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HomeMy WebLinkAboutG47-84 Ordinance No. G47-84 AN ORDINANCE ESTABLISHING AN EARLY RETIREMENT PROGRAM WHEREAS, the City Council of the City of Elgin desires to establish an early retirement program for its employees; and WHEREAS, participation by Elgin employees in the early retirement program shall be completely voluntary. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: Section I. Establishment There is hereby established an early retirement program (hereafter program) of the City of Elgin. The terms and conditions of this program and the right to participate therein shall be as set forth herein. Section 2. Eligibility Any full time employee of the City of Elgin who is either (a) between 55 and 60 years of age or older and has a minimum of 20 years of service with the City of Elgin and is vested in the Illinois Municipal Retirement Fund; or (b) 60 years of age or older, but who has not reached his 65th birthday and is vested in the Illinois Municipal Retirement Fund (eight (8) years of creditable service), is eligible to participate in the program upon application as provided herein. Participation shall be completely voluntary. Section 3. Enrollment Any person desiring to participate in the program pursuant to Section 2 shall file with the Personnel Deportment of the City of Elgin the following: a) Notice of intent to participate in the program acknowledging and agreeing to abide by the terms of this ordinance. b) Letter of resignation. c) Application for 1MRF retirement benefits. Section 4. Group Insurance Benefit Participants in this program(hereafter early retirees) shall be entitled to the following benefits until such benefits are terminated or expire pursuant to this ordinance. A. Early retirees who are 55 years of age or older, but who have not reached their 60th birthday, may at such early retiree's expense,participate in the City's management group insurance program. Participation costs for such early retirees shall be a sum equal to 150% of the then current monthly premium or as otherwise provided in an applicable collective bargaining agreement or letter of understanding whichever is less. This obligation shall be paid quarterly by the early retiree until such person reaches their 60th birthday with each payment being a sum equal to the required monthly contribution as provided above multiplied by 3 (each quarterly payment covers 3 months). Such quarterly payments shall be due and payable five (5) days prior to the quarter for which the payment is to be applied. Failure to timely pay said quarterly payment shall result in the early retiree's automatic removal from the group medical insurance program. Any early retiree so removed shall not be entitled to reinstatement or any further benefits under this program. Upon reaching the age of 60, early retirees who have continued to participatge in the City's group medical insurance program shall be entitled to continued participation in the program pursuant to sub-paragraph (B) and (C) hereof. Any person who retires before the oge of 60 and fails to participate on a continuous basis in the City's group insurance program until their 60th birthday shall not be eligible to continued insurance benefits provided in sub-paragraphs (B) and (C) B. Early retirees who retire on or after their 60th birthday or who retire on or after their 55th birthday and continue to participate in the City's management group medical insurance program until they reach of age of 60, shall continue to participate in such program, at no cost to the early retiree, up to a maximum of twenty-four (24) months from the date of retirement or reaching the age of 60, whichever occurs first. The participation in the insurance program as provided in this sub-paragraph(b) shall cease on the expiration of 24 months or upon the early retiree reaching the age of 65 or until the early retiree's death or upon becoming eligible for participation in Medicare, whichever occurs first. C. Provided continued participation has not ceased, expired or been terminated pursuant to this ordinannce, early retirees may continue to participate on a shared cost basis in the City's management group medical insurance program after the expiration of the 24 month no cost period specified in sub-paragraph (B). The early retiree's contribution shall be based on one-half of the then current monthly premium at the time of payment and the number of months of such continued participation until the early retiree reaches the age of 65. The early retiree's portion of the shared cost continued participation may be paid in either of the following methods. i) Prepayment: Payment may be made in a lump sum,either at the time an early retiree reaches the age of 60, if such early retiree retired prior to the age of 60 and has continued to participate in the City's group insurance program pursuant to sub-paragraph (A)above, or at retirement if the early retiree retires on or after their 60th birthday. This lump sum payment shall be on amount equal to the projected months of shared cost participation multiplied by one-half of the then current monthly premium. Projected months of shared cost participation shall be the number of months between the expiration of the group insurance benefit provided in sub-paragraph (B) above, which is fully funded by the City (24 months after retirement or reaching the age of 60, whichever is applicable) and the date upon which the early retiree reaches the age of 65. ii) Quarterly Payment: An early retiree may make quarterly payments, in advance, to continue the group insurance benefit after expiration of the group insurance benefit provided in sub-paragraph(b) above. The first payment shall be due prior to expiration of the initial 24 months of coverage funded by the City as provided in sub-paragraph (b) above and each subsequent payment shall be due and payable not less than five(5)days prior to the quarter for which the payment is to be applied. Each payment shall be a sum equal to one-half of the then current monthly premium multiplied by three(3)(each payment covers 3 months). Failure to timely pay any quarterly premium shall result in the early retiree's automatic removal from the group insurance program. Any early retiree so removed shall not be entitled to reinstatement or any further benefits �.• under this program. Section 5. Termination A. Participation in the City's group insurance program by an early retiree shall cease upon the death of a retiree or upon said retiree reaching the age of 65 or upon said retiree becoming eligible for participation in Medicare before age 65 or upon such early retiree's removal from this program for non-payment pursuant to Sections 4(A) or 4(C), whichever occurs first. B. In the event an early retiree dies while participating in this program, any prepayment for continued coverage as provided in Sections 4(A) or 4(C) above allocated for months subsequent to the month in which the death occurred shall be refunded to the estate of the deceased. Section 6. No Vested Rights The terms of this ordinance shall not be construed to create any vested rights in any person not participating in the program and this ordinance may be amended or repealed at any time and without notice. Section 7. Effective Date This ordinance shall be in full force and effect from and after is passage. r s/ Richard L. Verbic Richard L. Verbic, Mayor Presented: August 27, 1984 Adopted: August 27 , 1984 Vote : Yeas 7 Nays 0 Attest: s/ Marie Yearman Marie Yearman, City Clerk • r