Fiscal Note
This ordinance change will entitle non-represented employees, upon retirement, to reimbursement for three months of the premium gap between the Standard Plan amount and the normal City health insurance benefit contribution. This benefit has been adopted by the Common Council in collective bargaining agreements and this change would extend the benefit to non-represented employees. The goal of the benefit is to ensure that employees do not unnecessarily sign up for health insurance at the time of hire simply to avoid having to pay this premium gap upon enrollment at retirement. The monthly gap for 2009 will be $386.42 for single coverage and $966.15 for family coverage. Staff estimates that this change will result in few participants annually, and thusly, a nominal cost to the City. This nominal increase in cost does not take into account potential savings from employees not unnecessarily enrolling in the City's health insurance program.
Title
Creating new Section 3.54(27) and renumbering current Sections 3.54(27) through (30) to Sections 3.54(28) through (31) of the Madison General Ordinances, respectively, to reimburse a retired employee for three months premium gap for period between health plans.
Body
DRAFTER'S ANALYSIS: This ordinance reimburses a retired employee for three months premium gap for period between health plans immediately after retiring.
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