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2005-014-ORD AUTHORIZING OFFERING OF HEALTH BENEFITS COVERAGE TO CITY RETIREES ORDINANCE NO. 2005-014 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, AUTHORIZING THE OFFERING OF HEAL THBENEFITS COVERAGE TO CITY RETIREES; REPEALING ALL ORDINANCES IN CONFLICT; PROVIDING AN OPEN MEETINGS CLAUSE; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Paris desires to continue to provide health benefits coverage to its retirees; and, WHEREAS, the City of Paris is currently offering self-funded benefits coverage administered through the TML Intergovernmental Employee Benefits Pool (TML IEBP) pursuant to Chapter 172 of the Texas Local Government Code, which would allow the extension of benefits to retirees of the City; and, WHEREAS, TML IEBP is a health risk pool established pursuant to Texas Local Government Code Chapter 172, Texas Government Code 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, TML IEBP offers a fully insured Retiree Continuum of Care medical plan to retirees (and their dependents) of TML IEBP's self-funded members, as well as a Medicare supplement policy for retirees who are Medicare eligible; and, WHEREAS, TML IEBP also offers fully-insured life, dental, and vision coverages to retirees (and their dependents) of TML IEBP's self-funded members; and, WHEREAS, Chapter 175 of the Texas Local Government Code empowers the City to offer alternative health plans to City retirees in addition to the basic plan, and to charge a premium for such coverage that reflects the cost to the City for providing retiree coverage; and WHEREAS, the City desires to provide health benefits coverage to its retirees through its self-funded plan, TML IEBP's Retirees Continuum of Care, and a Medicare supplement, and that the cost for such coverage be paid for by the individual retiree and the City with the City's cost limited to no more than $400.00 per month per retiree, with the remainder of the cost for retiree coverage to be paid by current and future retirees; and, WHEREAS, providing retiree coverage is in the best interest of the City, its retirees, and the public generally; NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS: , '~,' Section 1. That the foregoing recitals are incorporated into this Ordinance as findings of fact. Section 2. That the City of Paris hereby elects to provide health benefits coverage to its retirees through its self-funded plan, TML IEBP Retiree Continuum of Care plan, and Medicare supplement policies. Section 3. That the City hereby adopts the following definition of "retiree" for purposes of this ordinance: An employee of the City of Paris eligible for retirement from the Firemens' Pension Fund is a "retiree" and the employee's "retirement" shall begin on the first day of the month following the date the employee separates from employment with the City, so long as the employee has met the following conditions: (A) The employee has reached the age of fifty-five (55) years; and (B) The employee has completed twenty (20) years of creditable service with the City of Paris or any other municipality for which service with said municipality provides credit towards retirement from the Firemens' Pension Fund; and, (C) The employee has begun receiving retirement payments from the Firemens' Pension Fund. For an employee of the City of Paris not qualified for retirement from the Firemens' Pension Fund, but qualified for retirement from the Texas Municipal Retirement System (TMRS), said employee is a "retiree" and the employee's "retirement" shall begin on the first day of the month following the date the employee separates from employment with the City, so long as the employee has met the following conditions after one (1) year from the effective date of membership in TMRS: (A) The employee has begun receiving payments from TMRS; and, (B) The employee has reached the age of sixty (60) years and has completed at least five (5) full years of creditable service with the City of Paris or other municipalities participating in the same retirement system with the City of Paris; or (D) The employee has become eligible for service retirement under any other applicable provision of Title 1l0b, Section 61.001 et seq., of the Revised Civil Statues. Section 4. That for Retirees who are not Medicare eligible and their dependents, the City will offer at least two choices of medical coverage: , y fI-, (I) The same medical plan that is offered to active employees at 209.7% of the employee rate established by the City Council, with varying other rates for dependent coverage, or (2) The Retiree Continuum of Coverage Plan at the rate established by TMP IEBP. Section 5. That for retirees who are Medicare eligible, the City will offer a fully insured Medicare Supplement policy through TML IEBP. Section 6. That the City will contribute a monthly amount toward the cost of retiree medical coverage of up to $400.00 per month; provided, however, that employees who retire on or after October 1, 2004, and begin receiving retirement payments from either the Firemens' Pension Fund or the Texas Municipal Retirement System must meet a Rule of 80 in order for the City to share in any of the cost of health insurance. For these purposes, the Rule of 80 means that the number of years of service plus the employee's age must equal 80 before the City will share in the cost of the retiree's insurance premiums. Provided further, that employees who are hired on or after October 1, 2004, and later begin to receive retirement payments from the Firemen's Pension Fund or the Texas Municipal Retirement System, shall be responsible for the full cost of their health insurance premium upon retirement, without any contribution by the City. Section 7. That other fully funded life coverages will be as offered annually by the TML IEBP and elected by the City at the cost set by TML IEBP. Section 8. That this ordinance will apply to individuals who have retired or are retiring after its effective date. 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. Section 9. That 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 10. That the City Secretary is hereby ordered to enter a copy of this Ordinance in the City minutes. Section 11. That all existing City ordinances or resolutions in conflict with the provisions of this Ordinance are repealed to the extent of the conflict, and specifically Resolution No. 90-089, adopted October 15, 1990, and Resolution No. 200-057, adopted April 10, 2000, are hereby in all things repealed. Section 12. That it is hereby officially found and determined that the meeting at which this Ordinance was considered was open to the public as required and that public notice of the time, place, and purpose of said meeting was given as required by the Open Meetings Act, Chapter 551 of the Texas Government code. Section 13. This Ordinance shall be effective from and after its date of passage and publication as required by law. PASSED AND ADOPTED this lith day of April, 2005. ATTEST: APPROVED AS TO FORM: Larry . Schenk, City Attorney ;;