Resolution No. 2010-193RESOLUTION NO. 2010-193
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND RATIFYING THE CONTINUED
PAYMENT OF PREMIUMS FOR MEDICAL -DENTAL INSURANCE
FOR CERTAIN CATEGORIES OF RETIRED EMPLOYEES DURING
THE 2010-2011 FISCAL YEAR
WHEREAS, on June 16, 2008, the City Council of the City of
Vernon approved retiree medical benefits for the 2008-2009 fiscal
year: (i) the City's payment of the premiums for all full-time regular
employees only and not for dependents who have a minimum of twenty
(20) years of continuous service who retire at the age of sixty (60)
or later; (ii) allowing all full-time regular employees with at least
thirty (30) years of continuous service who retire before the age of
sixty (60) to pay their health insurance premium for the City's
medical -dental insurance program, until reaching the age of sixty
(60), for which then the City paid the premiums for said medical -
dental insurance for saidretiredemployee 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,'retired
employees are required to apply for Medicare coverage-, where upon the
City insurance will become supplemental coverage, if applicable. The
City continued 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
WHEREAS, the City of Vernon offers an HMO and a PPO or PPO
equivalent ("PPO") benefit plan options; and
WHEREAS, the Risk Manager recommends that the City Council
of the City of Vernon ratify, that City pay up to the cost of the HMO
benefit for those retired employees with qualifying years of service
and age requirements and offer the PPO as a "buy -up" option, for
which qualifying retired employees will be responsible for the premium
difference; and
WHEREAS, dependents of retired employees are no longer able
to participate in medical -dental insurance programs; and
WHEREAS, the Risk Manager recommends that the City Council
of the City of Vernon ratify, applicable for the fiscal year 2010-2011
only, that (i) the City pay up to the HMO insurance premiums cost for
all full-time regular employees only 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 up to the HMO premium cost for said
medical -dental insurance for said retired employee only, if any, up to
the age of sixty-five (65); and (iii) upon retired employees reaching
sixty-five (65) years of age, retired employees shall apply for
Medicare coverage, whereupon the City 'insurance will become
supplemental coverage, if applicable. The City will continue to pay
up to the HMO insurance premium cost 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
WHEREAS, the City Council of the City of Vernon wishes to
adopt and ratify its policy applicable for the fiscal year 2010-2011
only respecting payment of premiums for the City's medical -dental
K
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 hereby
finds and determines that the recitals contained hereinabove are true
and correct.
SECTION 2: The City Council of the City of Vernon hereby
adopts and ratifies the following policy for the 2010-2011 fiscal year
and declares that such benefits are not vested rights and are approved
for'this fiscal year only:
A. The City will pay up to the HMO insurance premium
cost 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, 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 continues 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 (60), the City will
pay up to the HMO insurance premium cost for said
3
medical -dental insurance for said retired employee
only, up to the age of sixty-five (65).
C. For retired employees who receive medical -dental
insurance benefits pursuant to subsections A or B
above and who reach the age of sixty-five (65),
said retiree employees shall apply for Medicare
coverage, whereupon the City insurance will become
supplemental coverage, if applicable. The City will
pay up to the HMO premium cost 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, with a minimum of ten (10)
years of continuous uninterrupted service with the
City 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.
W
SECTION 3: The City Clerk of the City of Vernon shall
certify to the passage, approval and adoption of this resolution, and
the City Clerk of the City of Vernon shall cause this resolution and
the City Clerk's certification to be,entered in the File of
Resolutions of the Council of this City.
APPROVED AND ADOPTED this 20th day of December, 2010.
Name: H,ilario Gonzales
Title: Mayor /Iayro-Tr 1
A�`TEST : _
Wi.'llard C-1. Y,6*guc�j, City Clerk
5
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, Willard G. Yamaguchi, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution
No. 2010-193, was duly passed, approved and adopted by the City Council
of the City of Vernon at a regular meeting of the City Council duly
held on Monday, December 20, 2010, and thereafter was duly signed by
the Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this T� day of December, 2010, at Vernon; California.
(SEAL)
V/illar'd G. a guc City Clerk
C
CITY CLERK'S OFFICE
.INTEROFFICE MEMORANDUM
DATE: December 22, 2010
TO: Martha Valenzuela, Director of Business Services/Personnel
FROM: Willard Yamaguchi, City Clerk
RE: Resolution No. 2010-193 - A Resolution of the City Council of
the City of Vernon Approving and Ratifying the Continued
Payment of Premiums for Medical -Dental Insurance for Certain
Categories of Retired Employees During the 2010-2011 Fiscal
Year
Transmitted herewith is a copy of Resolution No. 2010-193 referenced
above, which was approved by City Council on December 20, 2010.
Thank you.
WY: dj
c: Rory Burnett
Karina Rueda
Resolution No. 2010-193
FFCY IN�V
DEC 1 4 2010
STAFF REPORT CITY CLERK'S OFFICE
Risk Management
DATE: December 14, 2010
TO: _ Honorable Mayor and City Council
FROM: Willard G. Yamaguchi, Risk Manager
RE: Payment of Health -Dental Premiums for Certain Retiree Categories for Fiscal
Year 2010-11
Background
Each fiscal year, the City Council of the City of Vernon approves the City's payment of
insurance premiums for medical -dental insurance for certain categories of retired employees.
Recommendation:
I recommend that the Council ratify a resolution approving the continuous payment of medical -
dental insurance premiums for certain categories of retired employees, applicable for Fiscal Year
2010-2011 only, as applied to the following:
1. All full-time regular employees, with at least twenty (20) continuous years of service who
retire at age sixty (60) or later; and
2. All full-time regular employees with at least thirty (30) years of continuous service who
retire before the age of sixty (60), but have reached the age of sixty (60).
Furthermore, I recommend that we clarify that following restrictions:
1. The City will pay up to the cost of the HMO benefit for those retired employees with
qualifying years of service and age requirements, and offer the PPO as a "buy -up option,
for which qualifying retired employees will be responsible for the premium difference.
2. Dependents of retirees are not eligible to participate in medical -dental insurance
programs.
3. All retired employees, with a minimum of ten (10) years of continuous uninterrupted
service with the City 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.
A resolution ratifying for the above referenced recommendation and clarifications is to be
scheduled on the December 20, 2010, agenda.
WGY/ab
cc: Mark Whitworth