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G-09-01-08-7A1 - 1/8/2009ORDINANCE NO. - 09- OfrOf vV /A AN ORDINANCE AMENDING SECTION 4.01 OF THE HUMAN RESOURCES POLICIES AND PROCEDURES MANUAL, CONCERNING THE GROUP INSURANCE PLAN RELATING TO ACTIVE EMPLOYEES AND RETIREE ELIGIBILITY; AND PROVIDING FOR A SAVINGS CLAUSE AND REPEALING CONFLICTING ORDINANCES AND RESOLUTIONS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK, TEXAS: I. That a portion of Section 4.01 of the Human Resources Policies and Procedures Manual of the City of Round Rock, Texas, is hereby amended by adding subsections Employees" and "Retiree entitled "Active Eligibility" under "GROUP INSURANCE PLAN", and shall read as follows: 4.01 BENEFITS GROUP INSURANCE PLAN Regular full-time employees and part-time employees who are normally scheduled to work at least 30 hours per week are eligible for group medical, dental, and vision insurance coverage. Active Employees: The City pays a portion of the premium for employee - only coverage for full-time employees. The City pays three-quarters of the employee -only premiums for qualifying part-time employees. Eligible employees may add dependent coverage at the employee's expense. Retiree Eligibility: An employee must meet the terms and conditions of the City's retirement plan as administered by the Texas Municipal Retirement System. Retirees that meet the terms and conditions of the retirement plan must have five years of continuous service with the City immediately prior to the date of retirement. Retirees are eligible for health benefit coverage under the City's group health, dental, and vision insurance coverage. All employees, at the time of eligible retirement, may elect to continue health benefit coverage for the retiree and his/her dependents. This election must be made on the date of retirement. 0:\WDOX\ORDINANC\090106A1.DOC/jkg Premiums for retirees and eligible dependents will be as follows: • For 5 - 9 years of employment with the City, the premium rate is based on the health benefit premiums at the time of eligible retirement, plus $100.** • For 10 - 19 years of employment with the City, the premium rate is based on the health benefit premiums at the time of eligible retirement, plus $50.** • For 20 or more years of employment with the City, the premium rate is based on the health benefit premiums at the time of eligible retirement. * * ** The City may periodically revise the group insurance plan and rates. The Human Resources Department administers the group insurance plan, in accordance with the terms of the contract and shall provide assistance as necessary to help employees understand the plan. The City may periodically revise the group insurance plan. Benefit provisions shall be specified in the contract of insurance and will be outlined in the plan booklet. II. That all remaining portions of Section 4.01 of the Human Resources Policies and Procedures Manual of the City of Round Rock, Texas, shall remain unchanged. III. A. All ordinances, parts of ordinances, or resolutions in conflict herewith are expressly repealed. B. The invalidity of any section or provision of this Ordinance shall not invalidate other sections or provisions. C. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Ordinance was adopted was posted and that such meeting was open to the public as required by law at all times during which this Ordinance and its subject matter were discussed, 2 considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended. Alternative 1. By motion duly made, seconded and passed with an affirmative vote of all the Council members present, the requirement for reading this ordinance on two separate days was dispensed with. READ, PASSED, and ADOPTED on first reading this 0115' day of , 2009. Alternative 2. READ and APPROVED on first reading this the , 2009. day of READ, APPROVED and ADOPTED on second reading this the day of ATTEST: g1A444A, ldwbf Sara L. White, City Secretary 3 , 2009. McGRAW, Mayor City of Round Rock, Texas DATE: December 31, 2008 SUBJECT: City Council Meeting — January 8, 2009 ITEM: 7A1. Consider an ordinance amending Section 4.01 of the Human Resources Policies and Procedures Manual concerning the Group Insurance Plan relating to Active Employees and Retiree Eligibility. (First Reading) Department: Staff Person: Justification: Human Resources Teresa Bledsoe, Director of Human Resources To revise the Policy and Procedure Manuel to define retiree eligibility requirements for health insurance and associated premiums costs related to tenure. Funding: Cost: N/A Source of funds: N/A Outside Resources: N/A Background Information: The City is required to offer heath care benefits to retirees; however, the City may set a minimum tenure requirement for eligibility. This policy change and plan change will require that retirees have a minimum of five years of continuous service with the City of Round Rock to qualify for health care benefits. Public Comment: N/A