08-B Cities Retirees Health Ben
AGENDA INFORMATION SHEET
SUBJECT:
AN ORDINANCE IMPLEMENTING TML PROCEDURAL REQUIREMENTS FOR
HEAL TH BENEFITS COVERAGE FOR CITY RETIREES.
BACKGROUND: The City Council has by prior resolution previously authorized the City Manager, City
Finance Director, and City Attorney to sign all documents associated with the various TML administered
health insurance plans used by the City, both for current employees and retirees. As part of the process, TML
has requested the City adopt a form ordinance which satisfies TML's procedural requirements for these
programs.
DESCRIPTION: The purposed ordinance will satisfy TML procedural requirements to implement those
health insurance plans already authorized by the City Council.
RECOMMENDED ACTION: Approval of the ordinance.
STAFF CONTACT: City Manager Tony Williams, City Attorney Larry W. Schenk, City Finance Director
Gene Anderson.
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DRAFT
F:ALICE\ORDWORK\CURRENTN\ Health Benefits - Retirees
April 6, 2005
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS,
PARIS, TEXAS, AUTHORIZING THE OFFERING OF HEALTH BENEFITS
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 InterIocal 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) ofTML 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)
(B)
(C)
The employee has reached the age of fifty-five (55) years; and
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,
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)
(B)
(D)
The employee has begun receiving payments from TMRS; and,
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
The employee has become eligible for service retirement under any other
applicable provision of Title 110b, 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:
(1)
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 11 th day of April, 2005.
Curtis Fendley, Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Larry W. Schenk, City Attorney