RES-2006-203RESOLUTION N0.2006-203
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM AMENDING RESOLUTION N0.2005-161 NUNC PRO TUNC.
WHEREAS, on August 23, 2005, the City Council of the City of Anaheim adopted
Resolution No. 2005-161 which approved a Memorandum of Understanding between the
Anaheim Municipal Employees Association General Unit in effect from July 1, 2005 through
January 8, 2009; and
WHEREAS, through a clerical error in Article 51 Post Retirement Medical Benefits the
following section numbers were inadvertently typed incrnrectly:
1. In Article 51, Post Retirement Medical Benefits, under 51.2.6, "Section 52.2" should
read "Section 51.2 ".
2. In Article 51, Post Retirement Medical Benefits, under 51.2.7, "Section 52.2" should
read "Section 51.2 ".
3. In Article 51, Post Retirement Medical Benefits, under 51.3:4, "Section 52.4" should
read "Section 51.4".
4. In Article 51, Post Retirement Medical Benefits, under 51.5, "Section 52.3" should
read "Section 51.3".
5. In Article 51, Post Retirement Medical Benefits, under 51.6, "Section 52.3" should
read "Section 51.3".
WHEREAS, the City Council finds that it is in the best interest of the City of Anaheim to
correct said Resolution No. 2005-161, nunc pro tunc, to reflect the true intent of the City
Council.
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NOW, THEREFORE, BE TT RESOLVED by the City Council of the City of Anaheim
that the attached Article 51 (Post Retirement Medical Benefits) is corrected nunc pro tunc to
include the above referenced corrections and hereby substituted in place and instead of the
original Article 51 to Resolution No. 2005-161;
BE IT FURTHER RESOLVED that except to the extent amended herein Resolution No.
2005-161 shall remain in full force and effect.
THE FOREGOING RESOLUTION is approved and adopted by the City Council of the
City of Anaheim this 22nd day of August 2006.
AYES: Mayor Pringle, Council Members Sidhu, Hernandez, Galloway, Chavez
NOES: None
ABSENT: None
ABSTAIN: None
MAYOR OF THE CITY IM
ATTEST:
CITY C THE CITY OF ANAHEIM
APPROVED AS TO FORM:
JACK L. WHTfE,~IT~ ATTORNEY
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ARTICLE 51
POST RETIREMENT MEDICAL BENEFITS
51.1 Retired employees who are receiving apost-retirement medical benefit from ANAHEIM on
the date the Gty Coundl approves this Memorandum of Understanding shall continue do
receive such benefit in accordance with the provisions of the Memorandum of
Understanding between ANAHEIM and AMEA that was in effect at the time of their
retirement.
51.2 Regular, full-time employees in the classified service in classifications listed in Append'a "A",
who are enrolled as subscriber in an ANAHEIM sponsored health plan at the time of
separation from ANAHEIM service shall be eligible bo partidpate in any ANAHEIM
sponsored health plan (medical and dental) as a retiree subject bo the following berms and
conditions:
51.2.1 The employee must be credited with at least ten (10) years of continuous, full time
ANAHEIM service on the date of retiremer>i;, and
51.2.2 The employee must have been awarded a retirement from the Public Employees'
Retirement System ("PERS") as the reason for separation from ANAHEIM service,
and
51.2.3 PERS retirement benefits must commence no later than the first day of the month
following the date of separation from ANAHEIM service, OR
51.2.4 The employee must have been awarded a disability retirement (Ordinary or
Industrial) from PERS as the reason for separation from ANAHEIM service.
51.2.5 ANAHEIM shall provide separate contributions towards the premium costs of the
ANAHEIM sponsored medical and/or dental plans elected by the employee
according to the following schedule:
51.2.5.1 For Service Retirements, the contributions shall be a percentage of the
annual contributions made by ANAHEIM on behalf of active employees,
the percentage equal to one and one-half (1.5) times the miscellaneous
2% at 60 PERS retirement schedule to a maximum contribution of 95°Y6
based on the employee's age and consecutive years of Anaheim service
at the time of retirement. ANAHEIM service and the retiree's age shall
be calculated to the nearest complete one-quarter year.
51.2.5.2 For Disability Retirements, the contribution shall be a percentage of the
annual contributions made by ANAHEIM on behalf of active employees,
the percentage equal bo 290 for each year of service to a maximum
contribution of 95~i6 based on the employee's consecutive years of
Anaheim service shall be calculated to the nearest complete one quarter
year.
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51.2.5.3 In the event an employee is eligible for both a Service and a Disability
Retirement benefit under this ARTICLE, the employee shall receive the
Service Retirement benefit.
51.2.5.4 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 bo retirement, and shall continue
only as long as the retiree maintains coverage for such dependerrts in
ANAHEIM sponsored health plans. Nothing in this ARTICLE shall
prevent a retiree from properly enrolling new dependents at the
retiree's cost.
51.2.5.5 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-parlidpation in Medicare shall be passed on to the retiree in the
form of reduced or increased premium costs.
51.2.5.6 The surviving spouse ~or registered domestic partner 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.
51.2.6 Employees who retire on or after January 1, 2006 shall be credited with ANAHEIM
service accrued through December 31, 2005 for the purpose of determining
eligibility and benefit levels under the provisions of Section ~ r,~1.2 above. No
employee who has less than ten (10) complete years of credited ANAHEIM service
as of December 31, 2005 shall be provided benefits under Section ~ 51.2
above.
51.2.7 The following provisions shall apply to employees who retire on or after January 1,
2006 and who are receiving post retirement medical benefits under~the provisions
of Section 52~ 51.2:
51.2.7.1 Only ANAHEIM service aocrued through December 31, 2005 shall be
credited th the employee in detiermining ANAHEIM'S percentage
contribution towards the premium costs of the plan(s) elected by the
retiree.
51.2.7.2 Retirees shall be ~ required to enroll in Medicare parts A and B upon
establishing eligibility. Failure to enroll when eligible will result in
cancellation of coverage.
51.2.7.3 Under no circumstances shall the Clty contribute towards the costs of
any dependents, except a spouse or regisGen:d domestic partner who
was properly enrolled at the time of the employee's retirement.
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51.2.8 The following conditions shall apply ~ all retirees who have post retirement medical
benefit coverage under this Section:
51.2.8.1 Once canceled for any reason, wverage shall not be reinstated.
51.2.8.2 Coverage shall be canceled for non-payment of fees after three months in
an ears.
51.2.8.3 There shall be Coordination of Benefits where other insurance exists.
51.2.8.4 Retirees may change plans and add dependents only during the annual
open enrollment period, except that the surviving spouse or registered
domestic partrler of a retiree may not enroll a new spouse or registered
domestic partner.
51.3 Regular, full-time employees in the classified service in classfications listed in Append'oc "A",
hired on or after January 1, 1996 shall partidpate in an Integral Part Trust ~RHS plan's
designed do pn~vide reimbursement of qualified medical expenses upon ntirement or
separation from Cty service. "Qualified medical expenses" are those expenses authored
under the provisions of Internal Revenue Code Section 213, excepting only those expenses
the parties mutually agree do exdude.
51.3.1 When an employee is hired into a dassification repn.sent~ed by the AMF.A, ANAHEIM
shall make an initial employer contribution of three thousand dollars ($3,000) into
the employee's Retirement Health Savings ~RHS'~ account.
51.3.2 On December 26, 2008, and annually thereafter, the Cty shall make a contribution
to the individual account of each employee in dassification represented by the
AMF~4 who has an established RHS account The contribution shall be equal do one
percent (1.0°0) of the average annual base compensation of all full time employees
in the miscellaneous service, excepting employees in classifications represented by
the IBEW. The average annual base compensation shall be calculated by
annualizing the indudable biweekly payroll for the pay period that indudes the first
of December each year, and dividing by the number of includable employees.
51.3.3 Employees shall be fully vested for all ANAHEIM contributions made on their behalf
induding contributions made pursuant th Section 51.6 below, after five (5) full
years of continuous ANAHEIM service.
51.3.4 Except as modified by Section ~?4 51~ below, ANAHEIM and AMEA agree thai;,
effective January 13, 2006, each eligible employee shall be required to contribute
three percent (3.0%) of his/her gn~ss biweekly pay to his/her individual RHS
Account
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51.3.5 Employees shall be given an opportunity each year tb elect to contribute (in
increments of ~/z hour) sick leave hours to be earned prospectively in the upcoming .
calendar year. Employees shall be required do accrue a minimum of one (1) hour
of earned Sick Leave time per pay period. The remaining balance earned per pay
period shall be available for deferral to the individual employee's IZHS Account as
designated by the employee. Such defenals shall be converted to cash at the
employee's regular hourly rate of pay, and deposited do the employee's individual
RHS Account as they are earned. Contributions under the provisions of this
paragraph shall be designated as pre-tax contributions.
51.3.6 Employees shall be given an .opportunity each year to elect to contribute (in
increments of ~/z hour) vacation leave hours to be earned prospectively in the
upcoming calendar year. Employees shall be required to accrue a minimum of
three (3) hours of earned Vacation heave time per pay period. The remaining
balance earned per pay period shall be available for deferral to the individual
employee's RHS Account as designated by the employee. Such deferrals shall be
converted th cash at the employee's regular houry rate of pay, and deposited bo
the employee's individual RHS Account as they are earned. Contributions under the
provisions of this paragraph shall be designated as pre-tax contributions.
51.3.7 Any employee who separates City service for any reason will be eligible tb withdraw
funds for reimbursement of eligible medical expenses without regard to the
employee's age or years of service. Employee premium contributions for
employer-provided group health insurance provided by other employers are not an
eligible medical expense.
51.3.8 Employees hired on or after ]anuary 1, 1996 who have completed thn (10) years of
consecutive ANAHEIM service, and who are awarcled a retirement from PERS as the
reason for separation from ANAHEIM service shall be allowed access to ANAHEIM
sponsored group health plans as a retiree.
51.4 Employees hired on or aPoer ]anuary 1, 1996 and before ]anuary 1, 2002 shall make an
employee contribution do their individual RHS Account according do the following schedule:
51.4.1 Effective ]anuary 13, 2006, such employees shall contribute one percent (1.090) of
his/her gross biweekly pay bo his/her individual RHS Account
51.4.2 Effective January 12, 2007, such employees shall contribute two percent (2.0%) of
his/her gross biweekly pay thhis/her individual ItHS Account
51.4.3 Effective February 8, 2008, such employees shall contribute three percent (3.0°Ya) of
his/her gross biweekly pay to his/her individual RHS Account.
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51.5 Employees hired prior do January 1, 1996 may elect to participatie in a voluntary Retirement
Health Savings plan. An election to partidpatie shall be. irrevocable. All provisions of
Section ~2 3 ,~3 of this Ardde shall apply do the voluntary plan, except that employees
shall be required do contribute one percent (1.090) of their gnoss biweekly pay to their
individual RHS Account.
51.6 In addition to the employer obligations outlined in Section ~3 51.3 above, ANAHEIM shall
make a one time employer contribution do the RHS Account of each employee in a
classfication in Appendbc "A" who was hired on or afl~er January 1, 1996 and prior ~
January 1, 2002 and who is an active employee on January 13, 2006. The contributions
required by this Section shall be deposited to each eligible employee's account no later
than January 20, 2006. The contribution shall be seventy dollars ($70.00) for each
completie month of full time service calculated from the employee's date of hire io
December 31, 2005; except that under no dreumstances shall the contribution .be less than
three thousand dollars ($3,000.00).
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