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CITY OF MIAMI. FLORIOA
INTER -OFFICE MEMORANDUM
.O Howard V. Gary
City Manager
FROM Randolph B. Rosencrantz
Assistant City Manager
DATE: June : 1, 1983 FILE.
SUBJECT Retired Employees
Association
REFERENCES:
ENCLOSURES:
At the June 9th meeting of the City Commission, the administration
was directed to work with the Retired Employees Association in
an effort to develop a program that would lessen the impact upon
retirees of the recently implemented 32 percent rate increase for
employee health benefits. There have been several meetings with
representatives of the Retired Employees Association and we have
jointly developed a program for your review and approval.
There are three elements to this program:
a. There will be no increase in the rate for retirees
over 65 years of age. Presently there are approxi-
mately 536 people in this group that pay $23.99 per
month for individual health insurance coverage. By
not increasing this rate ($23.99) by 32 percent ($7.68),
the cost to the self insurance fund will be approximately
$49,400 per year.
b. For those retired employees under 65, the rate increase
for individual coverage will be one-half (16%) of the
rate increase for full time employees. There are 792
people in this group and the cost to the self insurance
plan on an annual basis will be $88,400. The new rate
to be paid by this group is $67.45 ($58.15 + $9.30
$67.45).
c. The effective date for the above changes will be August
1st.
It was felt that the retirees over 65 tended to receive smaller
pension checks and thus would en-e3.t most by this plan.
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