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HomeMy WebLinkAboutResolutions - 1999.07.15 - 25741REPORT (Misc. #99101) July 15, 1999 FINANCE COMMITTEE - SUE ANN DOUGLAS, CHAIRPERSON MR#99101, RETIREMENT HEALTH CARE BENEFITS FOR EMPLOYEES IN THE DEFINED BENEFIT RETIREMENT PLAN TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: The Finance Committee having reviewed MR#99101, reports with the recommendation that it concurs with the Personnel Committee's report that MR#99101 be amended in the NOW THEREFORE BE IT RESOLVED paragraph as stated and in addition that the same paragraph be amended by deleting the reference to the 25th birthday and inserting --19th birthday--. Chairperson, on behalf of the Finance Committee, I move the acceptance of the foregoing Report. FINANCE COMMITTEE Z Gtr-- Finance Committee Vote: Motion carried unanimously on a roll call vote. BY: IN RE: July 15, 1999 REPORT (Misc . #99101) BY: PERSONNEL COMMITTEE, THOMAS A. LAW, CHAIRPERSON RE: MR #99101 RETIREMENT HEALTH CARE BENEFITS FOR EMPLOYEES IN THE DEFINED BENEFIT RETIREMENT PLAN To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: The Personnel Committee having reviewed the above referenced resolution on June 2, 1999, recommends to the Oakland County Board of Commissioners the resolution be adopted after amending the NOW THEREFORE BE IT RESOLVED paragraph as follows: "Dependent children of the retiree, are eligible for continued health coverage after the retiree's death if they were covered by the retiree's health plan at the time of death and continue as dependents under the spouse who was the spouse of record at the time of retirement, subject to the requirements of the health plan. 1-19-the Hsc ironcrc H SIDOU3C or rccoro 13 nor nornco ui Inc nrnc or rc health coverage IN THE CASE WHERE THERE IS NO SPOUSE OF RECORD AT THE TIME OF RETIREMENT BUT THERE ARE DEPENDENT CHILDREN, the dependent child will be eligible for continued health coverage upon the retiree's death through the end of the year in which they have their 25th birthday, if they were covered by the retiree's health plan at the time of death." Chairperson, on behalf of the Personnel Committee, I move the acceptance of the foregoing report. PERSONNEL COMMITTEE Personnel Committee Vote: Motion carried on unanimous roll call vote with Moffitt and Galloway absent. April 29, 1999 99101 MISCELLANEOUS RESOLUTION # BY: PERSONNEL COMMITTEE, THOMAS A. LAW, CHAIRPERSON RE: RETIREMENT HEALTH CARE BENEFITS FOR EMPLOYEES IN THE DEFINED BENEFIT RETIREMENT PLAN To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS Miscellaneous Resolution # 94292, adopted by the Board of Commissioners on October 27, 1994 and signed by County Executive, L. Brooks Patterson on November 3, 1994, defines retirement health coverage for all employees, and WHEREAS Miscellaneous Resolution # 94292 states the level of retirement health coverage is determined by the date of hire and number of years of actual service, and WHEREAS the intent of Miscellaneous Resolution # 94292 was to provide employees choosing to transfer to the Defined Contribution Retirement Plan no loss of retirement health coverage, and WHEREAS an inconsistency has been found in the retirement health coverage for named beneficiaries between Defined Benefit and Defined Contribution Retirement plan participants, and WHEREAS eliminating this inconsistency may benefit the named beneficiaries and dependent children of long term employees, and WHEREAS on September 26, 1996, the Oakland County Employees' Retirement Board recommended this Board amend Miscellaneous Resolution # 94292 to provide health coverage for named beneficiaries after the retirement allowance stops for all options of the Defined Benefit Retirement Plan, and WHEREAS this recommendation was analyzed by the actuarial firm of Gabriel, Roeder, Smith & Company, and WHEREAS the actuary reported there is no need to appropriate funds to implement this change, Personnel Committee Vote: Motion carried on unanimous roll call vote with Moffitt, Colasanti and Galloway absent NOW THEREFORE BE IT RESOLVED that Miscellaneous Resolution # 94292 be amended as follows: Defined Benefit Plan - Retirement health care covers the employee and their spouse of record at the time of retirement, both for their lifetime. If the retiree dies, the spouse will continue to receive health coverage as long as the spouse was the spouse of record at the time of retirement and was covered by the retiree's health plan at the time of the retiree's death. If the surviving spouse were to remarry, the new spouse could not be added to the County health care plan. A subsequent spouse of the retiree can be added to the retiree's health plan but would not be eligible for health coverage upon the retiree's death. Dependent children of the retiree are eligible for continued health coverage after the retiree's death if they were covered by the retiree's health plan at the time of death and continue as dependents under the spouse who was the spouse of record at the time of retirement, subject to the requirements of the health plan. In the case where a spouse of record is not named at the time of retirement, but a dependent child is named for health coverage, the dependent child will be eligible for continued health coverage upon the retiree's death through the end of the year in which they have their 25th birthday, if they were covered by the retiree's health plan at the time of death. Children of the retiree whether natural, adopted or for which the retiree is the legal guardian or provides principal support who were not covered under the retiree's health plan at the time of retirement may be added at a later date. A surviving spouse may not subsequently add children to the health care coverage. Chairperson, I move the adoption of the foregoing resolution. Personnel Committee Resolution #99101 April 29, 1999 The Vice Chairperson referred the resolution to the Finance Committee. There were no objections FISCAL NOTE (M.R. #99101) May 13, 1999 BY: FINANCE COMMITTEE, SUE ANN DOUGLAS, CHAIRPERSON IN RE: RETIREMENT HEALTH CARE BENEFITS FOR EMPLOYEES IN THE DEFINED BENEFIT RETIREMENT PLAN TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: Pursuant to Rule XII-C of this Board, the Finance Committee has reviewed the above referenced resolution and finds: 1. The resolution amends M.R.#94292, which defines retirement health care coverage for all employees, by providing health coverage for named beneficiaries after the retirement allowance stops for all options of the Defined Benefit Retirement Plan. 2. The proposed change affects future retirements from the Defined Benefit Retirement Plan and eliminates an inconsistency between Defined Benefit and Defined Contribution Retirement Plan participants in retirement health coverage for named beneficiaries. 3. The change was analyzed by the actuarial firm of Gabriel, Roeder, Smith & Company which reported there is no need to appropriate funds to implement this change. Funding will be provided in future actuarially-determined contributions to the Retiree's Health Care Trust to cover the proposed change. FINANCE COMMITTEE FINANCE COMMITTEE VOTE: Motion carried unanimously on a roll call vote. FISCAL NOTE (Misc. #99101) May 13, 1999 BY: Finance Committee, Sue Ann Douglas, Chairperson IN RE: RETIREMENT HEALTH CARE BENEFITS FOR EMPLOYEES IN THE DEFINED BENEFIT RETIREMENT PLAN To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: Pursuant to Rule XII-C of this Board, the Finance Committee has reviewed the above-referenced resolution and finds: 1. The resolution amends Miscellaneous Resolution #94292, which defines retirement health care coverage for all employees, by providing health coverage for named beneficiaries after the retirement allowance stops for all options of the Defined Benefit Retirement Plan. 2. The proposed change affects future retirements from the Defined Benefit Retirement Plan and eliminates an inconsistency between Defined Benefit and Defined Contribution Retirement Plan participants in retirement health coverage for named beneficiaries. 3. The change was analyzed by the actuarial firm of Gabriel, Roeder, Smith and Company which reported there is no need to appropriate funds to implement this change. Funding will be provided in future actuarially-determined contributions to the Retiree's Health Care Trust to cover the proposed change. FINANCE COMMITTEE (/ "- Action at the May 13, 1999, Board Meeting: Moved by Law supported by Gregory the resolution be adopted. Moved by Millard supported by Coleman the resolution be amended to add a BE IT FURTHER RESOLVED paragraph stating that the resolution be made effective retroactive to September 26, 1996. Discussion followed. After much discussion, Commissioner Millard withdrew his motion and Commissioner Coleman withdrew his support. Moved by Millard supported by Coleman the resolution be referred back to the Personnel and Finance Committees. A sufficient majority having voted therefor, the motion carried and the resolution was referred back to the Personnel and Finance Committees. Finance Committee Vote on July 8, 1999 (Fiscal Note): Motion carried unanimously on a roll call vote. Resolution #99101 July 15, 1999 Moved by Law supported by Garfield the Finance Committee Report and the Personnel Committee Report be accepted. A sufficient majority having voted therefor, the reports were accepted. Moved by Law supported by Garfield the resolution be adopted. Moved by Law supported by Garfield the resolution be amended to coincide with the recommendations in the Finance Committee Report and the Personnel Committee Report. A sufficient majority having voted therefor, the motion to amend to coincide with the Finance Committee Report and the Personnel Committee Report carried. Vote on resolution, as amended: AYES: McPherson, Melton, Millard, Moffitt, Obrecht, Palmer, Patterson, Schmid, Sever, Suarez, Taub, Amos, Causey-Mitchell, Colasanti, Devine, Dingeldey, Douglas, Galloway, Garfield, Gregory, Law, McCulloch. (22) NAYS: None. (0) A sufficient majority having voted therefor, the resolution, as amended, was adopted. -RY ABPROVE-T-t-IE FOREGOING RESOLUTION PattisO7,-County Executive Date STATE OF MICHIGAN) COUNTY OF OAKLAND) I, G. William Caddell, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on July 15, 1999 with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 12gh day/Of July, 1999. G. William Caddell, County Clerk