HomeMy WebLinkAboutCity Council - 2004-34 RESOLUTION NO. 2004-34
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH
AMENDING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE
CITY AND THE HUNTINGTON BEACH POLICE OFFICERS' ASSOCIATION,
BY ADOPTING THE SIDE LETTER OF AGREEMENT
WHEREAS, on May 21, 2001, the City Council of Huntington Beach adopted Resolution No.
2001-28 for the purpose of adopting the 2000/03 Memorandum of Understanding (MOU) between the City
and the Huntington Beach Police Officers' Association(HBPOA); and
On December 16, 2002, the City Council of Huntington Beach adopted Resolution No. 2002-126
which reflected changes, corrections., and clarifications to the MOU that were reflected in a Side Letter of
Agreement between the City of Huntington Beach and the HBPOA ("2002 Side Letter of Agreement");
Subsequent to the adoption of the MOU and the 2002 Side Letter of Agreement, the City of
Huntington Beach and the HBPOA agreed to changes, corrections, and clarifications to the MOU that are
reflected in a Side Letter of Agreement between the City of Huntington Beach and the HBPOA ("Side
Letter of Agreement") attached hereto as Exhibit A and incorporated herein by this reference;
The Side Letter of Agreement replaces and nullifies the 2002 Side Letter of Agreement.
NOW THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Huntington
Beach as follows:
Section 1 . The Side Letter of Agreement attached hereto as Exhibit A is approved and
Adopted.
Section 2. The Side Letter of Agreement amends the MOU between the City of Huntington
Beach and the HBPOA.
Section 3. The Side Letter of Agreement replaces and nullifies the 2002 Side Letter of
Agreement.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular
meeting thereof held on the 17th day of May , 2004.
City Clerk ayor
REV WED AN PP O ED.- PROVED AS TO FORM:
3 City Administrator ity Attorn
D
INITIATED PPROVED:
Director Ydmi-n is-iaW Services
GARE50LUTM2004WA side 5-10-04,doc
2004-34
Exhibit A
Side Letter Agreement— Health and Other Insurance Benefits
Between the City of Huntington Beach
and the Huntington Beach Police Officers Association
Effective: Upon City Council Approval
This is to memorialize an agreement between the City of Huntington
Beach (City) and the Huntington Beach Police Officers Association (POA) to
reflect agreed upon changes, corrections or clarifications to Article X — Health
and Other Insurance Benefits of the existing Health and Other Insurance Benefits
Side Letter (adopted December 16, 2002) and Article XI — Retirement and Exhibit
C of the existing 2000-2003 Memorandum-of-Understanding (adopted May 21,
2001). All other terms and conditions of the existing side letters and the
Memorandum-of-Understanding remain in full force and effect.
Both parties agree to continue the meet and confer process in good faith
as required by the Meyers-Milias-Brawn Act. The goal of the continued meet and
confer process is a new Memorandum-of-Understanding between the City and
the POA. The subject of the continued meet and confer process shall be all
issues between the parties concerning wages, hours, and other terms and
conditions of employment.
This agreement is to be incorporated into any future Memorandum-of-
Understanding between the City and the POA.
Article X — Health and Other Insurance Benefits, Article XI — Retirement
and Exhibit C shall now read:
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2004-34
ARTICLE X - HEALTH AND OTHER INSURANCE BENEFITS
A. Health
The city shall continue to make available group medical, dental and vision
benefits to all association employees.
1. Eligibility Criteria and Cost:
a. Year 2004 Premiums
Effective January 1, 2004 health premiums for 2004 are as set forth
in the chart below:
1�e1ta ®ei
Marethly City Plan t lealth Net ASP
Fremium __.Qer►tal Dsrntal
PDS HMO cr
E $481.40 $313.01 $48.93 $24.38 $18.07
EE. .t.........:.:.::�: 951.96 685.85 93.42 41.46 18.07
EE + 2 or mot 1,165.54 903.97 132.47 63.40 18.07
b. Employer Contributions
The City's maximum monthly employer contribution for health and
other insurance premiums are set forth in the charts below.
January 3, 2004 through March 26, 2004.
Math / Y�t S3h3 3 3 R 3 3ltP 3
V-
D
EImp Ay F'lar t ofMal
-con on, POS3 ?). : wg-
HMa��o
$429.93 $330.19 $42.88 $23.00 $17.58
EE 1 758.41 611.67 81.82 39.11 17.58
EE +2 br rn&b 907.50 776.34 116.36 59.81 17.58
2
2004-34
March 27, 2004 and until the PEMHCA program is in place.
City Heap
Delta
R"`,,!]��
on t
Delta,
V
Empldye en Wn
PI'Ah
N6
..........
Eontribt to .......................
"U ...........
K. S_
MON'
.............
EE $373.77 $274.03 $42.88 $23.00 $17.58
702.25 555.51 81,82 39.11 17.58
Z or more' 851.34 720.18 116.36 59.81 17.58
In no event shall the employee be entitled to the difference between
the employer contribution and the premiums for insurance plan(s)
selected by the employee.
c. Employee Contributions
Effective the first pay period beginning in January 2004, employee
pre-tax payroll deduction contributions for 2004 premiums are set
forth in the charts below:
i. Bi-Weekly Employee Contributions
January 3, 2004 through March 26, 2004.
......................................
Sj Weekly City 3,-M H bi' i®r'
0
'!!IN
Plan .............
mplQyee PI OFFS
e
......... ...
'-K
" Ot. HMO,
$23-76 $0.00 $3.83 $0.64 $0.23
89.33 33.99 7.40 1.08 0.23
More
d'EE'+21' w 119.10 58,57 10.37 1.66 0.23
March 27, 2004 and until the PEMHCA program is in place.
IWonthlyIty
6a
p'.9yee Conv11
0,
n PQa HM _41
to io biA
EE $49.68 $17.88 $3.83 $0.64 $0.23
' EE 1 115.25 59.91 7.40 1.08 0.23
E E'�;4,,,,2 b, mere 145.02 84.49 10.37 1.66 0.23
r M �1`
3
2004-34
ii. Monthly Employee Contributions
January 3, 2004 through March 26, 2004.
Monhly ,a ;sty ..............
W
D
............ ...............
.E mp,
QY�e o
....................
.. ...... 'el
ti
, t" .
C0 n ROS .................
..........
m EE $51.47 , $0.00 $8.30 $1.38 $0.49
193.55 73.64 16.04 2.35 0.49
more: 258.04 126.91 22.47 3.59 0.49
�
March 27, 2004 and until the PEMHCA program is in place.
Monthlydity''
..........................
.a
.-h j,
PI,
Employee
... .... ... ......................PPQV
filet Dental Del
.... ......
0"'th uto'C -b .............
$107.63 $38.73 $8.30 $1.38 $0.49
EE 1 249.71 129.80 16.04 2.35 0.49
F -2- 6 314.20 183.07 22.47 3.59 0.49 j
d. Future Premiums
The City "caps" its contributions toward monthly group medical,
dental and vision plan premiums, by category (EE, EE + 1, and EE +
2 or more) and plan, at the year 2004 level.
Until the City Council approves a successor to this Memorandum-of-
Understanding, the City's 2004 contribution caps will remain in place,
even if premium increases result in these additional costs being
borne by the employee.
e. Dependent Health Coverage until the PEMHCA pro-gram is in place
The city will assume payment for dependent coverage for the City
Plan POS, Health Net HMO, Delta Dental, and VSP effective the first
of the month following the month during which the employee
completes one (1) year of full time continuous service with the city.
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2004--34
2. Public Employees' Medical and Hospital Care Act
The City will promptly begin the contract process with the California
Public Employees' Retirement System (CaIPERS) to implement the
provisions of the Public Employees' Medical and Hospital Care Act
(PEMHCA), as set forth in the California Government Code, to provide
medical insurance coverage for all employees represented by the
association.
The contract to provide medical coverage through PEMHCA shall not be
construed as a guarantee of a continuing benefit. A retiree's right to
receive a City contribution, and the City's obligation to make payment on
behalf of retirees, shall only exist as long as the City contracts with
CaIPERS for medical insurance. In addition, while the City is in
PEMHCA, its obligations to make payments on behalf of retirees shall be
limited to the minimum payment required by law.
The City may elect to terminate its participation in the PEMHCA program
by agreement between the association and the City or if the City elects
to impose termination of its participation in the PEMHCA program on the
association.
Until the City Council and the CaIPERS Board approve the City's
participation in PEMHCA and the City is fully participating in PEMHCA
the rates and plans stated above (Article X_A.1_a) will continue to apply
to all employees.
a. _Employer Contributions
Upon the City's full participation in PEMHCA the following premiums
shall apply:
i. City_Contribution — Health Insurance
The City shall contribute on behalf of each employee, the
following sum per month toward the payment of premiums for
medical insurance under the PEMHCA program. (The following
monthly sum represents the parties' understanding of the
minimum monthly contribution required by law (and assumes the
City remains in PEMHCA throughout this time period). If the
mandated minimum is increased from these figures, the City shall
make the appropriate adjustments by decreasing the
supplemental benefit set forth in subsection 1ii" below.)
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2004-34
2004 $32.20
2005 $48.40
2006 $64.60
2007 $80.80
2008 $97.00
2009 and beyond Shall be adjusted annually
by the CalPERS Board
ii. City Contribution — Dental and Vision Insurance
The City shall contribute on behalf of each employee, the
following sum per month toward the payment of premiums for
dental and vision insurance under the city sponsored programs.
March 27, 2004 through December 31, 2004
$42.88 $23.00 $0.00
81.82 39.11 0.00
116.36 1 59.81 1 0.00
The effective date for all dental and vision coverage [i.e.,
employee and dependent(s)] is the first of the month following one
full month of employment.
Until the City Council approves a successor to this Memorandum-
of-Understanding, the dental and vision insurance contribution
caps will remain in place, even if dental and vision insurance cost
increases result in these additional costs being borne by the
employee.
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2004-34
iii. Supplemental Benefit— Health and Vision Insurance
In addition to the amount specified above (Article X.A.2.a.i and
X.A.2.a.ii), the City will contribute up to the following amounts as a
supplemental benefit to PEMHCA health and vision insurances:
Employee only $358.75 $259.41
Employee + one $687.63 $540.89
Employee + two or more $836.72 $705.56
The employee will have no entitlement to any portion of the
supplemental benefit not utilized by the employee. Any cost for
health and vision insurance benefits that exceeds the City's
supplemental benefit to health insurance contribution is the
responsibility of the employee and the employee will cover the
cost through a payroll deduction. To the extent permitted by law
an employee's payroll deduction will be pre-tax.
So long as the City remains in PEMHCA the supplemental benefit
to health and vision insurance contribution shall be decreased
every January 1, by an amount equal to the City's increased
contribution set forth in Article X.A.2.a.i above. Each year from
January 1, 2005 until January 1, 2009, the monthly-required
PEMHCA contribution is expected to increase $16.20. If the
monthly-required PEMHCA contribution is increased by more than
$16.20 per month, then the amount of the supplemental benefit
will be decreased by that higher amount. After January 1, 2009,
the CalPERS Board will determine the monthly-required PEMHCA
contribution; if it increases then the amount of the supplemental
benefit will be decreased by that higher amount.
Until the City Council approves a successor to this Memorandum-
of-Understanding, the supplemental benefit to health and vision
insurance contribution caps will remain in place, even if health
and vision insurance cost increases result in these additional
costs being borne by the employee.
b. Retiree (Annuitant) Coverage
As required by the Government Code retired employees (annuitants)
shall have available the ability to participate in the PEMHCA
program. The City's requirement to provide retirees and/or
annuitants medical coverage is solely governed by the Government
Code requirement that requires the City to extend this benefit to
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2004-34
retirees (annuitants). While the City is contracted with CalPERS to
participate in the PEMHCA program, CalPERS shall be the sole
determiner of eligibility for retiree and/or annuitant to participate in the
PEMHCA program.
L City Contribution (Unequal Contribution Method)
As allowed by the Government Code and the CalPERS Board,
and requested by the association, the City shall use the
Unequal Contribution Method to make City contributions on
behalf of each retiree or annuitant. The following is an
example of the sum per month toward the payment of
premiums for medical insurance under the PEMHCA medical
insurance program for a retiree or annuitant. The City shall
make these payments only while the City is a participant in the
PEMHCA program.
2004 $1.00
2005 $3.42
2006 $6.65
2007 $10.69
2008 $15.54
2009 and beyond Shall be adjusted annually
by the CalPERS Board
ii_ City's Termination of Participation in the PEMHCA program
The City's requirement to provide retirees (annuitants) medical
coverage is solely governed by the Government Code
requirement that PEMHCA agencies extend this benefit to
retirees (annuitants). If by agreement between the association
and the City or if the City elects to impose termination of its
participation in the PEMHCA program retirees (annuitants)
shall no longer be eligible for City provided medical insurance.
In the event that the city terminates its participation in the
PEMHCA program, the retiree medical subsidy program in
place in Resolution No. 2001-28 Exhibit C to the Memorandum
of Understanding shalt be reinstated. The City shall make any
necessary modifications to conform to the new City sponsored
medical insurance plan.
8
2004-34
c. Additional_Costs for Participation in the PEMHCA program
i_ Retiree and/or Annuitant Coverage
The association shall pay to the City an amount equal to $1.00
per month for each additional retiree and/or annuitant in the
bargaining unit who elects to participate in the PEMHCA plan
but is not participating in the City sponsored retiree medical
program as of the beginning of a pay period after the
PEMHCA program is in place.
Each January 16t the amount per month paid to the City for
each retiree and/or annuitant described above shall increase
by the amount PEMHCA requires the City to pay on behalf of
each retiree (annuitant). Article X.A.2.b.i provides an example
of expected payments per retiree or annuitant per month.
In the event of passage of State Legislation, Judicial Rulings,
or CalPERS Board Actions that increases the mandatory
minimum monthly contribution for retirees (annuitants), the
association shall pay an equal amount to the City.
Payments shall be made the first of the month (following
implementation). If the association fails to make timely
payments for two consecutive months, the City shall
implement a decrease in the supplemental benefit contribution
to health insurance for each unit employee by an amount
equal to the total increased cost paid by the City. [For
example, if the increased cost for retirees equals $6,000 per
year, the monthly supplemental benefit for each employee will
be decreased as follows: $6,000 divided by twelve (months) =
$500, which is then divided by the number of employees
receiving supplemental benefits.]
ii. Excess Administrative Fees
The association shall remit to the City its pro rata share of any
administrative fees charged by CaIPERS that exceed that
employee organization's pro-rata share of the administrative
fees the City will no longer have to pay to hire employees to
administer the City's plan.
d. Impact of Programmatic Changes
In the event of passage of State Legislation, Judicial Rulings, or a
CaIPERS Board Action, which in any way changes the employer's
contribution to the PEMHCA medical plan, the City shall terminate its
contract with CaIPERS at its earliest opportunity, unless the
association pays the full cost of the change. Examples of
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2004-34
programmatic changes which would change the City's employer's
contribution, include, but are not limited to, the CaIPERS Board
decision to assess a Contingency Fund fee, eliminating the
differential contribution for retirees set forth in Government Code
Section 22857(b), and/or eliminating the ability to differentiate
between the minimum insurance contribution and the supplemental
benefit contribution.
In order to remain within the CalPERS medical plans in the event of
passage of State Legislation, Judicial Rulings, or a CalPERS Board
Action that changes the employer's contribution to the CaIPERS
medical plan, the association shall pay the full cost of the change(s)
to the employer contribution or the City shall terminate its contract
with CaIPERS at its earliest opportunity.
The association may request termination of the City's contract with
CaIPERS after the announcement of State Legislation, Judicial
Rulings, or a CaIPERS Board Action that changes the employer's
contribution to the CalPERS medical plan.
3. Medical Cash-Out
If an employee is covered by a medical program outside of a city-
provided program (evidence of which must be supplied to Administrative
Services Department), they may elect to discontinue city medical
coverage and receive ninety two dollars and thirty-one cents ($92.31) bi-
weekly to deposit into their Deferred Compensation account or any other
pre-tax program offered by the city.
4. Section 125 Employee Plan
The City shall provide an Internal Revenue Code section 125 employee
plan that allows employees to use pre-tax salary to pay for regular
childcare, adult dependent care and/or medical expenses as determined
by the Internal Revenue Code.
B. Life Insurance
The city will provide $40,000 term life insurance without evidence of
insurability other than evidence of working full time. Additional life insurance
may be purchased, at the employee's cost, with evidence of insurability.
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C. Income Protection Plan
I. The existing long-term disability program provided by the association
shall remain in effect for all unit employees. This program provides, for
each incident, pay up to sixty (60) calendar days at the employee's
salary rate (excluding overtime, but including any special pay in effect at
the time of illness or injury). After the sixty (60) calendar day period, the
employee will be covered by an insurance plan paid for by the City,
which will provide 66 2/3 percent of the employee's salary rate
(excluding overtime and any special pay).
Disability Due to Accident Disability Due to Illness
First 60 Days Regular Pay Regular Pa
Next 24 Months 66 213% of Base Pay Same
To Age 65 66 2f3% of Base Pay None
2. Days and months refer to calendar days and months. Benefits under the
Plan are integrated with Workers' Compensation, Social Security and
other non-private program benefits to which the employee may be
entitled. Disability is defined as the inability to perform all of the duties of
regular occupation during two years and thereafter the inability to
engage in any employment or occupation for which he/she is fitted by
reason of education, training or experience.
3. Rehabilitation benefits are provided in the event the individual, due to
disability, must engage in other occupation. Plan will provide 66 213% of
difference between regular pay and pay of other occupation.
4. Survivors benefit continues plan payment for three (3) months beyond
death.
5. The program shall be subject to the terms and conditions contained in
the agreement between the parties attached hereto and incorporated
herein as Exhibit "I".
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2004-34
ARTICLE XI - RETIREMENT
A. Benefits:
1. 3% Age 50 Plan - The City shall provide the 3% @ Age 50
retirement formula set forth in California Government Code Section
21362.2 for all safety employees represented by the Association.
If at any time after the implementation of the 3% at age 50 formula
the City is required to make retirement contributions with respect to
employees represented by the Association, the amount with
respect to which each employee is reimbursed pursuant to Article
IX.B.1 shall be reduced by a percentage equal to one-half of the
percentage of compensation earnable the City is required to pay in
retirement contributions to PERS, not to exceed 2.25%. For
example, if the City is required to contribute an amount equal to 2%
of each employee's "compensation earnable." The amount of the
reimbursement set forth in Article VI.0 shall be reduced from 9% of
the employee's compensation earnable to 8% of the employee's
compensation earnable. If, on the other hand, the City is required
to contribute an amount equal to 8% of each employee's
"compensation eamable," the amount of the reimbursement set
forth in Article IX.13.1 shall be reduced to 6.75% of the employee's
compensation earnable.
2. 1959 Survivors' Benefit Level IV - Members of the city's safety
retirement plan shall be covered by the Fourth Level of the 1959
Survivor Benefit.
3. Self-Funded Supplemental Retirement Benefit - In the event a
PERS member elects Option #2 (Section 21333) of the Public
Employee's Retirement law, and the member is a unit employee
who was hired prior to July 6, 1998, the CITY shall pay the
difference between such elected option and the unmodified
allowance which the member would have received for his/her life
alone. This payment shall be made only to the member, shall be
payable by the CITY during the life of the member, and upon that
member's death, the CITY's obligation shall cease. The method of
funding this benefit shall be at the sole discretion of the CITY. All
unit employees hired after the adoption of this MOU shall not be
eligible for this benefit. (Note: The options provide that the
allowance is payable to the member until his/her death, and then
either the entire allowance, Option 2, or one-half of the allowance,
Option 3) is paid to the beneficiary for life.)
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2004-34
4. 2% cb, A-ge 55 Plan — Members of the city's miscellaneous
retirement plan with the California Public Employee Retirement
System (CaIPERS) shall receive the 2% at age 55 CaIPERS
retirement plan.
a. Pre-Retirement Optional Settlement 2 Death Benefit
Members of the city's miscellaneous retirement plan shall be
covered by the Pre-Retirement Optional Settlement 2 Death
Benefit.
b. Fourth Level of 1959 Survivor Benefits
Members of the city's miscellaneous retirement plan shall be
covered by the Fourth Level of the 1959 Survivor Benefit.
5. Medical Insurance for Retirees:
As required by the Government Code, while the City is contracted
with CaIPERS to participate in the PEMHCA program, retired
employees (annuitants) shall have available the ability to participate
in the Public Employees' Medical and Hospital Care Act (PEMHCA)
program. CaIPERS shall be the sole determiner of eligibility for
retiree (annuitant) to participate in the PEMHCA program.
The City's requirement to provide retirees (annuitants) medical
coverage is solely governed by the Government Code requirement
that PEMHCA agencies extend this benefit to retirees (annuitants).
If by agreement between the association and the City or if the City
elects to impose termination of its participation in the PEMHCA
program retirees (annuitants) shall no longer be eligible for City
provided medical insurance.
In the event that the city terminates its participation in the PEMHCA
program, the retiree medical subsidy program in place in Resolution
No. 2001-28 Exhibit C to the Memorandum of Understanding shall
be reinstated. The City shall make any necessary modifications to
conform to the new City sponsored medical insurance plan.
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2004-34
EXHIBIT C — SERVICE CREDIT SUBSIDY PLAN .
An employee who has retired from the City and meets the plan participation
requirements shall receive a monthly Service Credit Subsidy to reimburse the
retiree for the payment of qualified medical expenses incurred for the purchase of
medical insurance.
Plan Participation Requirements
1. At the time of retirement the employee has a minimum of ten (10)
years of continuous regular (permanent) City service or is granted
an industrial disability retirement; and
2. At the time of retirement, the employee is employed by the City;
and
3. Fallowing official separation from the City, the employee is granted
a retirement allowance by the California Public Employees'
Retirement System (CalPERS).
The City's obligation to pay the Service Credit Subsidy as indicated
shall be modified downward or cease during the lifetime of the
retiree upon the occurrence of any one of the following:
a. During any period the retired employee is eligible to
receive or receives medical insurance coverage at the
expense of another employer, the payment will be
suspended. "Another employer" as used herein means
private employer or public employer or the employer of a
spouse. As a condition of being eligible to receive the
Service Credit Subsidy as set forth in this plan, the City
shall have the right to require any retiree to annually
certify that the retiree is not receiving or eligible to
receive any such medical insurance benefits from
another employer.
If it is later discovered that a misrepresentation has
occurred, the retiree will be responsible for
reimbursement of those amounts inappropriately
expended and the retiree's eligibility to receive further
benefits will cease.
b. On the first of the month in which a retiree or dependent
reaches age 65 or on the date the retiree or dependent
can first apply and become eligible, automatically or
voluntarily, for medical coverage under Medicare
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2004-34
(whether or not such application is made) the City's
obligation to pay Service Credit Subsidy may be adjusted
downward or eliminated.
G. In the event of the death of an eligible employee, whether
retired or not, the amount of the Service Credit Subsidy
benefit which the deceased employee was eligible for at
the time of his/her death shall be paid to the surviving
spouse or dependent for a period not to exceed twelve
(12) months from the date of death.
4. Minimum Eligibility for Benefits — With the exception of an industrial
disability retirement, eligibility for Service Credit Subsidy begins after
an employee has completed ten (10) years of continuous regular
(permanent) 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.
To receive the Service Credit Subsidy retirees are required to
purchase medical insurance from City sponsored plans. The City shall
have the right to require any retiree (annuitant) to annually certify that
the retiree is purchasing medical insurance benefits.
5. Service Credit Subsidy — Payment shall not exceed dollar amount,
which is equal to the qualified medical expenses incurred for the
purchase of city sponsored medical insurance.
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2004-34
7. Maximum Monthly Service Credit Subsidy Payments - All retirees,
including those retired as a result of disability whose number of years
of service prior to retirement exceeds ten (10), continuous years of
regular (permanent) service shall be entitled to maximum monthly
Service Credit Subsidy by the City for each year of completed City
service as follows:
Maximum Service Credit Subsidy Retirements After:
Years of Service Service Credit
Subsidy
10 $ '120
11 135
12 150
13 165
14 180
15 195
16 210
17 225
18 240
19 255
20 270
21 285
22 299
23 314
24 329
25 343
The Service Credit Subsidy will be reduced every January 1 St
by an amount equal to any required amount to be paid by
the City on behalf of the retiree (annuitant). Article X.A_2.b.i
provides an example of expected reductions per retiree per
month.
8. Medicare:
a_ All persons are eligible for Medicare coverage at age 65.
Those with sufficient credited 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 65, but will have to pay for Part A of Medicare if the
individual elects to take Medicare. In all cases, the
participant pays for Part B of Medicare.
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2004--34
b. When a retiree and his/her spouse are both 65 or over, and
neither is eligible for paid Part A of Medicare, the Service
Credit Subsidy shall pay for Part A for each of them or the
maximum subsidy, whichever is less.
C. When a retiree at age 65 is eligible for paid Part A of
Medicare and his/her spouse is not eligible for paid Part A of
Medicare, the spouse shall not receive the subsidy. When a
retiree at age 65 is not eligible for paid Part A of Medicare
and his/her spouse who is also age 65 is eligible for paid
Part A of Medicare, the subsidy shall be for the retiree's Part
A only.
9. Cancellation:
d. For retirees/dependents eligible for paid Part A of Medicare,
the following cancellation provisions apply:
i. Coverage for a retiree under the Service Credit Subsidy
Plan will be eliminated on the first day of the month in
which the retiree reaches age 65.
ii. At age 65 retirees are eligible to make application for
Medicare. Upon being considered "eligible to make
application," whether or not application has been made
for Medicare, the Service Credit Subsidy Plan will be
eliminated.
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2004-34
It is the understanding of the City of Huntington Beach and the Huntington
Beach Police Officers Association that this side letter to the existing Health and
Other Insurance Benefits Side Letter (adopted December 16, 2002) and the
existing 2000-2003 Memorandum-of-Understanding (adopted May 21, 2001) is of
no force or effect whatsoever unless and until adopted by resolution of the City
Council of the City of Huntington Beach.
IN WITNESS WHEREOF, the parties hereto executed this side letter
to the Memorandum-of-Understanding this�-day of May, 2004.
HUNTINGTON BEACH
CITY OF HUNTINGTON B AC POLICE OFFICERS ASSOCIATION
wow ,
William P. Workman Russell Reinhart, President
Acting City Administrat r
a
_K 99 ";y'
C ay Ma of Kr ,uller, Vice-President
Director of Administrative Services
7
Bruce A. Barsook J eryjY#uss cretary
Chief Negotiator
Dennis Hashin, Tre surer
APPROVED AS TO FORM: 2L !ZzJ
Norm Evenson, B and Member
nnifer M Grath
City Attorney
Corwin Bales, Board Member
18
1
Res. No. 2004-34
STATE OF CALIFORNIA
COUNTY OF ORANGE } ss:
CITY OF HUNTINGTON BEACH }
I, CONNIE BROCKWAY, the duly elected, qualified City Clerk
of the City of Huntington Beach, and ex-officio Clerk of the City Council of
said City, do hereby certify that the whole number of members of the City
Council of the City of Huntington Beach is seven; that the foregoing resolution
was passed and adopted by the affirmative vote of at least a majority of all the
members of said City Council at an adjourned regular meeting thereof held
on the 17th day of May 2004 by the following vote:
AYES: Coerper, Hardy, Green, Cook, Houchen
NOES: Sullivan, Boardman
ABSENT: None
ABSTAIN: None
0
City Clerk and ex-officio Clerk of the
City Council of the City of
Huntington Beach, California