Item D28
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: December 20,2006
Bulk Item: Yes L No
Division: Employee Services
Staff Contact Person: Teresa Aguiar
AGENDA ITEM WORDING: Approval to amend and add language to the Health Plan
Document and to attach Retiree Resolution to Amendment as Exhibit A to allow retirees to waive
the County's group health insurance benefits.
ITEM BACKGROUND: It is and has been the County's practice to allow retirees to waive their
group health insurance benefits. This language should be included in the Health Plan Document
revision which was approved at the BOCC meeting of September 30, 2006.
PREVIOUS RELEVANT BOCC ACTION: At the November 15, 2006 meeting, the BOCC,
requested that a two week notice be provided to retirees due to previous direction by the BOCC
that there be formal notification of the employees both active and retired whenever issues of
retirement benefits are coming up for discussion or action.
CONTRACT/AGREEMENT CHANGES: See attached amendment.
STAFF RECOMMENDATIONS: Approval to amend the existing Health Plan Document which
becomes effective January 1, 2006 to add language of current practice of allowing retirees to
waive the County's group health insurance benefits and to add the Retiree Resolution 354-2003
as an exhibit in order to include the resolution in the Plan.
TOTAL COST: none
BUDGETED: Yes 1L- No
COST TO COUNTY: none
SOURCE OF FUNDS: N/A
REVENUE PRODUCING: Yes
NOlL
Year
s M~ageme~
. 11.10.0& ,
APPROVED BY: County Arty -X- OMB/Purchasin
DOCUMENTATION:
Included X
Not Required_
DISPOSITION:
AGENDA ITEM #
Revised 8/06
OK'!v~Y ~3~~~E
(305) 294-4&41
Office of the Employee Services Division Diredor
The Historic Gato Cigar Fadory
1100 Simonton Street, Suite 268
Key West, FL 33040
(305) 292-4458 - Phone
(305) 292-4564 - Fax
TO:
(-- ,...-..,..-
BOARD OF COUNTY COMMISSIONERS
Mayor Mario Di Gennaro, District 4
Mayor Pro Tern Dixie M. Spehar, District 1
George Neugent, District 2
Charles "Sonny" McCoy, District 3
Sylvia J. Murphy, District 5
FROM:
Board of County Commissioners
Teresa E. Aguiar, Director
Employee Services
DATE:
November 19, 2006
SUBJ:
Plan Document - additional language
Retiree Waiver of group health insurance coverage
This item requests approval to add language of current practice into the Employee Health Plan Document
which was approved at the BOCC meeting of September 18,2006. This is the sole document used in
determining the benefits of eligible covered persons under the Health Insurance Plan.
Retiree Resolution #354-2003 allows retirees to retain their group health insurance benefits following their
termination of employment, provided they pay a monthly premium. The County's practice is to allow
retirees to waive the medical coverage if they do not wish to maintain their group health insurance benefits
with Monroe County following their retirement. The inclusion of this language in the Document, which was
approved at the BOCC meeting of September 20, 2006, was an oversight and staff has recently been
informed by the Consultant that this language must also be included since it is and has always been practice.
It is staffs recommendation that you approve the recommendation to incorporate wording into the existing
Health Plan Document to allow retirees to waive their group health insurance benefits coverage. This has
been the current practice and such language should be included in the Document as policy.
If you have any questions, please do not hesitate to contact me at X4458.
OK~~ErY ~o~~~~E
(305) 294-4641
Office of the Employee Services Division Director
The Historic Gato Cigar Factory
1100 Simonton Street, Suite 268
Key West, FL 33040
(305) 292-4458 - Phone
(305) 292-4564 - Fax
TO:
r -.. '.... ..-....--..
,
BOARD OF COUNTY COMMISSIONERS
Mayor Mario Di Gennaro, District 4
Mayor Pro Tern Dixie M. Spehar, District 1
George Neugent, District 2
Charles "Sonny" McCoy, District 3
Sylvia J. Murphy, District 5
All Active and Retired Employees
Constitutional Officers
Teresa E. Agui~r, Directo~ /Jr2c '
Employee Services O-y.l
FROM:
DATE:
November 19,2006
SUB]:
Plan Document - additional language
Retiree Waiver of group health insurance coverage
Please be advised that the approval of the amended Employee Health Plan Document to become effective
January 1,2007 is scheduled for the December 20,2006 Board of County Commission meeting. As you are
aware, the Plan was approved on September 20, 2006. After the approval, staff was made aware by the
Benefits Consultant (who assisted in drafting the final document), that the Plan should also reflect past and
current practice pursuant to Resolution No. 354-2003.
The additional wording in Section 2A - Eligibility will specifically state the following: Retirees: You will
only be eligible for retiree coverage under the Plan at the time you retire. If you fail to elect retiree
coveraf!e. waive your retiree coverage or let your retiree coverage lapse. yOU will no lonf!er be entitled to
coveraf!e under the Plan.
To further explain, Retiree Resolution #354-2003 allows retirees to retain their group health insurance
benefits following their termination of employment, provided they pay a monthly premium, The County's
practice is to allow retirees to waive the medical coverage if they do not wish to maintain their group health
insurance benefits with Monroe County following their retirement.
Again, please understand that the current practice and procedure will remain the same and there is no
change. This additional wording only clarifies what is the current practice. If you have any questions or
need further explanation, please do not hesitate to contact me at 305-292-4458.
BOARD OF COUNTY COMMISSIONERS
AGENDAITEMS~y
Meeting Date: November 15. 2006
Bulk Item: Y es ~ No
Division: Emplovee Services
StatTContact Person: Teresa Aguiar
AGENDA ITEM WORDING: Approval to amend and add language to the Health Plan
Document and to attach Retiree Resolution to Amendment as Exhibit A to allow retirees to waive
the County's group health insurance benefits.
ITEM BACKGROUND: It is and has been the County's practice to allow retirees to waive their
group health insurance benefits. This language should be included in the Health Plan Document
revision which was approved at the BOCC meeting of September 20, 2006.
PREVIOUS RELEVANT BOCC ACTION: None
CONTRACT/AGREEMENT CHANGES: See attached amendment.
STAFF RECOMMEND A TIONS: Approval to amend the existing Health Plan Document which
becomes effective January 1,2006 to add language of current practice of allowing retirees to
waive the County's group health insurance benefits and to add the Retiree Resolution 354-2003
as an exhibit in order to include the resolution in the Plan.
TOTAL COST:
none
BUDGETED: Yes -L No
COST TO COUNTY: none
SOURCE OF FUNDS:
nJa
REVENUE PRODUCING: Yes_ N02L&1!O TPERMONTH_ Year
wtk~D& . ul9
APPROVED BY: County Att0Z OMB ing _ Risk Management full .0-
DOCUMENTATION:
Included
Not Required_
DISPOSITION:
AGENDA ITEM #
Revised 8/06
FIRST AMENDMENT
TO
MONROE COUNTY EMPLOYEE HEALTH PLAN
(BOCC approved 9/20/06)
WHEREAS, on September 20, 2006, the Board approved the Employee
Health Plan (Plan) which will become effective on January 1,2007; and
WHEREAS, the Board approved Resolution No. 354-2003 at a Special
Meeting held September 10, 2003 concerning retiree eligibility under the Plan, said
resolution still being in effect and incorporated herein; and
WHEREAS, the Plan approved September 20, 2006 needs clarification in
order to accurately reflect past and current practices and to include provisions
pursuant to Resolution No. 354-2003; and
WHEREAS, the Plan Administrator reserves the right to amend the Plan at
any time; and
WHEREAS, the Plan states that "Any changes in the Plan Document shall
be made by written Amendment; and
NOW, THEREFORE, the Plan shall be amended to read as follows:
1. Page 2, Section 2, shall be amended to read as follows:
Section 2A - Eligibility
You and your Eligible Dependents can be eligible to receive benefits under the Plan after you
complete 60 days of continuous service.
Active Employees. To be eligible as an active employee, you must be an active full-time
employee, who is directly employed in the regular business of and compensated for services by
the Employer and regularly works 25 or more hours a week.
Retirees. You will only be eligible for retiree coverage under the Plan at the time you retire. If
you fail to elect retiree coverage, waive your retiree coverage or let your retiree coverage lapse,
you will no longer be entitled to coverage under the Plan.
To be eligible as a retiree, you must be a retiree who fits within one of the following categories,
and you must pay the following cost:
If you fall under one of the following: You pay:
Current Retiree Cost equal to HIS* for 10 years
servIce
Normal retirement under ~121.021(29)F.S. \ from Cost equal to HIS* for 10 years
Monroe County & FRS with 10 years full-time service servIce
Early retirement under S 121. 021 (30), from Monroe Cost equal to HIS* for 10 years
County & FRS with 10 years full-time service AND servIce
EITHER age 60, or age and years of service added
together total 70
Early retirement under S 121. 021 (30), from Monroe Pay Departmental Rate until you
County & FRS with 10 years full-time service, NOT age reach age 60 or satisfY Rule of
60, and age and years of service do not add up to 70 70**
Retire from FRS without 10 years full-time service with Pay Departmental Rate
Monroe County
Employees hired on/after 10/01101 who retire from Pay Departmental Rate
Monroe County & FRS with 10 years full-time service
Re-enro llment under Monroe County group health Pay Departmental Rate
program upon retirement with 10 years full-time service
and Monroe County was last FRS employer
*HIS stands for "health insurance subsidy"
**Rule of70: You satisfY the Rule of70 if your age, combined with the number of years of
service you have with Monroe County, totals 70 or more.
Note: The 10 years of service requirement is 8 years for elected officials.
I
Florida Statute 121. 021 (29) "Nonnal retirement date" means the first day of any month following the date the member attains one of the
following statuses:
(a) Ifa regular class member, the member;
I. Completes 6 or more years of creditable service and attains the age of 62; or
2. Completes 30 years of creditable service regardless of age, which may include a maximum of 4 years military service credit as long
as such credit is not claimed under any other system.
(b) If a Special Risk Class member, the member:
I. Completes 6 or more years of creditable service and attains the age of 55;
2. Completes 25 years of creditable service regardless of age; or
3. Completes 25 years of creditable service and attains age 52, which service may include a maximum of4 years of military service
credit as long as such credit is not claimed under any other system and the remaining years are in the Special Risk Class.
(c) If a Senior Management Service Class member, the member:
I. Completes 6 years of creditable service and attains the age 62; or
2. Completes 30 years of any creditable service, regardless of age, which may include a maximum of4 years military service credit as
long as such credit is not claimed under any other system.
(d) I an Elected Officer's Class member, the member:
I. Completes 6 years of creditable service in the Elected Officer's Class and attains age 62; or
2. Completes 30 years of any creditable service, regardless of age, which may include a maximum of 4 years of military service credit
as long as such credit is not claimed under any other system.
"Normal retirement age" is attained on the "nonnal retirement date".
2
Florida Statute 121.021 (30) "Early retirement date" means the first day of the month following the date a member becomes vested and elects
to receive retirement benefits in accordance with this chapter. Such benefits shall be based on average montWy compensation and creditable
service as of the member's early retirement date, and the benefit so computed shall be reduced by five-twelfths of I percent for each complete
month by which the early retirement date precedes his or her nonnal retirement date as provided in s. 121.091(3).
Eligible Dependents. To be eligible as an Eligible Dependent, the individual must be:
1. Your Spouse;
2. Your Surviving Spouse
3. Your Domestic Partner*; or
4. Your Child
which terms are defined below.
2
"Spouse" means a person of the opposite sex to whom you are legally married under federal law
(and from whom you are not legally separated).
"Surviving Spouse" means a person ofthe opposite sex to whom you were legally married under
federal law (and from whom you were not legally separated) at the time of your death as a retired
Participant.
"Domestic Partner" means a person over the age of 18 who has chosen to share his or her life
with you in a committed family relationship of mutual caring as long as you and that individual:
1. consider yourselves to be members of one another's immediate family;
2. agree to be jointly responsible for one another's basic living expenses;
3. are not otherwise married or a member of another domestic partnership;
4. are not blood related in a way that would prevent you from being married to one another
under the laws of Florida;
5. are each of at least legal age and competency required by Florida law to enter into a
marriage or other binding contract;
6. reside at the same residence; and
7. each sign a Declaration of Domestic Partnership available from the Employee Benefits
Office. An updated Declaration of Domestic Partnership may be required periodically,
but not more frequently than annually. The Employee Benefits Office may also ask for
substantiation of the Declaration.
*Note: If you enroll a Domestic Partner in the Plan, the cost of those benefits to your
Employer will be considered taxable wages to you. You might consider discussing the
tax implications of enrolling a Domestic Partner in the Plan with your tax advisor prior to
enrolling your Domestic Partner.
"Child" means a child (1) who bears one of the following Required relationships to you AND (2)
who meets the following Child eligibility requirements:
1. Required Relationship:
a. Your natural born child, or
b. Your legally adopted child (beginning the moment slhe is placed in your custody
for adoption). However, with respect to an adopted newborn, when the child is
placed in your residence, slhe will be considered a Child under the Plan from the
moment of birth, provided a written agreement to adopt such child has been
entered into by you prior to birth
c. Any child, who resides in your household in a regular parent-child relationship, if
slhe qualifies as your exemption under the Internal Revenue Code; or
d. A foster child who resides in your household in a regular parent-child
relationship, if slhe qualifies as your exemption under the Internal Revenue Code;
or
e. A newborn child, up to the age of 18 months, of your covered unmarried
dependent Child.
2. Child eligibility requirements:
a. The Child is unmarried and has not attained the age of 19; or
3
b. The unmarried Child is a student under the age of 24 (student defined as enrolled
in an accredited school on a full or part-time basis earning at least 6 credits per
semester); or
c. The unmarried Child is at least 24, but under 25, is a student (defined above), and
earns less than $3,200 per year; or
d. The unmarried Child already covered under the Plan and who is beyond the ages
specified above if on the date of attainment s/he is incapable of self-sustaining
employment because of mental retardation or physical handicap and is principally
dependent on you for support and maintenance*. Proof of such incapacity must
be provided to the Employer within 31 days of the Child's birthday, and from
time to time thereafter upon the Employer's request. In addition, the Employer
may request that the Child submit to examinations from time to time.
e. In all cases, the Child must reside with you for more than ~ the year, must
provide less than ~ his or her own support, and be named as a dependent on
your most recent federal income tax return.
If both parents are covered under this Plan for Personal Benefits, then either parent, but not both,
may cover a child for Dependent Benefits. No individual can be covered for both Personal and
Dependent Benefits.
It is your responsibility to notify the Plan if your Child experiences a status change that
would affect his or her eligibility under the Plan.
*Proof may be required.
Exceptions: If your Eligible Dependent is employed and covered under a group plan or plans
sponsored by their employer, the day immediately following the date such coverage terminates
due to the termination of your Eligible Dependent's employment may also be deemed to be the
date you acquired that Eligible Dependent and any other Eligible Dependent who had been
covered under that plan. Written proof of loss of coverage must be submitted to the Employee
Benefits Office within 31 days 0 f the loss 0 f coverage or else the Eligible Dependent cannot be
added until the next Open Enrollment period.
2. Resolution No. 354-2003 which was approved by the Board of County
Commissioners at a Special Meeting held September 10, 2003 concerning retiree
eligibility under the Plan, also known as the Rule of 70, is herby incorporated into
and made a part hereof the Plan by Amendment as Exhibit A.
3. This First Amendment to the Employee Health Plan is effective January I,
2007.
THE REMAINDER OF THIS PAGE LEFT INTENTION ALL Y BLANK.
4
4. All other provisions in the Plan shall remain in full force and effect.
PASSED AND ADOPTED by the Board of County Commissioners of
Monroe County, Florida, at a meeting of the Board held on the _ day of
, 2006.
IN WITNESS WHEREOF, this Amendment 1 to the Plan has been duly
signed by an authorized representative of the Plan Administrator.
Attest: DANNY L. KOLHAGE
Clerk of the Court
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
By:
By:
Mayor Mario DiGennaro
Deputy Clerk
5
Board of County Commissioners
RESOLUTION NO. 354 -2003
A RESOLUTION CANCELLING RESOLUTION NO. 154-2003 AND AMENDING
RETIREMENT ELIGIBIUTY REQUIREMENTS FOR GROUP HEALTH INSURANCE
COVERAGE FOR MONROE COUNTY EMPLOYEES.
WHEREAS, group health insurance expenses have been steadily increasing; and
WHEREAS, the number of retired County employees continues to increase dramatically
each year, and
WHEREAS, it is the intent of the Monroe County Board of County Commissioners to
allow County employees, including employees of the Constitutional Officers and the Mosquito
Control Board, who meet the criteria established in this resolution to retire through the Florida
Retirement System and maintain their group health insurance benefits with Monroe County as
provided herein; now, therefore,
BE IT RESOLVED BY TIlE BOARD OF COUNTY COMMISSIONERS OF MONROE
COUNTY, FLORIDA:
Section 1.
A. (i) Employees in FRS Regular and Special Risk Classes with a hire date prior
to October I, 200 I, with a minimum of ten (l0) 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, employees 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 Soc. 121.021(20) F.s., and who are covered under the
group health insurance covemge 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 are participating in the County's group insurance program at no cost,
may maintain their group health insurance benefits with Monroe County following their retirement
at a cost equal to the Health Insurance Subsidy for 10 years of service, which is currently $50.00
per month.
(ii) Employees hired, on or after, October I, 2oot, who meet the requirements
of Section 1. A. (i) may maintain their group health insurance benefits with Monroe County
following their tennination of employment, provided such retired employees pay to Monroe
County a monthly premium in an amount established annually by the Board of County
Commissioners. The premium will equal, but not exceed, Monroe County's monthly departmental
cost for active employees. Such premium will be payable on the first day of every month
commencing with the month following the month in which the employee retires.
EXHIBIT A
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. 12l.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 premium in
an amount established annually by the Board of County Conunissioners. The premium will equal,
but not exceed, Monroe County's monthly departmental cost for active employees. Such premium
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 premiums described in subsection 1. B.
(i) will continue to be covered by Monroe County's group health insurance benefits at a cost to the
retirees equal to the Health Insurance Subsidy for 10 years of service, which is currently $50.00
per month upon meeting either of the following requirements:
(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).
(ii) Employees with a hire date on or after October I, 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, provided
such early retirees pay to Monroe County a monthly premium in an amount established annually
by the Board of County Commissioners. The premium will equal, but not exceed, Monroe
County's monthly departmental cost for month following the month in which the employee retires.
Notwithstanding anything to the contrary, however, employees with a hire date on or after October
1, 200 I are not eligible for the premium adjustment under Section l. 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
tennination 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. Fonner 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 premium in an amount
established annually by the Board of County Commissioners. The premium will equa~ but DOt
exceed, Monroe County's monthly departmental cost for active employees. Such premium will be
payable on the first day of every month beginning with the first of the month following the month
in which the employee elects 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 premium adjustments under subsection I. 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
tennination 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 tenninated employees pay to Monroe County a
monthly premium in an amount established annually by the Board of County Commissioners. The
premium will equal, but not exceed, Monroe County's monthly departmental cost for active
employees. Such premium 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 premium adjustments under subsection I. B. (i) of the resolution.
Section 2.
This resolution shan be effective as of January I, 2004.
Section 3. This resolution does not affect any requirement of eligibility with the Florida
Retirement System; it affects only eligibility to receive health insurance benefits under the. Monroe
County Group Employee Benefit Plan.
Section 4. For purposes of this resolution, full-time service shall have the meaning provided in
the County's policies and procedures governing detennination of service. For pUlpOses of this
resolution, the definition of date of hire is the date an employee first begins work for Monroe
County detennined in accordance with the County's procedures governing fringe benefits. Any
break in employment of forty-eight (48) hours or more will result in a new date of hire if the
employee returns to County service.
Section 5. The Monroe County Board of County Commissioners formally reserves the right to
any and all future changes and modifications of this resolution, the group insurance contract
providing health benefits described herein and/or the required premium contnbutions.
~ .."
~8 -
Section 6. The Monroe County Board of County Commissioners cancels Resol o.~~
2003. St2~. c; 0
~-<w~
~r C) g
PASSED AND ADOPTED by the Board of County Commissioners ofMomoe Count~ri~at ~
a tA!!pIIt meeting of said Board held on the 101b day of September, 2003. ~~~ ca g
spec: 1a1 r. I' tI'I
'!" r-
I -~
,: I ..'\
, ~. -
(SEAL) . :'~\
Mayor Dixie M. Spehar
Mayor Pro Tem Murray E. Nelson
Commissioner George Neugent
Commissioner Charles .'Sonny" McCoy
Commissioner David P. Rice
No
YI!!R
Yes
Yes
Yes
AITEST~Da:tiny L. Kolhage, Clerk
Board of County Commissioners
of M07,t;ty'J;j.da ~
RNEY
Mayor/Chairman