2008-058 Retiree Insurance Policy Amendment•
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RESOLUTION 2008-58
A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF
NORTH PALM BEACH, FLORIDA, REVISING RESOLUTION 2007-103
AND ADOPTING AN AMENDMENT TO THE ADMINISTRATIVE POLICY
GOVERNING RETIREE INSURANCE BENEFITS TO CLARIFY THE
APPLICABLE PAYMENT RATE FOR SPOUSES; PROVIDING FOR
CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, in order to satisfy Governmental Accounting Standazds Board (GASB) Statement
No. 45, which requires local governments to account for liabilities incurred for post-employment
benefits provided to retirees, the Village Council implemented a Retiree Insurance Benefit Policy
("Policy") through the adoption of Resolution 2007-103; and
WHEREAS, at the request of Village Administration, the Village Council wishes to amend
Section IV.E of the Policy to clazify the premium payment rate for a spouse of a retiree in the
event the retiree predeceases the spouse; and
WHEREAS, the Village Council determines that the amendment of the Policy is in the best
interests ofthe Village, its residents and its employees.
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF NORTH PALM
BEACH, FLORIDA as follows:
Section 1. The foregoing recitals aze ratified as true and incorporated herein.
Section 2. The Village Council hereby amends Resolution 2007-103 and adopts the revised
Retiree Insurance Benefits Policy, a copy of which is attached hereto and incorporated herein by
this reference. The revised Policy shall be included in the Village Administrative Policies and
Procedures Manual.
Section 3. All resolutions or parts of resolutions in conflict herewith are hereby repealed to
the extent of such conflict.
Section 4. This Resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED THIS 28th DAY OF AUGUST, 2008.
(Village Seal),,
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ATTEST:~'~
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VILLAGE CLERK
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MAYO
s
Village of North Palm Beach
ADMINISTRATIVE POLICIES AND PROCEDURES MANUAL
Policy Title: RETIREE INSURANCE BENEFITS Policy Number: 2007-02
Effective Date: November 7, 2007 Ori inatin De t.: H. R.
Revision Date: August 28, 2008 Supercedes: All previous memos or
olicies in conflict
I. REFERENCE: F.S. 112.08, 112.0801, 112.0805 and 112.19
Village of North Palm Beach Resolution No. 2007-103
II. PURPOSE:
To establish and outline the Village of North Palm Beach's policy for providing health and/or dental
insurance for employees retiring from the Village, the eligibility requirements for coverage, and the
procedures by which coverage can be obtained, maintained, and discontinued.
III. POLICY:
Employees retiring from the Village of North Palm Beach shall be eligible for retiree coverage for
health and/or dental insurance effective on the first day of the month following the retirement date.
In accordance with F.S. 112.0805, the Human Resources Department shall notify the retiree of
eligibility of continuation of insurance coverage.
Retirees shall be entitled to continuation of coverage provided the Village continues its group
health and/or dental insurance for all active employees. Coverage shall cease on the first day of
the month following the written request of the retiree or upon failure of the retiree to pay his/her
monthly premium. Eligibility for health and/or dental insurance will cease upon termination of the
coverage.
If the Village changes insurance carriers, the retiree and his/her dependent(s) who are already
enrolled or have still to retire will also be eligible for coverage under the new .plan for the same
benefits that apply to active full-time employees. Retirees who have voluntarily dropped insurance
through the Village or who have been dropped due to non-payment of their premium will not be
allowed to re-enroll at times of open enroiiment or a change by the Viiiage in insurance carriers.
IV. PROCEDURE:
A. Prior to an employee's retirement date, the decision must be made whether to continue
coverage for health and/or dental insurance. Failing to elect continuation of any insurance
will result in the termination of coverage for that insurance. The opportunity to continue
insurance coverage is a one-time election opportunity and, if rejected, will not be available
in the future.
B. Employees who have met or will soon meet the requirements for retirement should
schedule an appointment with the Human Resources Department to review their insurance
options and complete the necessary paperwork. Appointments should be completed at
least thirty (30) days prior to retirement. Human Resources and the retiree will complete an
insurance change form to reflect the change to retiree status or the separation from
employment. Human Resources shall complete a change form noting the effective date of
the termination of employee coverage and/or the continuation of retiree coverage and
forward copies to the Finance Department and the insurance carrier.
C. Once in effect, insurance coverage can only be discontinued through a written request by
the retiree, by non-payment of the monthly premium(s), and/or through the death of the
retiree (with no already covered spouse or dependents electing to continue coverage and
paying the applicable premiums timely).
Village of North Palm Beach
Administrative Policies and Procedures Manual
Retiree Insurance Benefits
D. Human Resources shall notify retirees in writing of any changes in the health and/or dental
insurance and. open enrollment periods.
E. Monthly premiums for retirees or dependents will be identical to those rates established
periodically for active full-time employees and their dependents. If the retiree predeceases
his/her spouse and the sole remaining covered dependent severed is a spouse, the
individual employee rate shall apply to the spouse rather than the dependent rate. In other
words, surviving spouses of deceased retirees will be allowed to continue on the plan as
the retiree would, providing they continue to meet all requirements of coverage and this
olic
F. Retirees must make arrangements to pay the monthly premium with Human Resources or
the Finance Department.
G. Health and Dental Insurance -Availability of health and/or dental insurance for retirees and
dependents is as follows:
1. Retiree chooses to stay in Group Health Plan at point of retirement:
At time of retirement, retiree and dependent must stay in the specific plan they
chose at open enrollment as an active employee (HMO, POS, PPO). A plan change
cannot be made at this time.
• A plan change can be made during any open enrollment similar to active
employees.
2. Retiree chooses to leave Group Health Plan voluntarily or through lack of payment:
If the retiree chooses to terminate the Group Health Plan, the retiree shall notify
Human Resources in writing of the request for termination.
Once a retiree bas terminated coverage with the Group Heaith Pian (whether
voluntarily or through lack of payment) the Plan is no longer available to the retiree
or his/her dependents. Retiree and dependents cannot re-enter the plan.
3. Retiree in Group Health Plan dies:
• The current Group Health Plan is available to spouse and/or dependent(s) covered
by the Plan at the time of the retiree's death.
• The surviving spouse or single dependent must pay the single rate.
• Additional dependents must pay the applicable dependent rate.
Approved b
G ~ ~d
Jimmy r~gklt ~ Date
Village Manager
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