HEALTH AND DENTAL INSURANCE BENEFITS FOR ELECTED OFFICIALS

POLICY STATEMENT NUMBER 117

POLICY COVERAGE:

This policy shall be applicable to all Town of Cary Elected Officials

POLICY:

Health and Dental Insurance Benefits to Active Council Members

All Town of Cary Elected Officials shall be entitled to participate in the group health and dental insurance that is offered to all regular employees.  The cost of this coverage shall be the same as the cost applicable to any full time/regular employee.  Any cost of dependent coverage shall normally be paid for through payroll deduction on a pre-tax basis or arrangements can be made with the Finance Department to pay for the coverage by another method.

Health Insurance Benefits to Council Members (and their Covered Dependents) Leaving Office or Not Reelected

Eligibility:

(1)   Council member must have served for at least two full 4-yr terms;

(2)   Council member must request that coverage be continued within 30 days after leaving office;

(3)   Coverage will continue for the Council member and any covered dependents following the date that the Council member’s term expires, unless one of the following occurs:

a.      The former Council member and/or their covered dependent becomes eligible for Medicare; if the covered dependent becomes eligible for Medicare before the former Council member, the covered dependent is terminated from the group health plan and the former Council member (and any other eligible dependents may remain on the plan until such time that they are no longer eligible;

b.      The former Council member is reelected to the Town Council at a future date in which case the provisions of the policy pertaining to benefits for active Council members would apply;

c.      The former Council member is elected to a political office with another unit of local or state government that offers similar group coverage;

d.      The former Council member fails to pay any applicable premium.

(4)   If the former Council member becomes ineligible for coverage, any covered dependents will be offered continuation of coverage under the terms of COBRA.

Coverage:

The former Council member and any covered dependents will be allowed to continue the plan level and coverage type which was in force during the former Council member's time in office immediately preceding the expiration of their term.  Dependents may not be added to the coverage once the Council member is no longer in office.  However, the former Council member (along with any covered dependents) will be allowed to change plan levels during the annual open enrollment period.

If the former Council member predeceases a covered spouse while the provisions of this policy are in force, the spouse will be allowed to continue coverage and will take the place of the former Council member for eligibility purposes according to (3) a and d listed above in the Eligibility section of this policy.  Any covered children will be offered COBRA, subject to the eligibility requirements of the group plan.

Former Council members are not entitled to Town of Cary dental benefits after they leave office.

Cost:

Cost to the former Council member will be determined by the following criteria:

·             2 full 4-yr terms:  Town subsidizes 50% of the individual health premium, former Council member pays 50%

·             3 full 4-yr terms:  Town subsidizes 75% of the individual health premium, former Council member pays 25%

·             4 full 4-yr terms:  Town subsidizes 100% of the individual health premium

The former Council member is always responsible for the portion of the health insurance premium attributed to any covered dependents and the full premium cost for continuing the direct reimbursement dental plan (if applicable).

This policy is effective on the date of adoption.

Adopted: November 8, 2007