The medical plan premium subsidy will be provided upon the conditions set forth below in order to lessen or defray part or all of the cost of medical plans to eligible retirees, as hereinafter defined.
(a) Eligibility for Medical Plan Premium Subsidy. A retiree who is enrolled in plan(s) administered by the Board as part of the Medical Plan Program shall be eligible for a medical plan premium subsidy as provided in Subsection (d) or Subsection (e), as applicable.
(b) Maximum Medical Plan Premium Subsidy. The maximum monthly medical plan premium subsidy for retirees is $596.00. The Board shall, by resolution, adjust the maximum monthly amount of the medical plan premium subsidy provided to retirees to maintain a monthly amount equal to the single-party premium for the lowest cost standard plan, as defined by the Board, available to participants without Medicare Parts A and B.
(c) Medical Plan Premium Subsidy for Eligible Retirees without Medicare Part A. Those retirees who are receiving a service retirement allowance or a disability retirement allowance, who either are not eligible for Medicare or do not qualify for benefits under Part A of Medicare premium free, who have at least ten (10) years of Health Service Credit and who are age fifty-five (55) years or older, shall have paid to their approved medical plan carrier on their behalf the following amount:
(1) Basic Monthly Subsidy. For ten (10) years of Health Service Credit, forty percent (40%) of the maximum monthly medical plan premium subsidy amount established pursuant to the provisions of Subsection (b).
(2) Additional Monthly Subsidy. For more than ten (10) years of Health Service Credit add three percent (3%) of the maximum monthly medical plan premium subsidy to the Basic Monthly Subsidy for each whole year of Health Service Credit in excess of ten (10) years.
(3) Maximum Monthly Subsidy. No retiree shall have paid to his or her medical plan carrier an amount exceeding the maximum monthly amount established pursuant to Subsection (b) or receive an amount in excess of the premium of the plan in which they are enrolled.
(4) Dependent Monthly Subsidy. None of the subsidy may be applied toward coverage for dependents of retirees.
(d) Medical Plan Premium Subsidy for Eligible Retirees Enrolled in Parts A and B of Medicare. Those retirees with at least ten (10) years of Health Service Credit who are receiving a service retirement allowance or disability retirement allowance and who qualify for benefits under Part A and Part B of Medicare, shall have paid to the medical plan carrier providing them with a Medicare supplemental or coordinated plan the following amount:
(1) Monthly Subsidy (75%). For ten (10) years but less than fifteen (15) years of Health Service Credit, seventy-five percent (75%) of the single-party monthly premium of the approved Medicare supplemental or coordinated plan in which the retiree is enrolled.
(2) Monthly Subsidy (90%). For fifteen (15) years or more but less than twenty (20) years of Health Service Credit, ninety percent (90%) of the single-party monthly premium of the approved Medicare supplemental or coordinated plan in which the retiree is enrolled.
(3) Monthly Subsidy (100%). For twenty (20) or more years of Health Service Credit, one hundred percent (100%) of the single-party monthly premium of the approved Medicare supplemental or coordinated plan in which the retiree is enrolled.
(4) Dependent Monthly Subsidy. None of the subsidy may be applied toward coverage for dependents of retirees.
(e) Medicare Enrollment and Assignment. Retirees who are eligible to enroll in Medicare Part B must do so in order to qualify to receive the subsidy provided in Subsections (c) and (d) of this section. The Board may require retirees to enroll in and assign to LACERS any coverage that is provided by Medicare in order to qualify to receive the subsidy provided in this section, except that retirees who are not entitled to premium free Part A of Medicare are not required to enroll in Part A.
(f) Verification of Medical Plan Coverage. Retirees who are receiving a medical plan premium subsidy payable to their medical plan carrier pursuant to the provisions of this Article may be required, from time to time, to provide evidence satisfactory to the Board that their medical plan coverage or Medicare or other federal or state funded medical plan is in full force and effect.
(g) Payment Limitation. In no event shall the subsidy provided in this section, when added to any other medical plan subsidy provided by the Department of Water and Power or the Fire and Police Pension Plan, exceed the maximum amount established in Subsection (b).
SECTION HISTORY
Added by Ord. No. 182,629, Eff. 7-25-13.