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Resolution No. 84761 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 8476 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING THE CONTINUED PAYMENT OF PREMIUMS FOR MEDICAL -DENTAL INSURANCE FOR CERTAIN CATEGORIES OF RETIRED EMPLOYEES DURING THE 2004-2005 FISCAL YEAR WHEREAS, the City Council of the City of Vernon in prior fiscal years has approved for each fiscal year the City's payment of premiums for medical -dental insurance for service -retired employees who are at least sixty (60) years of age and who have continuously served for twenty (20) years; and WHEREAS, the Finance Committee of the City of Vernon on June 14, 2004, considered a recommendation applicable for the fiscal year 2004-2005 only, which provides that (i) the City shall pay the insurance premium for all full-time regular employees who have a minimum of twenty (20) years of continuous service who retire at the age of sixty (60) or later; (ii) all full-time regular employees with at least thirty (30) years of continuous service who retire before the age of sixty (60) will be permitted to pay their health insurance premium for the City's medical -dental insurance program, and, upon their reaching the age of sixty (60), the City will pay the premiums for said medical -dental insurance for said retired employee only and not for dependents, if any, up to the age of sixty-five (65); and (iii) upon retired employees reaching sixty-five (65) years of age, the City will continue to pay the insurance premium to provide for medical - dental insurance as supplemental only to Medicare as the City will not be the primary insurance carrier once the employee reaches the age of sixty-five (65); and 1 2 3 4 5' 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, the City Council of the City of Vernon wishes to adopt its policy applicable for the fiscal year 2004-2005 only respecting payment of premiums for the City's medical -dental insurance for certain categories of retired employees and to declare that such benefits are not vested rights and will expire at the conclusion of the fiscal year unless authorized and approved by the City Council for the next fiscal year. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon does hereby find and determine that the recitals contained hereinabove are true and correct. SECTION 2: The City Council of the City of Vernon hereby adopts the following policy for the 2004-2005 fiscal year and declares that such benefits are not vested rights and are approved for this (fiscal year only: A. The City will pay the insurance premium for the City's medical -dental insurance program for all full-time regular employees, with at least twenty (20) years of continuous uninterrupted service who retire at age sixty (60) or later, excluding dependents, if any, and the City shall continue to pay said premium for said retired employee up to the age of sixty-five (65). B. All full-time regular employees with at least thirty (30) years of continuous service who retire before the age of sixty (60) years will be permitted to pay their health insurance premium for the City's medical -dental insurance program, and, upon reaching the age of sixty - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (60), the City will pay the insurance premium for said medical -dental insurance for said retired employee only and not for dependents, if any, up to the age of sixty-five (65). C. For retired employees who receive medical -dental insurance benefits pursuant to subsections A and B above and who reach the age of sixty-five (65), the City will pay the premium to provide for medical - dental insurance as supplemental insurance only to Medicare because the City will not be the primary insurance carrier once the employee reaches the age of sixty-five (65). D. All retired employees may pay the premiums for medical -dental insurance up to the age of sixty-five (65) after which Medicare will become the primary insurance carrier and further may purchase supplemental insurance to Medicare thereafter. SECTION 3: The City Clerk of the City of Vernon shall certify to the passage of this resolution and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 301h day of June, 2004. ATTEST: BRUCE V. MALKENHORST, City Clerk LEONIS C. MALBORG, Ma or - 3 - 1 2 3 4 5 6 7 8 9 10 11' 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 STATE OF CALIFORNIA ) )ss COUNTY OF LOS ANGELES ) I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 8476, was duly adopted by the City Council of the City of Vernon at an adjourned regular meeting of the City Council duly held on Wednesday, June 30, 2004, and thereafter was duly signed by the Mayor of the City of Vernon. (SEAL) BRUCE V. MALKENHORST, City Clerk - 4 -