§ 2-27. Health insurance coverage plan after retirement.

The town has developed a plan to allow retirees to maintain their group health insurance benefits after retirement. Said plan shall include:

(a)

The term "retiree" for the purpose of this plan is an employee that is eligible for retirement under the Municipal Employees Retirement System of Louisiana. These eligibility requirements are:

(1)

Members with ten (10) years of creditable service may retire at age sixty (60).

(2)

Members with twenty-five (25) years of creditable service may retire at age fifty-five (55).

(3)

Members with thirty (30) years of creditable service may retire regardless of age.

(4)

Members with five years of service may be eligible for disability retirement. (The state medical disability board must certify these claims.)

(b)

A retiree may continue group health insurance coverage provided through the town's group policy at the retiree's own expense.

(c)

Once the retiree becomes eligible to obtain Medicare supplement insurance or other similar policies supplementing benefits available through Medicare or other similar government programs, and subject to the provisions of subsection (e) of this section, at the request of the retiree, the town will pay the premium for the Medicare supplement insurance policy up to a maximum amount of $150.00 per month. Any Medicare supplement premium costs above one hundred fifty dollars ($150.00) must be paid by the retiree. Failure of the retiree to pay any additional Medicare supplement premium above the one hundred fifty dollars ($150.00) per month shall relieve the town of any responsibility to pay any portion of the Medicare supplement premium.

(d)

This Medicare supplement premium payment plan will be offered to the following: All eligible retirees with a retirement date of December 31, 1997, or later.

(e)

The town in its sole discretion reserves the right, at any time, to discontinue this plan in its entirety and/or to make changes to the amount of payment to be paid by the town towards any Medicare supplement policy premium. In such event, written notice shall be provided to the retiree, but the retiree shall not have a right to require the town to continue the plan or not to make any changes.

(f)

The town shall project annual expenses for this plan and prepare the budget accordingly. Premiums for this plan will be allocated in one line item account in the general fund, labeled "Retirees Medicare Supplement." The Medicare supplement premiums for the retirees will be paid from that account monthly.

(g)

In no event shall this plan cover any costs of insurance attributable to dependents of the retiree, but his plan shall only provide benefits to the retiree personally.

(h)

It will be the responsibility of the retiree to follow the rules and regulations regarding the policy of the insurance company, such as precertifications, copays for the PPO physicians and hospitals, and any other rules or regulations. If any rules and regulations are not followed, there may be penalties which will be payable solely by the retiree.

(i)

The town shall prepare an official application form which may be used by the retiree wishing to change their status from "active" to "retired" for the purpose of their group health insurance policy. The retiree will be responsible for obtaining all criteria required by the insurance company in effect at the time of their retirement, to determine eligibility.

(j)

Beginning January 1, 2002, and ending September 1, 2004. a retiree who has at least eleven (11) years, five (5) months but less than twelve (12) years of creditable service may continue group health insurance coverage provided through the town's group policy with the town paying one hundred fifty dollars ($150.00) per month of the premium costs and the retiree paying the remainder of the premium costs.

(Ord. No. 455, §§ I—IX, 1-12-99; Ord. No. 515, §§ I—X, 1-14-03)