(A)
The city will provide a Group Health Insurance, Dental and Vision Plans for the employees and their eligible dependents and the city will pay for 80% of the cost of the plan. Individual and dependent coverage is optional at the discretion of the employee and a deduction will be made each payday from the employee's paycheck for the 20% cost of the coverage selected by the employee. The deduction each payday, depending on the coverage selected will be according to the following chart:
(B) The deductions will be made under an IRS Section 125 plan and will be taken prior to the calculation of federal and state income taxes.
(C) Employees may choose to take major medical, dental and vision policies or any combination thereof. Term life insurance is only provided with the dental coverage. Employees are required to notify the City Clerk of the coverage types and dependent coverage's desired. Employees and dependents may be required to medically qualify for any or all of the coverage type desired and be accepted by the group carrier.
(D) Medical coverage will begin on the first day of the month following the date of hire. Medical coverage will terminate on the last day of the month after the resignation or termination date of the employee from the city, except as hereinafter provided to the contrary, and except as provided in state and federal law.
(E) Medical coverage for the employees and their eligible dependents will continue after retirement of the employee for the city in accordance with Public Act 86-1444. The eligibility of employees for medical coverage after retirement may be restricted and limited to the terms and conditions contained in the Group Policies of Insurance maintained by the city in the Office of the City Clerk.
(F) Depending on the length of continuous employment with the city prior to retirement, the city will pay a percentage of the actual cost of the employee's medical coverage until the employee is eligible for Medicare or Medicaid benefits. Eligibility of this benefit is restricted to employees retiring at age 60 or older, with not less than ten years continuous service. The actual percentage of premium cost for said medical coverage, which will be paid by the city for eligible retired employees, will be according to the following chart:
Years of Continuous Service Prior to Retirement | Percentage of Cost Paid by City |
Years of Continuous Service Prior to Retirement | Percentage of Cost Paid by City |
20 | 80 |
19 | 77 |
18 | 74 |
17 | 71 |
16 | 68 |
15 | 65 |
14 | 62 |
13 | 59 |
12 | 56 |
11 | 53 |
10 | 50 |
Less than 10 | 0 |
EXAMPLE: An employee retires at age 60 with 15 years of service with the city. At the time of retirement the city is paying 65% of the cost of the insurance.
(G)
Notwithstanding any of the foregoing to the contrary, any employee with not less than 20 years of service electing IMRF early retirement at age 55, and any police officer except those officers covered under a separate bargaining agreement with the city electing early retirement under the terms of the Police Pension Plan, shall receive medical coverage at the same rates or percentages paid by all other city employees. Upon any person qualifying for and receiving employee insurance benefits from the city becoming eligible for medicare benefits will cease when such person becomes eligible for Medicare. Upon any person qualifying for employee insurance benefits, but for the fact that such person becomes eligible for Medicare, such person upon appropriately registering for Medicare may request Medicare Supplemental Insurance as offered by the city through the city’s current group insurance carrier and shall pay the costs of such Medicare Supplemental Insurance.
(H) If an employee retires at 60 years of age with at least ten years of continuous service or at 55 under the IMRF early retirement system with at least 20 years of service, the city will provide spousal coverage according to what the current group carrier allows. If the spouse is at least 55 years of age but not yet 60 years of age, the city will pay 70% of the spousal coverage the retired employee paying 30%. If the spouse is 60 years of age the city will pay 80% of the spousal coverage with the retired employee paying 20% of the cost. All spousal coverage will cease when the spouse becomes eligible for Medicare.
(I) The city shall provide a paid life insurance policy in the amount of $30,000 for each employee
(Ord. 1254, passed 7-19-06; Am. Ord. 1358, passed 12-3-08; Am. Ord. 1410, passed 6-2-10; Am. Ord. 1456, passed 10-19-11; Am. Ord. 1465, passed 1-18-12)