§ 62-83. Retiree health care benefits.

(a)

Generally. The city shall establish employee benefit trust funds for the purpose of providing post employment health care benefits to eligible employees as allowed under the IRS Code. Such trust funds shall provide for payment of health care benefits in amounts to be determined by a board of trustees for such funds.

(b)

Eligibility. These post employment benefits are established for participating employees to include all full time employees who are employed by the city on or after January 1, 2007, except those that are eligible to participate under either the Police Pension Fund or the Fire Pension Fund. Eligibility for benefits shall be based on five or more continuous years of service as a fulltime employee of the city. Years of service that make an employee eligible to participate under either the Police Pension Fund or the Fire Pension Fund shall not be included in the number of continuous years of service for eligibility for these benefits.

(c)

Trust funds.

(1)

Trust A shall be established to include participating employees' classifications represented by the Professional Managers and Supervisors Association (PMSA), the National Conference of Firemen and Oilers/Service Employees International Union (SEIU), non-sworn members represented by the Police Benevolent Association (PBA), and non-represented employees excluding the classifications of Management I, Management II, and elected officials.

(2)

Trust B shall be established to include participating employees' in the classifications of Management I, Management II, and elected officials.

(3)

An employee's continuous years of service as of January 1, 2007 will be applied to either Trust A or Trust B as determined by the employee's classification on January 1, 2007.

(d)

Contributions.

(1)

The city shall contribute a percentage of participating employees' earnings, as defined in section 62-132 of the City Code, to Trust A. The percentage to be contributed will be determined by an annual resolution approved by the city commission.

(2)

The city shall contribute a percentage of participating employees' earnings, as defined in section 62-132 of the City Code, to Trust B. The percentage to be contributed will be determined by an annual resolution approved by the city commission.

(e)

Board of trustees.

(1)

The board of Trust A shall consist of one trustee elected from PMSA, one trustee elected from SEIU and one trustee elected from the non PMSA and SEIU eligible employees of the trust, the director of the finance department, or designee, and the director of the human resources department, or designee, and shall be vested with the authority and responsibility to develop such declaration of trust and attendant benefit plan.

(2)

The board of Trust B shall consist of the director of the finance department, or designee, the director of the human resources department, or designee, the city administrator, or designee, and two trustees elected at large from the trust participants and shall be vested with the authority and responsibility to develop such declaration of trust and attendant benefit plan.

(f)

Benefit payments.

(1)

Benefit payments shall be established by the respective board of trustees based on an actuarial study for full benefit payments and partial benefit payments. Benefit payments shall not commence prior to termination and employee must not be less than age 55.

(2)

Participating employees under Trust A shall have full benefit payments at the attainment of not less than 25 years of continuous service with the city. Partial payments shall be based on a pro rata percent of continuous years and months (rounded to the nearest month) of service to the maximum of 25 years.

(3)

Participating employees under Trust B shall have full benefit payments at the attainment of not less than 20 years of continuous service with the city. Partial payments shall be based on a pro rata percent of continuous years and months (rounded to the nearest month) of service to the maximum of 20 years.

(4)

Benefit payments to a participating employee with service under both trusts shall be limited to the greater of the maximum benefit paid under either Trust A or Trust B. The last trust under which an employee is employed shall pay the calculated amount allowed under the trust, with the remaining benefit paid from the previous trust. In no event shall any benefit payments or effective commencement dates be made prior to January 1, 2009.

(Ord. No. 4017-07, § 1, 1-29-2007; Ord. No. 4305-10, § 1, 10-18-2010)