(a) The maximum monthly subsidies and reimbursements paid toward any health insurance premiums provided pursuant to Chapter 11.5 of Division 4 of the Los Angeles Administrative Code shall be frozen at the rate in effect as of July 1, 2011.
(b) The freeze established in Subsection (a) above shall apply to the following persons:
1. Employees who retire on or after July 15, 2011;
2. Employees who enter the Deferred Retirement Option Plan (DROP) on or after July 15, 2011;
3. Employees who opt not to make a contribution for vesting increases in the Maximum Medical Subsidy as allowed by an applicable written agreement between the City and the employee’s union.
(c) The freeze established by this Section may be revisited periodically by the City Council, with appropriate discussions with the affected labor organizations, to determine whether, in the Council’s discretion, the freeze may be lifted or adjusted in light of improving economic conditions, or other factors.
(d) The freeze established in Subsection (a) above shall not apply to the following persons:
1. Employees who irrevocably opt to make voluntary Additional Contributions in exchange for vested rights to increases in subsidies or reimbursements for retiree health benefits as provided in Section 4.1167 of this Chapter.
2. Employees who retire on service connected disability pensions and their survivors who are eligible for health benefits.
3. Survivors receiving service-connected death benefits who are eligible for health benefits.
4. Members of Tier 3 and Tier 5 who separated from City service prior to July 15, 2011, and were eligible for a deferred retirement at the time of separation, based on years of service.
5. All members of Tier 6, since they are required to make an additional contribution to support the City’s ability to fund retiree health benefits.
(e) The freeze established in Subsection (a) above shall not apply to any subsidy for reimbursement of Medicare Part B basic premium or any dental insurance premium subsidy.
SECTION HISTORY
Added by Ord. No. 181,814, Eff. 7-29-11.
Amended by: Subsec. (b) amended and Subsecs. (d) and (e) added, Ord. No. 181,893, Eff. 10-11-11; Subsec (d)5. added, Ord. No. 183,163, Eff. 8-8-14.