HomeMy Public PortalAbout1992_11_24_O043 Insurance Benefits for Retirees'The 'own of
7ieesburg,
rginia
ORDINANCE NO.
AN ORDINANCE:
PRESENTED November 24. 1992
92-0-43 ADOPTED November 24, 1992
A1VEENDING SECTION 12.1-47 OF THE TOWN CODE TO ADD HEALTH
INSURANCE BENEFITS FOR RETIRING TOWN EMPLOYEES I/NDER THE
AGE OF 65 WITH FIFTEEN OR MORE YEARS OF SERVICE
WHEREAS, according to Ordinance No. 91-0-59, adopted December 18, 1991, town employees who
retire before the age of 65 are currently eligible for the town's group health insurance only through
December 31, 1992; and
WHEREAS, because of the high cost of health insurance, town employees eligible to retire after
December 31, 1992, are discouraged from retiring until they reach age 65; and
WHEREAS, the cost of keeping eligible retirees on the town's group health insurance plan would
be offset by lower payroll costs; and
WHEREAS, retirees aged 65 and over are eligible for medicare benefits which substantially lower
the out-of-pocket expense for health insurance.
THEREFORE, ORDAINED by the Council of the Town of Leesburg in Virginia as follows:
SECTION I. Section 12.1-47. Hospitalization and Insurance of the Town Code and Personnel
Manual is hereby amended to read as follows:
Section 12.1-47. Hospitalization and Insurance.
(a) All employees of the town, unless provided otherwise by these rules,, are required
to participate in group life, basic hospital/surgical-medical, major medical and disability income
programs as approved by the Town Council. The town shall pay all of the total monthly individual
premi-ms for said coverage described above. The individual employee shall pay the additional
hospitalization premiums for the spouse, family or other dependent coverages when a coverage is
requested by the employee.
(b) Employees retiring from the town p.~.cr *-c D~c-mbcr 21, 1992, with 15 years of
town service shall be eligible to participate in the town's group health insurance until age 65 at
which time they shall be dropped from coverage. Retired employees with 15 or more years of
service and less than 20 years of service participating in the plan shall be required to pay one-half
of the monthly individual health insurance premimn
...................... pcr ....... Retired employees with 20 or more years of service and less
than 25 years of service participating in the plan shall be required to pay 25% of the monthly
individual health insurance premimn. Retired employees with 25 years of service or more may
participate in the plan at no cost to them. Retired employees participating in the plan must pay
all of the additional premium for spouse, family or other dependent coverage as requested by. the
retiree.
-2-
ORDINANCE - INSURANCE BENEFITS FOR RETIREES
SECTION H. This ordinance amendment shall be effective upon its passage.
PASSED this 24th day of November ,19921.
· Clem, Mayor
Town of Leesburg
ATTEST:
O:12.1-47