SIDE LETTER OF AGREEMENT BETWEEN
THE CITY OF HUNTINGTON BEACH
AND
HUNTINGTON BEACH MANAGEMENT EMPLOYEES' ORGANIZATION (MEO) Representatives of Management Employees Organization ('MEO") and the City of Huntington Beach (City) have met and conferred regarding the subject matter of this Side Letter of Agreement to modify the following section of the MEO MOU dated January 1, 2022 through December 31, 2024:
MANAGEMENT EMPLOYEES' ORGANIZATION
EXHIBIT B - RETIREE MEDICAL SUBSIDY PLAN
RETIREE SUBSIDY MEDICAL PLAN
Employees hired on or after October 1, 2014, shall not be eligible for this benefit.
An employee who has retired from the City shall be entitled to participate in the City-sponsored medical insurance plans, and the City shall contribute toward monthly premiums for coverage in an amount as specified in accordance with this Plan, provided:
A. The employee has a minimum of ten (10) years of continuous full-time City service, or is granted an industrial disability retirement; and
B. At the time of retirement, the employee is employed by the City; and C. Following official separation from the City, the employee is granted a retirement allowance by the California Public Employees' Retirement System.
The City's obligation to pay the monthly premium as indicated shall be modified downward or cease during the lifetime of the retiree upon the occurrence of any one of the following:
1. On the first of the month in which a retiree or dependent reaches age 65 or on the date coverage at age 65 under the City's medical plans shall be governed by applicable plan
2. In the event of the death of any employee, whether retired or not, the amount of the retiree medical insurance subsidy benefit which the deceased employee was receiving at the time of their death would be eligible to receive if they were retired at the time of death, shall be paid on behalf of the spouse or family for a period not to exceed twelve (12) months.
SCHEDULE OF BENEFITS
A. Minimum Eligibility for Benefits - With the exception of an industrial disability retirement, eligibility for benefits begin after an employee has completed ten (10) years of continuous full time service with the City of Huntington Beach. Said service must be continuous unless prior service is reinstated at the time of his/her rehire in accordance with the City's Personnel Rules.
Disability Retirees - Industrial disability retirees with less than ten (10) years of service shall receive a maximum monthly payment toward the premium for health insurance of $121 (one hundred twenty-one dollars). Payments shall be in accordance with the stipulations and conditions, which exist for all retirees. Payment shall not exceed dollar amount, which is equal to the full cost of premium for employee only.
C. Marital Status - Married unit retirees eligible for benefits under the Retiree Medical Subsidy Plan may both receive the benefit earned pursuant to Section D- Maximum Monthly Subsidy Payments, whether enrolled individually as the plan enrollee or whether enrolled as a dependent on any City- sponsored medical plan.
a. In the case where a retired unit member is married to a City employee (active or retired) outside of this bargaining unit, this provision shall remain applicable. b. This provision shall apply to State of California registered domestic partners the same as married spouses.
C. This provision shall become effective January 1, 2015, following MEO open enrollment for 2015 Medical plans.
Maximum Monthly Subsidy Payments - Payment amounts may be reduced each month as dependent eligibility ceases due to death, divorce or loss of dependent child status. However, the amount shall not be reduced if such reduction would cause insufficient funds needed to pay the full premium for the employee and the remaining dependents. In the event no reduction occurs and the remaining benefit premium is not sufficient to pay the premium amount for the employee and the eligible dependents, said needed excess premium amount shall be paid by the employee.
All retirees, including those retired as a result of disability whose number of continuous, full time years of City service prior to retirement City exceeds ten (10), shall be entitled to maximum monthly payment of premiums by the for each year of completed City service as follows:
Matine rene are ente
Years of Service Subsidy
10 $121
11 136
12 151
13 166
14 181
15 196
16 211
17 226
18 241
256
20 271
21 286
22 300
23 315
24 330
25 344
RETIREE SUBSIDY MEDICAL PLAN / MISCELLANEOUS PROVISIONS A. Eligibility:
1. The effective start-up date of the Retiree Subsidy Medical Plan for the various employee groups shall be the first of the month following retirement date.
2. A retiree may change plans, add dependents, etc., during annual open enrollment. The Human Resources Division shall notify covered retirees of this opportunity each year.
3. Years of service computed for the Retiree Subsidy Medical Plan are actual years of completed service with the City of Huntington Beach.
B. Benefits:
1. Retiree Subsidy Medical Plan includes the available group medical plans offered to active unit members at the time of retirement.
2. City Plans are the primary payer for active employees age 65 and over, with Medicare the secondary payer. Retirees age 65 and over have no City Plan options and are eligible only
3. Premium payments are to be received at least one month in advance of the coverage period.
C. Subsidies:
b. HMO.
c. Part A of Medicare for those retirees not eligible for paid Part A.
2. Subsidy payments will not pay for:
a. Part B Medicare.
b. Any other employee benefit plan.
c. Any other commercially available benefit plan.
d. Medicare supplements.
D. Medicare:
1. All persons are eligible for Medicare coverage at age sixty five (65). Those with sufficient credit quarters of Social Security will receive Part A of Medicare at no cost. Those without sufficient credited quarters are still eligible for Medicare at age sixty five (65, but will have to pay for Part A of Medicare if the individual elects to take Medicare. In all cases, Part B of Medicare is paid for by the participant.
2. When a retiree and their spouse are both sixty five (65 or over, and neither is eligible for paid Part A of Medicare, the subsidy shall pay for Part A for each of them or the maximum subsidy, whichever is less.
3. When a retiree at age sixty five (65 is eligible for paid Part A of Medicare and their spouse is not eligible for paid Part A, the spouse shall not receive subsidy. When a retiree at age sixty five (65 is not eligible for paid Part A of Medicare and their spouse who is also age sixty five (65is eligible for paid Part A of Medicare, the subsidy shall be for the retiree's Part A only.
E. Cancellation:
1. For retirees/dependents eligible for paid Part A of Medicare, the following cancellation provisions apply:
a. Coverage for a retiree under the Retiree Subsidy Medical Plan will be eliminated on the first day of the month in which the retiree reaches age sixty five (65. If such retiree was covering dependents under the Plan, dependents will be eligible for state and or federal COBRA continuation benefits effective as of the retiree's sixty-fifth (65th) birthday.
b. Dependent coverage will be eliminated upon whichever of the following occasions comes first:
i. After thirty six (36) months of COBRA continuation coverage, or ii. When the covered dependent reaches age sixty five (65) in the event such dependent reaches age sixty five (65) prior to the retiree reaching age sixty five (65).
c. At age sixty five (65) retirees are eligible to make application for Medicare. Upon eing considered "eligible to make application," whether or not application has beel nade for Medicare, the Retiree Subsidy Medical Plan will be eliminated
2. See provisions under "Benefits," "Subsidies," and "Medicare" for those retirees/dependents not eligible for paid Part A of Medicare.
3. Retiree Subsidy Medical Plan and COBRA participants shall be notified of non-payment of premium by means of a certified letter from Employee Benefits in accordance with provisions of the Memorandums of Understanding.
4. A retiree who fails to pay premiums due for coverage and is in arrears for sixty (60) days shall be terminated from the Plan and shall not have reinstatement rights.
Side Letter Implementation
The provisions contained in this side letter are effective following approval by the City of Huntington Beach City Council and will remain in full force and effect unless otherwise specifically modified, either by subsequent side-letter or a successor memorandum of understanding.
IN WITNESS WHEREOF, the parties have caused this SIDE LETTER AGREEMENT to be executed by and through their authorized officers on.
City of Huntington Beach Management Employees Organization By: - By:
Al Zelinka Debra Jubinsky
City Manager MEO President
By: By:
-
Theresa St. Peter Aaron Peardon
Interim Human Resources Director OCEA Representative
APPROVED AS TO FORM:
Michael Gates
City Attorney