ARTICLE 50
HEALTH INSURANCE FOR RETIREES

50.1     Benefits Effective for Retired Employees

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.

 

 

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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