G70-02Ordinance No. G70 -02
AN ORDINANCE
AMENDING AN ORDINANCE ESTABLISHING A PROGRAM FOR CONTINUATION OF
HEALTH INSURANCE
WHEREAS, it is necessary and desirable to amend the
ordinance which established 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, that Ordinance No. G6 -97 passed on
February 12, 1997, be and is hereby amended to read as follows:
"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 who are eligible for the
immediate receipt of retirement pension benefits under the
Pension Code of the State of Illinois.
B. Officers or employees who have been employed by the
City of Elgin upon retirement after 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.
B. Upon reaching the age of 60, officers and employees who
have continued to participate in the city's group health
insurance program as permitted by this ordinance shall be
entitled to continued participation in the program pursuant to
sub - paragraphs (C) and (D) 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 as provided in
subparagraphs C and D or in Section 5.
C. Retirees who retire on or after their 60th birthday, or
upon qualifying for retirement, or who retire after twenty (20)
years or more of service and continue to participate in the
City's group health insurance program until they reach the age of
60, shall continue to participate in such program, at no cost the
retiree, up to a maximum of twenty -four (24) months from the date
of reaching the age of 60 or from the date of retirement, which
ever occurs later. Notwithstanding anything to the contrary in
this subparagraph C, the participation in this insurance program
as provided in this subparagraph C shall cease on the expiration
of twenty -four (24) months or upon the retiree reaching the age
of 65 or upon becoming eligible for participation in Medicare,
which ever occurs first, or upon the retirees death.
D. Provided continued participation has not ceased,
expired or been terminated pursuant to this ordinance, retirees
may continue to participate on a shared cost basis in the city's
group health insurance program after the expiration of the
twenty -four (24) month no cost period specified in the preceding
subparagraph. The retiree's shared cost contribution shall be
based on one -half of the then current monthly premium at the time
of payment and such continued participation shall cease upon
failure to make timely payment, death or at age 65, whichever
occurs first.
Section. 5. Provided continued participation has not ceased,
expired or been terminated pursuant to this ordinance or
otherwise, retirees may continue to participate in the city's
group health insurance program upon said retiree reaching the age
of 65 or upon becoming eligible for participation in Medicare,
whichever occurs first. The retiree shall pay 100% of the
applicable premium. If a retiree fails to make the applicable
monthly payment by the beginning of the month, coverage will be
terminated. The right of a retiree to continue coverage under
the provisions of this section shall terminate when the retiree
(1) returns to active service, (2) exercises any pension refund
option available or accepts any separation benefit, (3) loses
his /her rights to pension benefits, or (4) dies."
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 from and after its passage and publication in the manner
provided by law.
Ed Scnock, Mayor
Presented: October 9, 2002
Passed: October 9, 2002
Omnibus Vote: Yeas: 7 Nays: 0
Recorded: October 10, 2002
Published: October 11, 2002
Attest:
Dolonna Mecum, City Clerk