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HomeMy WebLinkAboutD-2324-16 Discontinues City's Contribution to Retiree Insurance BenefitsSponsor: Counitilor Worrell Ordinance D-2324-16 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA AMENDING CHAPTER 2, ARTICLE 3, DIVISION II, SECTION 2-42 OF THE CARMEL CITY CODE Synopsis: This ordinance discontinues the City's contribution to retiree insurance benefits for employees hired on or after October 3, 2016, and for those disabled on or after October 3, 2016. Employees hired or disabled prior to October 3, 2016, are grandfathered. Benefits for those killed or disabled in the line of duty are unchanged. WHEREAS, the Carmel Common Council passed Ordinance D-1377-98, as amended, on August 17, 1998, providing premium assistance for eligible retirees enrolled in the City's medical and dental insurance plans; WHEREAS, the benefit amount has been increased on several occasions since the passage of Ordinance D-1377-98; WHEREAS, rapidly escalating medical costs and an unpredictable health care environment make it difficult to plan for and fund future expenditures; WHEREAS, the continuation of the benefit may have an adverse impact on salaries and essential benefits for active employees; and WHEREAS, current employees have relied on the City's promise of assistance with retiree health care premiums. NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of Carmel, Indiana, as follows: Section 1: The foregoing recitals are incorporated herein by this reference. Section 2. Chapter 2, Article 3, Division II, § 2-42(e) and 2-42(g) should be and the same are hereby amended to read as follows: §242 Health Insurance (e) Retiree insurance. For full-time employees hired before October 3, 2016: The City shall contribute 50% of the monthly employee -spouse premium for retirees who have 20 years of active service with the City, plus an additional 1% for each additional six months of service, up to a maximum of 75% of the employee only or employee -spouse premium, as applicable, provided that the City's insurance premium contribution shall not exceed $900 per month or $10,800 per year. If the retiree is not married but has dependent children, an equivalent dollar Ordinance D-2324-16 Page One of Four This Ordinance was prepared by Jon Oberlander, Senior Assistant Carmel City Attorney, on 9/19/16 at 10:41 a.m. No subsequent revision to this Ordinance has been reviewed by Mr. Oberlander for legal sufficiency or otherwise. Sponsor: Councilor Worrell amount will be applied to the employee-child(ren) premium. If the retiree has a spouse, whether or not the spouse is on the City's plan, coverage for other eligible dependents may be continued at the retiree's expense. Employees hired on or after October 3, 2016 will not be eligible for this benefit. (g) Insurance for disabled individuals. A disabled employee must qualify for a PERF disability benefit before he or she becomes eligible for the City's benefit. The City will contribute to a disabled employee's insurance premiums according to the following formula. - (1) For an employee whose disability occurs in the line of duty (i.e., an injury or an occupational disease that is clearly, directly, substantially and causally related to the employee's official job duties), the City will contribute 100% of the employee (and family, if applicable) medical and dental premiums. For a sworn police officer or firefighter, this benefit pertains to those who are determined by PERF to have a Class 1. Impairment. For civilians, the City will, at its sole discretion, determine whether a disability falls into this category. (2) For full-time employees disabled before October 3, 2016: For an employee whose disability is duty -related, but not clearly, directly, substantially and causally related, the City will contribute 50% of the employee (and family, if applicable) medical and dental premiums, provided that the City's insurance premium contribution shall not exceed the maximum established in section (e) above for a retiree with 20 years of active service. For a sworn police officer or firefighter, this benefit pertains to those who are determined by PERF to have a Class 2 Impairment. For civilians, the City will, at its sole discretion, determine whether a disability falls into this category. Employees disabled on or after October 3, 2016 will not be eligible, for this benefit. (3) For an employee whose disability does not occur in the line of duty and is not duty - related, the City will make no health insurance contribution under this section after employment is terminated. For a sworn police officer or firefighter, this benefit pertains to those who are determined by PERF to have a Class 3 Impairment. For civilians, the City will, in its sole discretion, determine whether a disability falls into this category. However, if the disabled employee has 20 or more years of active service with the City, he or she will qualify for retiree benefits as described in section (e) above. (4) Eligibility for a disability -related premium contribution will end when an individual is no longer eligible for PERF disability benefits. (5) Details regarding insurance benefits for employees who are disabled in the line of duty or have a duty -related disability are set forth in the City of Carmel Guidelines For Payment Of Premiums For Individuals Who Die Or Who Are Disabled In The Line Of Duty, as amended from time to time. Ordinance D-2324-16 Page Two of Four This Ordinance was prepared by Jon Oberlander, Senior Assistant Carmel City Attorney, on 9/19/16 at 10:41 a.m. No subsequent revision to this Ordinance has been reviewed by Mr. Oberlander for legal sufficiency or otherwise. Sponsor: Councilor Worrell Section 3. All prior City ordinances or parts thereof that are inconsistent with any provision of this Ordinance are hereby repealed as of the effective date of this Ordinance. Section 4. The remaining provisions of Carmel City Code Sections 2-42 are not affected by this Ordinance and shall remain in full force and effect. Section 5. If any portion of this Ordinance is for any reason declared unconstitutional, invalid or unenforceable by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. Section 6. This Ordinance shall be in full force and effect from and after the date of its passage, execution by the Mayor. [remainder of page intentionally left blank] Ordinance D-2324-16 Page Three of Four This Ordinance was prepared by Jon Oberlander, Senior Assistant Carmel City Attorney, on 9/19/16 at 10:41 a.m. No subsequent revision to this Ordinance has been reviewed by Mr. Oberlander for legal sufficiency or otherwise. Sponsor: Councilor Worrell PASSED by the Common Council of the City of Carmel, Indiana, this ��day of I', L6i t, 2016, by a vote of = ayes and _0 nays. COMMON COUNCIL FOR THE CITY RMEL 1 onald E. Carter, President evin D. Rider S e F' kam, ce-President Laura D. Campbell /_/ At� - 0 H. Bruce Kimball ra Christine S. P,duley, Clerk - Presented by me to the Mayor of the Cit �_&f_� 2016, at ( Card Schleif Jeff 11 this l-7-- day S. PauXy, Clerk -Treasurer c Approved by me, Mayor of the Cit�� ^Carmel, Indiana, this zday of 2016, at�I. , Clerk -Treasurer Ordinance D-2324-16 Page Four of Four J mes Brainard, Mayor This Ordinance was prepared by Jon Oberlander, Senior Assistant Carmel City Attorney, on 9/19/16 at 10:41 a.m. No subsequent revision to this Ordinance has been reviewed by Mr. Oberlander for legal sufficiency or otherwise.