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HomeMy WebLinkAboutR-82-0600RESOLLtto i NO, A RF,SOtMOa AGTHORtZtNG THE INCREASE AND tOtALIZATION OF CO tAIBMON8 TO THE GROUP BENEFITS 8ELF-tNSVRAXCE FUND FOR BOTH ACTtVt AVD RETIRED EMPLOYEES OF THP CITY OF �ItAMI IN THE CITY'S HEALTH CARE PLANS WHEREAS, the contribution levels currently•established for the Self= -Insured Health Care Plan of the City of Miami are not sufficient to maintain both a self=sustaining and actuarily=sound fund; and WHEREAS, the firm of Johnson & Higgins of Florida, Inc., after a thorough review of the City Self -Insurance Plan, had recommended that current rates for this portion of the Self - Insurance Fund be increased in order to maintain a self-sustain- ing and actuarily-sound fund; and WHEREAS, it has been determined that a basic inequity exists in the current rate structure between contributions made by active and retired employees; and WHEREAS, the Self -Insurance and Insurance Committee of the City of Miami, at their meeting of October 21, 1981, unani- mously agreed to recommend that the City Commission adopt the rates recommended by Johnson & Higgins of Florida, Inc. which would both equalize the active and retiree contribution levels, and provide for a sound fund; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. A. Effective March 7, 19821 the following 1/ monthly rates will be used in the City's Health Care Plan for employees for determining both employee and City contributions to the Group Benefit Self -Insurance Fund: ACTIVE Employee under 65 $ 58.15 Dependent under 65 103.02 Employee 65 & over 37.42 Dependent 65 & over 36.46 RETIRED Employee under 65 $ 58,15 Dependent under 65 103,02 Employee 65 & over 23.99 Dependent 65 & over 36,46 1 Increased rates equalized for active and retirodF o e .- contributions Vol eo�1!�l�+ ssiot :a ,a 9. The portion of the cost contributed by both the employee and the City shall be deterMihed in accord, ance with the DollectiVe Bargaining Agreement for each respec- tive employee. C. City contributions shall be made from the Self=Insurance Fund, PASSED AND ADOPTED this 24th day of _ .June , 1982. ATTEST: . ONGIE, C Maurice A. Ferre M A Y O R PREPARED AND APPROVED BY: 44'r -,-?. APPROVED AS TO FORM AND CORRECTNESS: I z CITY OF MtAMl. FLoFftA 30,{ INTER-01=i=ICE MEMORANbum TO: Howard V . Cary ')ATr June 180 1.982 FitE- City Manager SUBJECT. tniployees Y Health insurance Rate FROM Randolph ROsencrantg. REFERENCES. _ Assistant City Manager ENCLOSURES As requested by the City Commission; members of the Administration met with representatives of the unions and presented detailed data relative to the employee health insurance fund. We explained the concept of the self-insurance fund and, very specially, revenues and charges affecting the employee health insurance portion. We explained how the new rates were developed. We also stressed the possible consequences that may occur if the fund does not receive needed additional revenue. We also suggested that each union appoint a representative to serve on a special task force assigned the responsibility of iden- tifying and evaluating possible alternative methods of providing employee health coverage. Participation on this task force does not constitute an endorsement of any alternative. We emphasized that the work of the task force would possibly take several months and it was our intention to place the proposed rate increase on the agenda for June 24th, since the fund was now spending approxi- mately $100,000 more per month than it was receiving in revenue. It is recommended that this item be placed on the Agenda for the June 24th Commission meeting. - RR/mh 52-600 `