HomeMy Public PortalAbout808.51 - Human Resources - Personnel Management - Post-Employment Health InsuranceChief Administrative Office
Human Resources Division Section 808.51
Policies and Procedures Manual Page 1
808.51 SUBJECT: POST-EMPLOYMENT HEALTH INSURANCE
:1 OBJECTIVE:
To provide a pension service-related method of qualifying and determining eligibility for
City-provided post employment health insurance for certain retirees and certain Long-
Term Disability (LTD) recipients. This Policy is applicable to all employees not
otherwise covered by post-employment health insurance benefits specifically contained
in a collective bargaining agreement.
:2 AUTHORITY:
This procedure amended by City Council December 11, 2017, Item A-4.
:3 DIRECTION:
Chief Administrative Officer, Human Resources Division Manager, Human Resources
Division.
:4 METHOD OF OPERATION:
A. Definitions
1. Credited Service – The number of full years of service the employee had
credited for pension calculation purposes at the time of retirement or
separation of employment.
2. Active City Contribution – The City’s contribution toward Employee-Only
HMO health insurance premium for active employees.
3. Retiree City Contribution – The City’s contribution toward the cost of
health insurance premium for certain eligible retirees and certain Long-
Term Disability (LTD) recipients. The contribution is equal to a percentage
of the Active City Contribution.
4. Retirement-Eligible Employee – An employee who is eligible and who
immediately receives a Defined Benefit (DB) pension immediately upon
termination or is a member of the City’s Defined Contribution (DC) Pension
Plan and who is either: at least age fifty-five (55) with ten (10) years of
Credited Service, age sixty-five (65) with five (5) years of Credited Service,
or who is any age with twenty-five (25) or more years of Credited Service.
B. Policy
The City of Orlando contributes toward the payment of the post-employment health
insurance premium for certain Retirement-Eligible Employees and certain eligible
LTD recipients. The Retiree City Contribution will be based upon a) the employee’s
Credited Service at the time the employee terminates active employment or ceases
LTD status and b) their status as either a retiree or LTD recipient as described in
sections B.1. - B.3. of this Policy. The Active City Contribution and Retiree City
Contribution may be adjusted.
1. Employees hired prior to January 1, 2006
The chart below provides the Retiree City Contribution percentage:
Chief Administrative Office
Human Resources Division Section 808.51
Policies and Procedures Manual Page 2
Credited Years of Pension Service Retiree City Contribution
Percentage
20 or more 100% of Active City Contribution
15 but less than 20 75% of Active City Contribution
10 but less than 15 50% of Active City Contribution
Less than 10 years 0% of Active City Contribution
Eligibility for this benefit under the foregoing schedule will be effective upon
termination of City employment for any Retirement-Eligible Employee.
Those persons who have been elected prior to January 1, 2006 and who have
served at least ten (10) years as an elected official are eligible for 100% of the
Active City Contribution immediately upon termination. Such benefit must be
immediately taken and only dependents currently enrolled at the time of
separation may continue in the plan at the person’s expense (explained further
in Section 4.b. below).
Appointed officials hired prior to January 1, 2006 who have at least ten (10)
years of Credited Service are eligible, at their option, for either the appropriate
service-related Retiree City Contribution Percentage which they must elect
immediately upon termination or for 100% of the Active City Contribution upon
attaining age fifty-five (55), at which time they will have one final opportunity
to enroll themselves and their eligible dependent(s) that were covered at the time
of termination in the City’s health insurance plan. If they choose to waive
enrollment at that time, they will not be permitted to enroll in the future.
Enrollment guidelines are further explained in Section 4 of this Policy.
Appointed officials hired prior to 2006 who have at least ten (10) years of
Credited Service and are eligible to receive severance upon termination are
eligible to immediately receive 100% of the Active City Contribution. Such
benefit must be immediately taken and only dependents currently enrolled at the
time of separation may continue in the plan at the person’s expense (explained
further in Section 4.b. below).
2. Employees hired on or after January 1, 2006 – Retirement-Eligible
Employees, including Appointed Officials, hired or re-hired on or after
January 1, 2006 are not eligible after retirement to any Retiree City
Contribution toward coverage under the City’s Group Health Plan,
regardless of their years of Credited Service. Persons who have been elected
on or after January 1, 2006 are not eligible after retirement to any Retiree
City Contribution toward coverage under the City’s Group Health Plan,
regardless of their years of service.
3. LTD Participants
a) Those on long-term disability under the City’s LTD program with a
date of hire prior to January 1, 2006 or with a date of long-term
disability before June 30, 2017 will receive 100% of the Active City
Contribution, regardless of credited years of pension service, while
Chief Administrative Office
Human Resources Division Section 808.51
Policies and Procedures Manual Page 3
they are on LTD. Enrollment requirements apply and are explained in
Section 4 of this Policy.
b) Retirement-Eligible Employees hired on or after January 1, 2006 and
with a date of long-term disability on or after June 30, 2017 may elect
to remain on the City Group Health plan at their expense with no
Retiree City Contribution. Enrollment requirements apply and are
explained in Section 4 of this Policy.
c) Employees hired on or after January 1, 2006 who are not Retirement-
Eligible Employees and have a date of long-term disability on or after
June 30, 2017 are not eligible for any Retiree City Contribution and are
not eligible to participate or remain on the City’s health insurance plan.
4. Additional Policies that apply to all retirees, LTD recipients, and
appointed and elected officials described in Sections B.1. - B.3.above
As used throughout this Policy, retiree and LTD recipients includes eligible
appointed and eligible elected officials, and rules related to retirees and LTD
recipients apply equally to eligible appointed and eligible elected officials.
a) Effective January 1, 2019, retirees and LTD recipients, their spouse and
their dependent child(ren) enrolled in the City’s group health insurance
plan at the time of retirement (or enrolled January 1, 2019 if already
retired) or at the time they go out on LTD may continue coverage after
retirement or after going out on LTD in accordance with Plan eligibility
requirements. If at any point the retiree/LTD recipient, their spouse, or
their dependent child(ren) cease coverage under the City’s group
insurance plan for any reason at any time after retirement or while on
LTD they will not be permitted to re-enroll. A retiree/LTD recipient
who continues uninterrupted coverage after retirement or while on LTD
may add a new spouse only if they marry after retirement or while on
LTD. A retiree/LTD recipient who continues uninterrupted coverage
after retirement or while on LTD may add a new dependent child and
an existing spouse only if the dependent child is born or adopted after
retirement or while on LTD. The new spouse or dependent child must
be added within 31 days inclusive of the date of the marriage, birth, or
adoption.
b) Retirees and LTD participants are responsible for the balance of any
individual coverage they select and the full cost of any group dependent
coverage they may elect. Dependent coverage must be the same type
as the retiree’s or LTD recipient’s (e.g. POS, HMO). Retirees and LTD
recipients must agree to payroll deduction of premium payments from
their pension or LTD benefit checks. If the cost of the premium exceeds
the net payment or if the former employee/retiree is not receiving a
payment directly from the City Of Orlando or its agents, the retiree
shall pay directly any balance due to the appropriate vendor as directed
by the City of Orlando Human Resources Division. Should a premium
payment be more than sixty (60) days in arrears, group coverage will
be automatically and permanently terminated by the Human Resources
Division with the retiree or LTD recipient so notified.
Chief Administrative Office
Human Resources Division Section 808.51
Policies and Procedures Manual Page 4
c) The Retiree City Contribution may be adjusted at such time as the
former employee becomes eligible to apply for Medicare coverage to
provide an aggregate equivalent benefit. Medicare-eligible Retirees,
LTD recipients, and covered dependents are required to make timely
application for Medicare. Once such individual becomes eligible for
Medicare, the City will provide health insurance coverage, secondary
to Medicare, under the City’s Group Health Plan and will pay the entire
cost of the individual retiree/LTD recipient contribution for such
secondary coverage unless that cost exceeds the Active City
Contribution, in which case the lesser of the two shall apply.
d) Terminated employees who do not meet the definition of a Retirement-
Eligible Employee immediately upon termination from employment
with the City will not be eligible for coverage for themselves or their
dependents under the City’s health plan at any time after termination,
except as required under the Consolidated Omnibus Budget
Reconciliation Act (COBRA).
:5 FORMS:
None.
:6 COMMITTEE RESPONSIBILITIES:
None.
:7 REFERENCE:
This procedure adopted by City Council August 12, 1991, Item 4/LL; amended June 21,
1993; amended February 22, 1999, Item 8-XX; amended June 3, 2002, Item B24;
amended September 15, 2003; re-formatted only April 2004; amended July 25, 2005,
Item A11; amended June 18, 2007, Item A-2; amended December 11, 2017, Item A-4.
:8 EFFECTIVE DATE:
This procedure effective December 11, 2017.