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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