POLICY
STATEMENT 110
RETIREE
BENEFITS
Prepared by:
Dale Johnson, Employee Benefits Manager
Supersedes:
Adopted by Council:
Effective:
POLICY PURPOSE - To maintain
the Town’s ability to attract and retain experienced employees and recognize
the significant value of long-term Town service by providing benefits (in a cost
effective manner) to qualified retirees of the Town of Cary.
COVERAGE - Qualified retirees
are defined as employees who separate from employment with the Town of
HEALTH INSURANCE - The
qualified retiree, and any eligible spouse, is allowed to remain covered by the
Town's group health insurance plan through the last day of the month prior to
the first day of the month in which the retiree or covered spouse turns 65 or
through the last day of the month prior to the first day of the month in which
the retiree or covered spouse becomes eligible for Medicare, whichever comes
first. Should the retiree
pre-decease a covered spouse, the spouse will be allowed to remain covered by
the plan to age 65 and/or Medicare eligibility (according to the criteria stated
above) as long as the applicable premium is paid.
The Town will pay a prorated
portion of the individual premium for the qualified retiree's individual health
coverage while covered by the Town's group health insurance plan.
Beginning at the 15 years of service level, the Town will pay 50% of the
group plan individual premium and will increase that amount by 5% for each
additional year of service to the 25 years of service level, paying 100% of the
group plan individual premium. When
the eligible retiree has turned 65 and is no longer covered by the Town’s
group health insurance plan and has coverage under Medicare or some other form
of a Federal Government-sponsored health insurance program, the Town will
continue to provide a substantially equal monetary benefit to the post-65
retiree according to current standard procedure.
The amount of this monetary benefit shall be determined on an annual
basis as part of the employee health insurance renewal and budget process, shall
never be more than 100% of the active employee individual premium, and is not
subject to change more than once each fiscal year.
The retiree is responsible for paying any balance of the premium after
the Town’s prorated portion (if applicable) has been applied, and is
responsible for 100% of any premium to cover an eligible spouse.
Dependent children are eligible
for continuation of coverage under the provisions of COBRA provided they meet
the eligibility criteria of the plan.
Town employees who are approved
for and receive disability retirement from LGERS
as a direct result of a serious personal injury received in the line of duty for
the Town, and who have less than 15 years of service with the Town, may make
application to Council for payment of a portion of their individual medical
premium under this policy. Council
may make a determination to credit the retiree with between fifteen (15) and
twenty–five (25) years of service such that they will be eligible for some, or
full payment toward their individual medical premium.
DENTAL INSURANCE - The
qualified retiree and any eligible spouse is allowed to remain covered by the
Town's group dental insurance plan for as long as the retiree continues to
request this coverage and pays all applicable premiums.
LIFE INSURANCE - Each retiree
is given the option to continue employee and dependent life insurance according
to the provisions of the current group life insurance contract upon retirement.
Retirees with 25 or more years of service working for the Town of
Note:
Current employees hired before the effective date of this new policy that
continue service without a break and retire with the Town of