Title
Consider approving Resolution No. 2018-41, authorizing the City Manager to enter into all necessary agreements with the Texas Municipal Retirement System to extend Federal Health Insurance Benefits (Medicare) to the officers and employees of the City of Farmers Branch; and take appropriate action.
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BACKGROUND:
Under provisions of Title 6, Chapter 606 of the Texas Government Code cities may enter into agreements with the Texas Municipal Retirement System of Texas and secure benefits of Federal Health Insurance (Medicare). The City has seven employees who currently are not offered this benefit. The City’s current policy is to pay for Medicare premiums for these employees once they retire for the rest of their lifetime.
This new option allows employees to participate along with the City (1.45% match) and reduces City Liability. The breakeven point for the City is 3 years and overall liability will be reduced by approximately $450,000.
DISCUSSION:
Under this provision, the City is considering allowing our seven excluded employees to buy back into Medicare.
RECOMMENDATION:
City Administration recommends approving Resolution No. 2018-041, authorizing the City Manager to execute all agreements necessary with the Texas Municipal Retirement System to extend Federal Health Insurance Benefits (Medicare) to officers and employees of the City of Farmers Branch.
POSSIBLE COUNCIL ACTION:
1. I move to approve Resolution No. 2018-41, as presented.
2. I move to approve Resolution No. 2018-41, with modifications.
3. I move to table the issue for further study or take no action.
ATTACHMENTS:
1. Resolution No. 2018-41