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HomeMy WebLinkAboutCC RES 92-096RESOLUTION NO. 92-96 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT ADOPTING CITY A RETIREE HEALTH CARE pR�GRAM• THIS RESOLUTION RESCINDS AND REPLACES RESOLUTION NO. 92-55, SECTION VII. WHEREAS, the City of Palm Desert has met and conferred in qood faith with the Palm Desert Employees Orqanization (PDEO) in accordance with the Meyers-Milias-Brown Act and the City employer- employee relations Resolution No. 81-89; and WHEREAS, the City of Palm Desert has reached agreement with employees regarding a retiree health care proqram. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PALM DESERT AS FOLLOWS: SECTION I-- STATEMENT OF PURPOSE The purpose of the City offering a retiree health care program is to insufe that retired Palm Desert city employees have adequate health care coverage in retirement. This program is not meant to be to the sole source of health care coveraqe should other coverage be available to the retiree. This program rewards via the cost structure long term city employees who have given diligent service to the City during their working years. SECTION II -- ELIGIBILITY All full-time or part-time employees receivinq health care insurance coverage throuqh the City of Palm Desert are eligible to participate in the "Retiree Health Care Proqram" provided the followinq minimum criteria are met: A. Employee must have at least ten years of continuous service with the City of Palm Desert. B. Durinq said employment, the employee must continually be covered by health care insurance provided by the City. C. The employee must retire from the City of Palm Desert and the Public Employees Retirement System (PERS). D. The employee must be at least aqe 55 at the time of retirement. E. If, for any reason, the employee is precluded or partially restricted from participating in the City's health care insurance plan as an active employee, those same preclusions and restrictions will be in effect as they relate to retiree health care eligibility. RESOLUTION NO . 9 2�--. 6 F. Only individuals employed by or after the effective date participate in this program. employees who retired prio adoption. SECTION III -- GENERAL PROVISIONS „-. the City of Palm Desert on of adoption are eligible to This proqram does not cover r to the effective date of A. Coverage. The retiree health plan components will remain the same, to the extent possible, with the City's primary health care insurance plan. The primary health care plan is determined solely by the City. B. Sinqle Plan Program. The retiree health care program is intended to have only one option, that beinq the City's primary health care insurance plan. C. Chanqe in Coveraqe. If, for any reason, the City elects to change the primary health care coverage in the future, retirees will also be placed under the new health plan. This is to insure that there is no disparity in coverage between active and retired employees. Please note this means if you retire, the City could chanqe the medical plan in the future for both active and retired employees if it was deemed necessary. D. Continuation Plan. This plan is intended to be a continuation plan of the City's primary health insurance plan so that there will be no interruption in coverage. In order for this plan to be properly administered, active employees who are not covered by the primary health insurance plan prior to retirement, will be required to switch coverage to the primary plan during any open enrollment period prior to the effective date of retirement. Failure to be enrolled in the primary health care plan prior to retirement will result in the employee not being eliqible for coverage. E. Should a state or national health care proqram be established, the City and the Palm Desert Employee's Orqanization will, at that time, meet and confer as to impacts on the retiree health care proqram and make recommendations for amendments or adjustments as deemed necessary. SECTION IV -- CITY AND RETIREE PREMIUM CONTRIBUTIONS 1. Once the eliqibility criteria are met and upon retirement, an employee would receive the following premium payment contribution percentage: .�.�, 2 RESOLUTION NO. 92-96 A. Age 55 -- Fifty (50$) percent of premium as a base contribution, provided the employee has campleted the ten year base service requirement. B. After age 55 and assuming the employee has satisfied the ten year base service requirement, the retired employee would receive the base contribution amount (50$) plus five (5$) percent for each full year of paid city service completed above the ten year base service requirement, up to a maximum of seventy-five (75$) percent of the premium contribution. C. All service must be continuous. Retired employees qualifying for this proqram would have to complete 15 years of continuous city service in order to receive the maximum of 75$ of the premium payment at retirement. D. An employee who does not complete the ten year base service requirement prior to aqe 55 OR who is hired after aqe 55 MUST first complete this ten year base service requirement before being able to receive this benefit. They may receive the additional five (5�) percent premium contribution for each full year of paid city service completed after the ten year service requirement is completed. EXAMPLE: An employee who comes to work for the City at age 49 and retires at age 61 after twelve years of service would receive a sixty (608) percent premium contribution. This would be 50$ from the ten year service base plus 10$ from the additional two years of service. 2. Should the city elect to change the premium contribution percentage for the active employees health care premium, the city contribution for retirees will chanqe on a proportional basis. EXAMPLE: If the city contribution percentaqe of 100$ were to be reduced to 50$, a retiree receiving a 50$ contribution would receive 25$. SECTION V-- ANNUAL RECERTIFICATION UPDATE All retirees who avail themselves of this benefit must provide in December of each year' the City with annual recertification information. 3 RESOLUTION NO. 92-96 � A. The City will have sole authority to determine the relevant information needed to administer this program. Such information shall include, but not be limited to: 1. Retired employees current mailing address and phone number. 2. Current dependant coverage status and their relation to the insured. 3. Other insurance plans which may cover the retired employee or their dependents in any form. B. At the time of retirement and as part of this annual recertification process, the retired employee must sign a statement that faiiure to supply this information OR providinq false information will result in the termination of their insurance coverage under this program. SECTION VI -- EFFECTIVE DATE This program is effective upon adoption by the City Council and as soon as proper arrangements can be made with the insurance plan provider. PASSED, APPROVED AND ADOPTED by the Palm Desert City Council this 24th day of September, 1992, by the following vote, to wit: AYES: BENSON, CRITES, SNYDER, WILSON, KELLY NOES: NONE ABSTAIN: NONE ABSENT: NONE ATTEST: // ' ', . /. r � �t`'.� �i ` ��< ,,�, SHEILA GIL 7GAN, CI CLERK CITY OF PALM DESE APPROVED: RI S. KELLY, MAYO RESCINDED BY RESOLUTION #_.��r.--`�'- DATED: ...�.. `� �- �-�---"... � 4