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
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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
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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.
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52-600 `