(A) Life insurance. At its sole expense, the city will provide group life insurance for its retired employees’ with an established death benefit.
(B) Health and dental insurance.
(1) An employee retiring on or before November 20, 2001, may, by paying 100% of the premium for the coverage, participate in the city’s group health and hospitalization program so long as the city’s contracts with its insurers permits such participation.
(2) (a) An employee retiring on or after November 21, 2001 but before August 29, 2009 must retire under the North Carolina Local Government Retirement System and draw or currently be eligible to draw benefits from the system in order to qualify for payment of all or part of the health care and dental care insurance premium. Retirement system regulations on eligibility for retirement govern eligibility for the program. The city will pay the premium for the coverage based on the policies established by the Council, subject to change.
(b) The following schedule will be in effect until changed for employees retiring within the dates of this subsection:
Years of Service | Individual Premiums | ||
At Least | No More Than | City Pays | Employee Pays |
25 years | 30 years | 75% or up to a maximum of $412.50 per month, whichever is less | 25% of the remaining cost, whichever is more |
30 years | - | 100% of up to a maximum of $550 per month, whichever is less | 0% of the remaining cost, whichever is more |
(3) An employee hired on or before April 17, 2018 and retiring on or after August 29, 2009 must retire under the North Carolina Local Government Retirement System and draw or currently be eligible to draw benefits from the system in order to qualify for payment of all or part of the health care and dental care insurance premium. Retirement system regulations on eligibility for retirement govern eligibility for the program. The city will pay the premium for the coverage based on the policies established by the Council, subject to change. The following schedule will be in effect until changed:
Years of Service | Individual Premiums | ||
At Least | No More Than | City Pays | Employee Pays |
20 years | 25 years | 50% or up to a maximum of $275 per month, whichever is less | 50% of the remaining cost, whichever is more |
(4) Any employee hired after April 17, 2018 shall not qualify for payment of all or part of the health care and dental care insurance premium upon retirement and shall not qualify for participation in the City’s health and dental insurance policy.
(5) A minimum of 50% of an employees years of service (10.0 years, 12.5 years or 15 years respectively) with the city shall be required in order to receive this benefit. The other 50% of an employees years of service (10.0 years, 12.5 years or 15 years respectively) must be with an agency/organization which is a member of a Statewide Local Government Employee’s Retirement System or a Statewide Teacher’s and Statewide Employee’s Retirement System or other systems under a Department of State Treasurer or a self-funded Local Government Retirement System. Any sick leave converted for time at the end of service for retirement purposes shall count in the computation of time served with the city.
(a) Such employees may elect to purchase health care and/or dental insurance coverage for their eligible dependents and shall pay the full cost of this dependent coverage. Dependent coverage must be in place at least 12 months prior to an employee’s retirement date.
(b) Payment of premiums for dependents must be paid in accordance with schedules and procedures established for the city’s benefit by the City Manager or designee for the group health and dental plan. Failure to pay the required premium will result in loss of coverage, once coverage has been discontinued, it cannot be reinstated without the written approval of the City Manager.
(c) The city’s payment of premiums for group health and dental coverage for retirees will be discontinued when:
1. The retiree begins to draw social security benefits and becomes eligible for Medicare;
2. The retiree becomes eligible for 100% of social security benefits; whichever event occurs first between items 1 and 2; or
3. The retiree becomes eligible for social security disability.
Any employee not meeting the aforementioned criteria by paying 100% of the premium for coverage will be allowed to remain on the city’s insurance policy for 18 months from the date of separation from the organization.
(Ord. passed 5-17-94; Am. Ord. passed 11-20-01; Am. Ord. passed 1-17-02; Am. Ord. passed 6-20-06; Am. Ord. passed 8-29-09; Am. Ord. passed 1-21-14; Am. Ord. passed 2-18-14; Am. Ord. passed 4-17-18; Am. Ord. passed 5-15-18; Am. Ord. passed 6-19-18)