Retiree Information

Retiree Information Retiree Information Fire District Rancho Cucamonga Attorney Cucamonga Fire Protection District has two tiers of health insurance coverage for employee and family members. The Memorandum of Understanding (MOU) provides for a fully paid employee and family health insurance program for all existing full-time continuous employees and retirees hired prior to November 17, 1994. Employees hired after that date shall be responsible for paying all premiums for medical insurance through PEMHCA, upon their retirement. Recently, the District learned that modifications http://attorney-in-rancho-cucamonga.com/ in the two tier provision were necessary to conform to current requirements of the Public Employees Medical and Hospital Care Act (PEMHCA). The MOU provides that, in situations such as this, the District and employees may "reopen negotiations regarding the affected MOU provisions with the understanding that the total compensation to the employees shall not be reduced or increased." Representatives of the District and employees covered by the respective MOUs have met and conferred on new procedures that conform to current PEMHCA requirements. The attached resolution FD 08-013 and agreements between the District and employee groups explain the new method in which medical benefits will be provided. It complies with the requirements of PEMHCA and provides the same level of benefit to the retirees. City Staff Employees who retire from the City of Rancho Cucamonga Attorney Cucamonga may continue medical coverage under COBRA, or the City's retiree medical as provided in the Memorandum of Understanding (MOU) between the City and miscellaneous employees bargaining group. COBRA (Consolidated Omnibus Budget Reconcilliation Act) is a federal law that requires employers to extend medical coverage to terminated employees for up to eighteen months at the employees own cost. The premium for medical Cobra is the actual cost for active employees plus two percent, and is paid by employees to the City. The City in turn remits the amount to the carriers. Upon separation from employment, the City provides the employee a COBRA election form which the employee must fill out and return to Human Resources within 60 days. Failure to return within the prescribed period results in the loss of eligibility to enroll in COBRA. After 18 months of federal COBRA, employees may continue medical coverage under the state's CalCOBRA for up to an additional 18 months. Employees who participate in COBRA will receive notification from their medical insurance provides approximately 180 days before their COBRA coverage expires and provided with a CalCOBRA election form. Participation in CalCOBRA occurs directly between the employee and the medical insurance carrier. To enroll, employees must fill out the CalCOBRA election form and return it directly to their medical insurance carrier. In the event, the employee fails to receive such a form, the employee may contact the carrier directly at the following telephone numbers: Blue Shield – (800) 642-6155 Kaiser – (800) 464-4000 The premium rates for CalCOBRA are typically higher than the active employees rates as they are calculated based on the utilization experience of its participants, among other factors. Premiums are paid by the employee directly to the carrier. Also, it is important to note that when employees opt for COBRA over the City's retiree medical plan, they lose their eligibility to enroll in the City's retiree medical plan. The current MOU has a provision that addresses retiree medical. Below are pertinent excerpts from section 7 ("Retiree Medical") of the MOU: "...retirees shall be eligible to 100% personally fund without any City contribution, participation in a group health insurance program(s) which is making group health insurance available to the City's retirees." "All premiums for the retiree and/or eligible dependents shall be borne by the retiree." "City shall advise the group carrier of the insured's status as a retiree. Coverage eligibility shall then be solely determined by the group insurance carrier(s)." "It is likely that the premium rates for retirees and/or dependents shall be greater than the rates for employees. Regardless, retirees shall pay 100% of said rates." Although retirees are covered under the City's medical plan, they are considered a separate group apart from active employees as required by GASB 45. GASB 45 is a statement by the Governmental Accounting Standards Board that requires state and local government to properly account and report in financial statements what is called "other post employment benefits" (OPEB) such as retirement medical benefits. It requires retiree rates to be calculated independent of other groups and based on the group's experience and other factors such as demographics and utilization. Otherwise, an implied subsidy is created and must be funded and accounted for. As a result, premium rates for the City's retiree medical plan are substantially higher than that of the active employees. It is important to note that once employees opt to enroll in the City's retiree medical plan, they will lose their eligibility to enroll in COBRA. Whether the employee enrolls in COBRA or in the City's retiree medical plan, they will become eligible for Medicare once they reach age sixty five. At that time, they may switch their medical coverage to Medicare. For more information about Medicare, please log on www.medicare.org . Other useful links are available here . Please refer to the Frequently Asked Questions page for more information regarding retiree medical.
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