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Home My WebLink AboutOrd. 1121-4 20260824 ORDINANCE NO. 1121-4 An Ordinance of the City Council of the City of Pearland, Texas, Amending Ordinance No. 1121-3, 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 retirees, and; WHEREAS, the City desires to select a plan of benefits for its retirees that is in the best interest of the City, its retirees, 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. Retiree for the purpose of this ordinance shall be any employee whose combined age plus their years of service with the City equals 75 or higher and who has maintained five (5) consecutive years of service with the City in the years immediately preceding their retirement date and who has not become eligible for Federal Medicare benefits and who has not entered a plea of guilty or nolo contendre to a qualifying offense, received deferred adjudication for a qualifying offense, or convicted of a qualified offense. In this section, a “qualifying offense” means a criminal offense involving bribery, theft of public money, perjury, coercion of a public servant or voter, tampering with a governmental record, misuse of official information, abuse of official capacity, or conspiracy or the attempt to commit any of these offenses. Section 3. The City hereby elects to provide medical and dental health benefits coverage and access to a vision plan to its retirees. The City is adopting two subsidies, a Premium option and a Portable option. The Premium subsidy option coverage shall be provided under the group health insurance coverage and group health coverage plan provided by the City to its active employees. The Portable subsidy option is a payment to the retiree in an amount Docusign Envelope ID: 88984599-0F15-8F6D-8351-5D65E5CAFA9A ORDINANCE NO. 1121-4 up to the equivalent of the dollar value of participation in the corresponding plan adopted by the City. Section 4. The cost of health benefits coverage under the city’s group health insurance plan for retirees retiring on or after October 1, 2018, shall be calculated by using a 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 5. Employees retiring from the City on or after October 1, 2018, are eligible to receive the Premium health benefits coverage subsidy in accordance with Table 1 below. To receive continued Premium subsidy coverage under this ordinance, the retiree must inform the City, not later than the day on which the retiree is retiring, that the retiree elects to continue coverage. If an employee at the time of retirement was not covered under the City’s group health coverage plan, the employee is not eligible for the Premium subsidy. However, a retiree who was not covered under the City’s group health coverage plan is eligible for the Portable subsidy authorized by this Ordinance. TABLE 1 COP Service at Retirement Premium Subsidy (Kelsey 80 Medical or equivalent, DMO Dental, and access to a 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 Retirees retiring from the City on or after October 1, 2018, who elect to not utilize or who are not eligible for the City’s Premium Subsidy health benefits coverage shall be entitled to the option of a Portable Subsidy health benefit. The amount of the Portable Subsidy Health Benefit shall be equal to or less than the adopted retiree rate and the corresponding percentage in accordance Docusign Envelope ID: 88984599-0F15-8F6D-8351-5D65E5CAFA9A ORDINANCE NO. 1121-4 with Table 2 below. If the Portable plan costs less than the Premium plan, the maximum will be based on the actual costs of the coverage. TABLE 2 COP Service at Retirement Portable Subsidy (Up to the cost of Kelsey 80 Medical or equivalent, DMO Dental, and 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 Section 6. The following additional rules shall apply 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) Retirees must annually affirm they do not have access to health insurance benefits or an HSA plan from a current employer. A retiree who is employed and has access to health insurance benefits or an HSA from a current employer, is not eligible for the Premium or Portable Subsidy; and (c) Retiree shall within 30 days of employment at a new employer who provides access to health insurance benefits or an HSA, notify the City in writing so the subsidy can be suspended; and (d) Retiree who suspends their subsidy to pursue alternative employment shall not be entitled to resume their retiree subsidy with the Premium Subsidy, but may elect the Portable Subsidy at a later date; and (e) Retirees receiving the Portable Subsidy shall provide proof of the purchase of medical insurance through other sources in accordance with rules established by the City’s Human Resources Department; and Docusign Envelope ID: 88984599-0F15-8F6D-8351-5D65E5CAFA9A ORDINANCE NO. 1121-4 (f) Once a retiree chooses or moves to the Portable Subsidy, they are no longer eligible for the Premium Subsidy; and, (g) A retiree who violates this ordinance by failing to make proper notifications or cooperate with the City may have their coverage cancelled at the discretion of the City Manager. A retiree who opts for increased health, dental, or vision coverage beyond those provided for in this ordinance, but who fails to make proper notifications, timely payments, or otherwise cooperate with the City, may have their coverage cancelled and not renewed at the discretion of the City Manager. Section 7. The terms of this ordinance shall only apply to individuals retiring after the effective date of this ordinance. Retirees who retired under a previous version of this ordinance may choose to move to this version within 30 days of adoption. Section 8. This ordinance may be repealed or modified at any time but will remain in effect for any employee who retires 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 ordinances 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. Docusign Envelope ID: 88984599-0F15-8F6D-8351-5D65E5CAFA9A ORDINANCE NO. 1121-4 5 PASSED and APPROVED ON FIRST READING this the 27th day of July, A.D., 2026. __________________________ QUENTIN WILTZ MAYOR ATTEST: ___________________________ FRANCES AGUILAR, TRMC, MMC CITY SECRETARY PASSED and APPROVED ON SECOND AND FINAL READING this the 24th day of August, A.D., 2026. __________________________ QUENTIN WILTZ MAYOR ATTEST: ___________________________ FRANCES AGUILAR, TRMC, MMC CITY SECRETARY APPROVED AS TO FORM: ___________________________ LAWRENCE PROVINS CITY ATTORNEY Docusign Envelope ID: 88984599-0F15-8F6D-8351-5D65E5CAFA9A