1st Reading - Jersey City

City Clerk File Nq.Agenda No.Ord. 11-0063.F 1st ReadingAgendaNo.2nd Reading & Final Passage.ORDINANCEOFJERSEY CITY, N.J.COUNCIL AS A WHOLEoffered and moved adoption of the following ordinance:CITY ORDINANCE 11-006TITLE:ORDINANCE AMENDING AND SUPPLEMENTING CHATER 53(pERSONNEL) OF THE JERSEY CITY MUNICIPAL CODE, IMPLEMENTINGARTICLE XII (RETIREE HEALTHAND MEDICA BENEFITS) TO 1) ENROLLALL RETIREES IN A PREFERRD PROVIDER OR DIRECT ACCESS PLA OR2) REQUIRE ALL RETIREES TO PAY TO RETAIN OR ENROLL IN ATRAITIONAL HEALTH BENEFITS PLATHE MUICIPAL COUNCIL OF THE CITY OF JERSEY CITY DOES ORDAIN:WHEREAS, given the state of the global economy, and the City ofJersey City's declg State aid,and notwthstadig recent ta increases, the cost of operatig muncipal government, especiallythe cost of providig. health and medical benefits, have increased sharly; andWHERE, the City ofJersey City has an obligation to reduce or mie its present and futuecosts whenever possible; andWHEREAS, one of the costs that has been subject to especiay steep anual increases is thatassociated with retiee health benefits, more specificaly, the traditional medical and health benefitsplan lTraditional Plan), for which the City is self-insured; andWHERE, presently the City pays more than $33 Mion Dollars ever year for retiee healthmedical and prescription coverage; andWHERE, of the nearly 2,000 City employees presently retied, more than 80% of them areenrolled in a TraditionalPla; and .WHERES, contiuig retiees in the Traditional Plan(instead of a Preferred Provider or DirectAccess Plan or its equivalent) costs the City ofJersey City an additional $3 Mion Dolls or moreevery year; andWHEREAS, as indicated in the report on fie in the Office of the City Clerk, the integrty of theCity's health benefits system is being undermed by the expense of contiuig the Traditional Planfor its retiees; andWHERE, although ths cost wi eventualy be reduced and then eliated though atttion,the increased cost of contiuig a Traditional Plan for retiees wi eclpse any savigsatttion, for the foreseeable futue; andthoughWHERE, in 2007 the City ofJersey City withdrew from the New Jersey State Health BenefitsProgram, and the Muncipal Counci approved a group contract to provide medical and healthinsurance coverage to both curent employees and its eligible retiees though Horion BlueCross/Blue Shield of New Jersey, pursuant to N.T.S.A. 4OA:10-23; andWHEREAS, in 2008, the State Heath Benefits Commssion eliated the Traditional Plan for itsmembers; andWHEREAS, the City ofJersey City, havig withdrawn from the State Heath Benefits Program in2007, has removed al of its active employees from the Traditional Plan, effective Januar 1, 2011;and