HomeMy WebLinkAbout14-3607 ordORDINANCE NO. 14 -3607
AN ORDINANCE AUTHORIZING THE OFFERING OF HEALTH
BENEFITS COVERAGE TO CITY OF PLAINVIEW, TEXAS RETIREES;
REPEALER; CONFLICTS CLAUSE; SEVERABILITY CLAUSE; OPEN
MEETINGS CLAUSE; AND EFFECTIVE DATE
WHEREAS, the City of Plainview, Texas ( "City ") desires to provide health
benefits coverage to its retirees; and
WHEREAS, TML Intergovernmental Employee Benefits Pool is a health risk pool
established pursuant to Texas Local Government Code Ann., Chapter 172, Texas
Government Code Ann., Chapter 791, and the Texas Trust Code to provide health
benefits coverage for employees and retirees and dependents of employees and
retirees of Texas political subdivisions under an Interlocal Agreement; and
WHEREAS, the City is currently offering health benefits coverage through the
TML Intergovernmental Employee Benefits Pool pursuant to an Interlocal Agreement
and Texas Local Government Code Ann., Chapter 172 (Vernon's 2008) both of which
would allow the extension of benefits to City retirees; and
WHEREAS, the City desires to provide health benefits coverage to its retirees
through the TML Intergovernmental Employee Benefits Pool and the cost for such
coverage be paid for by the individual retiree until the retiree becomes eligible for
Medicare Supplement Health Benefits Coverage; and
WHEREAS, the City further desires to select a plan of benefits for its retirees to
be provided by the TML Intergovernmental Employee Benefits Pool; and
WHEREAS, the City Council finds that providing retiree coverage under the TML
Intergovernmental Employee Benefits Pool Interlocal Agreement is in the best interest
of the City, its retirees, and the public generally.
NOW, THEREFORE, the City of Plainview hereby ordains That:
SECTION I
The foregoing recitals are incorporated into this Ordinance as findings of fact.
SECTION II
The City hereby elects to provide health benefits coverage to its retirees through
TML Intergovernmental Employee Benefits Pool under the Pool's Interlocal Agreement.
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SECTION III
The City further amends the City of Plainview Personnel Policy, Part V, Section
5.10, Retiree's Group Health Insurance Benefits as attached Exhibit "A" and is
incorporated herein as a part of this Ordinance.
SECTION IV
As used in this Ordinance, the City hereby adopts the following definition of
"retiree" for purposes of this Ordinance: Retiree is defined as an employee who retired
his or her services from the City of Plainview, completed five (5) consecutive years of
service immediately prior to retirement from the City, and is eligible to retire from the
Texas Municipal Retirement System (TMRS) or the Fireman's Relief and Retirement
Fund (FRRF).
SECTION V
The Interlocal Agreement in effect between the City and the TML
Intergovernmental Employee Benefits Pool provides that the Board of Trustees may
adopt rules and regulations. The rules and regulations of the TML Intergovernmental
Employee Benefits Pool allow the participating member entity to provide retiree medical
coverage at the same contribution as charged to active employees, to select a
contribution level which is an elevated percentage (150 %, 160 %, etc. which may
change from time to time) of the active employee contribution or to offer over age 65
retirees a Medicare Supplement Health Benefit Coverage. The City elects to have the
retiree medical contribution for under age 65 retirees be reviewed and computed
annually based in part on utilization of such retirees for as long as the TML
Intergovernmental Employee Benefits Pool offers this rate structure for retiree medical
coverage. The City elects to have the retiree medical contribution for over age 65
retirees be Medicare Supplement Health Benefits coverage. Other coverages will be as
established annually by the TML Intergovernmental Employee Benefits Pool Board of
Trustees.
SECTION VI
The City shall adopt on an annual basis any additional or alternative retiree
benefit plans to be provided through TML Intergovernmental Employee Benefits Pool.
The cost of these plans shall be paid for entirely by the retiree.
SECTION VII
This Ordinance has an effective date of March 1, 2014 for all retirees. For
individuals retiring after the effective date of this Ordinance to qualify they must enroll
for this coverage within thirty (30) days of their retirement.
Health Benefit Coverage for Retirees
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SECTION VIII
If any provision, section, subsection, sentence, clause or phrase of this
Ordinance is for any reason held to be unconstitutional, void or invalid (or for any
reason unenforceable), the validity of the remaining portions of this Ordinance shall not
be affected thereby, it being the intent of the parties in adopting this Franchise
Ordinance that no provision hereof shall be inoperative or fail by reason of any
unconstitutionality or invalidity of any other portion, provision, or regulation, and to that
end, all provisions of this Ordinance are declared to be severable.
SECTION IX
This Ordinance may be repealed or modified at any time, but will remain in effect
for any employee retiring while it is in effect.
SECTION X
All existing City ordinances in conflict with the provisions of this Ordinance are
repealed to the extent of the conflict.
SECTION XI
It is hereby officially found and determined that the meeting at which this
Ordinance was considered was open to the public as required and public notice of the
time, place, and purpose of said meeting was given as required by the Texas
Government Code Ann., Open Meetings Act, Chapter 551 (Vernon's 2013).
SECTION XII
This Ordinance shall be effective immediately upon its passage.
PASSED AND APPROVED on first reading this 28 day of January, 2014.
PASSED AND APPROVED on second reading this 11 day of February, 2014
ATTE T:
Belinda Hinojosa, City Secr
Health Benefit Coverage for Retirees
r
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` �
Wendell Du ap, Ma r
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APPRO
CO
ham, Cit anager
APPROVED AS TO FORM:
Leslie Spear Pearce, ity Attorney
Health Benefit Coverage for Retirees
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Health Benefit Coverage for Retirees
EXHIBIT "A"
CITY OF PLAINVIEW
PERSONNEL POLICY
SUBJECT: RETIREE'S GROUP HEALTH INSURANCE BENEFITS
AMENDING PART V ADDING SECTION 5.10. RETIREE'S GROUP HEALTH
INSURANCE BENEFITS.
SECTION 5.10. Retiree's Group Health Insurance Benefits. The purpose of this policy is to
delineate the City of Plainview's Group Health Insurance Benefits for retirees available to
employees upon their qualifying and electing to participate in such Benefits.
A. Definition Retiree. For the purpose of this policy, Retiree is defined as an employee
who retired his or her services from the City of Plainview, completed five (5)
consecutive years of service immediately prior to retirement from the City, and is
eligible to retire from the Texas Municipal Retirement System (TMRS) or the
Fireman's Relief and Retirement Fund (FRRF).
B. Eligibility. Employees eligible for the City's Retiree Group Health Insurance
Benefits must comply with the following:
1) Any employee may elect to continue health insurance coverage under the
City's self - funded group health insurance plan at the effective date of his /her
retirement as long as he /she qualifies as a retiree and is not Medicare eligible.
2) Employees eligible to retire that elect to continue group health insurance must
pay monthly premiums immediately upon retirement.
3) Pre - Medicare eligible retiree must sign an Affidavit stating that he /she will
not have access to any other health insurance plan upon retirement, through
either a new employer or other individually held private health insurance plan,
to participate as a member in the City's retiree health insurance benefit plan.
The Human Resources Department may require the retiree sign such Affidavit
annually.
4) An eligible retiree may elect coverage for his /her dependent(s) covered by the
employee's group health insurance plan on the effective date of retirement,
and all enrollment forms must be completed within thirty (30) days of such
retirement date. All eligibility rules of the plan must be met to continue
coverage on the employee's dependent(s).
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5) Medicare eligible dependents may not be covered under any city plan. If
dependents are not yet Medicare eligible, a retiree may continue, at his /her
own expense, dependent coverage options that he /she elected upon retirement
after he /she becomes eligible for Medicare.
6) Retirees may elect to participate in the City of Plainview's group health
insurance plan only until Medicare eligibility.
C. Retiree Health Insurance Benefit Plan.
1) Retirees may maintain City of Plainview retiree group health insurance
coverage until they become Medicare eligible.
2) Once a retiree terminates the City's retiree group health insurance coverage
for the retiree or their dependent(s), then they cannot re -elect benefits for the
retiree or that individual at a later date.
3) Retirees may choose from and elect the same plans offered to the
City's active employees during the open enrollment period each year
until they reach Medicare eligibility.
4) Retirees must pay their monthly premiums to continue their coverage or their
dependent coverage, if any, on the City's retirement health insurance benefit
plan.
D. Medicare Eligible Employees.
1) Effective March 1, 2014, retirees or dependents that are Medicare eligible will
no longer have access to the City of Plainview's retiree group health insurance
benefit plan.
Health Benefit Coverage for Retirees
2) If retiree's spouse or other dependents are not yet Medicare eligible when
retiree is Medicare eligible, then a retiree may continue paying monthly
premiums for dependent's coverage that he /she elected upon retirement after
the retiree becomes eligible for Medicare.
E. Termination of Retiree Group Health Insurance Benefits.
1) Retiree health insurance automatically terminates for the retiree and /or
covered dependents upon the earliest of the following events:
a) City of Plainview ceases to offer group health insurance.
b) Retiree or his /her dependent(s) fail to remit the monthly premium
payment to the designated third party administrator by the last day of
each month. Once retiree is no longer covered by the City sponsored
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Health Benefit Coverage for Retirees
group health insurance plan, he /she shall not re -elect coverage under
that plan.
c) Retiree returns to active employee status with the City and is covered
under a City sponsored health insurance plan;
d) Retiree returns to active employee status with any business that is
eligible to participate in the employer's group health insurance
benefit plan;
e) Retiree is a Medicare eligible participant;
f) Retiree's dependent(s) fail to meet the eligibility requirements of the
City's medical plan;
g) If the retiree or his /her dependent(s) coverage is terminated, then the
individual(s) still participating in the benefit plan will have the
premiums adjusted accordingly based on the number of dependent(s)
remaining on the plan.
F. (a) Upon retiree's death, a surviving spouse who is covered under the retiree's
benefits upon the retiree's death may remain in the City's group health insurance
plan.
(b) Premiums for the spouse will be the same as the premium cost for the retiree. If
surviving children remain on the plan, the surviving spouse will be required to pay
separately for the dependent coverage at the existing rate (retiree rate + dependent
rate = total premium).
(c) The spouse may continue coverage at the time of the retiree's death until such
time as the spouse, remarries, dies, or becomes Medicare eligible.
(d) Any other eligible dependents may continue to be covered under retiree group
health insurance as long as all eligibility requirements of the City's health insurance
plan are met.
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