Number
161049
Version
SUBSTITUTE 3
Reference
Sponsor
THE CHAIR
Title
A substitute ordinance relating to retiree health benefits for general city employees hired on or after January 1, 2017.
Sections
350-30-1-g rc
350-30-3-a-3 am
350-30-7-a-1 am
350-30-7-a-3 am
350-30-7-a-8 cr
Analysis
This ordinance excludes general city employees hired on or after January 1, 2017, and those rehired on or after January 1, 2017, from receiving retiree health benefits under the current terms. This provision applies to general employees of the city, the redevelopment authority and the housing authority. These future retirees would be able to obtain health insurance under the city’s plans at their own cost.
Body
The Mayor and Common Council of the City of Milwaukee do ordain as follows:
Part 1. Section 350-30-1-g of the code is repealed and recreated to read:
350-30. Health Benefits
1. DEFINITIONS.
g. “Retiree” shall have the following meanings:
g-1. For persons employed prior to January 1, 2017, “retiree” means a person receiving a service retirement allowance under s. 36-05-1, an immediate allowance under s. 36-05-06-c, or a deferred retirement allowance under s. 36-05-6-d-2.
g-2. For newly-employed persons hired by either the city of Milwaukee, the redevelopment authority of the city of Milwaukee, or the housing authority of the city of Milwaukee on or after January 1, 2017, “retiree” means a person receiving a service retirement allowance under s. 36-05-1, an immediate allowance under s. 36-05-6-c, or a deferred retirement under s. 36-05-6-d-2. Newly-employed persons include persons who were employed prior to January 1, 2017, but who resigned or were separated under City Service Rule XI, sec. 1, and are rehired by or reinstated to employment with any of these entities on or after January 1, 2017.
g-3. “Retiree” also means a person receiving an ordinary disability retirement under s. 36-05-2 or a duty disability retirement allowance under s. 36-05-3, regardless of when the person was initially employed.
Part 2. Section 350-30-3-a-3 of the code is amended to read:
350-30. Health Benefits.
3. ELIGIBILITY.
a-3. Retirees defined under [[sub. 1-g]]>>sub. 1-g-1<< if they separate voluntarily with at least 15 years of creditable service with the city, the housing authority of the city of Milwaukee, or the redevelopment authority of the city of Milwaukee, and have been enrolled since the date of retirement in any health plan without lapse of coverage. [[Persons receiving a duty disability retirement allowance under s. 36-05-3 are not require to have 15 years of creditable service at the time of separation.]]>>Retirees defined under sub. 1-g-2 and 3 shall be eligible if they have been enrolled since the date of retirement in any health plan without lapse of coverage.<<
Part 3. Section 350-30-7-a-1 and 3 of the code is amended to read:
350-30. Health Benefits.
7. PAYMENTS
a-1. Retirees >>defined under sub. 1-g-1 and 3<< under age 65 retiring on or after January 1, 2014, unless specified otherwise in subd. 3, shall pay the balance of the premium due after payment by the city of an amount equal to 88% of the cost of the premium for the lowest-cost health insurance benefit plan offered by the city, excluding the high-deductible health plan.
a-3. Retirees >>defined under sub. 1-g-1<< receiving [[an ordinary disability retirement allowance under s. 36-05-2, or receiving]] an immediate allowance under s. 36-05-6-c or receiving deferred retirement benefits under s. 36-05-6-d-2, >>retirees defined under sub. 1-g-3 receiving an ordinary disability retirement allowance,<< and retirees >>defined in sub. 1-g-1 and 3<< who are age 65 or over shall pay 75% of the premium.
Part 4. Section 350-30-7-a-8 of the code is created to read:
350-30. Health Benefits.
7. PAYMENTS
a-8. Retirees defined in sub. 1-g-2 shall pay 100% of the full cost of any health benefit plan offered by the city.
LRB
APPROVED AS TO FORM
____________________________
Legislative Reference Bureau
Date: ______________________
Attorney
IT IS OUR OPINION THAT THE ORDINANCE
IS LEGAL AND ENFORCEABLE
____________________________
Office of the City Attorney
Date: ______________________
Requestor
DER-Employee Benefits Division
Drafter
John Ledvina
LRB 167180-2
12/9/2016