G14-94 (2) 4 •
Ordinance No. G14-94
AN ORDINANCE
ESTABLISHING A PROGRAM FOR CONTINUATION OF HEALTH INSURANCE
WHEREAS, it is necessary and desirable to establish a
program for the continuation of group health insurance by
certain officers and employees who terminate their employment
with the City of Elgin.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF ELGIN, ILLINOIS:
Section 1 . That there is hereby established a program
for the continuation of the group health insurance benefits of
certain officers and employees whose employment is terminated.
Section 2 . That upon termination of employment the
following officers and employees may continue participation in
the city's group health insurance plan:
A. Retiring officers or employees participating in the
Illinois Municipal Retirement Fund who are 55 years of age and
have accumulated creditable service which together qualify the
employee for immediate receipt of retirement pension benefits
under Article 7 of the Illinois Pension Code.
B. Officers or employees in management employee groups .
who have been employed by the City of Elgin for twenty years
or more.
C. Elected officers, city clerk, city manager and
department heads upon retirement at age 55 or over.
Section 3 . That eligible officers and employees who
elect to continue participation in the city' s group health
insurance plan shall make payment of a monthly premium equal
to the cost of equivalent coverage provided to covered
employees who continue to be employed, except as otherwise
provided herein.
Section 4 . That payment of premiums shall be made in the
following manner:
A. Premiums shall be paid monthly and shall be due and
payable five (5) days prior to the date for which the payment
is to be applied. Failure to timely pay said monthly payment
shall result in the automatic removal from the group health
insurance program. Any person so removed shall not be
entitled to reinstatement or any further benefits under this
program. Upon reaching the age of 60, persons receiving an
IMRF pension and officers and employees who have continued to
participate in the City's group health 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 age of 60 and fails to participate on a continuous
basis in the city' s group insurance program until attaining
age 60 shall not be eligible to continued insurance benefits
provided in subparagraphs 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 health
insurance program until they reach the 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 this insurance program as
provided in this subparagraph 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 ordinance, early
retirees may continue to participate on a shared cost basis in
the city's management group health insurance program after the
expiration of the twenty-four (24) month no cost period
specified in subparagraph 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 .
Section 5 . That participation in the city' s group
insurance program shall cease upon the death of a participant
or upon said participant reaching the age of 65 or upon said
participant becoming eligible for participation in Medicare
before age 65 or upon such removal from this program for
non-payment pursuant to Sections 4A or 4C above, whichever
occurs first.
Section 6 . That 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 . That all ordinances or parts of ordinances in
conflict with the provisions of this ordinance be and are
hereby repealed.
Section 8. That this ordinance shall be in full force
and effect immediately after its passage in the manner
provided by law.
s/ George VanDeVoorde
George VanDeVoorde, Mayor
Presented: March 23, 1994
Passed: March 23, 1994
Omnibus Vote: Yeas 7 Nays 0
Recorded: March 24, 1994
Published: March 24, 1994
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk