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Sterling City Commission approves retiree health plan policy setting eligibility and cost responsibilities
Summary
The commission approved a Retiree Group Health Plan Policy that implements KSA 12-5040 criteria, requires retirees to pay 100% of premium costs (with the City able to add an administrative fee up to 25%), and sets eligibility, notice, and termination rules; the motion passed 5-0.
The Sterling City Commission on Monday approved a Retiree Group Health Plan Policy that defines which retired employees are eligible for city health coverage and how premiums will be handled.
City Manager Ian Hutcheson explained staff drafted the policy with input from Freedom Claims Management Inc. and legal counsel to comply with Kansas Statute KSA 12-5040. Under the policy, eligible retirees are those who began work with the local government after Dec. 31, 1988 and have at least 10 years of service at retirement. Retirees must provide written notice of intent to enroll within 30 days of retirement. The policy allows the City to terminate a retiree's coverage when the retiree becomes eligible for another employer's comparable plan or reaches age 65; termination rules for spouses and dependents are determined by their specific circumstances rather than automatically ending with the retiree's coverage.
Section VI of the policy requires retirees to be financially responsible for 100% of the premium for the level of coverage elected. Hutcheson said the City reserves the right to apply the additional 25% administrative fee permitted by statute, which may result in charges up to 125% of the premium in certain cases; current retirees' benefits will be restructured to conform to the policy after at least 60 days' written notice. City Attorney Scott Bush reviewed the draft and had no objections.
Commissioner Richard Jones moved and Commissioner Bob Boltz seconded to approve the Retiree Group Health Plan Policy as presented; the motion carried 5-0.
The commission discussed implementation details and provided staff direction to carry out notifications and plan restructuring for current retirees. No specific budgetary appropriation was adopted at the meeting.
