HomeMy WebLinkAboutOrdinance 18287-09-2008ORDINANCE NO. 18287-08-2008
AN ORDINANCE AMENDING CHAPTER 2, "ADMINISTRATION,"
ARTICLE V "HUMAN RESOURCES" OF THE CODE OF THE CITY OF
FORT WORTH, TEXAS (1986), AS AMENDED, TO ADD SECTION 2-190,
"RETIRED EMPLOYEE HEALTH COVERAGE;" PROVIDING THAT THIS
ORDINANCE SHALL BE CUMULATIVE; PROVIDING FOR A
SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, on or about October 4, 1988, the Fort Worth City Council approved
changing the level of benefit subsidization for employees hired on or after October 5, 1988
who retired from the City of Fort Worth providing one hundred percent subsidization of the
retirees' cost to providing subsidization of cost based on date of hire or years of service;
and
WHEREAS, with the implementation of . a new accounting rule, Government
Accounting Standards Board Statement 45, the City must account for its Other Post
Employment Benefits for the fiscal year beginning October 1, 2007; and
WHEREAS, as of October 1, 2006, the Unfunded Actuarial Accrued Liability as
determined by the City's outside consultant is $858,000,000 and the City's estimated
associated Annual Required Contribution is $89,100,000; and
WHEREAS, the Audit and Finance Advisory Committee has considered the
reporting requirements and endorses the City Manager's recommendation to provide no
premium benefit subsidy for retirees who are hired as active employees on or after January
1, 2009.
Be it ordained by the City Council of the City of Fort Worth, Texas that:
SECTION 1.
Chapter 2 "Administration," Article V, "Human Resources," of the Code of the City of
Fort Worth, Texas (1986), as amended, is hereby further amended to add Section 2-.190,
"Retired Employee Health Coverage" which shall read as follows:
ARTICLE V. HUMAN RESOURCES
Sec. 2-190. Retired Employee Health Coverage.
(a) Pursuant to Chapter 172 of the Texas Local Government Code, the City of Fort
Worth may provide certain benefits, including group health coverage, to its
officers, employees, and retirees, and to the dependents of officers, employees
and retirees. Pursuant to Article 16, Section 66 of the Texas Constitution, such
benefits are not a constitutionally protected right, and may be changed or
discontinued at any time.
(b) Chapter 175 of the Texas Local Government Code permits a person who is
entitled to receive pension coverage from the City of Fort Worth to purchase
continued health coverage for the person and the person's dependents, as
defined by the City, if health benefit coverage is provided to employees, and if
the person is not eligible for group health coverage through another employer.
This Chapter does not require the City to offer health coverage, and does not
require the City to pay any portion of the cost for health coverage if it makes
coverage available.
(c) The City of Fort Worth provides health benefit coverage for its employees and
retirees, and their dependents, and for surviving dependents of retired and
vested employees on a variable contribution basis. Although the City is not
required to pay any portion of the cost of this coverage, the City will pay a
percentage of the cost of health benefits for retired employees who were hired
prior to January 1, 2009, and their dependents, as approved by City Council.
(d) The City will not contribute to the cost of health benefits for employees and their
dependents upon the retirement of the employee if the employee was hired on or
after January 1, 2009.
(e) Coverage under subsection (c) is not a contractual right, nor a guarantee of
future coverage. The City may change health benefits or discontinue health
benefits at any time. Additionally, City contributions to health coverage in any
fiscal year are contingent on sufficient funds being allocated in the City of Fort
Worth's annual budget for that fiscal year.
(f) The City shall establish a separate account for the purpose of funding the City's
retiree healthcare liability. City Council shall determine the amount to be
allocated to this account in the City of Fort Worth's annual budget. The funds in
this account may be invested as allowed by state and federal law.
SECTION 2.
Sections 2-191 through 2-200 are hereby reserved for future use.
SECTION 3.
This ordinance shall be cumulative of all provisions of ordinances and of the Code
of the City of Fort Worth, Texas (1986), as amended, except where the provisions of this
ordinance are in direct conflict with the provisions of such ordinances and such Code, in
which event conflicting provisions of such ordinances and such Code are hereby repealed.
SECTION 4.
It is hereby declared to be the intention of the City Council that the sections,
paragraphs, sentences, clauses and phrases of this ordinance are severable, and if any
phrase, clause, sentence, paragraph or section of this ordinance shall be declared void,
ineffective or unconstitutional by the valid judgment or decree of any court of competent
jurisdiction, such voidness, ineffectiveness or unconstitutionality shall not effect any of the
remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since
the same would have been enacted by the City Council without the incorporation in this
ordinance of any such void, ineffective or unconstitutional phrase, clause, sentence,
paragraph or section.
SECTION 5.
This ordinance shall take effect and be in full force and effect from and after its
passage and adoption, and it is so ordained.
APPROVED AS TO FORM AND LEGALITY:
2v
Assistant City ttorney
Date: ~ (~ ~,
ADOPTED: September 16, 2008
EFFECTIVE: September 16, 2008