Ord. 1121-1 2018-09-17ORDINANCE NO. 1121-1
An Ordinance of the City Council of the City of Pearland, Texas,
Amending Ordinance No. 1121, authorizing the offering of health
benefits coverage to City retirees; containing a repealer clause;
providing an effective date; and providing an open meetings clause.
WHEREAS, the City desires to provide health benefits coverage to its retiree's
and/or retiree's dependents.
WHEREAS, the City desires to select a plan of benefits for its retirees and/or
retiree's dependents that is in the best interest of the City, its retirees and/or retiree's
dependents, and the public generally, now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. The foregoing recitals are incorporated into this Ordinance as
finding of fact.
Section 2. The City hereby elects to provide health benefits coverage to its
retirees and/or retiree's dependents. The coverage shall be provided under the group
health insurance coverage or group health coverage plan provided by the City to its
active employees.
Section 3. The City hereby adopts the following definitions of "retiree" for
purpose of this ordinance: Age 60, with a minimum of 10 years of continuous service
with the City, and a City employee at the time of retirement.
Section 4. The City shall provide, to under age 65 retirees and/or retiree's
dependents, access to the _ same level of health benefits coverage provided, at any
given time, to current City employees. And the City shall provide, to it's over age 65
retirees and/or retirees dependents, access to a Medicare Supplement Plan.
ORDINANCE NO. 1121-1
Section 5. The cost of health benefits coverage for retirees retiring prior to
October 1, 2018 will be calculated using a blended rate that combines the claims
experience of active employees and retirees. The cost of health benefits coverage for
retirees retiring on or after October 1, 2018 shall be calculated by using retiree only
claims experience. The health benefits rates for all retirees shall be calculated annually
in conjunction with the adoption of health benefit rates for active City employees.
Section 6. The City of Pearland hereby elects to provide a health benefits
coverage subsidy to certain employees based on their dedicated years of service to the
City. Retirees retiring from the City prior to October 1, 2018 shall not be entitled to a
health benefits subsidy, while Retirees retiring from the City on or after October 1, 2018
shall be eligible to receive a health benefits coverage subsidy in accordance with the
Table 1 below.
TABLE 1
COP Service at Retirement
Premium Subsidy
10-14.99 years
0%/month
15-19.99 years
50%/month
20 plus years
100%/month
Retirees retiring from the City on or after October 1, 2018 that elect to not utilize the
City's health benefits coverage shall be entitled to the option of a portable health
benefits subsidy, for eligible health benefit premiums, in accordance with the Table 2
below.
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ORDINANCE NO. 1121-1
TABLE 2
COP Service at Retirement
Portable Subsidy
10-14.99 years
$0/month
15-19.99 years
50%/month
20 plus years
100%/month
Section 7. The terms of this ordinance shall only apply to individuals retiring
after the effective date of this ordinance or to employees which retired under a previous
ordinance. Individuals retiring after the effective date of this ordinance must enroll for
coverage within thirty (30) days of their retirement.
Section 8. 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 9. The City Secretary is hereby ordered to enter a copy of this
Ordinance in the City minutes.
Section 10. All ordinance and parts of ordinances in conflict herewith are
hereby repealed, but not only to the extent of such conflict.
Section 11. 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 the
public notice of the time, place, and purpose of said meeting was given as required by
the Open Meeting Act, Chapter 551 of the Texas Government Code.
Section 12. This Ordinance shall be effective immediately upon passage and
approval of its second reading.
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ORDINANCE NO. 1121-1
PASSED and APPROVED ON FIRST READING this the 27th day of August,
A.D., 2018.
TOM REID
MAYOR
ATTEST:
PASSED and APPROVED ON SECOND AND FINAL READING this the 17th day
of September, A.D., 2018.
ATTEST:
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
TOM REID
MAYOR
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