A.
Policy for payment of health benefits to eligible retirees. Employees
who retire will be eligible for the benefits hereunder if they satisfy
one of the following requirements:
(1)
Retire on a disability pension after 15 years of continuous service
to the City of South Amboy;
(2)
Retire after 25 years or more of service credit in a state or locally
administered retirement system and have been employed by the City
of South Amboy for a period of 20 years or longer at the time of retirement;
(3)
Retire and reach the age of 62 years or older with at least the last
15 years or more of continuous service with the City of South Amboy
at the time of retirement;
(4)
Or as specified by the provisions of a negotiated and approved employment
contract not otherwise covered by a collective bargaining agreement.
(New)
B.
Type of coverage to be provided:
(1)
Retirees of the City of South Amboy shall receive health insurance
benefits which are equal to those being provided to the current employees
in the same job classification and status previously held by the retiree.
Modifications to such coverage in accordance with policy changes implemented
for existing employees shall be allowed.
(2)
All coverage granted under this section shall be coverage for the
individual employee and family coverage as defined by the health insurance
carrier.
(3)
Upon reaching age 65, any employee who remains a beneficiary of a
policy of insurance and who otherwise qualifies for Medicare shall
be entitled to receive Medicare as primary coverage and City health
insurance as secondary coverage. Employee shall be responsible for
the payment of Medicare Part B premiums.
(4)
Upon retirement and each year thereafter, all retirees shall sign
a coordination of health benefits agreement. In the event that the
retiree becomes reemployed in any capacity where such employer provides
health benefits for which the retiree is eligible, and the reemployed
retiree is not required to contribute to the cost of those benefits,
said reemployed retiree shall be required to obtain such coverage
as their primary insurance. The City shall maintain the coverage as
outlined herein as a secondary insured.
(5)
In the event that a retiree's spouse is employed, or becomes employed,
and where such employer provides health benefits for which the spouse
is or becomes eligible, and the spouse is not required to contribute
to the cost of those benefits, said spouse shall be required to obtain
such coverage as their primary health insurance. Dependents shall
be primary on the plan of the employee or spouse whose birth date
comes first in the calendar year. The City shall maintain coverage
outlined herein as secondary insured.
[Ord. No. 2-2010, adopted
2-3-10]
Editor's Note: Previous provisions established by Ordinance
No. 1-1996 provided that qualification for benefits required 15 years
of service.
An employee shall be given credit for up to three years for
full-time active duty in the armed services of the United States as
part of the employee's period of service with the City of South Amboy
for the purpose of determining eligibility for medical insurance benefits
upon retirement, provided that such time has been credited to the
employee in the State of New Jersey Public Employees Retirement System
or Police and Firemen's Retirement System.