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b. The benefits continued under retiree coverage include the same health, <br /> prescription, vision and dental coverage that the employee received as <br /> an active participant in the Plan. <br /> 2) Procedure: <br /> a. Upon retirement, the Human Resources Department will notify the <br /> employee of the option to continue the health benefits. Employees <br /> wishing to continue coverage as a Retiree must elect the coverage <br /> within 60 days. The City utilizes a third party administrator for election <br /> notifications and payment administration. Coverage through the active <br /> group terminates the end of the month in which the employee retires, <br /> providing premiums are paid in full. Coverage as a Retiree begins the <br /> first of the month following retirement, providing payment is received. <br /> The option to enroll in the City's health insurance plan upon retirement <br /> is a one-time option, which must be exercised on or before the last day <br /> of employment with the City. <br /> b. The Retiree must pay a monthly Retiree contribution rate applicable to <br /> the covered class (i.e., employee, employee plus spouse, employee <br /> plus children, or family) elected for continuation. The retiree contribution <br /> rate is established at 100% of the determined costs for the class of <br /> coverage elected, and is assessed annually for rate adjustments each <br /> March 1. The City will not pay the costs, or a portion thereof, of any such <br /> continuation coverage for its Retirees and eligible dependents. <br /> c. Once the City's health plan coverage for employees and their <br /> dependents with Medicare changes to Retiree coverage, the Medicare <br /> coverage will generally become primary and the City's health plan <br /> coverage will become secondary to the Medicare coverage. <br /> d. Retiree health insurance payments are due on the first day of each <br /> month of continuation coverage. A grace period of 30 days after the first <br /> day of the month will be given to make each monthly payment. <br /> Continuation coverage will be provided for each month as long as <br /> payment for that month is made before the end of the grace period for <br /> that payment. If the Retiree fails to make a monthly payment before the <br /> end of the grace period for that month, they will lose all rights to <br /> continuation coverage under the Plan and the benefits will be <br /> terminated. <br /> e. If Retiree health insurance coverage is terminated, it cannot be <br /> reinstated and COBRA continuation coverage will not be available. <br /> CODING: Wordsen are deletions,words underlined are additions. <br /> 503-1 Retirement Benefits Page 4 of 6 <br /> 74 <br />