Cape Coral Code of Ordinances § 2-38.1 Employee benefits.
§ 2-38.1 - Employee benefits.
(a) The city may provide benefits to its employees and retirees including, but not limited to, health insurance, disability insurance, life insurance, pension and/or other benefits under such terms and conditions as the city, in its sole discretion, shall deem appropriate. None of the benefits, rates of pay, or compensation provided to employees or retirees herein may be changed except by ordinance of the City Council.
(b) Non-bargaining unit employees whose date of employment is on or before October 1, 2003, Tier One shall be entitled to group health and life insurance benefits upon retirement from the City only if they have been continuously employed by the city for more than five years. In order to participate in the city's group health insurance program, non-bargaining unit retirees and employees who retire pursuant to this section must sign up for coverage under Medicare Parts A and B as soon as they become eligible. In addition to paying the cost of retiree group health and life insurance, the city shall provide a monthly subsidy to retirees covered under this section equal to the cost of Medicare Part B coverage. Present non-bargaining unit retirees and employees who become eligible to retire pursuant to this section shall also be entitled to group life insurance benefits equal to twice the amount of their annual base salary at the time of retirement from the city.
(c) In lieu of receiving paid city group health insurance, non-bargaining unit employees whose date of employment is after October 1, 2003 but before February 1, 2022, Tier Two, shall be entitled to receive a health benefit subsidy from the city upon retirement from employment with the city to assist in offsetting the cost of health insurance for the retiree, whether the retiree receives insurance through the city's group policy or through another individual or group health policy only if they have been continuously employed by the city for more than ten years. The amount of the subsidy shall be determined by multiplying the employee's years of service at retirement times $13.53 as of February 1, 2022. The minimum monthly subsidy provided to retirees shall be $135.30 and the maximum monthly subsidy shall be $405.90. On January 1 of each year thereafter, the monthly subsidy amount and the minimum and maximum monthly subsidy shall be adjusted by the same percentage as the increase, if any, in the city's group health benefit cost. In the event the city's group health benefit cost does not increase in any given year, then the monthly subsidy amount and the minimum and maximum subsidy amounts shall remain the same as they were in the previous year. In order to continue to receive this subsidy, non-bargaining unit employees who retire pursuant to this section must sign up for coverage under Medicare Parts A and B as soon as they become eligible. Proof of other individual or group coverage must be provided annually up until they become eligible for Medicare.
(d) In lieu of receiving paid City group health insurance, non-bargaining unit employees whose date of employment is on or after February 1, 2022, Tier Three, shall be entitled to receive a health benefit subsidy from the city upon retirement to assist in offsetting the cost of health insurance for the retiree, whether the retiree receives insurance through the City's group policy or through another individual or group health policy only if they have been continuously employed by the City for more than ten years. Proof of other individual or group coverage must be provided annually up until they become eligible for Medicare, at which time the subsidy will be discontinued.
The calculation of the subsidy shall be determined by multiplying the employee's years of service at retirement times a percentage of the City's base medical plan (as determined by the City) employee only rate. The minimum monthly subsidy amount provided to retirees shall be $136.90 and the maximum monthly subsidy shall be $256.70 as of February 1, 2022. The percentage to be calculated is determined by years of service as follows:
Years of Service | Percentage
10 | 16%
11 | 16%
12 | 17%
13 | 18%
14 | 19%
15 | 20%
16 | 21%
17 | 22%
18 | 23%
19 | 24%
20 | 25%
21 | 26%
22 | 27%
23 | 28%
24 | 29%
25 or more | 30%
(e) Employees that qualify for group life and health benefits pursuant to subsection (b) of this article shall not be eligible for any additional group health and life insurance benefits as provided for under subsections (c) and (d) of this section.
(Ord. 17-22, § 1, 2-16-2022) (Ord. 17-22, § 1, 2-16-2022) (Ord. 17-22, § 1, 2-16-2022) (Ord. 58-13, 9-30-2013; Ord. 17-22, § 1, 2-16-2022)