G47-84 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.
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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
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