Number
010859
Version
SUBSTITUTE 1
Reference
950743
Sponsor
THE CHAIR
Title
A substitute resolution relating to health insurance rates for management employes under 65 years of age retiring after December 31, 2001.
Analysis
This resolution specifies that management employes under 65 years of age retiring after December 31, 2001, who opt for the City's Basic Health Plan, shall pay $60 per month for the single coverage and $120 for family coverage. All Fire Department management employes, excepting the Fire Chief and the Assistant Fire Chief, shall be treated in the same manner for the Basic Health Plan as are members of Local 215, Professional Fire Fighters Association. Currently all retired management employes can select any health insurance plan the City offers at no cost.
Body
Whereas, The City of Milwaukee has offered health insurance coverage for retired city employes since 1971 and has amended its policy with respect to eligibility for coverage and rates numerous times; and
Whereas, The City of Milwaukee currently provides that general city management employes who select retirement, those 55 years of age with 30 years of service or those 60 years of age with 15 years of service, can select any health insurance plan the City offers at no cost until they reach age 65; and
Whereas, The City of Milwaukee currently provides that police management employes who select retirement after 25 years of service without regard to age can select any health insurance plan the City offers at no cost or reduced costs dependent upon their sick leave balance they retire with until they reach age 65; and
Whereas, The City of Milwaukee currently provides that fire management employes who select retirement after 22 years of service at age 49 can select any health insurance plan the City offers at no cost or reduced cost dependent upon their sick leave balance until they reach age 65; and
Whereas, The City currently provides a rate structure for all active employes, including all active management employes, of paying 100% of the low cost health maintenance organization (HMO), and allows active management employes to pay the difference for a more costly HMO; and
Whereas, The City currently, in 2001, charges active management employes $60 for single coverage in the basic plan or $120 for family coverage in the basic plan; and,
Whereas, Few if any other employers provide early retirees with full health insurance coverage until age 65 at no cost; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the City's policy relating to insurance coverage and rates established by File Number 69-2528-c and subsequently amended by File Numbers 71-2469, 71-1559, 73-216, 73-216-a,
73-646, 73-647, 76-1224, 77-2192, 77-2192-a, 77-2192-c and 950743 is amended as follows:
1. Paragraph 2.a. of the "Resolved" clause is rescinded and recreated as follows:
2. Retirees who are not enrolled as of the effective date of this resolution must meet the following criteria to enroll in a retiree health insurance program:
a. Retired police officers must have 25 years of service. Retired firefighters must be at least age 49 with 22 years of service. Other retirees must have retired with 15 years of creditable city service under the Employes' Retirement System, the Policemen's Annuity & Benefit Fund, or the Firemens' Annuity & Benefit Fund, and be receiving a service retirement allowance, or an age in-service annuity; or be part of a class consisting of deferred retirees who are receiving a pension and who were reemployed by the city following retirement, were ineligible for membership in the Employes' Retirement System at the time of reemployment, and who now have a total of more than 25 years of city service. Notwithstanding the above, persons receiving ordinary disability pensions from any City of Milwaukee retirement system shall be eligible under 2a.
2. Paragraph 6 of the "Resolved" clause is created to read:
6. The City of Milwaukee rate structure for health insurance for management employes under age 65 who retire after December 31, 2001 who opt for the City's Basic Health Plan, shall be $60 per month for the single coverage and $120 for family coverage. All Fire Department management employes, excepting the Fire Chief and the Assistant Fire Chief, shall be treated in the same manner for the Basic Health Plan as are members of Local 215, Professional Fire Fighters Association.
Requestor
DOA-Budget
Drafter
LRB01500-2
BJZ/cac
11/6/2001