(A) The purpose of the Plan and Trust is to provide health care benefits or such other benefits approved by the city (which may include hospitalization, medical, optical, dental and life insurance) for the welfare of certain retirees of the city who are eligible to receive a retirement benefit from the City of Marine City retirement system and the spouses and eligible dependents of such retirees through a prefunded group health and insurance benefits plan. Benefits under the plan are provided pursuant to insurance plans administered by commercial insurance carriers designated by the city and/or a self-funded health insurance plan.
Note: Employees hired or recalled from layoff on or after January 1, 2008 shall not be permitted to participate in this retiree health care plan.
(B) The Plan and Trust is intended to be tax exempt under § 115 of the Internal Revenue Code of 1986, as amended, and is created for the exclusive purpose of providing benefits through policies issued by duly licensed commercial insurance companies, through a fund of self-insurance, or through any other lawful means of providing group health, hospitalization, dental, optical, and life insurance in accordance with city resolutions, for the benefit of City of Marine City retirement system retirees and beneficiaries who are eligible to participate in accordance with the plan for such insurance benefits under the rules and regulations established by the trustees. The city intends the benefits to be provided by the establishment and maintenance of a trust fund in conformance with all applicable federal statutes and regulations, state and local law.
(C) The city reserves the right to enter into contracts with commercial insurance carriers or with health maintenance organizations or preferred provider organizations in order to provide benefits under the plan.
(Ord. 08-03, passed 9-4-2008)