HomeMy Public PortalAbout14776 Defined Benefit Plan - Medicare - Redline VerORDINANCE NO. 14776
AN ORDINANCE, amending Ordinance No. 13796, as adopted January 9, 2014,
to modify the Pension Plan of The Metropolitan St. Louis Sewer District to (i) require enrollment
in Medicare Parts A and B when Members first become eligible for such Medicare programs due
to disability in order to receive, or continue to receive, retiree medical benefits under the Pension
Plan, and (ii) clarify that any retiree medical benefits under the Pension Plan will be secondary to
Medicare disability benefits in accordance with the Medicare secondary payor rules.
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF
THE METROPOLITAN ST. LOUIS SEWER DISTRICT:
Section One. Ordinance No. 19796 as adopted January 9, 2014, is hereby
amended as described below without, however altering or extinguishing the legal relationships
established by such Ordinance.
Section Two. The Pension Plan, providing for the pensioning and other
retirement benefits of employees of The Metropolitan St. Louis Sewer District and the spouses
and minor children of deceased employees, and providing for the payment of public funds for
such purpose, is hereby modified.
Section Three. Section 11.10 of Ordinance No. 19796, as adopted January 9,
2014, is hereby repealed in its entirety and the following is substituted in lieu thereof:
“11.10 Retiree Medical Coverage. (a) Subject to paragraph
(b) below, effective August 1, 2004 or, with respect to union members, the later of
August 1, 2004 or the date their union ratifies a Memorandum of Understanding
with respect to this Plan modification, and subject to the limitations described
herein, each Employee who is a Member under the Pension Plan and who has a
Separation From Service after attaining 75 points on or after August 1, 2004, or,
with respect to union members, the later of August 1, 2004 or the date their union
ratifies a Memorandum of Understanding with respect to this Plan modification,
or a Member who retires after attaining age 62 on or after August 1, 2004, or,
with respect to union members, the later of August 1, 2004, or the date their union
ratifies a Memorandum of Understanding with respect to this Plan modification,
shall receive Employer provided individual medical coverage on the same terms
as active Employees which may be modified by the District from time to time. If
the Employee is receiving any kind of dependent coverage, the Employee shall
pay the additional cost of such dependent coverage and the District shall not.
Such coverage shall continue until the earliest of (i) the Employee attains age 65
(or such later age requirement as may be specified in the future for eligibility for
Medicare due to age under Title XVIII of the United States Code), (ii) the
Employee dies, or (iii) the Employee becomes eligible under another group
medical plan other than Medicare due to disability. With respect to individuals
retiring prior to August 1, 2004, or, with respect to union members, the later of
August 1, 2004 or the date their union ratifies a Memorandum of Understanding
with respect to this Plan modification, the Employer retains the right to amend
this policy to require Employee contributions, or to otherwise amend or terminate
this policy at any time in any respect subject to the following limitation; No such
amendment or termination shall reduce, eliminate or modify the benefits to which
any Employee is entitled, provided such employee (a) has retired under the terms
of the Plan and (b) is receiving retiree medical benefits under this policy prior to
adoption of the amendment or termination. The preceding sentence shall not
apply to a reduction, elimination or modification of an Employee’s benefit
attributable to a change in the medical insurance coverage terms which the
District may adopt for active Employees from time to time. Effective for
individuals retiring on or after August 1, 2004, or, with respect to union members,
the later of August 1, 2004 or the date their union ratifies a Memorandum of
Understanding with respect to this Plan modification, the Employer retains the
right to amend this policy to require Employee contributions, or to otherwise
amend or terminate this policy at any time in any manner with respect to some or
all retirees.
(b) A Member who becomes eligible for Medicare under Title XVIII
due to disability prior to becoming eligible for Medicare due to age must timely
enroll in Medicare Part A and Medicare Part B when he or she first becomes
eligible for such Medicare disability benefits in order to receive, or to continue to
receive, retiree medical coverage under Section 11.10(a). The retiree medical
coverage provided under this Section 11.10 shall be secondary to Medicare
disability benefits in accordance with the Medicare secondary payor rules.”
The foregoing ordinance was adopted on September 14, 2017.