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Home My WebLink AboutCC RES 99-065RESOLUTION NO. 99-65 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALWORNIA, RESCINDING RESOLUTION NO. 92-96 AND ADOPTING A RETIREE SERVICE STIPEND FOR COUNCILMEMBERS AND MANAGEMENT EXEMPT GROUPS A & B ON JULY 1, 1999, AND FOR GENERAL EMPLOYEES ON SEPTEMBER 1,1999. WHEREAS, The City Council and Exempt Personnel Groups A & B have voted to be subject to the Public Employees' Medical and Hospital Care Act and active employees and annuitant will be provided access to CAPERS Health Services Benefits effective July 1,1999; WHEREAS, the Patin Desert Employees Organization (PDEO) have voted to be subject to the Public Employees' Medical and Hospital Care Act and active employees and annuitants will be provided access to Ca1PERS Health Services Benefits effective September 1, 1999; WHEREAS, the City of Palm Desert Resolution No. 92-96 establishes a Retiree Health Care Program and the City is modifying said resohztion to comply with Government Code Section 22825; and WHEREAS, the intent of the modification of Resolution 92-96 is to reimburse the eligible retiree's portion of the benefit costs in the form of a stipend based on years of services and selected benefits. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows: SECTION I: Statement of Purpose: The purpose of the City offering a retiree service a stipend is to reimburse eligible retired Palm Desert City employees a portion of their benefit premiums. This stipend is not meant to fully cover the cost of benefits or to reimburse the retiree a stipend if the retiree is not covered under the City's group benefit contract. This program rewards long term employees, via the reimbursement stipend, who have given diligent employment service to the City of Palm Desert SECTION IL El lity: All full-time or part-time employees of the City of Palm Desert are eligible to participate in the "Retiree Service Stipend Program" provided the following minimum criteria are met: 1. The employee must haveat least ten (10) continuous years of service with the City of Palm Desert; 2. The employee must retire from the City of Palm Desert and from the California Public Employees Retirement System, simultaneously; Resolution No. 99-65 3. TLe cmployee must be at teast 50 ycars of age at the time of retiremen� 4. The dnployae and/or retiree must oonform to tho rules, t+egulatioas and requit+emtnts of the Ca1PERS Health Benefits Service Division to receive the retiree service stipend; 5. Retirces of the City of Patm Dasert may be eligible for CaIPERS Health Benefits but may not be eligi'ble for the Retiree Service Sdpend Progrsm; � 6. Ttu retiroe sarvice stipend shaU vovar all retirees previously qualified under Resofution No. 92-96 and future eligible reti�es; and 7, Ret�es must be cover�d by Ca1PERS Heald� BeaeSt Savices si die time of �ent and must elect w participate in the retiree servica stipend widtin thirty (30) days of ti�eir rets�nnent dat�e. FmpIoyees not cova+od by Ca�ERS Healdy Berrefrt Servic�es in retinement will not be eligibl� for the Retiree Service Stipend Progam. SECTION III• The City's Retiree Service Stipend Progra�m wiU reimburse tha employee far the premium c�ntnbution outlined in Section IV of this Resobtioa. CaIPERS will rednce the retirement c�ontribuGiaa� of the retired employee by the amoont of d�e p�+cmium minns $16 and the City will sead the retiroe a service stipend on a monthly basis to the retirx. TLa service stipend wil[ be based on the actual premium minus s I 6 of the setecbed health eontrsct f+or the r+etiroe end the d�t(s� if any. The service stipet�d will only be paid by 8te City to the City's retirees, howev�, Ca1PERS Heahh Benefits may be avaitable to the nKiroe's s�wivors without a service stipeud contrt'butioq 2. I� fos sny reason, the City elects to change from CaIPERS Heahh Benefits to another fotm of health covera�e in the fulur+� � will also be placed uader the new hoa1W plan. T6is witt insvre thffi ther+e is no disparity ie coverager between active and �+�tired employees; and 3. Should a State or national health care pmgram be established, t6e City and tfie Palm Desert Employes's Organization will, at th� tim�, meet and confer as to the impacb on the retiree sen+ice stipend sud make r�meadations for amendments or adjustments as dee,med ne�essary. The City reserves the right � change the benefits under the program and the payments of the benefits if �is was to occnr. � �' •�K _!!:_� �,i��:�..�� 1. Once the eligibility criteria ace met and upon tetirement, an employee would receive the following stipend as a reimbwsement for benefit premiums based on the following pecceatage: A. A fuil ten (IO) years of continuous service and SO years of age or alder - Fifty (50%) percent premium reimbursed by City as a service stipend; -- _. _ _ _._ _ _ - .. ' ' • r /�► /w� t , Resolution No. 99-65 B. A full elevcn (11} years of continuons service and 50 years of age or older - Fifly five (SSY.) percent of pr�emium reimbucsed by City as a service stipend; C. A fuU twotve (12) years of oontinuous service and 50 years of age or older - Sixty (60°Y.) percent of premium reimbtused by City as a service stipend; D. A fuq thirbeen (13) years of continuous service and 50 years of age or older - Sixty- five (65°/.) percent of ptemium reimbursed by City as a service stipend; E. A full fourteea (14) yesrs of continuous service and 50 years of age or older - Seventy ('70'/0) percent of premium nimbursed by City as a service stipand; F. A full fiRaen (l5) yeacs of continuous service and 50 years of age or older - Seventy-five (75°/.) percent of premium raimb�rsed by City as a service stipend; � and G. All service must be continuous. Retired employces qualifying for the service �ipead program are able to recoive a maximum of Seventy-five (75%) percent of the benefrt premium reimbursed by City, regardless of the n�mber of years of continuous service over 15 years. 2. �e Cily may elect to add benefits for its retirees. If the City were to add benefits, over and above the currentty contracted health bene5t4, the reimbursement percentage may not follow the aforementionod schedule. (10 - 15 plus ye,ars of service has a reimbursemeat betvveen 50% and 75% of the prtmium.) A separate reimbursement schedule may be developed;and 3. The retiree service stipend may be mod�ed in an amount proportionate to any change in the amount of benefit contributions to its active employees. Cun+ent retirees are subject to any and all modifications of the retiree service stipend aad related benefits. SECTION V: Ann�a1 Recertification U 4te: All retirees who avail themselves of this benefit must provide in December of each year the City with annual recertificatioa infornaation. Ca1PERS wili provide the City with a list of retirees contracdng for Ca1PERS Health Benefits and the .type of coverage and premium amount. (The City does pay the first $16 of the premium paymeat.) This inforn�ation will be corapared to the annual c+ecertification information. The City will have the following authority: The City will have the sole authority to determine the relevant iaformation needed to aciminister this program. Such information shall include, but not limited to: A. Retired employees current mailing address and phone number, B. Cwrent dependant caverage status and their relation to the insured; and Resolution No. 99-65 C. Type of health inswance selected by retiree from CaIPERS options. 2. At the time of retirement and as a part of this annaat recertification process, ffie retired employee must sign a statement that failure to supply this information or providing false information will result in the termination of the service stipend, SECTION Vi: Effective Date• 11ie redree servioe stipend is effective on Juty 1, 1999, for Maaagement Exempt Group A 8t Gronp B and City Councilmembers and September 1, 1999, for General Employees. PA3SID, APPROYED, aad ADOPTED this � day of,(�g, 1999, by the City Council of the City of Palm Desert, California, by the following vote, to wir AYE.S: Benson; Crites, Ferguson, Kelly, Spiegel NOES: None ABSENT: None ABSTAIN: None I� , � / i/ / ' . / � . /�a��. '�: •1 il' A ��i� SHEILA R. ��iI.IGAN, C CLERK CITY OF PALIVi DES _ ._ _