Resolution 189-2017- -i
RESOLUTION NO. 189 -2017
A RESOLUTION BY THE MONROE COUNTY BOARD OF COUNTY
COMMISSIONERS AMENDING RESOLUTION NO. 388 -2013 AND
AMENDING RULES FOR COLLECTION OF HEALTH INSURANCE
CONTRIBUTIONS FOR GROUP HEALTH INSURANCE COVERAGE
FROM RETIRED MONROE COUNTY EMPLOYEES; AND
ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, on March 13, 2001, the BOCC adopted Resolution No. 119 -2001, stating
what amount of money a retiree (as defined by Florida Retirement System) must pay, above and
beyond the Florida health insurance subsidy outlined in F.S. 112.363, in order to maintain Monroe
County health insurance after retirement; and
WHEREAS, Resolution 119 -2001 was subsequently amended by the BOCC, via
Resolution Nos. 154 -2003, 354 -2003, and 388 -2013; and
WHEREAS, Resolution No. 388 -2013 clarified the eligibility of an employee to remain
on the Monroe County group insurance plan ( "Health Plan "), or to re- enroll following retirement,
and clarified the monthly contribution that the member would pay, depending on whether the
person was hired before or after October 1, 2001, and whether the person had retired at "normal
retirement date" or "early retirement date" (as defined in F.S. 121.021(29) or (30), respectively);
and
WHEREAS, on July 25, 2017, the BOCC adopted numerous changes to contribution rates
in the Monroe County Health Plan; and
WHEREAS, one of the changes approved by the BOCC was Option 7A, which stated that
beginning in Plan Year 2018, the subsidy for retirees hired prior to 10/1/2001, with a combined
years of creditable service plus age of at least seventy (70) ( "Rule of 70 Retirees ") who had less
than 25 years of service would be phased out over a 5 -year period, with the result that by Plan
Year (calendar year) 2022, Rule of 70 Retirees who are members of the Health Plan with 20 -24
years of service would pay 25% of the actuarial rate, and Rule of 70 Retirees with 10 -20 years of
service will pay 50% of the actuarial rate; and
WHEREAS, on July 25, 2017 the BOCC also adopted other options, which impacted
contribution rates being paid by other retiree groups covered by Resolution No. 388 -2013, and
amendment of Resolution No. 388 -2013 is required;
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, FLORIDA,
Section 1 . Section 1 in Resolution No. 388 -2013 is amended to read as follows:
A. (i) Employees in Florida Retirement System (FRS) Regular and Special Risk
Classes with a hire date prior to October 1, 2001, with a minimum of ten (10) years
of full -time service with Monroe County, who retire on, or after, their normal
retirement date as described in Sec. 121.021(29), F.S., and who are covered under
the group health insurance coverage provided by Monroe County upon retirement,
may maintain their group health insurance benefits with Monroe County following
1
their retirement provided they contribute amounts shown in the table below.
Employees also hired prior to October 1, 2001 in other FRS Classes who complete
the number of years of creditable service required by the Florida Statutes to be
eligible for a benefit under FRS, who retire on, or after, their normal retirement
date under Sec. 121.021 (29) F.S., and who are covered under the group health
insurance coverage provided by Monroe County upon retirement, including those
who have retired or will retire in accordance with these insurance programs, and all
other retirees who as of October 1, 2001 were participating in the County's group
insurance program at no cost, will also pay the same rates.
Once the retiree becomes eligible for Medicare as a result of age, receipt of Social Security
Disability, or end stage renal disease, the retiree shall contribute 100% of the annual
actuarial rate.
(ii) Employees hired on or after October 1, 2001, who meet the requirements
of Section 1. A. (i) may maintain their group health insurance benefits with
Monroe County following their termination of employment, provided such retired
employees pay to Monroe County a monthly contribution in an amount established
annually by the Board of County Commissioners. The amount will equal, but not
exceed, Monroe County's monthly actuarial rate, based on the annual actuarial rate
calculated for active employees. Such amount will be payable on the first day of
every month commencing with the month following the month in which the
employee retires.
B. (i) Employees with a hire date prior to October 1, 2001, with ten (10) years of
full -time service with Monroe County who are covered under the group health
insurance coverage provided by Monroe County upon retirement and retire at an
early retirement date, as described in Sec. 121.021(30) F.S., may maintain their
group health benefits with Monroe County following their early retirement,
provided such early retirees pay to Monroe County a monthly contribution in an
amount established annually by the Board of County Commissioners. The amount
will equal, but not exceed, Monroe County's monthly actuarial rate, based on the
annual actuarial rate calculated for active employees. Such amount will be payable
on the first day of every month commencing with the month following the month in
which the employee retires. Early retirees who pay the amount described in this
1 The actuarial rate is the amount determined and established by the County, each year, to be the true expected cost
per category of member (active employee, dependent of active employee, retiree, or dependent of retiree), with the
exception that the retiree actuarial rate is capped so that it is no higher than active employee rate.
2 HIS = value of health insurance subsidy, per F.S. 112.363.
2
SWIM
2018
HIS
17%
18%
2019
HIS
18%
26%
2020
HIS
20%
34%
2021
HIS
22%
42%
2022
HIS
25%
50%
Once the retiree becomes eligible for Medicare as a result of age, receipt of Social Security
Disability, or end stage renal disease, the retiree shall contribute 100% of the annual
actuarial rate.
(ii) Employees hired on or after October 1, 2001, who meet the requirements
of Section 1. A. (i) may maintain their group health insurance benefits with
Monroe County following their termination of employment, provided such retired
employees pay to Monroe County a monthly contribution in an amount established
annually by the Board of County Commissioners. The amount will equal, but not
exceed, Monroe County's monthly actuarial rate, based on the annual actuarial rate
calculated for active employees. Such amount will be payable on the first day of
every month commencing with the month following the month in which the
employee retires.
B. (i) Employees with a hire date prior to October 1, 2001, with ten (10) years of
full -time service with Monroe County who are covered under the group health
insurance coverage provided by Monroe County upon retirement and retire at an
early retirement date, as described in Sec. 121.021(30) F.S., may maintain their
group health benefits with Monroe County following their early retirement,
provided such early retirees pay to Monroe County a monthly contribution in an
amount established annually by the Board of County Commissioners. The amount
will equal, but not exceed, Monroe County's monthly actuarial rate, based on the
annual actuarial rate calculated for active employees. Such amount will be payable
on the first day of every month commencing with the month following the month in
which the employee retires. Early retirees who pay the amount described in this
1 The actuarial rate is the amount determined and established by the County, each year, to be the true expected cost
per category of member (active employee, dependent of active employee, retiree, or dependent of retiree), with the
exception that the retiree actuarial rate is capped so that it is no higher than active employee rate.
2 HIS = value of health insurance subsidy, per F.S. 112.363.
2
A
subsection,_ i.e., subsection 1. B. (i), will continue to be covered by Monroe
County's group health insurance benefits until they meet the requirements shown in
(a), (b) or (c) below:
(a) Sixty (60) years of age for Regular Class employees or fifty -five
(55) years of age for Special Risk Class; or
(b) Qualifications under the Rule of 70 wherein the combined years of
service with Monroe County and the retiree's age equal a total of
seventy (70).
Upon satisfying the conditions in (a), (b) or (c) below, these members will be
required to pay the contribution amounts outlined in subsection 1. A. (ii), above.
(ii) Employees with a hire date on or after October 1, 2001 who meet the
requirements of Section 1. B. (i) above and retire at any early retirement date, may
maintain their group health insurance benefits with Monroe County following their
early retirement, providing such early retirees pay to Monroe County a monthly
contribution in an amount established annually by the Board of County
Commissioners. The amount will equal, but not exceed, Monroe County's monthly
actuarial rate for the month, based on the annual actuarial rate,, following the month
in which the employee retires. Notwithstanding anything to the contrary, however,
employees with a hire date on or after October 1, 2001 are not eligible for the
amount adjustment under Section I.B. (i).
C. Employees with at least ten (10) years of full -time service with Monroe County
who are covered under the group health insurance coverage provided by Monroe County
upon termination of employment and are fully vested under FRS who elect not to retire
under FRS upon termination of employment with Monroe County may elect to re- enroll
under the group health insurance coverage provided by Monroe County upon retirement
under FRS, provided that Monroe County was their last FRS employer. Former employees
electing this option, may maintain their group health insurance benefits with Monroe
County following such election, provided such former employees pay to Monroe County a
monthly contribution in an amount established annually by the Board of County
Commissioners. The amount will equal, but not exceed, Monroe County's actuarial rate
for active employees. Such amount will be payable on the first day of every month
beginning with the first of the month following the month in which the employee elected to
re- enroll under the group health insurance coverage provided by Monroe County upon
retirement from FRS. Employees electing this option must notify Monroe County of their
intent to re- enroll in the County's group health insurance program. Employees who re-
enroll under the group health insurance coverage pursuant to this paragraph are not eligible
for amount adjustments under subsection 1.B.(i) of this resolution.
D. Employees with less than ten (10) years of full -time service with Monroe County
who are covered under the group health insurance coverage provided by Monroe County
upon termination of employment and are fully vested under FRS, upon retirement under
FRS in accordance with these provisions, and provided that Monroe County was their last
FRS employer, may maintain their group health insurance benefits with Monroe County
following their termination of employment, provided such terminated employees pay to
Monroe County a monthly contribution in an amount established annually by the Board of
County Commissioners. The amount will equal, but not exceed, Monroe County's
3
monthly actuarial rate for active employees. Such amount will be payable on the first day
of every month beginning with the first of the month following the month in which the
employee terminates employment with Monroe County. Employees with less than ten (10)
years of full -time service with the County are not eligible for amount adjustments under
subsection B. (i) of the resolution.
Section 2 . The contribution rates shown above are separate and apart from the annual
subsidy for Medicare - eligible Rule of 70 retirees referenced in Resolution No. 190 - 2017.
Section 3 . The contribution rates set forth in this resolution shall become effective on
January 1, 2018.
PASSED AND ADOPTED by the Board of County Commissioners of Monroe County,
Florida at a regular meeting held on the 5th day of September , 2017.
Mayor George Neugent
Mayor Pro Tem David Rice
Commissioner Heather Carruthers
Commissioner Danny Kolhage
Commissioner Sylvia Murphy
Yes
Yes
Yes
Yes
Yes
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
^
BY
Mayor George Neugent
KEVI ADO , CPA, CLERK
By:
Deputy Clerk
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MONROE COUNTY ATTORNEY
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