Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 25-R73, Approve the Revised Subsidy Policy for Retiree Health Insurance Coverage
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Submitted By: Kimberly Sala, Assistant Director, Human Resources
Strategic Plan Link: The City's Goal of a high-performing city government organization.
Executive Summary (General Business): Approval of the revised Subsidy Policy. The Subsidy Policy aids with payment of health insurance premiums to those employees who qualify as a retiree under the City’s Retiree Policies.
Presentation Information: Staff is available to answer any questions the Council might have.
Staff Recommendation: Move that the Council Approve the revised Policy.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the revised Policy.
2. Move that the Council provide Staff with direction.
Background: The Collective Bargaining Agreement (“CBA”) between the City and Coastal Florida Public Employees Association, Inc. (“PEA”), effective October 1, 2004 through September 30, 2007, contained a requirement that the parties discuss a defined benefit pension plan, a Final Pay Deferral Plan, a Retirement Health Savings Plan, and Retiree health insurance benefits. On April 18, 2005, and as a result of the discussions mandated by the PEA CBA, the Subsidy was adopted by the then-Council with an effective date of October 1, 2005. The Subsidy was terminated by Council Resolution (Resolution 10-R83) on October 25, 2010. As such, anyone hired on or after October 25, 2010 is no longer eligible to receive the subsidy.
Issues/Analysis: Since the inception of the subsidy program, no formal policy was issued. Instead, a brief one-page summary sheet was provided, outlining certain age requirements, service requirements, and other participation criteria. However, the one-page summary sheet contained information regarding retiree health insurance coverage and lead to confusion. The attached Policy is intended to clearly define and formalize the eligibility requirements for the subsidy.
Financial Information: Only those employees hired prior to October 25, 2010, and who remained employed on or after October 25, 2010, in addition to satisfying certain age, service and participation requirements, remain eligible to receive the subsidy.
Special Consideration: N/A
Location of Project: N/A
Business Impact Statement: N/A
Attachments:
1. Resolution 25-R73;
2. Exhibit “A” to Resolution 25-R73 - Subsidy Policy
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 25138-03
Legal Sufficiency Review:
Reviewed by Richard Berrios, City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.