ARTICLE 50
HEALTH INSURANCE FOR RETIREES
50.1 Benefits Effective for Retired Employees (who are employed prior to January 1, 2011)
The Township shall provide health insurance for a retiree only, who meets the following conditions under the terms of the Michigan Municipal Retirement System (MERS):
a. Has twenty-five (25) years of service and is aged fifty (50) or;
b. Has a minimum of ten (10) years and is aged sixty (60) or;
c. Has a duty disability
50.2: The employer's obligation to provide health care shall be subject to the following:
a. In the event the retired employee has comparable insurance coverage available from a spouse, or through another employer or pension plan, the Township's obligation shall be to provide health insurance when the other coverage is no longer available.
50.3: The health care shall be equal to the coverage provided to current bargaining unit employees and shall continue until the retiree is eligible for Medicare, at which time the employer's obligation shall be to provide the supplement or ?filler? coverage. The Township has the ability to look at new products to provide filler coverage.
50.4: Retirees whose hire date is January 1, 2005 or later will be responsible for 10% co-pay for insurance coverage as described above.
50.5: A retiree may elect to provide health care coverage for dependents and if so elected the retiree's obligation shall be to pay the difference between the single coverage and the additional premium cost of the dependent coverage.
Benefits Effective for Retired Employees hired on or after January 1, 2011.
Only actual credited service as a Delta Township employee shall be counted toward years of service in terms of retiree health insurance benefits. No purchased time (per Article 51.3) shall be applied. The Township shall provide health insurance for a retiree only, who meets the following conditions under the terms of the Michigan Municipal Retirement Systems (MERS):
a) Has twenty-five (25) years of service and is aged fifty (50) or;
b) Has a minimum of ten (10) years and is aged sixty (60) or;
c) Has a duty disability
The health care shall be equal to the coverage provided to current bargaining unit employees and shall continue until the retiree (and spouse, if elected) is eligible for Medicare, at which time the employer's obligation shall be to provide the supplement or coverage. The Township has the ability to look at new products to provide the filler coverage. Retirees whose hire date is January 1, 2005 or later will be responsible for 10% co-pay for insurance coverage as described above.
The Township will provide health insurance for the retiree only based upon the following premium-sharing table. The Township's portion will be for the regular rate only. The retiree will be responsible for the balance of the premium. In addition, the retiree may elect to provide health care coverage for a spouse or eligible dependents. If elected, the retiree will be responsible for the difference between the Township's obligation and the balance of the insurance premium. In the event the retired employee has comparable insurance coverage available from a spouse, or through another employer or pension plan, the Township's obligation shall be to provide health insurance when the other coverage is no longer available.
PREMIUM SHARING
| Years of Service | Employer Share | Employee Share |
| 10 | 15% | 85% |
| 11 | 20% | 80% |
| 12 | 25% | 75% |
| 13 | 30% | 70% |
| 14 | 35% | 65% |
| 15 | 40% | 60% |
| 16 | 45% | 55% |
| 17 | 50% | 50% |
| 18 | 55% | 45% |
| 19 | 60% | 40% |
| 20 | 65% | 35% |
| 21 | 70% | 30% |
| 22 | 75% | 25% |
| 23 | 80% | 20% |
| 24 | 85% | 15% |
| 25 | 90% | 10% |
ARTICLE 51
PENSION AND /OR RETIREMENT PLAN
51.1: The employees shall be provided a pension through the Michigan Municipal Employees Retirement System with the following benefit program:
Age and service - 50/25
Multiplier - B-4
Final Average Compensation - FAC 3
V10
E-2
51.2: The Employer obligation for providing the MERS pension shall be a maximum of nine percent (9%) of an employee's income (as defined by the MERS Plan). Any required additional contribution (as determined actuarially) shall be made by employees through payroll deduction.
During the term of this Agreement, the Union may request an additional MERS Pension Improvement subject to Township Board approval. The cost of any improvement over the Employer's nine percent contribution (9%) shall be born by the Employees through payroll deduction. In no event shall the current Employees' contribution for the cost of the improvement exceed five percent (5%) based upon the initial actuarial evaluation at the time the pension improvement is adopted.
51.3: Employees shall be permitted to purchase up to five (5) years of either military, past service or generic time. The cost of this service shall be paid entirely by the employee.
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