City Funding of Retiree Health Benefit. City contributions to the retiree medical benefit will begin on July 1, 1998. Funding of this benefit will be set aside in a trust to be established by the City. The retiree medical benefit will be funded by a charge of 0.25% of payroll in each year of this Agreement, so that contributions are at 1% of the payroll in the fourth year of the Agreement. The City will fund the benefit at approximately 1% of the payroll for every year thereafter with the intent of achieving a funding level of 70% after 30 years. The funding will be ongoing to maintain a 70% funding level thereafter. Effective June 28, 2009, a total charge of twenty six thousand, six hundred and forty ($26,640) of employee payroll will be charged in the final three years of the Agreement so that contributions are at 1.764% in the final year of the Agreement. The purpose of the 0.764% increase in payroll contributions is to fund Pre Age 65 Retiree Health Insurance.
City Funding of Retiree Health Benefit. City contributions to the retiree medical benefit will begin on July 1, 1998. Funding of this benefit will be set aside in a trust to be established by the City. Effective with the 1998-2002 Memorandum Agreement, the retiree medical benefit was funded by a charge of 0.25% of payroll in each year of this Agreement, so that contributions are at 1% of the payroll in the fourth year of that Agreement. The City will fund the benefit at approximately 1% of the payroll for every year thereafter with the intent of achieving a funding level of 70% after 30 years. The funding will be ongoing to maintain a 70% funding level thereafter. Effective July 4, 2004, except for employees in Representation Unit R-1, an additional charge of 0.25% of payroll was charged each year in the final four years of the 2002-2008 Agreement so that contributions are at 2% in the final year of that Agreement. The purpose of that 1% increase in payroll contribution was to fund post age 65 Medicare supplement plans. As a result of this change, the amount the City contributes toward the post-65 Medicare Supplement coverage under the Retiree Health Premium Assistance Plan is $77 effective July 7, 2002 for all post 65 retirees formally represented by the union as well as future retirees. Effective July 1, 2008, for eligible retirees between the ages of 55 and 65 who retire on or after June 29, 2008 the amount the City contributes toward payment of the health care premium cost for the Retiree Health Premium Assistance Plan will increase by $50 per month in addition to the 4.5% that occurs on July 1 as provided in Section 30.3 (Pre Age 65 Retiree Health Insurance). Effective July 1, 2009, the amount the City contributes toward payment of the health care premium cost for the Retiree Health Premium Assistance Plan will increase by an additional $25 per month (i.e., an aggregate $75 per month increase) in addition to the 4.5% that occurs on July 1 as provided in Section 30.3 (65 Retiree Health Insurance). Effective July 1, 2011, the amount the City contributes toward payment of the health care premium cost for the Retiree Health Premium Assistance Plan will increase by an additional $25 per month (i.e., an aggregate $100 per month increase) in addition to the 4.5% that occurs on July 1 as provided in Section 30.3 (Pre Age 65 Retiree Health Insurance). The Union understands and acknowledges that the City conducted an actuarial study to determine the percentage of payroll it needed to set aside each...
City Funding of Retiree Health Benefit. City contributions to the retiree medical benefit will begin on July 1, 1998. Funding of this benefit will be set aside in a trust to be established by the City. The retiree medical benefit will be funded by a roll up charge of 0.25% of payroll in each year of this Understanding (i.e. 0.25% in the first year, 0.50% in the second year, 0.75% in the third year and 1.00% in the fourth year), so that contributions are at 1% of the payroll in the fourth year of the Understanding. The City will fund the benefit at approximately 1% of the payroll for every year thereafter with the intent of achieving a funding level of 70% after 30 years. The funding will be ongoing to maintain a 70% funding level thereafter. Effective June 28, 2009, the City will fund the retiree medical benefit at approximately 4.7%,
City Funding of Retiree Health Benefit. City contributions to the retiree medical benefit will begin on June 26, 2000. Funding of this benefit will be set aside in a trust to be established by the City. Effective with the 1998-2002 Memorandum Agreement, the retiree medical benefit was funded by a charge of 0.50% of payroll in the third and fourth years of that Agreement, so that contributions are at 1% of the payroll in the fourth year of that Agreement. The City will fund the benefit at approximately 1% of the payroll for every year thereafter with the intent of achieving a funding level of 70% after 30 years. The funding will be ongoing to maintain a 70% funding level thereafter. The Union understands and acknowledges that the City conducted an actuarial study to determine the percentage of payroll it needed to set aside each year and the rate of return of 7% it must achieve to fund the retiree health benefit provided in this Section. The City will conduct an actuarial study by an outside actuary of the retiree medical plan prior to June 30, 2002. After that time, the City will conduct an actuarial study by the outside actuary of the retiree medical plan every two to three years to review the funding status of the program. The outside actuary will be selected by mutual agreement of the parties. The Union and City agree that if the Actuary concludes that the City’s funding of this benefit by contribution of 1% of the payroll for all miscellaneous employees is insufficient to fully fund the retiree medical benefits, the City shall not be required to increase its funding for this benefit to more than 1% of the payroll for miscellaneous employees. In the event that there are insufficient funds in the trust to cover all retirees’ monthly health premiums, the City and the Union agree to meet and confer regarding the City’s distribution of its 1% contribution.
