HomeMy WebLinkAboutF-2d - Contract Reopener - Retiree Health Insurance PlanE
CITY OF NEWPORT BEACH
Personnel Office
December 10, 1984
TO: MAYOR AND CITY COUNCIL
FROM: Personnel Director
C -?aCs" (mak)
BY THE CITY COUNCIL
CITY OF NEWPORT BEACH
DEC 101984
AGENDA ITEM F. 2. (a6 —
SUBJ: CONTRACT REOPENER - RETIREE HEALTH INSURANCE PLAN
Background: During the meet -and -confer process with the Newport
Beach Employees League for Fiscal Year 1984/85, the City agreed
to reopen the contract for the purpose of meeting -and -conferring
on the issues of modifying the current Health Insurance Plan and
providing a Retiree Health Insurance Plan.
Discussion: Since October 1, 1984; the City Negotiating Team
and representatives of the Employees League have met and -
conferred on the issues of amending the current health insurance
plan and for providing a Retiree Health Insurance Plan. Both
•negotiating teams have reached agreement and the agreement was
presented to and ratified by the membership of the Employees
League. In the opinion of City staff, the agreement is in
accordance with City Council direction.
RECOMMENDATION It is recommended that the attached signed
amendment to the Fiscal Year 1984/85 Memorandum of Understanding
with the Employees League be aowed by the City Council.
Lo zo Mo4, Pe sonnel Director
Appendix B
The City of Newport Beach and the Newport Beach Employees
•League (hereinafter referred to as NBEL) have mutually
agreed upon providing a Retiree Health Insurance Plan. Both
parties agree to amend the 1984/85 Memorandum of Understanding
in writing and to incorporate this amendment as part of the
Memorandum of Understanding for Fiscal Year 1984/85.
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1. Effective July 1, 1985, the City and NBEL agree to provide
a Retiree Health Insurance Plan through the City's
indemnity health plan carrier. Both parties agree to
amend the indemnity health plan contract to include a
separate retiree plan.
2. The Retiree Plan will be combined with the Active Employee
Plan and claims experience will determine the appropriate
monthly premiums for both the Retiree and Active Employee
Plans.
3. The Retiree Plan will be the same as the Active Plan except
for the following:
A. The Major Medical Benefits shall be as follows:
1) Lifetime Maximum Benefits ............ $500,000
2) Deductible (calendar year)..............$200 (Fam:$600)
3) 808 of first $5,000 - 1008 thereafter (calendar year)
4) Psychiatric, Inpatient: 60 days per 24 months
5) 1008 coverage, no deductible, for:
a) ambulatory surgery, per Exhibit "A"
b) second surgical opinion, per Exhibit "B"
c) X-ray and laboratory testing on out-patient basis
prior to hospitalization for elective surgery.
6) Benefits will be paid on a 'carve -out' basis when
combined with other group insurance or Medicare. This
means that benefits are paid up to the maximum coverage
(808) under this plan including those payments the
Retiree receive from any other plan.
B. Dental, Life and basic medical coverage will not be
provided.
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C. Applicable to both current Employees and Retirees:
1) Upon the death of the Retiree, health insurance
coverage for surviving enrolled spouse and/or
dependents shall be terminated. Spouses and/or
eligible dependents will be eligible for medical
conversion coverage.
2) Coverage will be cancelled:
a) upon written request of the Retiree
b) When the Retiree is more than 30 days in arrears
in payment of monthly premiums, and only after
proper notice has been given to the delinquent
subscriber.
c) Reinstatement of coverage shall not be allowed
if the coverage has been cancelled.
3) Retirees and dependents who reach age 65, and are
eligible for Part A Medicare coverage , must enroll
in both Part A and Part B Medicare coverage.
4) While the City intends that this Retiree Health
Insurance Plan shall be permanent, the City does
reserve the right to modify or to terminate this
Plan in the future should circumstances require
such. In the event the Plan is terminated,
enrolled subscriber and dependents shall be eli-
gible for medical conversion coverage.
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4. Retiree Plan Monthly Premium:
A. The initial monthly premiums to provide this Plan shall
be as follows:
• 1) Retiree only - $92.00
2) Retiree & Dependent(s) - $184.00
B. The Retiree Contribution shall be fifty (50) percent of
the monthly premium.
5. Active Employee/City Contribution:
A. Each active employee shall pay $7.33 a month as their
contribution to the Retiree Health Plan. This
contribution is equivalent to twenty-five (25) percent of
the total retiree health insurance premiums.
B. The City shall pay $7.33 a month for each active employee
• as the City's contribution to the Retiree Health Plan.
This contribution is equivalent to twenty-five (25)
percent of the total retiree health insurance premiums.
C. The active employee and city contribution may be adjusted
effective July 1, 1985, under the following
circumstances:
1) Once the number of participating retirees is
determined, and
2) Should the monthly premium for the Retiree and
Retiree & Dependent categories be adjusted.
D. Effective July 1 of each subsequent fiscal year, the
Active employee and City Contribution shall be adjusted
when the monthly premium and number of participants are
determined.
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6. Retiree Plan Conditions:
A. Applicable to current employees:
1) Employees who retire on or after May 1, 1985, must
meet the following eligibility requirements:
a) Must have completed at least ten (10) years of
continuous full-time city service on the date
of retirement, and
b) Must have been awarded a retirement from the
Public Employees Retirement System; and
C) Retired from the City of Newport Beach. P.E.R.S.
retirement benefits must commence no later than of
the first day of the month following separation from
City service.
2) Employees and enrolled dependents must enroll in the
Retirees Health Plan forty-five (45) days prior to
the retirement date.
B. Applicable to Current Retirees:
Current retired employees. must meet the following
eligibility requirements:
1) Must have completed at least ten (10) years of
continuous full-time City service on the date of
retirement; and
2) Must have been awarded a retirement from the Public
Employees Retirement System; and
3) Must have retired from the City of Newport Beach.
P.E.R.S. retirement benefits must have commenced no
later than the first day of the month following the
date of separation from City service.
4) Must enroll in the Plan by May 1, 1985. Failure to
enroll by this date will result in the retiree not
being eligible to participate in the Retiree Plan
thereafter.
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EXECUTED THIS DAY OF Dff 1984
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NEWP T BEACH EMPLO ES L GUE
b nt
by
CITY OF NEWPORT BEACH
by
by
• APPROVED AS TO
ROBERT H. BURNHAM
CITY ATTORNEY
CITY OF NEWPORT BEACH
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II
• • EXHIBIT "A"
FOCUSED AMBULATORY SURGERY LIST
o
Arthroscopy -
Examination and/or repair of the knee
joint via the insertion of a scope.
o
Breast Biopsy -
Removal of a small portion of breast
tissue or 'lump" for diagnosis.
o
Cataract Extraction -
Removal of the lens from the eye.
o
Cystoscopy -
A bladder examination using a scope.
o
Dilation 5 Curettage -
Expansion of.the ostium uterus so that
the uterine wall can be scraped.
o
Hemorrhoidectomly -
Removal of dilated veins from the
rectal -anal area.
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Herniorrhaphy -
Repair of weakness in the abdominal
Will.
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Meniscectomy -
Repair and/or removal of torn knee
cartilage.
o
Tonsillectomy and/or
Removal of diseased tonsils and/or
Adenoidectomy
adenoids.
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Tubal Ligation -
Female sterilization.
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FOCUSED SECOND SURGICAL OPINION LIST
o Hysterectomy
o Dilation & Curettage (D&C)
o Tonsillectomy end/or Adenoidectomy
o Gall Bladder Surgery
o Knee Surgery
o Back or Disc Surgery
o Varicose Vein Surgery
o Heart Bypass Surgery
o Heart Catheterization
o Hernia Surgery
o Mastectomy
o Prostatectomy
EXHIBIT "B"
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RESOLUTION NO. 8 4— 1 4 T
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH IMPLEMENTING BENEFIT
INCREASES FOR EMPLOYEES WHO ARE MEMBERS OF THE
NEWPORT BEACH EMPLOYEES LEAGUE (NBEL)
WHEREAS, the City of Newport Beach, through its
negotiating team, has reopened the Contract for meet and confer
process, has met and conferred with representatives of the
Newport Beach Employees League — (NBEL) concerning the issues of
modifying the current health insurance plan and providing a
Retiree Health Insurance Plan for fiscal year 1984 — '85;
WHEREAS, the City Council is desirous of implementing,
effective December 10, 1984, its proposal to the Newport Beach
Employees League — (NBEL) for increasing benefits provided to its
members.
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Newport Beach that the benefit changes for members of
the Newport Beach Employees League — (NBEL), for fiscal year 1984
— '85, shall be as set forth in Exhibit "A" which is attached
hereto and incorporated herein by reference.
ADOPTED this day of DEC! () ," 1984.
Mayor
ATTEST:
City Clerk
RSB/Employees2