Title
Resolution Authorizing Certain Benefit Options to RSA Retiring Medicare Eligible Employees who are not vested with the City.
Summary
Description of Topic: (who, what, where, when, why and how much)
Medicare eligible employees (65 or older) who are retiring with RSA eligibility, but who do not have 10 years in with the City (not vested with the City) are currently not able to take advantage of paying their medicare supplement through the City at the City's reduced group rate. Allowing these retiring employees to do this would not cost the City any monetary value. Additionally, it is desired to allow them to continue their dental coverage through the City as well ($1,000 maximum coverage per member per year).
Budgetary Impact: NONE
Non-Capital Item:
____ Budgeted under account #_______________ (discussion item)
____ Not budgeted, requesting transfer of $__________ from Account #______________ to Account #_____________.
____ Not budgeted requiring increase to account #___________ in the amount of $____________.
Capital - Departmental
____ Budgeted under account #______________ for $___________ and described in budget as __________________________________.
Additional amount needed, if any: Increase in budget of $_____________ OR, transfer of $___________ from Account #____________ to Account #_______________
____ Not Budgeted - account #____________ requires budget increase of $_____________.
Capital Project - **THE PRE-PROJECT CHECKLIST AND BUDGET CHECKLIST MUST BE ATTACHED TO THIS FILE**
In current year Capital Projects Plan:
_____ Yes, planned amount $___________, requesting $_________ as total project estimate, including contingencies, under account #_________________
_____ No, requesting $___________ as total project estimate, including contingencies, under account #____________________
Body
WHEREAS, Medicare eligible employees (65 or older) who are retiring with RSA eligibility, but who do not have 10 years in with the City (not vested with the City) are currently not able to take advantage of paying their medicare supplement through the City at the City's reduced group rate. Allowing these RSA retiring employees to do this would not cost the City any monetary value. Additionally, it is desired to allow these employees to continue their dental coverage through the City as well ($1,000 maximum coverage per member per year), and
WHEREAS, The City desires to offer Blue Cross Blue Shield Cplus Plan B and/or F and Dental options under the following scenarios to employees resigning employment who are not vested with the City of Foley (10+ years) but RSA retirement eligible.
NOW THEREFORE BE IT RESOLVED that the City Council of the City of Foley, Alabama, as follows:
SECTION 1: Scenario 1 (Employee with individual coverage, Medicare eligible)
An employee with individual Blue Cross Blue Shield health and dental coverage who resigns from employment with the City of Foley, is retirement eligible through the State of Alabama Employees’ Retirement System, approved to receive retirement benefits and who is Medicare eligible (65 or older) will be offered Blue Cross Blue Shield supplemental Cplus Plan B or Cplus Plan F coverage as well as Blue Cross Blue Shield Dental coverage.
SECTION 2: Scenario 2 (Employee with individual coverage, not Medicare eligible)
An employee with individual Blue Cross Blue Shield health and dental coverage who resigns from employment with the City of Foley, is retirement eligible through the State of Alabama Employees’ Retirement System, approved to receive retirement benefits and who is not Medicare eligible (65 or older) will be offered Blue Cross Blue Shield COBRA coverage.
SECTION 3: Scenario 3 (Employee with Family coverage, employee and spouse Medicare Eligible)
An employee with family Blue Cross Blue Shield health and dental coverage who resigns from employment with the City of Foley, is retirement eligible through the State of Alabama Employees’ Retirement System, approved to receive retirement benefits and is Medicare eligible (65 or older) will be offered Blue Cross Blue Shield supplemental Cplus Plan B or Cplus Plan F coverage as well as Blue Cross Blue Shield Dental coverage. If their spouse covered under their contract is Medicare eligible (65 or older) they will also be offered Blue Cross Blue Shield supplemental Cplus Plan B or Cplus Plan F coverage as well as Blue Cross Blue Shield Dental coverage.
SECTION 4: Scenario 4 (Employee with Family coverage, employee is Medicare eligible but spouse is not Medicare Eligible)
An employee with family Blue Cross Blue Shield health and dental coverage who resigns from employment with the City of Foley, is retirement eligible through the State of Alabama Employees’ Retirement System, approved to receive retirement benefits and is Medicare eligible (65 or older) will be offered Blue Cross Blue Shield supplemental Cplus Plan B or Cplus Plan F coverage as well as Blue Cross Blue Shield Dental coverage. If their spouse covered under their contract is not Medicare eligible they will be offered Blue Cross Blue Shield COBRA coverage.
SECTION 5: Scenario 5 (Employee with Family coverage, employee not Medicare eligible but spouse is Medicare Eligible)
An employee with family Blue Cross Blue Shield health and dental coverage who resigns from employment with the City of Foley, is retirement eligible through the State of Alabama Employees’ Retirement System, approved to receive retirement benefits and is not Medicare eligible (65 or older) will be offered Blue Cross Blue Shield COBRA coverage. If their spouse covered under their contract is Medicare eligible (65 or older) they will be offered Blue Cross Blue Shield supplemental Cplus Plan B or Cplus Plan F coverage as well as Blue Cross Blue Shield Dental coverage.
SECTION 6: If an employee is resigning employment from the City of Foley and not retirement eligible they will be offered Blue Cross Blue Shield COBRA coverage. If they have family coverage, their spouse and dependents will also be offered Blue Cross Blue Shield COBRA coverage.
SECTION 7: This Resolution shall become effective immediately upon its adoption as required by law.