Resolution No. 2012-114RESOLUTION NO. 2012-114
A RESOLUTION OF.THE CITY COUNCIL.OF THE CITY OF
VERNON APPROVING THE CONTINUED PAYMENT OF PREMIUMS
FOR MEDICAL -DENTAL INSURANCE FOR RETIRED EMPLOYEES
DURING THE 2012-2013 FISCAL YEAR
WHEREAS, the City Council of the City of Vernon grants
certain retiree medical benefits on a fiscal year basis; and
WHEREAS, in an effort to reduce expenditures, the City
Administrator and Risk Manager recommend that the City Council of the
City of Vernon grant retiree medical benefits for fiscal year
2012-2013 that encourage eligible employees to retire; and
WHEREAS, the City Council of the City of Vernon wishes to
adopt its retiree medical benefits policy applicable for the fiscal
year 2012-2013 only 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 the following policy for the 2012-2013 fiscal year and declares
that such benefits are applicable to retired employees only and not
their spouses or other dependents, are not vested rights and are
approved for this fiscal year only: .
A. The City will pay up to $1,000 for the insurance
premium cost for the City's medical -dental
insurance program for all full-time regular
employees who retire from the City at age fifty
(50)-or later with at least twenty (20) years of
continuous uninterrupted service with the City.
The City shall continue to pay said premiums for
said retired employees up to the age of sixty-five
(65).
B. All full-time regular employees who retire from the
City before the age of fifty (50) with at least
twenty (20) years of continuous uninterrupted
service with the City will be permitted to pay
their health insurance premium for the City's
medical -dental insurance program, and upon their
reaching the age of fifty (50), the City will pay
up to $1,000 for the insurance premium cost for the
City's medical -dental insurance program for said
retired employees, until said retired employees
reach 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 retired employees shall apply for Medicare
coverage, whereupon the City insurance will become
supplemental coverage, if applicable. The City
will pay up to $500 to provide for the City's
medical -dental insurance as supplemental insurance
only to Medicare because the City will not be the
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primary insurance carrier once the retired
employees reach the age of sixty-five (65).
D. All retired employees who retire from the City with
a minimum of ten (10) years, but fewer than twenty
(20) years, of continuous uninterrupted service
with the City will be permitted to pay their
premiums for the City's medical -dental insurance
program until they reach the age of sixty-five
(65), at which time Medicare will become the
primary insurance carrier. Said retired employees
may pay for the City's medical -dental insurance as
supplemental insurance to Medicare thereafter.
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 19th day of June, 2012.
1
Name: William J. Davis
Title Mayor Pro-Tem
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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. 2012-114, 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 19, 2012, and thereafter was duly signed by the
Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this day of June, 2012, at Vernon, California.
illa d G. Ya g chi, City Clerk
(SEAL)
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CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: June 21, 2012
TO: Rory. Burnett, Finance Director/City Treasurer
Martha Valenzuela, Director of Business Services/Personnel
FROM: Willard Yamaguchi, City Clerk � f
RE: Resolution No. 2012-114 — A Resolution of the City Council of the City of Vernon
Approving the Payment of Premiums for Medical -Dental Insurance for Retired Employees
During the 2012-2013 Fiscal Year
Transmitted herewith is a copy of Resolution No. 2012-114 referenced above, which was approved by City
Council on June 19, 2012,
Thank you.
WY:dj
Attachment
c: Raquel Franco
Karina Rueda
Resolution No. 2012-114
RECEIVED
JUN 1'4 2012
CITY CLERK'S OFFICE
STAFF
DATE: . June 7, 2012
REPORT
Risk Management Department
RECEIVED
JUN 14 2012
CITY ADMINISTRATION
TO: Honorable Mayor Pro Tern and City Council
FROM: Willard G. Yamaguchi, Risk Manager vt
RE: Payment of Medical and Dental Health Premiums for Retirees for
Fiscal Year 2012-2013
Background:
M wll40
Each fiscal year, the City Council of the City of Vernon approves the City's payment of health
premiums for medical and dental insurance for certain categories of retired employees.
Recommendation
I recommend that the City Council adopt a resolution approving the continuous payment of
medical and dental insurance premiums for certain retired employees, applicable for Fiscal Year
2012-2013 only, as applied to the following:
A. The City will pay up to $1,000 for the insurance premium cost for the
City's medical -dental insurance program for all full-time regular
employees who retire from the City at age fifty (50) or later with at
least twenty (20) years of continuous uninterrupted service with the
City. The City shall continue to pay said premiums for said retired
employees up to the age of sixty-five (65).
B. All full-time regular employees who retire from the City before the
age of fifty (50) with at least twenty (20) years of continuous
uninterrupted service with the City will be permitted to pay their
health insurance premium for the City's medical -dental insurance
program, and upon their reaching the age of fifty (50), the City will
pay up to $1,000 for the insurance premium cost for the City's
medical -dental insurance program for said retired employees, until
said retired employees reach 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 retired employees shall apply for Medicare coverage,
whereupon the City insurance will become supplemental coverage, if
applicable. The City will pay up to $500 to provide for the City's
medical -dental insurance as supplemental insurance only to Medicare
because the City will not be the primary insurance carrier once the
retired employees reach the age of sixty-five (65).
D. All retired employees who retire from the City with a minimum of ten
(10) years, but fewer than twenty (20) years, of continuous
uninterrupted service with the City will be permitted to pay their
premiums for the City's medical -dental insurance program until they
reach the age of sixty-five (65), at which time Medicare will become
the primary insurance carrier. Said retired employees may pay for the
City's medical -dental insurance as supplemental insurance to
Medicare thereafter.
The foregoing shall only apply to those employees that retire during the 2012-13 fiscal year.
WGY/kr