(A) The health and life insurance benefit for health and life insurance shall be the reserve to which shall be credited the unallocated portion of the retained assets remaining after the negotiated transfer of pension assets to the Wyandotte Hospital and Medical Center, Inc., less funds transferred to the reserve for employer contributions for general members (in the amount of $485,333) and the reserve for employer contributions for police and fire members (in the amount of $1,175,618) to cover previous employer contribution shortfalls with interest added.
(B) The Health and Life Insurance Benefit Reserve created in this section shall be used exclusively for the funding of negotiated health and life insurance costs attributable to general member retirees and police and fire member retirees and regular interest shall be credited to this reserve in the same manner as it is credited to the reserve for employer contributions, but in no case less than 7.5% interest compounded annually on the mean average balance of this reserve.
(C) The actuary shall perform such actuarial services to determine if additional funding of the health and life insurance benefit reserve is necessary and shall include information regarding same in its actuarial report.
(D) (1) Effective 5-1-1993, the city may fund from this section the payment of monthly Blue Cross/Blue Shield complimentary coverage health care deductions being paid by general city, police and fire retirees or beneficiaries who are 73 years old or older and have retired on or before 4-30-1977, and who have met all four of the following criteria (except that, criteria one will be waived if the beneficiary’s spouse (the employee) died while in the employ of the city):
(a) Criteria One - Age: all general city, police and fire retirees and beneficiaries must have been 73 years of age or older on 12-31-1992;
(b) Criteria Two - Monthly health care withholding: all general city, police and fire retirees and beneficiaries, who on 12-31-1992 have or would have, a monthly pension payroll deduction from the city for the city complimentary health care coverage. On 1-1-1993 that coverage is commonly referred to as Complimentary Blue Cross/Blue Shield of Michigan;
(c) Criteria Three - Date of retirement: all general city, police and fire retirees or beneficiaries’ spouses must have retired on or before 4-30-1977; and
(d) Criteria Four - Health care group: on 12-31-1992, the retiree or beneficiary was a member or eligible member of Complimentary Blue Cross and Blue Shield of Michigan Health Care Group 66759 000.
(2) The city will pay on behalf of all eligible retirees and beneficiaries the individual’s monthly health care deduction for complimentary Blue Cross/Blue Shield at the January 1993 complimentary coverage rate as long as funding is appropriated by the City Council. If the retiree or beneficiary has one-person complimentary coverage on 1-1-1993, the city will pay the Complimentary Blue Cross/Blue Shield contract rate of $79.33 per month. If the retiree or beneficiary has a two-person complimentary Blue Cross/Blue Shield coverage contract on 1-1-1993, the city will pay Blue Cross/Blue Shield rate of $158.67 per month.
(3) If rate increases are passed on to the city by Blue Cross and Blue Shield for said current complimentary health care coverage, said increase will be passed on to the retiree in the month required to make payment for said benefit. If rate decreases are passed on to the city, the amount paid for by the retirement system shall be the actual monthly charges being assessed by Blue Cross/Blue Shield of Michigan for the complimentary health care coverage and the amount of any increase will be deducted monthly from the retiree’s monthly payroll check, but any savings from rate decreases will not be passed on to the retiree.
(4) If the city substitutes an equal health care benefit that is currently being provided on 1-1-1993, the monthly benefit amounts in division (D)(2) above will be adjusted to reflect actual current rates being paid for the substituted health care coverage. If rates increase or decrease after the substituted coverage has been implemented, then division (D)(3) above will be utilized to calculate and pay for any increases or decreases in coverage.
(5) If a retiree who meets all four eligibility requirements established in division (D)(1) above elects any other city-sponsored health care package, the city will only pay the retirees and beneficiaries benefit amount as outlined in division (D)(2) above and any additional costs incurred by the retiree/ beneficiary shall be the responsibility of the retiree/beneficiary.
(6) If a deduction is being paid by the retiree for a beneficiary, and the beneficiary dies, the retirement system will only pay for the surviving spouse’s health care up to the maximum outlined in division (D)(2) above.
(E) (1) Effective 1-1-1997, the city will allow complimentary Blue Cross/Blue Shield master medical benefits which include complimentary prescription coverage to retirees and beneficiaries who meet all of the criteria established below in this division (E)(1). The city may also fund from this division (E)(1) the payment of monthly Blue Cross/Blue Shield complimentary coverage premiums at 100% of monthly premium cost. Criteria:
(a) Be a general city, police, and/or fire retiree as of 11-11-1996, or be a general city, police and/or fire beneficiary with a survivorship pension benefit allowance as of 11-11-1996;
(b) Be a member or an eligible member of Blue Cross and Blue Shield of Michigan Health Care Group 66759 000 as of 12-31-1996;
(c) All general city, police and fire retirees and eligible beneficiaries’ spouses must have retired on or before 4-30-1977; and
(d) All general city, police and fire retirees and eligible beneficiaries must be 73 years of age or older on 12-1-1996; provided, however, this criteria four shall be waived if the beneficiary’s spouse (the employee) died while in the employ of the city.
(2) Effective 1-1-1997 the city shall move all eligible retirees and eligible beneficiaries from Blue Cross and Blue Shield Health Care Group 66759 000 to Blue Cross and Blue Shield Health Care Group 66759 001.
(3) All eligible retirees and beneficiaries transferred to Blue Cross/Blue Shield Complimentary Coverage Group 66759 001 shall be eligible for complimentary coverage for master medical benefits, said complimentary coverage master medical benefits shall include complimentary prescription coverage.
(4) The city may fund 100% of the eligible retirees and beneficiaries monthly Blue Cross/Blue Shield Complimentary Health Care premiums only. Eligible retirees and beneficiaries are responsible for all deductibles which are part of the Blue Cross/Blue Shield Complimentary Group 66759 001 coverage.
(5) The city has, the right if necessary, as determined by the city, to substitute an equal complimentary health care benefit which is currently being provided on 1-1-1997. The monthly premiums may be paid at 100% of city cost. All deductibles of the substituted health care are the responsibility of the eligible retiree or beneficiary.
(6) If a beneficiary is paying a COBRA benefit prior to 1-1-1997 to the city for complimentary health care coverage in Group 66759 000 that beneficiary, at the beneficiaries option, may elect COBRA coverage from Group 66759 001 effective 1-1-1997. All federal COBRA health care coverage rules will remain in effect from the original COBRA election date.
(Prior Code, § 2-238.1) (Ord. 874, passed 1-15-1990; Ord. 962, passed 3-8-1993; Ord. 1029, passed 1-6-1997)