i5% of the Total Plan Cost + active employee
rate for
dependent coveracgedependent eaveFage
24
40% of the Total Plan Cost + active employee
rate for
dependent coveragedependentrseverage
25
35% of the Total Plan Cost + active employee
rate for
dependent coveragindepen dent c;eveFage
26
30% of the Total Plan Cost + active employee
rate for
dependent coveraaedeN nue^+„fie
27
25% of the Total Plan Cost + active employee
rate for
dependent coveragedependent , eve
e
28
20% of the Total Plan Cost + active employee
rate for
dependent cove ragedepend e nt coverage
29
15% of the Total Plan Cost + active employee
rate for
dependent coveraa
30
Active Employee/Dependent Rate
COBRA Coverage for Retirees
As mandated by Texas Local Government Code Chapter 175, City employees meeting eligibility
requirements under the Texas Municipal Retirement System Act to receive retirement benefits, may,
regardless of age or years of service with the City, purchase at their own expense, the combined
City and employee cost of continued health benefits coverage for the employee and the employee's
dependents, unless the employee is eligible for group health benefits coverage through another
employer. To purchase continued health benefits coverage the employee must inform the City of
their election not later than the day on which the employee retires from the City. A person who elects
to purchase continued coverage who subsequently discontinues coverage, is no longer eligible for
coverage; likewise, a dependent for whom coverage is discontinued is no longer eligible for
continued coverage. A person who was not covered under the employee's plan at the time of
retirement is not eligible for continued coverage. The City may substitute Medicare supplemental
health benefits coverage as the coverage provided to a retiree under this section, including a
dependent, after the date the retiree becomes eligible for federal Medicare benefits.
Ex. A to `proposed 2013 Ordinance
8.06 Retiree Medidal Be fits
The following persons are eligible for retiree medical coverage:
• City employees who retire from City of La Porte employment who have a combination of
years of service with the City of La Porte, plus age, totaling 80; and
® 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 consecutive 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. Retirees who
delay their retirement annuity shall not be eligible for retiree health coverage from the City. Retirees
who are self-employed are eligible for medical coverage, but occupational illnesses or injuries shall
not be covered.
Retirees with Thirty (30) or More Years of Service
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. In the case of Retirees that are reemployed by
a new employer, and who subsequently separate employment from the new employer, a one-time
deferral shall be allowed whereby the retiree may rejoin the City of La Porte health plan as a retiree
participant, regardless of age. If a qualifying retiree carried a spouse as a dependent at the time of
their initial retirement, a retiree who rejoins the City of La Porte health plan as a retiree participant
under the one time deferral may include their spouse as a dependent, consistent with allowances
made under Federal COBRA law. 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.
City employees meeting the eligibility requirements for
disability retirement under the Texas Municipal Retirement System Act and
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.
Medicare Eligible Retirees
The coverage will be secondary for those retirees and retirees' dependents who are Medicare
eligible.
Death of an Employee
An employee who would have otherwise qualified for Retiree Medical Coverage, but dies prior to
n
h
o
N
o
4
�
00
.CL
<4
4A
vv
m
a
0
o
_
Ln
a*'
o
u
w
o
00
d
r00
00
co
fl%
Go
to
v►-
v
t`iF
4A.
u
O
M
~O
W
C
N
.:N
m
Q
/F
4fl,
a
7
Q
h
N'
aJ
O
N
to
C3
�
[t
cn
kR
tGo
-1
Ln
C)
QCi
40
N
'a
a
v►
+ }
A
C
LL
,fid
to
4W
O
u
ry
n�i
T
C
pCC�
D
ai
o
0
t
tmi
u
-a
e
V
c
O
m
w c
}=
0
0 a
0
m
Q.
N
W u
LL
E
W
tL
SEVERABILITTY
CLAUSE
In the event any section of provision of these personnel policies is found to be unconstitutional,
void, or inoperative by the final judgment of a court of competent jurisdiction, such defective
provision, if any, is hereby declared to be severable from the remaining sections and provisions
of those policies, and such remaining sections or provisions shall remain in full force and effect.
Issued this Z -Z day of January, 2013
JrCorby DNAIe4nder, City Man er
City of La e
Approved by the City Council of the City of La Porte, Texas this z day of January, 2013
ATTEST:
P12 I �r_-' -0'1
�.
Patrice Fogarty, Ci ecreta
City of La Porte
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