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City tells retirees it will follow adopted health-benefit policy after staff audit; letters to be sent
Summary
City staff told the council that the city has not been following its long-standing retiree health-cost sharing policy and will notify about 60 retirees of new premium-sharing terms; the HR director said the deviation could represent roughly $300,000 in cost exposure over time.
City human resources staff informed the council Oct. 7 that the city will begin enforcing an adopted retiree health insurance cost-sharing policy after an internal review found the policy had not been followed for many years.
Allison (HR director) told the council the handbook and earlier policies call for the city to pay 50% of single retiree coverage and for retirees to pay the remainder; family coverage requires retirees to pay the difference and, once eligible for Medicare, retirees become responsible for the supplemental dependent portion. "When I contacted local…
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