[Added 10-2-2007 by Ord. No. 07-23]
The City of Englewood will offer monetary payments to eligible
employees who voluntarily waive their health insurance coverage. Employees
may only waive this coverage and participate in the program if he
or she has other health insurance covering him or her. The amount
of the payment shall be based upon 50% of the average cost for all
plans offered by the New Jersey State Health Benefits Program or any
other health benefits program in which the City of Englewood may participate
for the individual employee's specific coverage category.
The City Manager is hereby authorized to implement procedures
for requesting a waiver of coverage substantially in accordance with
the following:
A.
Waiver of coverage.
(1)
All employees who are eligible for City health insurance coverage
shall qualify to participate in the Health Insurance Waiver Program,
provided that other health insurance coverage is available to them.
(2)
Employees who wish to participate in the program shall complete a
waiver of coverage form and provide evidence of coverage by another
health insurance plan.
(3)
While enrolled in the program employees shall be required to notify
the Human Resources Department of any changes in their coverage status
(e.g., member/spouse to family) within 30 days of the date of the
event.
(4)
Following initial enrollment employees shall certify annually that
they continue to satisfy the criteria for eligibility in the program.
B.
Reinstatement of coverage. Employees may reinstate their health insurance
under the City's plan at the following times:
(1)
If the employee ceases to be covered by the other health insurance
policy (generally that of a spouse), the employee can be reinstated
in the City's plan under the same terms and conditions as apply to
initial coverage. The employee must notify the Human Resources Department
and provide proof of loss of the other coverage.
(2)
Annually, during the open enrollment period, an employee who has
previously waived coverage may choose to reenroll in the City's plan.
The reinstatement will be effective on January 1 of the succeeding
year.
C.
Payment.
(1)
Effective January 1, 2010, employees participating in the Health
Insurance Waiver Program shall be paid 25% of the amount saved by
the City or $5,000, whichever is less. The amount saved by the City
is defined as the premium due minus the contribution the employee
would have made if the employee did not waive coverage. The premium
due is defined as the average cost for all plans offered for the individual's
level of coverage if they were enrolled in the City's plan.
[Amended 5-18-2010 by Ord. No. 10-08]
(2)
Payments will be made once a year during the first two weeks of December
and will be prorated if the employee has waived coverage for less
than a full year.
(3)
Payments shall be considered taxable income and subject to normal
withholding taxes. Payments shall not be considered pensionable earnings
or part of base wages for purposes of longevity, overtime or similar
calculations.
(4)
The annual payment amounts will be calculated each year based on
the calendar year health insurance premium costs to the City.
[Added 12-15-2009 by Ord. No. 09-21; amended 5-18-2010 by Ord. No.
10-08]
Effective May 22, 2010, or upon the expiration of any existing
collective bargaining agreement, whichever shall occur first, employees
of the City shall be required to contribute annually 1 1/2% of his
or her base wages, as defined by the state, for the cost of health
insurance through equal payroll withholdings.
