Number
030405
Version
SUBSTITUTE 2
Reference
020479
Sponsor
THE CHAIR
Title
Substitute resolution relating to health benefits at time of retirement for certain sworn fire and police management employees.
Analysis
Common Council Resolution File Number 020479, adopted on July 16, 2002, requires that all management employees who are eligible for health insurance upon retirement and who retire after December 31, 2003, pay for retiree health insurance at the same rates as active general City management employees, until they reach age 65.
There are currently 41 sworn fire and police management employees who, prior to the adoption of Resolution File Number 020479, upon retirement would have been permitted to use accrued sick leave to reduce the cost of retiree health insurance to that provided in the current collective bargaining agreements covering fire personnel represented by Local #215, Milwaukee Professional Fire Fighters' Association, International Association of Fire Fighters, AFL-CIO, and police personnel represented by the Milwaukee Police Supervisors' Organization and the Milwaukee Police Association.
This resolution provides a transition for the 41 sworn fire and police management employees who had previously been permitted to use accumulated sick leave to reduce the cost of retiree health insurance, by allowing any individual holding a sworn fire or police management position as of December 31, 2003, and who thereafter retires from a sworn fire or police management rank on a normal service retirement allowance, to use the cash value of his or her sick leave balance at the time of retirement to reduce health insurance costs, until reaching age 65, as a dollar-for-dollar offset against the retiree share of the subscriber cost, which retiree share shall be at the same rate as that charged to active management employees, for any City retiree health plan coverage in which such individual is enrolled.
Body
Whereas, Common Council Resolution File Number 020479, which was approved by the Common Council on July 16, 2002, requires that all management employees who are eligible for health insurance upon retirement and who retire after December 31, 2003, pay for retiree health insurance at the same rates as active general City management employees, until they reach age 65; and
Whereas, There are currently 34 sworn management employees in the Fire Department and 7 sworn management employees in the Police Department who, prior to the adoption of Resolution File Number 020479, upon retirement would have been permitted to use accrued sick leave to reduce the cost of retiree health insurance in a manner similar to that provided in the current collective bargaining agreements covering fire personnel represented by Local #215, Milwaukee Professional Fire Fighters' Association, International Association of Fire Fighters, AFL-CIO, and police personnel represented by the Milwaukee Police Supervisors' Organization and the Milwaukee Police Association; and
Whereas, These 34 sworn fire management employees and 7 sworn police management employees currently have accumulated between 2000 and 4500 hours of sick leave balances; and
Whereas, Unlike general City management employees, the City has previously permitted individuals retiring from sworn fire and police management positions to use accumulated sick leave balances to reduce the cost of retiree health insurance; and
Whereas, With the adoption of Resolution Number 020479, the City has implemented a new policy for retiree health insurance for management employees; and
Whereas, The City considers it appropriate to provide a transition for the 41 current sworn fire and police management employees who had previously been permitted to use accumulated sick leave to reduce the cost of retiree health insurance; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that any individual holding a sworn fire management or sworn police management position as of December 31, 2003, and who thereafter retires from a sworn fire or police management rank on a normal service retirement allowance, will be allowed to use the cash value of his or her sick leave balance at the time of retirement to reduce health insurance costs, until reaching age 65, as a dollar-for-dollar offset against the retiree share of the subscriber cost, which retiree share shall be at the same rate as that charged to active management employees, for any City retiree health plan coverage in which such individual is enrolled; and, be it
Further Resolved, That upon exhaustion of such sick leave balance as a dollar-for-dollar offset against the retiree share of the subscriber cost, the retiree shall be responsible for payment of any remaining retiree share of the subscriber cost for the health insurance program in which he or she is enrolled; and, be it
Further Resolved, That this sick leave balance cash equivalent cannot be cashed out or applied for any other purpose, other than as set forth in s. 350-38 of the Code of Ordinances; that such sick leave balances shall not earn any interest over time; and that upon reaching age 65, the individual's sick leave balance will be cancelled; and, be it
Further Resolved, That upon the death of any individual holding a sworn fire management or sworn police management rank on a normal service retirement allowance, the individual's spouse will be entitled to the same health insurance benefits to which the individual was entitled, until the end of the month in which the individual would have reached age 65; and, be it
Further Resolved, That, on December 31, 2003, the Department of Employee Relations, in consultation with the Fire Department and Police Department, will identify by name the individual management employees affected by this resolution, so that at the time of their respective retirements, the cash values of eligible employees' sick leave balance can be readily ascertained for the purpose of reducing the cost of their health insurance; and, be it
Further Resolved, That this resolution shall apply only to persons holding sworn management positions in the Fire and Police Departments as of December 31, 2003, and all fire and police management employees who are hired or promoted after that date, and who are eligible for retiree health insurance, shall pay for their health insurance at retirement the same rates as other general City active management employees, as provided in Common Council Resolution File Number 020479.
Requestor
DER-Employee Benefits Division
Drafter
TWM/cac
LRB03282-3
7/8/2003