(a) The ME Health Benefits Fund is hereby established. This Fund shall be the Fund to which appropriations of the City for health benefits are credited, in which shall be accumulated reserves for the payment of all health benefits payable from funds provided by the City and from which shall be paid all health benefits as provided by this chapter. Upon the basis of such mortality and other experience tables and regular interest as the Controller shall from time to time adopt, the actuary shall annually compute the health benefits reserves for:
(1) Health benefits being paid to retirees, retirees' spouses, beneficiaries and health insurance dependents, and
(2) Covering health benefits accruing to and to be accrued by members.
Such health benefits reserves shall be financed by annual appropriations, to be made by Council and paid by the City, as determined according to subsections (b) and (c) hereof, subject to subsection (d) hereof.
(b) The appropriation for members currently accruing health benefits shall be determined using a generally acceptable method of actuarial valuation. Unfunded accrued health benefits shall be amortized over a period of years to be determined by the Controller after receipt of the actuary's written recommendations.
(c) The appropriation for health benefits being paid to retirees, retirees' spouses, beneficiaries and health insurance dependents shall be a percentage of the City's annual employee payroll, excluding police and fire personnel not covered by this chapter, which will produce an amount which, if paid annually by the City over a period of years, to be determined by the Controller, will amortize, at regular interest, the unfunded health benefits reserves for health benefits being paid retirees, retirees' spouses, beneficiaries and health insurance dependents.
(d) Notwithstanding the foregoing, Council shall appropriate a base amount of fifty thousand dollars ($50,000) for health benefits for the fiscal year beginning July 1, 1991. Thereafter, Council shall appropriate for each succeeding fiscal year for health benefits a base amount equal to 110 percent of the previous year's base appropriation for health benefits. In addition to the base appropriations required by this subsection, Council shall, for each fiscal year beginning July 1, 1993, appropriate an additional amount equal to the City's actual cost to provide for health benefits for that fiscal year for retirees, retirees' spouses, beneficiaries and health insurance dependents, said amounts to be credited to the reserve for the ME Health Benefits Fund. Both the base and additional annual appropriations required by this subsection shall cease when said annual appropriations are equal to the appropriations required by subsections (b) and (c) hereof, at which time all future appropriations shall be made in accordance with subsections (b) and (c) hereof.
(Res. 94-717. Passed 12-19-94.)