ORDINANCE NO. 05-17

 

               AN ORDINANCE CLARIFYING LIFETIME HEALTH

               BENEFITS FOR EMPLOYEES HIRED PRIOR TO

               NOVEMBER 1, 2005.

 

 

     WHEREAS, the Borough of Hillsdale has heretofore had a practice of providing lifetime health benefits to employees who retire from employment with the Borough with 25 or more years of service or met the terms of a Collective Bargaining Agreement or personal services contract; and

 

     WHEREAS, the Borough of Hillsdale has determined that there exists a need to clarify and specify this practice by adoption of a written statement with respect to the same, so that both the Borough and its employees know precisely who is eligible for such benefit and what standards and procedures are applicable to the same; and

 

     WHEREAS, this ordinance is intended to provide such clarification and specification;

 

     NOW, THEREFORE, BE IT ORDAINED, by the Mayor and Council of the Borough of Hillsdale that the following terms be used as the guide for the purpose of clarifying and specifying the standards and procedures applicable to health care benefits for those Borough employees who retire from the Borough.

 

Section I      Eligibility

 

     To receive lifetime health benefits paid for by the Borough, an employee must meet the following criteria (unless otherwise provided by Collective Bargaining Agreements, personal service contracts, or by law):

 

1.  The employee worked on a full-time basis (35 hour minimum) for the Borough of Hillsdale in a position that qualified such employee for health insurance at Borough expense.

 

2.  The employee worked for the Borough in a position or positions that met the above criteria for a period of at least 25 years.

 

3.  The employee retired from a full-time employment position with the Borough of Hillsdale through either a Service Retirement or a Disability Retirement, as defined by the Public Employee’s Retirement System (“PERS”) or under the terms of any Collective Bargaining Agreement or personal services agreement.  If an employee who otherwise meets the criteria for lifetime health benefits decides to take Early Retirement as defined by PERS, he or she shall be eligible to receive these benefits upon attaining age 60, as required for a Service Retirement.

 

Section II        Health Plan Provided

 

1.  The Employee will be enrolled in the same plan with the appropriate status (employee only, employee and spouse, employee and family, etc.) as he/she had on his or her last day of employment prior to retirement, unless a change is agreed to by the Borough.

 

2.  The Borough shall have the right, in the future, to change health insurance plans as it deems necessary.  If this occurs, the employee receiving such lifetime benefits shall be covered by the health insurance plan selected by the Borough and an employee will be enrolled in that program of the new health insurance plan most similar to the program (in the health insurance plan in effect prior to the change) in which said employee was enrolled.

 

Section III            Medicare Enrollment

 

1.  If the employee is eligible for enrollment in Medicare, he/she must enroll in and purchase Medicare Part B at his/her sole cost.  By law, upon retirement, Medicare is the primary carrier and the Borough’s health insurance carrier is secondary.

 

2.  If an employee who is eligible to purchase Medicare Part B coverage fails to do so, the Borough’s insurance carrier shall be released from paying medical bills incurred while part B was not in effect.

 

Section IV             Working After Retirement

 

1.  If a retiree who is receiving health benefits from the Borough of Hillsdale secures another employment position that provides any health insurance coverage, the employee must accept same coverage and immediately notify the Borough Clerk of the date such insurance becomes effective.

 

2.  Upon receipt of such information, the Borough will notify the Borough’s insurance carrier and the employee’s coverage will be discontinued forthwith.

 

3.  If, subsequently, the employee terminates his/her employment in such position, the employee shall immediately notify the Borough, and the employee will be reinstated to the Borough’s insurance plan at Borough’s expense, subject to any reenrollment/eligibility waiting periods as may be applicable to the Borough’s then-existing health insurance plan.

 

4.  Any premiums paid by the Borough on behalf of an employee who had health insurance coverage offered to him/her by virtue of employment secured after retirement from the Borough, but failed to notify the Borough of such coverage, will be the responsibility of the employee and the Borough shall be entitled to pursue recovery of any payments made by the Borough during such time period, including any legal fees and costs incurred in pursuit thereof.

 

 

Section V           Conflicts

 

     To the extent the terms and provisions of this ordinance differ or conflict with any practice or custom of the Borough of Hillsdale with respect to lifetime health benefits for employees hired prior to November 1, 2005, the terms and provisions of this ordinance shall supplant and supercede any such practice or custom.

 

Section VI.

 

     All ordinances and resolutions inconsistent with the provisions of this ordinance are hereby repealed as to such inconsistencies.

 

Section VII.

 

     This ordinance shall take effect immediately after final passage (adoption), approval and publication of notice thereof as required by law, and the provisions of this Ordinance shall be retroactive to November 1, 2005.