SUBJECT
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Public Hearing to consider adoption of an ordinance amending Polk County Ordinance 2018-073, the Polk County Government’s Retiree Insurance Benefits Ordinance, as amended. (Estimated initial range of savings to the County is between $46,000 and $185,000)
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DESCRIPTION
The Board is asked to consider adoption of an ordinance, the title of which is:
AN ORDINANCE OF POLK COUNTY, FLORIDA, AMENDING ORDINANCE NO. 2018-073, ENTITLED “THE POLK COUNTY GOVERNMENT’S RETIREE INSURANCE BENEFITS ORDINANCE” (AS PREVIOUSLY AMENDED BY ORD. NO. 2020-044, THE “ORDINANCE”); AMENDING SECTION 2 OF THE ORDINANCE TO ALLOW UNDER-65 RETIREES WHO RETIRED PRIOR TO NOVEMBER 20, 2018, TO ELECT, FOR A LIMITED 90-DAY PERIOD, TO CEASE PARTICIPATION IN THE GROUP HEALTH INSURANCE PLAN, ENTER INTO INACTIVE STATUS, AND ENROLL ONE TIME AT A LATER DATE; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE.
On November 20, 2018, the Board enacted Ordinance No. 2018-073, the Polk County Government's Retiree Insurance Benefits Ordinance, which was subsequently amended by Ordinance No. 2020-044 (collectively, the “Ordinance”).
Section 2 of the Ordinance allows a Retired Employee (defined as a Retiree, Eligible Non-Retiree, or Under-65 Retiree) who retires on or after November 20, 2018, and their Eligible Dependents, to elect to cease participation in the group health insurance plan upon retirement, enter into Inactive Status, and enroll one time at a later date.
The County’s Finance Committee met in June to consider the impact of amending the Ordinance to provide Under-65 Retirees who retired prior to November 20, 2018, the same opportunity, for a limited 90-day period, to cease participation in the County’s group health insurance plan, enter into Inactive Status, and enroll one time at a later date. The Committee found that there are currently 384 Under-65 Retirees enrolled in the County’s self-insured medical plan, 148 of whom retired prior to November 20, 2018. The estimated, initial, potential range of savings if the proposed amending ordinance is adopted is between $46,000 and $185,000, although this estimate is subject to considerable deviation based on the small subset of members. If approved, the eligible Under-65 Retirees shall have until December 2, 2024, to complete an application with Human Resources to enter into Inactive Status.
RECOMMENDATION
Approve and adopt the proposed ordinance amending Polk County Ordinance 2018-073, as amended, to allow Under-65 Retirees who retired prior to November 20, 2018, and their Eligible Dependents, to cease participation in the County’s group health insurance plan, enter into Inactive Status, and enroll one time at a later date.
FISCAL IMPACT
If the proposed amending ordinance is adopted, the potential initial range of savings to the County, as estimated by the County’s consultant, Willis Towers Watson, is between $46,000 and $185,000.
CONTACT INFORMATION
Mark Thomas
Risk Management Director
863-534-5265
Sandra Howard
Deputy County Attorney
863-534-6437