2001-084RESOLUTION 2001R-84
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM APPROVING A LETTER OF UNDERSTANDING
BETWEEN THE CITY OF ANAHEIM AND THE ANAHEIM POLICE ASSOCIATION
WHEREAS, the Human Resources Director met and conferred with officials and
employee representatives of the Anaheim Police Association to discuss specific concerns
relative to amending Article 60, Post Retirement Medical Benefits; and
WHEREAS, a Letter of Understanding between the parties has been prepared and
signed amending Article 60, Post Retirement Medical Benefits; and
WHEREAS, the City Council of the City of Anaheim does find it is in the best interest of
the City of Anaheim to approve said Letter of Understanding.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Anaheim that
the Letter of Understanding between the City of Anaheim and the Anaheim Police Association,
copy of which is attached hereto and incorporated by reference herein, is approved and said
Memorandum of Understanding is hereby amended in accordance with the terms of said Letter
of Understanding.
THE FOREGOING RESOLUTION is approved and adopted by the City Council of the
City of Anaheim this 17th day of April ., 2001.
ATTEST:
CITY CL~'RK OF THE CITY OF ANAHEIM
cw:\winwordtAPA\sr4^l 7.doc
LETTER OF UNDERSTANDING
between the
ANAHEIM POLICE ASSOCIATION
and the
CITY OF ANAHEIM
The Anaheim Police Association (APA), and the City of Anaheim (ANAHEIM) having met
and conferred, have reached an understanding to amend certain sections of Article 60 (Post
Retirement Medical Benefits) of the Memorandum of Understanding between the Anaheim
Police Association and the City of Anaheim, as follows:
60.1
60.2
60.3
60.4
ARTICLE 60
POST RETIREMENT MEDICAL BENEFITS
ANAHEIM and APA agree that employees hired on or after .luly 6, 2001 shall not be
eligible for any post-retirement medical benefits under this ARTICLE. ANAHEIM and
APA agree that employees hired on or after July 6, 2001 shall be provided a defined
contribution Post Retirement Medical benefit negotiated in accordance with ARTICLE
69.1
Regular, full-time employees in the classified service in classifications listed in
Appendix "A" hired prior to .]ui¥ 6, 200:!., who are enrolled as a subscriber in an
ANAHEIM-sponsored health plan at the time of separation from ANAHEIM service, shall
be eligible to participate in any ANAHEIM sponsored health plan (mcdical bcnc.fits only)
plan as a retiree.
Employees who retired prior to July 1, 1985, who were eligible for post-retirement
health medical benefits at the time of their separation from ANAHEIM service and who
maintain continuous membership in good standing shall be eligible to participate in
any ANAHEIM-sponsored medical plan and shall pay monthly premiums in
accordance with the following schedule:
Single coverage
Two party coverage
Family coverage
$15.00 monthly
$15.00 monthly
$45.00 monthly
60.3.1 The surviving spouse of the retiree may continue coverage under the same
terms and conditions.
Employees who were hired prior to February 1, 1984, and who retire on or after
July 1, 1985, and prior to February 1, 1994, and who meet the requirements described
below shall be eligible to participate in any ANAHEIM-sponsored hcalth medical
and/or dental plan.
60.4.1 The employee must have completed at least five (5) years of continuous, full-
time ANAHEIM service on the date of retirement, and
60.4.2
60.4.3
60.4.4
The employee must have been awarded a retirement from the Public
Employees' Retirement System ("PERS") as the reason for separation from
ANAHEIM service, and
PERS retirement benefits must commence no later than the first day of the
month following the date of separation from ANAHEIM service.
ANAHEIM shall contribute towards the premium costs of any ANAHEIM
sponsored health medical and/or dental plan elected by the employee as
follows:
EMPLOYEES HIRED PRIOR TO FEBRUARY 1, 1984
SERVICE REFIREMENTS
ANAHEIM Years of Service At Age 6Q Under Age 60
10-14 40% 20%
15-19 60% 30%
20-24 80% 40%
25+ 90% 45%
INDUSTRIAL DISABILITY RETIREMENTS
WCAB Rating greater than or
equal to 70%
ANAHEIM's contribution percent shall
be equal to 100% of the WCAB rating
to a maximum contribution of 90%.
WCAB Rating less than 70%
ANAHEIM's contribution percent shall
be equal to 50% of the WCAB rating
until age 60, then 100% of the WCAB
rating.
If the retiree participates in an ANAHEIM-sponsored rehabilitation plan,
ANAHEIM's contribution shall be 90% for one year or until the rehabilitation
plan ends, then ANAHEIM's contribution reverts to the 50% or 100% standard.
EMPLOYEES HIRED FEBRUARY 1, 1984 OR LATER
SERVICE RETIREMENTS
ANAHEIM Years of Service
At Age 60 Under Age 60
10-14 20% 10%
15-19 30% 15%
20-24 40% 20%
25+ 45% 22 ½%
INDUSTRIAL DISABILITY RETIREMENTS
WCAB Rating greater than or ANAHEIM'_s contribution percent shall be
equal to 70% equal to 50% of the WCAB rating.
2
WCAB Rating less than 70%
ANAHEIM's contribution percent shall be
equal to 25% of the WCAB rating until
age 60, then 50% of the WCAB rating.
60.5
If the retiree participates in an ANAHEIM-sponsored rehabilitation plan,
ANAHEIM's contribution shall be 45% for one year or until the rehabilitation
plan ends, then ANAHEIM's contribution reverts to the 25% or 50% standard.
60.4.5 The surviving spouse of the retiree may continue coverage under the same
terms and conditions.
Employees who retire on or after .luly 1, 1985, and prior to .lu1¥ 6, 200:!., and who
meet the requirements described below shall be eligible to participate in any ANAHE]:M-
sponsored health medical and/or dental plan.
60.5.1 The employee must have completed at least ten (10) years of continuous, full -
time ANAHEIM service on the date of retirement, and
60.5.2 The employee must have been awarded a retirement from PERS as the reason
for separation from ANAHE]~M service, and
60.5.3 PERS retirement benefits must commence no later than the first day of the
month following the date of separation from ANAHEIM service, OR
60.5.4 The employee must have been awarded a disability retirement (Ordinary or
Industrial) from PERS as the reason for separation from ANAHEIM service.
60.5.5
ANAHEIM shall~u,*"~*';~"~*,~,,~. provide separate contributions towards the
premium costs of the ANAHE]:M sponsored ~ medical and/or dental
plans elected by the employee according to the following schedule:
60.5.5.1 For Service Retirements, the contribution shall be a percentage of the
annual..,,,~,..c~-~ ..,~ -r. vo,. Pa,-b/ contribution_s made by ANAHETM on
behalf of active employees, the percentage equal to 1.2 times the
Safety 2% at 50 PERS retirement schedule, to a maximum
contribution of 95% based on the employee's age and consecutive
years of Anaheim service at the time of retirement. ANAHEIM service
shall be calculated to the nearest complete one quarter year.
60.5.5.2
For Disability Retirements, the contribution shall be a percentage of
the annual ~' or T .... ~,
.... ~ .......... ~ contributions made by ANAHEIM on
behalf of active employees, the percentage equal to 2% for each year
of service to a maximum contribution of 95% based on the
employee's consecutive years of Anaheim service at the time of
retirement. ANAHEIH service shall be calculated to the nearest
complete one quarter year.
60.5.5.3
In the event an employee is eligible for both a Service and a Disability
Retirement benefit under this AR'I'~CLE, the employee shall receive
the Service Retirement benefit.
60.5.5.4
An employee who has completed twenty (20) consecutive years of
service with ANAHEIM as a sworn Police Officer and who has prior
service as a sworn Police Officer with another California law
enforcement agency shall receive up to three (3) years of additional
service credit for the purpose of calculating ANAHEIM's contribution
towards post~retirement medical benefits. An employee who has
completed twenty (20) consecutive years of service with ANAHEIM as a
sworn Police Officer and who has prior service as a sworn Police Officer
with ANHAEIM shall receive additional service credit equal to all prior
ANAHEIM service for the purpose of calculating ANAHEIM's contribution
towards post-retirement medical benefits. Such service credit shall be
provided on the basis of one full quarter of service credit for each full
quarter of prior service. ANAHEIM and the APA agree that this
provision shall remain in effect through .qanuary 13, 2005.
60.5.6
The ANAHEIM contribution shall be based on the Two Party or Family rate
only for those employees who properly enroll a dependent spouse and/or
other family members prior to retirement, and shall continue only as long as
the retiree maintains coverage for such dependents in ANAHEIM-sponsored
health plans. Nothing in this AR-I'~CLE shall prevent a retiree from properly
enrolling new dependents at the retiree's cost.
60.5.7
The full value of any MediCare credits provided to ANAHEIM or MediCare
surcharges imposed on ANAHEIM by virtue of a retiree's participation or non-
participation in MediCare shall be passed on to the retiree in the form of
reduced or increased premium costs.
60.5.8
The surviving spouse of the retiree may continue coverage under the same
terms and conditions, provided that the surviving spouse was properly enrolled
at the time of the employee's retirement and that dependent coverage was
continuously maintained during the employee's retirement.
60,6
Employees who retire on or after ]uly 6, 200:[, and who meet the
requirements described below shall be eliqible to participate in any
ANAHEZM-sponsored medical and/or dental plan.
60.6.:L The employee must have completed at least ten {:L0) years of
continuous, full-time ANAHE:[kl service on the date of retirement, and
60.6.2 The employee must have been awarded a retirement from PERS as
the reason for separation from ANAHE]:I~I service, and
60.6,3 PERS retirement benefits must commence no later than the first day
of the month followinq the date of separation from ANAHE:[M service,
OR
4
60.6.4
The employee must have been awarded a disability retirement_
(Ordinary or :Industrial) from PERS as the reason for separation from
ANAHEIM service.
60.6.5
ANAHEIH shall provide separate contributions towards the premium
costs of any ANAHEIH-sponsored medical and/or dental plan elected
by the employee according to the following schedule:
60.6.5.1
For Service Retirements, the contribution shall be a
percentaqe of the annual contribution made by ANAHE:[H
on behalf of active employees, and shall be calculated in
accordance with the following table:
Aqe at retirement
50
Percentage Contribution
Per year of service
2.60%
51 2.70%
52 2.80%
53 2.90°/o
54 and older 3.00%
ANAHEIM's contribution under the provisions of this
ARTICLE shall be limited to no more than eighty-five
percent (85%) of the contribution made by ANAHE:[M on
behalf of active employeesr the percentage based upon the
employee's age and consecutive years of ANAHEIM service
at the time of retirement. ANAHE:[M service shall be
calculated to the nearest complete one quarter year,.,
60.6.5.2
For Disability Retirementsf the contribution shall be a
percentage of the annual contributions made by ANAHEIM
on behalf of active employees, the percentaqe equal to 2%
for each year of service to a maximum contribution of 85.%
based on the employee's consecutive years of Anaheim
service at the time of retirement. ANAHEIM service shall be
calculated to the nearest complete one quarter year,
60.6.6 The ANAHEIM contribution shall be based on the Two Party or Family
rate only for those employees who properly enroll a dependent
spouse and/or other family members prior to retirementr and shall
continue only as long as the retiree maintains coverage for such
dependents in ANAHETH-sponsored health plans. Nothing in this
ARTICLE shall prevent a retiree from properly enrolling new
dependents at the retiree's cost.
60.6.7 The full value of any f4ediCare credits provided to ANAHEIH or
MediCare surcharqes imposed on ANAHEIM by virtue of a retiree's
participation or non-Participation in MediCare shall be passed on to
the retiree in the form qf reduced or increased premium costs.
60.6,8
The surviving spouse of the retiree may continue coverage under the
same terms and conditions~ provided that the surviving spouse was
properly enrelled at the time of the employee's retirement and that
dependent coverage was continuously maintained during the
employee's retirement.
60.7
Any employee who retires from ANAHEIM service and who is eligible to receive multiple
benefits under this AR'I-[CLE may elect any single benefit for which he or she is eligible
at the time of retirement. Such election shall be irrevocable.
60.8 The following conditions shall apply to all retirees who have post retirement medical
benefit coverage under this ARTICLE:
60.__8.1 Once canceled for any reason, coverage shall not be reinstated.
60.8.2 Coverage shall be canceled for non-payment of fees after three months in
arrears.
60.8.3 There shall be Coordination of Benefits where other insurance exists.
60.8.4
Retirees may change plans and add dependents only during the annual open
enrollment period, except that the surviving spouse of a retiree may not enroll
a new spouse.
60.9 Any employee who retires on or after 3uly 6, 2001, shall be guaranteed a
minimum benefit equal to the percentage the employee would have been eliqible to
receive under Article 60.5 calculated using the employee's age and years of service
as of .~uly 5, 2001, or the benefit provided under the provisions of Article 60.6~
whichever is greater.
STAFF OFFICIALS of the CITY OF
ANAHEIM, a Municipal CorPoration
Dated;
ANAHEIM POLICE ASSOCIATION
By: ,- ¢'~
Dated:
6
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, SHERYLL SCHROEDER, City Clerk of the City of Anaheim, do hereby certify that the foregoing
Resolution No. 2001R-84 was introduced and adopted at a regular meeting provided by law, of
the Anaheim City Council held on the 17th day of April, 2001, by the following vote of the
members thereof:
AYES:
MAYOR/COUNCIL MEMBERS: Feldhaus, Kring, Tait, McCracken, Daly
NOES:
MAYOR/COUNCIL MEMBERS: None
ABSENT:
MAYOR/COUNCIL MEMBERS: None
F-THE CITY OF ANAHEIM
(SEAL)