2007-103 Retiree Insurance Benefits Administrative Policy (2)
Village of North Palm Beach
ADMINISTRATIVE POLICIES AND PROCEDURES MANUAL
Polic Title: RETIREE INSURANCE BENEFITS Polic Number: 2007-02
Effective Date: November 7, 2007 Ori inatin De t.: H. R.
Revision Date: None Supercedes: All previous memos or
olicies in conflict
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 enrollment or a change by the Village 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.
Village of North Palm Beach
Administrative Policies and Procedures Manual
Retiree Insurance Benefits
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).
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 sole dependent
covered is a spouse, the individual employee rate shall apply to the spouse rather than
the dependent rate.
F. Retirees must make arrangements So 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 has terminated coverage with the Group Health Plan (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.
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