Ord. 1121-2 2024-09-23ORDINANCE NO. 1121-2
An Ordinance of the City Council of the City of Pearland, Texas,
Amending Ordinance No. 1121-1, 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. Eligible “retiree” for purpose of this ordinance shall be any
employee whose combined age plus their years of service with the City equals 75.
Section 4. The City shall provide, to retirees under age 65 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 retirees over
age 65 retirees and/or retirees dependents, access to a Medicare Supplement Plan.
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
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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 (Kelsey 80 Medical)
Rule of 80 (age + years of service = 80) 100% /month
Rule of 75 (age + years of service = 75) 50%/ month
Other retirees are eligible to continue
coverage under Texas Local Government
Code Chapter 175: Right of Employees of
Certain Political Subdivisions to Purchase
Continued Health Coverage at
Retirement
0%/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 constituting the lesser of the retiree's eligible health benefit premiums
or the corresponding percentage of the Employee Base Plan, in accordance with the
Table 2 below.
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TABLE 2
COP Service at Retirement Portable Subsidy
Rule of 80 (age + years of service = 80) 100%/ month
Rule of 75 (age + years of service = 75) 50%/month
Other retirees are eligible to continue
coverage under Texas Local Government
Code Chapter 175: Right of Employees of
Certain Political Subdivisions to Purchase
Continued Health Coverage at
Retirement
0%/month
Section 7. The following additional rules shall to Retirees receiving either the
Premium Subsidy or Portable Subsidy provided herein:
(a)Retiree subsidy shall be for the benefit of the retiree only; and
(b)Retiree must annually affirm that they do not have access to health insurance
benefits at their current employer; and
(c)Retiree subsidy percentage shall be calculated as a percentage of the active
employee subsidy; and
(d)Retiree receiving the Portable Subsidy shall provide proof of the purchase of
insurance through other sources; and
(e)Retiree who temporarily suspends their subsidy to pursue alternative
employment shall not be entitled to resume their retiree subsidy at a later date.
Section 8. 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.
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Section 9. 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. The City Secretary is hereby ordered to enter a copy of this
Ordinance in the City minutes.
Section 11. All ordinance and parts of ordinances in conflict herewith are
hereby repealed, but not only to the extent of such conflict.
Section 12. 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 13. This Ordinance shall be effective immediately upon passage and
approval of its second reading.
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PASSED and APPROVED ON FIRST READING this the 9th day of September,
A.D., 2024.
__________________________
J. KEVIN COLE
MAYOR
ATTEST:
___________________________
FRANCES AGUILAR, TRMC, MMC
CITY SECRETARY
PASSED and APPROVED ON SECOND AND FINAL READING this the 23rd day
of September, A.D., 2024.
__________________________
J. KEVIN COLE
MAYOR
ATTEST:
_____________________________
FRANCES AGUILAR, TRMC, MMC
CITY SECRETARY
APPROVED AS TO FORM:
___________________________
DARRIN M. COKER
CITY ATTORNEY
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