Technically this is an out of court settlement. The City of Omaha wanted to start charging people that retired years ago for health care. They wanted from 485 to over 900 per month. Problem was the contract at the time they retired spelled out an amount from nothing up to 7% of cobra rate per month. Anyway here is the first info on the settlement. First the Omaha World Heralds version followed by the largest TV coverage.
The Omaha paper (sad we only have one)
http://www.omaha.com/article/20101012/NEWS01/709209995#city-to-pay-in-health-plan-deal By Maggie O'Brien WORLD-HERALD STAFF WRITER
The City of Omaha would continue to pay the entire cost of most city retirees' health care premiums under a tentative settlement announced Tuesday.
The deal, if approved by retired city workers, would resolve a lawsuit they filed earlier this year, City Human Resources Director Richard O'Gara said.
The retirees sued May 18 after the Omaha City Council voted that day to approve a plan that would impose premiums on many retired police, fire and civilian workers. Mayor Jim Suttle had said the proposal would save the city $4.1 million annually.
Under the proposed settlement, those retired on or before May 18 would not pay a health care premium, unless they had previously paid one. Those retiring after that date would pay the same premiums as active employees.
Attorneys representing the unions could not be reached for comment Tuesday.
O'Gara said the city views the settlement as a success, even though the city would continue to pay premiums for most retirees. He said the agreement would save Omaha taxpayers about $1 million a year by consolidating the number of health care plans for retirees and current employees from 34 to four.
FULL story at link.
WOWT here:
http://www.wowt.com/home/headlines/City_Police_Union_Reach_Tentative_Agreement_104794194.htmlMayor Jim Suttle's office said Tuesday that a reworking of the retiree health care package will save Omaha taxpayers $1 million, despite the fact that the vast majority of Omaha Police retirees will pay no premiums.
Under the settlement, the city will reduce the 34 different health care providers in the current plan down to 4.
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- Retirees who left their positions on or before May 18 will pay no premiums if they were not paying premiums prior to that month. Retirees paying premiums based upon COBRA rates will continue to have those premiums based on current annual COBRA rates.
- Civilian employees who retired before August 2006 will move to the current civilian health care plan, but will retain their current medical deductibles for two years and remain on their current prescription drug plan until they reach age 65.
- All other retirees will move to the current employee health care plans for fire, police, and civilian unions, which allows their health care plans, including deductibles and out-of-pocket expenses to be adjusted in conjunction with any future changes negotiated for active employee's health benefits.
- All police retirees as of May 2010 will pay the same premiums as active police employees, based upon the recently approved Police Officers Association contract. Current fire and future civilian union negotiations will address retiree health care premiums equal to those paid by active employee union members.
FULL story at link.