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90-153 RESOLUTION NO. 90R-153 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING PERSONNEL RULE 23 AS SET FORTH IN RESOLUTION NO. 88R-166 AND ADOPTING NEW PERSONNEL RULE 33 PERTAINING TO POST RETIREMENT MEDICAL BENEFITS WHEREAS, on April 26, 1988~ the City Council adopted Resolution No. 88R-166 which established Personnel Rules covering management, confidential and non-represented part-time employees; and WHEREAS, the Human Resources Director has recommended in a staff report dated May 1~ 1990, that Resolution No. 88R-166 be amended by deleting Section 23.1 pertaining to retirees' medical benefits from Personnel Rule 23 and adopting new Personnel Rule 33 to provide for post retirement medical benefits in the manner hereinafter set forth; and WHEREAS, the City Council of the City of Anaheim does find that such amendments to Resolution No. 88R-166 are in the best interests of the City of Anaheim. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Anaheim that Resolution No. 88R-166 be amended as follows: 1. That Section 23.1~ entitled "Retired Employees," of Personnel Rule 23 be~ and the same is hereby, deleted in its entirety. 2. That new Personnel Rule 33 entitled "Post Retirement Medical Benefits" be, and the same is hereby~ added to read as follows: "RULE 33 POST-RETIREMENT M~DICAL BENEFITS SECTION 33.0 Employees covered by this RULE who are enrolled as a subscriber in a City-sponsored health plan at the time of separation from City service shall be eligible to participate in any City-sponsored health (medical benefits only) plan as a retiree. As used in this RULE, the term "employee" shall include all full-time non-represented classified employees, the City Manager, the City Attorney, the City Treasurer, and the City Clerk. 33.01 Employees covered by this ROLE who retired prior to January 1, 1988 who were eligible for post-retirement health benefits at the time of their separation from City service and who maintain continuous membership in good standing ~hali pay monthly premiums in accordance ~iththe~Yoilowing schedule: Single coverage 315.00 monthly Two party coverage $15.00 monthly Family coverage $45.00 monthly 33.011 The surviving spouse of the retiree may continue coverage under the same terms and conditions. 33.02 Employees covered by this RULE who were hired prior to January 1, 1984, and who retire on or after January 1, 1988 and prior to January 1, 1994 and who meet the requirements described below shall be eligible to participate in any City-sponsored health plan. 33.021 The employee must have completed at least five (5) years of continuous, full time City of Anaheim service on the date of retirement, and 33.022 The employee must have been awarded a retirement from the Public Employees' Retirement System (PE~S) as the reason for separation from City service, and 33.023 PERS retirement benefits must commence no later than the first day of the month following the date of separation from City service. 33.024 The City shall contribute towards the premium costs of the City-sponsored health plan elected by the employee up to the amount contributed by the City towards the cost of the Employee Medical Plan Option I in the year prior to the employee's retirement. 33.025 The surviving spouse of the retiree may continue coverage under the same terms and conditions. 33.03 Employees covered by this RULE who retire on or after January 1, 1988 and who meet the requirements described below shall be eligible to participate in any City-sponsored health plan. 33.031 The employees must have completed at least ten (10) years of continuous, full time City of Anaheim service on the date of retirement, and 33.032 The employee must have been awarded a retirement from the Public Employees' Retirement System (PERS) as the reason for separation from City servicer and 33.033 PERS retirement benefits must commence no later than the first day of the month following the date of separation from City service, OR 33.034 The employee must have been awarded a disability retirement (Ordinary or Industrial) from the Public Employees' Retirement System (PERS) as the reason for separation from City 33.035 The City shall contribute towards the premium costs of the City-sponsored health plan elected by the employee according to the following schedule: 33.0351 For Service Retirements, the contribution shall be a percentage of the annual Single or %~o-Party contribution made by the City on behalf of active employees, the percentage equal to one and one half (1.5) times the Miscellaneous PERS retirement schedule rounded to the nearest whole percent, to a maximum contribution of ninety five percent (95%) based on the employee's age and consecutive years of Anaheim service at the time of retirement. Such credit shall be calculated to the nearest complete one quarter (1/4) year. 33.0352 For Disability Retirements, the contribution shall be a percentage of the annual Single or Two-Party contribution made by the City on behalf of active employees, the percentage equal to two percent (2%) for each year of service to a maximum contribution of ninety five percent (95%) based on the employee's consecutive years of Anaheim service at the time of retirement. Such credit shall be calculated to the nearest complete one quarter (1/4) year. 33.0353 In the event an employee is eligible for both a Service and a Disability Retirement benefit under the provisions of Section 33.03, the employee shall receive the Service Retirement benefit. 33.036 The City contribution shall be based on the Two-Party rate only for those employees who properly enroll a dependent spouse or other family members prior to retirement, and shall continue only as long as the retiree maintains coverage for such dependents in City-sponsored health plans. Nothing in this section shall prevent a retiree from properly enrolling new dependents at the retiree's cost. 33.037 The full value of any MediCare credits provided to the City or MediCare surcharges imposed on the City by virtue of a retiree's participation or uon-participation in MediCare shall be passed on to the retiree in the form of reduced or increased premium costs. 33.038 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. 33.04 Any employee who retires from City service and who is eligible to receive a benefit under Sections 33.02 and 33.03 of this RULE may elect either benefit at the time of retirement. Such election shall be irrevocable. 33.05 The following conditions shall apply to all retirees who have post-retirement medical coverage under this RULE: 33.051 Once cancelled for any reason, coverage shall not be reinstated. 33.052 Coverage shall be cancelled for non payment of fees after three (3) months in arrears. 33.053 There shall be Coordination of Benefits where other insurance exists, 33.054 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. 33.055 Vision Care benefits provided under the Employee Medical Plan are EXCLUDED from benefits for retired employees. 33.056 Any Employee (as defined in this Rule) who serves in one or more additional positions also eligible for benefits under this Rule shall be entitled to a single benefit hereunder. 33.06 The City Manager, City Attorney, City Treasurer and City Clerk who are eligible under the provisions of Section 33.03 of this RULE shall receive a minimum benefit of seventy-five percent (75%) as described in Section 33.0351." BE IT FURTHER RESOLVED that, except to the extent amended, Resolution No. 88R-166 shall remain in full force and effect. THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of Anaheim this 8th day of May, 1990. ~AYOR OF THE CItY OF ~ v ATTEST: CITY CLERK OF THE CITY OF ANAHEIM ROF:lm 3622L CLERK STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF ANAHEIM ) I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that the foregoing Resolution No. 90R~153 was introduced and adopted at a regular meeting provided by law, of the City Council of the City of Anaheim held on the 8th day of May, 1990, by the following vote of the members thereof: AYES: COUNCIL MEMBERS: Daly, Kaywood and Pickler NOES: COUNCIL MEMBERS: Ehrle and Hunter ABSENT: COUNCIL MEMBERS: None AND I FURTHER certify that the Mayor of the City of Anaheim ~igned said Resolution No. 90R-153 on the 9th day of May, 1990. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the City of Anaheim this 9th day of May, 1990. CITY CLERK OF THE CITY OF ANAHEIM (SEAL) I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the original of Resolution No, 90R-153, duly passed and adopted by the Anaheim City Council on May 8, 1990. CITY CLERK OF THE CITY OF ANAHEIM