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HomeMy WebLinkAboutOrd. 1121-3 2025-04-14ORDINANCE NO. 1121-3 An Ordinance of the City Council of the City of Pearland, Texas, Amending Ordinance No. 1121-2, 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 (medical, dental and vision) 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 its 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 Docusign Envelope ID: 5EAB24DA-7298-4FDD-8ABB-6A0B1BA58F81 ORDINANCE NO. 1121-3 2 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 rate. 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, DMO Dental, Vision) 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. Docusign Envelope ID: 5EAB24DA-7298-4FDD-8ABB-6A0B1BA58F81 ORDINANCE NO. 1121-3 3 TABLE 2 COP Service at Retirement Portable Subsidy (Kelsey 80 Medical, DMO Dental, Vision) 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 retiree employee subsidy; and (d)Retiree receiving the Portable Subsidy shall provide proof of the purchase of insurance through other sources; and (e)A retiree may choose to switch from the portable subsidy to health coverage or from health coverage to the portable subsidy outside of the open enrollment period. (f)Retiree who temporarily suspends their subsidy to pursue alternative employment shall not be entitled to resume their retiree subsidy at a later date. (g)To qualify for a Premium or Portable Subsidy, a retiree must have maintained five (5) consecutive years of service with the city in the years immediately preceding their retirement date. Docusign Envelope ID: 5EAB24DA-7298-4FDD-8ABB-6A0B1BA58F81 ORDINANCE NO. 1121-3 4 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. 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. Docusign Envelope ID: 5EAB24DA-7298-4FDD-8ABB-6A0B1BA58F81 ORDINANCE NO. 1121-3 5 PASSED and APPROVED ON FIRST READING this the 24th day of March, A.D., 2025. __________________________ J. KEVIN COLE MAYOR ATTEST: ___________________________ FRANCES AGUILAR, TRMC, MMC CITY SECRETARY PASSED and APPROVED ON SECOND AND FINAL READING this the 14th day of April, A.D., 2025. __________________________ J. KEVIN COLE MAYOR ATTEST: ___________________________ FRANCES AGUILAR, TRMC, MMC CITY SECRETARY APPROVED AS TO FORM: ___________________________ DARRIN M. COKER CITY ATTORNEY Docusign Envelope ID: 5EAB24DA-7298-4FDD-8ABB-6A0B1BA58F81