CCR2003199.
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AMENDED
COMMON COUNCIL - CITY OF MUSKEGO
RESOLUTION #199-2003
APPROVAL OF CITY OF MUSKEGO
RETIREE HEALTH/DENTAL INSURANCE PLAN
FOR NONREPRESENTED EMPLOYEES
WHEREAS, The attached City of Muskego Retiree Health/Dental Insurance Plan for
Nonrepresented Employees provides the retiree with an amount equal to his/her
accumulated, unused sick time funds at the time of retirement to pay for his/her
continued health/dental insurance after the effective date of his/her retirement; and
WHEREAS, The Finance Committee reviewed the plan and recommended approval.
NOW, THEREFORE, BE IT RESOLVED That the Common Council of the City of
Muskego, upon the recommendation of the Finance Committee, does hereby approve
the attached City of Muskego Retiree Health/Dental Insurance Plan for Nonrepresented
Employees.
BE IT FURTHER RESOLVED That said Plan shall become a part of the City of
Muskego Personnel Code for Management and Nonrepresented Personnel.
DATED THIS 13th DA Y OF January ,2004
SPONSORED BY:
FINANCE COMMITTEE
Ald. Rick Petfalski
Ald. Nancy Salentine
Ald. Eric Schroeder
Deferred: 9/9/03, 9/23/03
This is to certify that this is a true and accurate copy of Resolution #199-2003 which
was adopted by the Common Council of the City of Muskego.
9/03jmb
~K fi1cvu~ Cïfjf<- Treasurer
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CITY OF MUSKEGO RETIREE HEALTH/DENTAL INSURANCE PLAN
FOR NONREPRESENTED EMPLOYEES:
1. Health Insurance
The City shall maintain a Section 125 "Premium Only" Plan, based on and consistent
with 26 D.S.C. ~ 125 (hereafter, the "Plan"), in which retirees may participate ifthey have
satisfied the requirements of the Wisconsin Retirement System for normal or early
pension and have at least ten (10) years of service with the City of Muskego at time of
retirement. The Plan shall provide the retiree with an amount equal to his/her
accumulated, unused sick time funds at the time of retirement to pay for hislher continued
health/dental insurance after the effective date of his/her retirement, calculated at hislher
last base rate of pay for up to 960 hours for those employees active on 12/31/87 and up to
720 hours for those employees hired on or after 1/1188.
The health/dental insurance benefits available to retirees shall be the same as those
benefits provided to active employees.
2. Cash Payout Option
In addition to the above-described retiree insurance benefit, the Plan shall include a
cash payout option provision by which the retiree may decline the health/dental premium
only insurance benefit and receive a lump sum payment (which will be taxable income for
the retiree upon hislher receipt ofthe payment). The cash payout option must be
exercised by written statement from the retiree at least eighteen (18) months prior to the
first day of his/her retirement. By exercise ofthis option, the retiree waives all rights to
future payment by the Plan toward health/dental insurance on hislher behalf. This time
period shall be reduced to the time between 21 days after the Effective Date of this
provision and the employee's retirement date if that period is less than eighteen (18) full
calendar months.
No change can be made in the retiree's selection or allocation of any Plan benefits
during the Plan year, unless a person experiences a "Family Status Change". A "Family
Status Change" is (1) marriage or divorce, (2) death ofa spouse or dependent child, (3)
adoption or birth of a child, (4) termination of a spouse's employment or change in status
from full-time to part-time or from part-time to full-time, or (5) any other event which
would allow a change of election pursuant to applicable law. Notwithstanding any
statement above, under no circumstances may a retiree utilize any option other than the
cash payout option after he/she has made that election; retirees will be presumed to have
selected health/dental insurance coverage unless they have exercised the cash payout
option at least 18 months prior to the effective date of their retirement.
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3. Additional Benefits
Upon the retiree becoming eligible to receive Medicare benefits, the Plan shall provide
the retiree with the options of Medicare supplemental insurance coverage or cash payout
of the unused balance of hislher full fund benefit.
4. General Limitations on Benefits
In the event a retiree dies before the person's full fund benefit has been
exhausted, the City will continue to pay the health/dental insurance premium for the
surviving spouse until the full fund benefit has been exhausted. Retirees or their spouses
who become eligible for Medicare or Medicaid during the period they are receiving
benefits pursuant to this provision shall, as a condition for the receipt of said benefits,
enroll in whichever ofthose programs is appropriate until the employee's full fund benefit
has been exhausted.
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Under no circumstances will the City make any payment on behalf of a retiree
if its total payments pursuant to this program exceed an amount equal to the dollar value
of the person's unused sick leave on the date ofhislher retirement, i.e., calculated at
hislher last base rate of pay for up to 960 hours for those employees active on 12/31/87
and up to 720 hours for those employees hired on or after 1/1188.
CCR2003199attachment
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--<' COMMON COUNCIL - CITY OF MUSKEGO
RESOLUTION #199-2003
i
APPROVAL OF CITY OF MUSKEGO ,/
RETIREE HEAL TH/DENT AL INSURANCE iiJ'Î.AN
FOR NON REPRESENTED EMPLOYijiS
I
/'
i!#
1'.
WHEREAS, The attached City of Muskego Retiree H lth/Dentallnsurance Plan for
Nonrepresented Employees provides the retiree wit an amount equal to his/her
accumulated, unused sick time funds at the time retirement to pay for his/her
continued health/dental insurance after the effe Ive date of his/her retirement; and
WHEREAS, The Finance Committee review ä the plan and recommended approval.
NOW, THEREFORE, BE IT RESOLVE hat the Common Council of the City of
Muskego, upon the recommendation the Finance Committee, does hereby approve
the attached City of Muskego Retire Health/Dental Insurance Plan for Nonrepresented
Employees.
BE IT FURTHER RESOLVED
Muskego Personnel Code for.
at said Plan shall become a part of the City of
anagement and Nonrepresented Personnel.
~~ ~6}. ()~f /o'/e-f,,&
I /0
,2003.
SPONSORED BY:
/ FINANCE COMMITTEE
Ald. Rick Petfalski
Ald. Nancy Salentine
Ald. Eric Schroeder
This is to certify that this is a true and accurate copy of Resolution #199-2003 which
was adopted by the Common Council of the City of Muskego.
Clerk-Treasurer
9/03jmb
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PROPOSED AMENDMENT
CITY OF MUSKEGO RETIREE HEALTH/DENTAL INSURANCE PLAN
FOR NONREPRESENTED EMPLOYEES:
1. Health Insurance
The City shall maintain a Section 125 "Premium Only" Plan, based on and consistent
with 26 V.S.C. ~ 125 (hereafter, the "Plan"), in which retirees may participate if they have
satisfied the requirements of the Wisconsin Retirement System for normal or early
pension and have at least ten (10) years of service with the City of Muskego at time of
retirement. The Plan shall provide the retiree with an amount equal to his/her
accumulated, unused sick time funds at the time of retirement to pay for his/her continued
health/dental insurance after the effective date of his /her retirement, calculated at his/her
last base rate of pay for up to 960 hours for those employees active on 12/31/87 and up to
720 hours for those employees hired on or after 1/1/88.
The health/dental insurance benefits available to retirees shall be the same as those
benefits provided to active employees.
2. Cash Payout Option
In addition to the above-described retiree insurance benefit, the Plan shall include a
cash payout option provision by which the retiree may decline the health/dental premium
only insurance benefit and receive a lump sum payment (which will be taxable income for
the retiree upon his/her receipt of the payment). The cash payout option must be
exercised by written statement from the retiree at least eighteen (18) months prior to the
first day of his /her retirement. By exercise of this option, the retiree waives all rights to
future payment by the Plan toward health/dental insurance on his/her behalf. This time
period shall be reduced to the time between 21 days after the Effective Date of this
provision and the employee's retirement date if that period is less than eighteen (18) full
calendar months.
No change can be made in the retiree's selection or allocation of any Plan benefits
during the Plan year, unless a person experiences a "Family Status Change". A "Family
Status Change" is (1) marriage or divorce, (2) death of a spouse or dependent child, (3)
adoption or birth of a child, (4) termination of a spouse's employment or change in status
from full-time to part-time or from part-time to full-time, or (5) any other event which
would allow a change of election pursuant to applicable law. Notwithstanding any
statement above, under no circumstances may a retiree utilize any option other than the
cash payout option after he/she has made that election; retirees will be presumed to have
selected health/dental insurance coverage unless they have exercised the cash payout
option at least 18 months prior to the effective date of their retirement.
-.
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3. Additional Benefits
Upon the retiree becoming eligible to receive Medicare benefits, the Plan shall provide
the retiree with the options of Medicare supplemental insurance coverage or cash payout
of the unused balance of his/her full fund benefit.
4. General Limitations on Benefits
In the event a retiree dies before the person's full fund benefit has been
exhausted, the City will continue to pay the health/dental insurance premium for the
surviving spouse until the full fund benefit has been exhausted. Retirees or their spouses
who become eligible for Medicare or Medicaid during the period they are receiving
benefits pursuant to this provision shall, as a condition for the receipt of said benefits,
enroll in whichever of those programs is appropriate until the employee's full fund benefit
has been exhausted.
Under no circumstances will the City make any payment on behalf of a retiree
if its total payments pursuant to this program exceed an amount equal to the dollar value
of the person's unused sick leave on the date of his /her retirement, i.e., calculated at
his/her last base rate of pay for up to 960 hours for those employees active on 12/31/87
and up to 720 hours for those employees hired on or after 1/1/88. Per Article 15.10 of the
Nonrepresented Personnel Code, employees upon termination from City Employment,
shall be entitled to pay at their last base rate for any accumulated unused sick leave pay up
to 960 hours for those employees active on 12/31/87 and up to 720 hours for those
employees hired on or after 1/1/88.
CCR2003199attachment