From: douglas krathwohl
To: Leticia Miguel
Subject: council packet for June 5th.
Date: Thursday, June 1, 2023 10:41:30 AM
Attachments: IMG_20230601_0001.pdf
This is the packet for June 5th. (second sending)
Thanks,
DDK
San Pablo City Council Meeting - June 5,2023
Comment Subiect: Medical Benefits Provided for Retired San Pablo Executives BACKGROUND: ln January 2023, a group of City of San Pablo retirees covered under the Executive Management lVemorandums of Understanding ([UOU 2AO1-2014) were notified that they would no longer be receiving the lifetime medical benefit reimbursement negotiated under that h/OU, if they had converted to lVledioare Part B. Itledicare conversion is required by PERS at age 65, and is the only health care coverage available to retirees. Our IUOU specifically guarantees a lifetime medical benefit for the retiree and spouse, at the level of coverage they had at retirement, and provides for increases to maintain that level. lt allows for a premium reduction only when that premium is reduced on [tledicare eligibility, a death etc. lt does not provide for the coverage to end, nor does it limit it.
We completely disagree with this reinterpretation and course of action. lt is not supported by the NIOU language that is cited by the City Staff and appears to be an arbitrary and entirely subjective reinterpretation of the 23-year lifetime benefit provision. This benefit is a significant reason we chose to remain with the City, even when it's finances were far more limited than now.
Since this action was irnplemented, requests for an audit, legal analysis or other information supporting this decision have been denied. Requests to speak with the City Manager have gone unanswered. We have only been told by the HR ft/anager that our IVIOU does not provide for tt/edicare Part B, and that further information about it is privileged and unavailable to us.
This decision has had considerable financial impact over the past six months, especially on retirees who have significant health issues. Our benefits were negotiated and contracted in good faith to loyal employees 23 years ago, and now the City is going to renege? Will you also be informing your current Executive [tlanagement Staff, whose MOU contains the same lifetime medical benefit clause as ours that it has been changed to end at age 65?
We ask that the City Council review this matter and acknowledge that [r/edicare Part B is mandated at age 65, and is therefore the only health insurance available to retirees and within the scope of the lifetime medical benefit mandated in our MOU's.
We have several affected parties that wish to comment, including three police chiefs, a city manager and a finance director. We also have signed testimonials from two former city council members who approved and voted to approve our lifetime medical benefit.
Attachments
(1) Douglas Krathwohl (7 pages);Subject Background June 5,2023, Statement, City Letter 2A23, Executive MOU Excerpt, PERS lt/edicare Notice
(2) Joseph Aita, (1page) Statement
(3) Walt Schuld, (2 pages) Statement, City letter 2O14 Excerpt (4) Bradley Ward, (1 page) Statement
(5) Brock Arner, (2 pages) Statement
(6) Shirley Wysinger (1 page) Statement
(7) Johnny Palmer (1 page) Statement
I
San Pablo City Council Meeting- Comment Section- June 5,2023 My name is Douglas Krathwohl and I retired as San Pablo Police Chief 1 Jan 2006, as an Executive tvlanagement member. I was afforded a lifetime medical benefit which is enumerated in a letter of acceptance from the City and in my existing MOU. I have received these benefits from the City of San Pablo until January 2023 when I was informed by the City that "there is no provision in the lttlOU that provides that the CiW to reimburse a retiree for the cost of fr/ledicare part 8." There was no acknowledgement of the lifetime medical benefit that is provided in the same MOU.
I completely disagree with this course of action. lt is not supported by the MOU language, and appears to be an entirely subjective reinterpretation of the lifetime benefit provision by current City staff.
There is no provision in the Executive Management MOU to stop reimbursing the retiree for their lifetime medical care, or to reduce coverage. As stated in section 4:
"The City shall pay the monthly supplemental allowance for the life of the retiree, or if the retiree has died, to the retiree's spouse." lt is to be paid at the cost level it was when I retired, and even increased when the cost of the plan increases (section 3). The only provisions for the level of funding to decrease are outlined in section 5, as when the monthly premium cost is reduced based upon Medicare eligibility, a death etc.
Medicare Part B is our medical coverage, Part A is hospital only. Medicare coverage is mandated as outlined in the PERS bulletin included, and the procedure to pay I\4edicare related costs is outlined on the CalPers website. PERS cannot pay for Medicare, the retiree must do so and provide proof they are enrolled in order to have any type of supplemental coverage through CalPers, which I do have' lwauld have no primary medicat coverage if not for Medicare Part B, wttich is inconsistent with the tifetime medicat coverage provision of Executive Management MOUs since 2001.
I asked the city attorney for the legal basis the City has to deny this benefit, if any, and to alter an approved existing contractual benefit. I have also attempted to contact the City N/anager, who did not return my call. The response I received from staff included another copy of my hXOU; no audit or supporting legal information as it was "privileged." lt is therefore, the reinterpretation of the N/IOU by City staff that has created this unfortunate situation, and not the tr/OU. We ask that the City revisit this decision, and acknowledge that mandated Medicare Part B is the health insurance of retirees over 65 years of age and therefore within the scope of the lifetime medical benefit provision of our MOU.
Douglas Krathwohl
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0 January 5, 2023
Douglas Krathwohl
Dear Mr. Krathwohl,
City of New Directions
The City of San Pablo ("City") recently conducted an audit of its retiree health payments. It has come to our attention that through an administrative error in calculating monthly payments for retiree medical contributions, the City overpaid you in the amount of $2,509.00 from July 2021 through December 2022.
According to the Memorandum of Understanding between the City of San Pablo and The San Pablo Executive Employees group at the time of your retirement, there is no provision in the MOU that provides that the City is to reimburse a retiree for the cost of Medicare Part B.
The City has been reimbursing you the cost of Medicare Part B in error and will discontinue that part of the reimbursement starting in January 2023.
Attached is an accounting of the amount to which you were correctly entitled each month, and the overpayments incorrectly made to your account.
The City is obligated to collect the overpayments in order to avoid an impermissible gift of public funds.
The City proposes three potential options for repayment of the excess amounts, as follows:
1. Repayment of entire excess in a one-time lump sum;
2. Repayment in 12 monthly installments;
3. Repayment in 24 monthly installments;
Please see the attached agreement. Upon choosing one of the above options, please complete and return the agreement to the City at the following address:
Alicia Platt, Human Resources Manager
City of 9an Pablo
Human Resources
1000 Gateway Avenue
San Pablo, CA 94806
If you believe the City should be reimbursing you for Medicare Part B, please provide me a copy of the agreement or documentation for further consideration. Please contact me by email at [email protected] or by phone at (510) 215-3002, if you have any questions or concerns.
Sincerely,
A�Pw.H-
Human Resources Manager
Enclosure
3 The City shall provide a monthly supplemental allowance to Executive Management empbyLes who retire under seryice retirement as regulated by the Public Employees Reiiremen-rt System. To be eligible for the monthly supplemental allowance, the retired Execuiive Management employee must meet the following conditions:
2)
3)
1)
4)
The employee shall have served with the City for at least 5 consecutive years immediately prior to retirement.
The employee shall have been enrolled in the City's medicaland dentalplan, cne year prior to retirement.
The monthly supplemental allowance is limited to the cost of medical and dental ptani {emptoyee, employee + 1, or family, whichever is applicable} which ihe employee is enrolled in at the time of retirement, less the City required centiibution paid directly to P-E.R.S. on behalf of the retiree' The albwance shall be increased if the cost of such plans increases' Although nothing in this section shall prevent a retiree from changing health plans, any such ciange in health plans shalt not result in a higher monthly supplemental allowance.
Thte City shall pay the monthly supplemental allo.wance for life of the retiree, ar if the retiree has died, to the retiree's spouse- For these purposes, the retiree's spouse is defined as the individual that the retiree is married to at the time ef application far retirement.
Thre monthly supplemental allowance shall be decreased when the premium is reduced Uased upon Medicare eligibility, in the event that the retiree or retiree's spouse dies, when family eligibility ceases, when the retiree cfta*ges to a medical plan with lesser premiums than the medical plan premiums atthe tinre of retirement, or retiree receives medical coverage from another source (e.g. other employment, spouse). lf the retiree remarries, the monthly sufplemental allowance will not increase to include the cost of the new spouse or family.
The City's obligation to pay the monthly supplemental allowance is conditioned upon receipt of a declaration, sworn by the retiree (or surviving spouse) upon penalty of perjury on a form provided by City, that retiree (iurviving spouse) remains eligible for medical coverage under this policy and is not ieceiving medical coverage from another source and that the retiree (surviving spouse) has received the monthly supplementalallowance from San Pablo and has not received health insurance coverage from another source during the preceding six months. Such declaration must be received by City at leJst twice a yeai, no later than January 31st and July 31st' City *itttuirninate the monthiy supplementalaltowance untilnotice is received in a timeiy manner. The supplemental allowance shall resume on a prorated s)
6)
6 4
basis upon receipt of the required declaration. No retroactive payments shall be made.
Should retiree (surviving spouse) lose coverage from the other source (employment, spouse), the monthly supplemental allowancewill resume upon receipt of the required declaration, and will continue only until any of the above listed events (item 5) occur."
The supplemental allowance shall be subject to all applicable Federal and .Qtatc innnrnc te:r ranr riatinnc
SECTION XVI. LIFE INSUEAICE
The City shatl pay premiums on a sixty thousand dollars {$60,000) life insurance polic,, for Executive Management Employees. An additional Life lnsurance policy shall be made available to dependents of the employee, as mandated by the ex-isting Life lnsurance Prcgram, at the total e-vpense of the empioyee.
ILE
Monthly allowances shall be as follows:
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Firrance Director
Chief of Police (Use of City Vehicle)
$300.00
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Upon attaining (15) years as City employees, the Community Services Director and Public Works Director
longevity incentive.
shall receive an additional three percent {3olo} of base saiary, es a Employees who inate employment shall be paid in a lump sum for all accrued vacation leave earned to the eflective date of termination. No such payment shall be made for vacation accumu lated contr-ary to the provisioi':s of this Agreement.
Accrual of salary and benefits paid to an empioyee shail cease upon termination of ernployment, except as follows: lf employee !s terminated by City for reesons other than disciplinary, he/she shall receive an amount equal to three (3) months of his/her regular salary as Severance Pay, on the last day of actual work, and three {3} manths of City-paid Medical and Dental coverage.
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A. Olfice ol Employer and Member Health Servlces
fl\ P.o. Box 942714
^.(lI7)^ Sacramenro , cA s4z2e-2r14
^A\\U//, (888) CaIPERS (225-7377)
A\\ttt////-- TDD- (916) 795-3240
calPERS FAX - (e16) 7e5-1277
384
San Pablo
Notice 069 (Rev.04/05)
PA Active
12t16t2405
Douglas D Krathwohl
NOTICE 69
HEQUIBEMENTS TO CONTINUE HEALTH COVERAGE AT RETIHEMENT
Conoratulations on your recent retirement ! We want to share with you updated information on how to carry your-Ca|PERS healih coverage into retirement. Enrollment in a CaIPERS Medicare health plan is not automatic when you retire.
At Retirement To obtain CaIPERS health benefit coverage in retirement, your retirement date must be no more than 120 days from your separation from employment.
Retirement
Within 30 days
of Separation
Retirement
Beh^reen 31
and 120 days
of Separatlon
Retirement
After 120 days
of Separation
Medicare
Notice
Your health coverage will automatically continue into retirement if your retirement,date is within 30 days oi ttre date you separated from employment (or less.than one full pay period). Check your retirement warrant to verify that the health plan and premium deductions are correct.
Because your premiums will lapse, CaIPERS will cancel your coverage if your retiremeni Oat6 is more than 30, but less than 120, days after the date you separated from employment. However, you can enroll by contacting CaIPERS at 1-888- 225-7377 witnin 60 days of your retirement date. You may also enroll during any luture Open Enrollment Period.
You are not entitled to enroll in the CaIPERS Health Program if you retire more than 120 days after separation.
California law specifies that Medicare'eligible health plan enrollees cannot be enrolled in a basic health plan. Within 90 days of retirement, yoq and any enrolled. dependents, who are eligible fbr Medicare Parts A and B, must e-nroll in ltrledicare and transfer to a Medicare Hbalth plan. lf you or your enrolled dependents are ineligible for ltledicare, you must provide proof of ineligibility to CaIPERS within 90 days of retirement.
Questions regarding tvledicare eligibility must be directed to the Sociat Security Administration at (Bhq 772-1213 ar your local Social Security office. lf you are under age 65 and you are eligible for lvledicare benefits (Parts A & B) bdsed on Socials-ecurity Administration's determination of disability, you must enroll in Medicare Part B and transfer to a [i/edicare health benefits plan, California Public Employees' Retirement System
www.calpersca.gov
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Under Age 65
HBS204 /OSOELO14 (LH)
OSHS2O4A
REQUIREMENTS TO CONTINUE HEALTH COVERAGE AT RETIHEMENT
(continued)
Age 65 and
Over
When you retire from active employment and your CaIPERS coverage ends, you and your tMedicare-eligible dependents must immediately enroll in IMedicare and transfer to a CaIPEHS Medicare health benefits plan., t-t
To enroll in Medicare, go to your local Social Security office and apply for trledicare PArt B during your Special Enrollment Period (SEP). Youl SEP is a chance to enroll in Medicare after you are no longer covered by a CaIPEFIS health plan through active employment.
The SEP is an 8-month period following the last month you were covered by a CaIPERS health plan. You may enroll while yor"r are stillworking or wait until your health coverage ends. To avoid a lapse in your CaIPERS coverage, you must enroll in tvledicare immediately after your health coverage ends.
You
your
o
will be required to complete a Certification of Medicare Status form, and if you or dependents are [vledicare eligible, provide:
o A copy of your lrrledicare card or a copy of your Notice of Entitlement from'the Social Security Administration indicating Medicare Part A and Part B o Documentation of your deferred enrollment in Paft B if you plan to continue working after age 65. (Copy of your pay stub showing health plan enrollment or name of employer and health plan identification')
If ineligible for Medicare, provide:
Documentation from the Socialsecurity Administration of your Medicare ineligibility. A current copy of "Your Social Security Statement" or letter of lvledicare'ineligibility from the Social Security Administration is sufficient. 7 HBS204 /
OSHS2O4B
My name is Joseph P. Aita, retired San Pablo Police Chief (June 4,2010) and Executive Management member. Upon retirement, I was provided a lifetime medical benefit which is documented in my existing MOU with the City of San Pablo. I have received this benefit, without issue, until receivin g an unregistered letter from City of San Pablo's HR Director, Alicia Platt on Febru ary 23, 2023 , stating the following:
"The City of San Pablo ("City") recently conducted an audit of its retiree health payments. It has come to our attention that through an administrotive error in calculating monthly payments for retiree medical contributions, the City overpaid you in the amount of $6,910.90 fro* July 2021 through December 2022. According to the (MOU) between the City of San Pablo and the San Pablo Executive Employees group at the time of your retirement, there is no provision in the IuIOU that provides that the City is to reimburse a retiree for the cost of Medicare Part B. The City has been reimbursing you the cost of Medicare Part B in eruor and has discontinued that part of the reimbursement starting in January 2023." This action is not supported by the language in the MOU, and I strongly disagree with the auditor's subjective reinterpretation of this lifetime benefit afforded Executive Management members. Moreover, there is no provision in the MOU to stop reimbursement, or to reduce coverage.
Considering the City has refused to respond to requests to provide the legal basis for denying this benefit and altering an approved existing contractual benefit, it is assumed they are relying on one or more subsections of Section XV - Retirement and Survivor Benefit. a @) statesl the premium is reduced based on Medicare eligibility. This does not apply because my premium was not reduced when I became eligible for Medicare. Medicare Part B is my mandated medical ooverage as outlined in the PERS bulletin, and the procedure to pay Medicare related costs is outlined on the CaIPERS website. None of the exceptions to Section XV apply, or justifr , an xbitrary change in our current medical coverage by the city.
I find it peculiar and insulting, that there has been no cooperative response from city staff members after repeafed attempts to meet and discuss this issue. Retirees have a right to ask questions of city staff, and as a public entrty the City has an obligation to meet in good faith.
Arbitrarily reinterpreting a retiree's MOU without any attempt to clariff in detail the reasons for doing so is unacceptable, unprofessional, and arrogant.
Thank you,
Joseph P. Aita, Retired Chief
San Pablo Police Department
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May 21,2023
To: San Pablo City Council
Matt Rodriquez, City lt/lanager
From Walt Schuld, Ret. Chief of Police/Asst. City Manager Subject: Retiree Medical Benefits
I retired as a San Pablo Police Chief and Assistant City Manager in May ?014 after 31 years of service.
I also returned for six months as an lnterim Assistant City [\4anager in2O14-15 and again as lnterim Chief of Police in 2017. One of my retirement benefits is lifetime medical which is enumerated in the Memorandum of Understanding (MOU) between the Executive Management Group and the City of San Pablo (2014). There is also a subsequent memorandum reaffirming those medical benefits (see attached). The memorandum clearly states on page two "a lifetime monthly SupplementalAllowance for Retirees will cover the cost of you and your wife's medical plan premiums (2-party) once you are retired pursuant to the Public Employee's Retirement System (CaIPERS)." I was informed by other retirees that the city was taking away part of the lifetime benefit after age 65 based on an audit. I left a message for the city manager in early April to discuss this issue, but no one would return my call. Most concerning is that I have not been notified that this benefit wilt be taken away from me at age 65. lf not for other retirees, I would have been blindsided by this decision.
Past City [Vlanagers, Councilmembers, and employees who were part of the negotiations and benefited from the IVIOU knew the intent of the lifetime medical benefit was for the city to provide all the costs associated with medical premiums, which the city has done for years. However, if the intent of Retiree Medical is in question a few simple phone calls to past City Nlanagers, Councilmembers, and employees can and will make it clear the intent of the language.
There may be a wording loophole/interpretation that a staff member believes he or she found in the I\ilOU which will save the city some money. However, there is a difference between what the city can do and what the city should do ethically. lt is unethical to promise a benefit, know the intent of that benefit, and then knowingly take it away because of a reinterpretation of the wording.
To add insult to injury, I discovered after retiring that PERS was docking me two years of retirement for working as an Assistant City [\4anager and Chief of Police. Unbeknownst to me at the time, PERS rules state a sworn employee cannot also serve simultaneously in the position of a non-sworn employee.
Human resources did not warn me about this regulation. PERS would not budge on the ruling, and I did not receive any compensation from the city. I lost tens of thousands of dollars over the years because I took on extra work and responsibility for the city. Now when I turn 65, it appears I will also lose part of another benefit that was promised if this decision stands.
I do not want anything that was not promised to me. I worked honorably for over three decades for the residents of San Pablo and during that time I have not worked for an unethical City Council or City Government. Therefore, I am asking the City Council and City ftlanagement to revisit its decision on this issue. This affects retirees who were some of the most hardworking and loyal employees.
Sincerely,
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Walt Schuld
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September 19,2014
lVIr. Walt Schuld
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Re: Benefits upon Retirement
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Cirr of'Nclv f)irertion.r
Dear ltflr. Schuld,
Summqrized below is information regarding your benefits through the City of San pablo due to your pending retirement. Your last day worked will be Thursday, May 1,2014.
Medical Plan & Supplemental Allowance
Your medicalcoverage as an active employee willexpire on Mav 31,2014.
As per Section XV (C) of the Executive lVlanagement Schedule of Benefits a lifetime monthly Supplemental Allowance for Retirees will cover the cost of you and your wife's medical plan premiums (2 pafty) once you are retired pursuant to the Public Employee's Retirement System (CaIPERS).
As a CaIPERS retiree, your medical coverage will be identical to your current plan.
A portion of the monthly premiums would be deducted (by CalpERS) from your retirement check. You pay only a portion of the premiums because the City will remit directly to PERS the required employer contribution.
The calculation below summarizes your monthly supplemental allowance [Section XV (c)l:
$1,673.00
- 1 19.00
Z-parly BIue Shield Access+ Bay Area
l oartv PEMHCA contribution oaid d bv Citv to PERS
$1 ,554.18 Reimbursed to Walt Schuld by the City (checks will be mailed to you by AFA, at the beginning of each month.
The lr/onthly Supplementat funds from American Fidelity Assurance (AFA) will either be mailed or deposited to your account via direct deposit, depending on your preference. lf in the future you need to contact AFA, please call Ashley tVlcDonnell, our Account ltrlanager, at (831) 224-7374.
13831 San Pablo Avenue, Building 3 o San Pablo, CA 94806 Moin: 5 I0-215-3000 o Fax: 510-215-30 I I
www.SanPabloCA.Gov
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Bradley Ward CPA, MBA
City of San Pablo Finance Director (retired)
May 29, 2023
Mayor Pineda and Members of the City Council
lwasthe Finance Directorforthe Cityof San Pablo, from L992 until 2013. lwas hired during a difficult transitory period when financial reports were not being done in a timely manner, and several substandard personnel were let go. I spent many days and nights getting the city's financial records in order, and won awards from GFOA and the first ever CAFR for San Pablo. ln 2013 when I was to retire, I stayed to help the new finance director for over a year and was instrurnental in the issuance of a new S55 million dollar bond in 2OL4.
I still work in San Pablo, as the controller of San Pablo EDC. I didn't say no to Leslay Choy when she needed help, and I provided it.
On May 23, 2A23, my faith in the city was shattered when I received a letter from Alicia Platt, Human Resources Manager when she asked me to reimburse the city for SZ,S09 which she later changed to 518,523.20.1n her attachment she states that "Retiree acknowledges that due to an administrative error .. City has overpaid Retiree" without evidence or documentation on how she arrived at this conclusion. How can I acknowledge something when I have not been provided with information on how this administrative error occurred? Numerous attempts by our group to get information on how this was determined have not been productive. Perhaps if we asked for the minutes from the ELG meetings we would be more successful. However, I am afraid she willjust say this is a personnel matter and is confidential.
The financial impact of this action is devastating, and hurts as much as the way I was treated. lt seems that the many hours I spent making San Pablo a better place are for naught. lthought I had a contractual retirement benefit I could count on, which was an incentive for me to work for San Pablo as long as I did.
I ask that the City Council review this very serious matter, and initiate remedial measures to restore our benefit as it was intended.
Bradley Ward
City Finance Director
Retired
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Mayor Pineda and Members of the City Council
My name is Brock Arner and I was the City Manager of San Pablo from July of z}OLuntil my retirement in May of 201-0. I assisted the Council in recruiting current City Manager Matt Rodriguez.
The purpose of this letter is to give you a factual history of the Council's commitment to reward management personnel with Iifetime medical insurance if they retired from PERS while serving San Palo after having incurred at least five years of service to the City prior to their retirement. The Council utilized this policy to retain qualified management staff and it has worked.
As an aside, there were just 12 applicants for the position of City Manager in 200L and I was not initially one of those applicants. I was serving as the interim Community Development Manager for the City.
Former Mayor Sharon Brown invited me to lunch and strongly encouraged me to apply for the open City Manager's position because none of the other applicants were sufficiently competent to work with Council in providing services to the City's residents and its businesses. I agreed to her suggestion and then Councilmembers, Sharon Brown, Joe Gomes, Barbara Vigel, Shirley Wysinger and Johnnie Palmer unanimously selected me.
I was fifty-four when I was sworn into office as the next City Manager in San Pablo. Candidly I did not consider any openings in other cities despite the offer of higher salaries because I was approaching l2
retirement and valued the City's policy of providing insurance coverage to its retiring management staff.
I think that Carol Robinson was the first person to be covered by this policy. She began retirement health coverage when her husband, former City Manager, Rory Robinson, passed away in 2000. So, this policy of providing retired management staff with the same health coverages as current employees has been honored by the City for more than twenty years.
Please follow the plain reading of the agreement and its spirit as shown by the signed agreement that was adopted the former City Council and its management staff. Please direct the City Manager to reimburse eligible retirees who have been provided Part B coverage for more than twenty years.
t3
To: San Pablo City Council
From: Shirley Wysinger, Former Mayor, City Council member Subject: Executive Management MOU, Retiree Medical Benefit My name is Shirley Wysinger and I served as a San Pablo City Council member for twelve years, which included two terms as Mayor.
I recently learned that an action by the City to eliminate Medicare Part B benefit reimbursements, affects at least a dozen or more Executive Management senior retirees. Furthermore, the City has not provided any of the retirees with justification to eliminate that benetit, other than staff's own reinterpretation of the existing language in our MOU. Needless to say, elimination of this benefit creates an unforeseen and serious burden for all of the atfeeted retirees.
The Executive Management MOU that established the Lifetime Medical supplemental allowance, was unanimously adopted by the City Council in 2000 and the language has remained the same in all of the subsequent MOUs. As a voting member of that Council, I assure you that it was rnfended to be a Lifetime Benefif as described, not a limited benefit ending at age 65 or it would have said so.
The provision for a lifetime medical benefit necessarily includes mandatory Medicare after age 65, since it is the only health insurance available to retirees, and is mandated by PERS.
Vested contractual benefits should not be vulnerable to later dismissal by City management without legal authority or recourse, simply because they disagree with them.
I ask that the City direct staff to meet with us to review and discuss this matter and resolve it.
Thank yoU,
Z
Shirley Wysin
Former Mayor, ncil Mem
/4
To: San Pablo City Council
From: Johnny Palmer, Retired Mayor, City Council member Subject: Executive N/anagement IVOU, Retiree ttledical Benefit My name is Johnny Palmer and I served as a San Pablo City Council member from 1994 until 2002, which included two terms as [/ayor.
ln January of this year, the City of San Pablo informed me that it would no longer provide my monthly medical supplemental allowance, which is contrary to the provisions of the City Executive ltlanagement MOU under which I retired from the City. I was told that there was an audit of the benefits I was paid, and I was overpaid by $t 100 which I was required to repay. The City has not made an audit report available to me, or any of the other retirees that I am aware of to support that decision.
I have since learned that this action by the City affects at least a dozen other Executive lVlanagement senior retirees, including those on mandatory tt/edicare. The City has not provided any of the retirees with their justification to eliminate our benefits, other than their reinterpretation of the existing language in our IVOU. Needless to say, elimination of this benefit creates an unforeseen burden for all of us, including me who had cancer surgery last week.
The Executive l/anagement MOU that established the Lifetime lVledical supplemental allowance, was unanimously adopted by the City Council in 2000 and the language has remained the same in all of the subsequent tt/OUs. As a voting member of that Council, I assure you that it was intended to be a Lifetime Benefit as described, not a limited benefit ending at age 65 or it would have said so. Vested contractual benefits should not be vulnerable to later dismissal by City management without legal authority or recourse, who simply disagree with them.
I ask that the City reconsider this action, and recognize that the provision for a lifetime medical benefit necessarily includes mandatory Medicare after age 65, since it is the only health insurance available to retirees.
Thank you,
Johnny Palmer
Retired [/ayor, Council ft/ember
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