Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 25-R71, Memorialize the Retiree Health Insurance Policy Applicable to those Hired Prior to July 12, 2010
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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): The City of Port St. Lucie has provided continuation health coverage to employees hired prior to July 12, 2010, upon their separation from service in good standing and after completing five (5) years of credited service or attaining age 55. The attached Retiree Health Insurance Policy serves to formalize and memorialize this practice.
Presentation Information: Staff is available to answer any questions the Council may have.
Staff Recommendation: Move that the Council approve the Retiree Health Insurance Policy applicable to those hired prior to July 12, 2010.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the policy as applicable to those hired prior to July 12, 2010.
2. Move that the Council provide staff with direction.
Background: The City Council has established an employee benefits system that includes the City of Port St. Lucie Health Insurance Plan for its employees. Florida law requires the City to offer retired employees and their dependents the option of continued participation in this Health Insurance Plan after retirement. Historically, the City allowed employees and their dependents to continue coverage if the employee separated from service in good standing with at least five (5) years of credited service or having attained age 55. However, in 2010, an actuarial study determined that offering continuation coverage under these terms would significantly increase the City's unfunded actuarial accrued liability related to Other Post-Employment Benefits (OPEB). As a result, the Council concluded that separating from service after fiv...
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