§ 39.258  GROUP INSURANCE DEDUCTION.
   (a)   As permitted by law, in addition to retirement allowances payable under this subchapter, the retirement system shall pay from the retirement system one-half of the premium for the retirant's and beneficiary's group health insurance plan participated in by the city. Effective after final termination and distribution of the 401(h) group health insurance fund, this premium will instead be paid from the OPEB 115 Trust Fund Agreement.
   (b)   As permitted by law, if a retirant or beneficiary is covered by a group insurance plan participated in by the city, and is permitted to and elects to continue coverage as a retirant, the retirant or beneficiary may authorize the board to have deducted from all retirement allowances the payments required to continue coverage under the group insurance plan.
   (c)   The benefits described in this section shall apply to any retired employee or officer who retires prior to January 1, 2014, is entitled to a retirement allowance and who shall have participated at least five years, immediately preceding separation from city employment in the group health insurance plan participated in by the city.
   (d)   All contributions from the retirement allowances for purposes of the retirant's and/or beneficiary's group insurance fund shall be reasonable and ascertainable.
   (e)   Contributions to fund the retirant's and beneficiary's 401(h) group health insurance plan must be subordinate to the contributions to the retirement system for retirement benefits. At no time shall the aggregate actual contributions to the 401(h) group health insurance fund (when added to actual contributions for life insurance protection under the plan, if any) be in excess of twenty-five percent (25%) of the total aggregate actual contributions made to the retirement system (not including contributions to fund past service credit, if applicable). The board shall annually determine whether the twenty-five percent (25%) test has been met. If at any time the 401(h) group health insurance fund (plus any life insurance contribution) would exceed the twenty-five percent (25%) test, the excess amount of contributions shall be transferred to the retirement system for retirement benefits.
   (f)   Forfeitures from the group health insurance fund shall not be allocated to individual accounts, but shall be used for account expenses.
   (g)   At no time prior to the satisfaction of all liabilities under the 401(h) group health insurance fund or termination of the retirement system shall any assets for purposes of group health insurance be used for, or diverted to, any purpose other than the providing of payment of the retirement system portion of the monthly retiree health insurance premium benefit in this section, and the payment of administrative expenses.
   (h)   The provisions of § 401(h)(5) of the Internal Revenue Code shall apply upon the satisfaction of all liabilities under law.
   (i)   Effective December 31, 2016, the 401(h) group health insurance fund shall be terminated. After satisfaction of all liabilities under the 401(h) group health insurance fund to provide certain retiree medical benefits, any amounts remaining in this fund must be returned to the city, pursuant to § 401(h)(5) of the Internal Revenue Code.
   (j)   Effective January 1, 2017, the OPEB Trust shall be created and effective pursuant to § 39.006. The OPEB 115 Trust Fund Agreement will be used to make the payments described in (a) of this section as soon thereafter as is administratively reasonable in the board's judgment.
(1957 Rev. Ords., § 2.541; 1992 Code, § 35-53)  (Ord. 96-87, passed 11-16-1987; Ord. 26-98, passed 3-2-1998; Ord. 24-13, passed 5-7-2013; Ord. 118-16, passed 12-20-2016)