Resolution No. 2011-107RESOLUTION NO. 2011-107
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 2011-2012 FISCAL
YEAR
WHEREAS, on December 20, 2010, the City Council of the City
of Vernon approved and ratified retiree medical benefits for the 2010-
2011 fiscal year: (i) the City's payment up to the HMO insurance
premium cost for the City's medical -dental insurance program 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)
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 insurance premium for the City's medical -dental insurance
program, and, upon their reaching the age of sixty (60), for which
then the City paid up to the HMO premium cost for said medical -dental
insurance for said retired employee only, up to the age of sixty-five
(65); and (iii) allowing all full-time regular employees with at least
ten (10) years of continuous service to pay their insurance premium
for the City's medical -dental insurance program; and (iv) upon retired
employees reaching sixty-five (65) years of age, retired employees are
required to apply for Medicare coverage, where upon the City's
insurance will become supplemental coverage, if applicable. The City
continued to pay up to the HMO insurance premium for those retired
employees with qualifying years of service and age requirements 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 approve the City's payment 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 not eligible to
participate in medical -dental insurance programs; and
WHEREAS, the City Council of the City of Vernon wishes to
adopt its policy applicable for the fiscal year 2011-2012 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
any subsequent 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 the following policy for the 2011-2012 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
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program for all full-time regular employees only,
that retire with at least twenty (20) years of
continuous uninterrupted service who retire at age
sixty (60) or later.
B. All full-time regular employees with at least
thirty (30) years of continuous uninterrupted
service who retire before the age of sixty (60)
years will be permitted to pay their health
insurance premiums 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 medical -dental
insurance.
C. 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.
D. All retired employees who receive medical -dental
insurance benefits pursuant to subsections A, B, or
C above and who reach the age of sixty-five. (65),
are required to be enrolled in Medicare, and shall
show proof of the same, where upon the City's
insurance policy will become supplemental coverage,
if applicable.
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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 21St day of June, 2011.
ATT ST:
Wi lar G. g chi ity Clerk
Name: Hilario Gonzales
Title: Mayor /
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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. 2011-107, 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 Tuesday, June 21, 2011, and thereafter was duly signed by the.
Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this ? day of June, 2011, at Vernon, California.
(SEAL)
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A
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: June 23, 2011
TO: Rory Burnett, Finance Director/City Treasurer
Martha Valenzuela; Director of Business Services/Personnel
FROM: Willard Yamaguchi, City Clerk/Interim City Attorney
RE: Resolution No. 2011-107 — A Resolution of the City Coun ' 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 2011-2012 Fiscal Year
Transmitted herewith is a copy of Resolution No. 2011-107 referenced above, which was approved by City
Council on June 21, 2011.
Thank you.
WY:dj
Attachment
c: Karina Rueda
Raquel Franco
Resolution No. 2011-107
RECEIVED
JUN 0 9 2011
CITY CLERK'S ME
STAFF REPORT
Risk Management
a e ` ���,-/ e-,/ // r
RECEIVED
JUN 0 8 2011
CITY ADMINISTRATION
DATE: June 8, 2011
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 2011-12
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 adopt a resolution approving the continuous payment of medical -
dental insurance premiums for certain categories of retired employees, applicable for Fiscal Year
2011-2012 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 once the retiree reaches the age of sixty (60), the
City will pay the premium.
Furthermore, I recommend that we clarify that following restrictions:
1. The City will pay the cost of the HMO medical and dental premiums 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 shall be responsible for the
difference in premium cost.
2. Dependents of retirees are not eligible to participate in medical -dental insurance
programs.
3. All retired employees, with a minimum of ten (10) continuous years of uninterrupted
service with the City may participate in the current medical plans by paying the
premiums for medical -dental insurance.
4. At age sixty-five (65), all retirees are required to be enrolled in Medicare and provide
proof of the same in order to be eligible for participation in the current plan(s).
WGY/mm