§ 86-12. Group insurance benefits.

(a)

Group health insurance fund.

(1)

The group health insurance fund is hereby created and the city treasurer is hereby authorized to open such bank accounts as required to operate said funds as contemplated by this section.

(2)

Said accounts may be in the form of investments with a federally insured bank and in the form of a checking account.

(3)

All funds deducted from the payroll and other checks issued to employees for their portion of medical and hospitalization premiums shall be deposited into this fund. All payments made by retirees for their premiums shall be deposited into this fund. All payments from the general fund and other funds as designated by the city council for the city's portion of the insurance program shall be deposited in this fund.

(4)

Allows for the payment of all necessary expenses and any claims in establishing and maintaining the city's flexible spending plans.

(5)

No transfers or loans shall be made from said fund except upon a motion and affirmative vote of three-fourths of those holding elective office on the city council.

(6)

The appropriate city officers shall report the various investments and accounts of said fund, along with all deposits thereto and payments therefrom, to the city council on a monthly basis.

(b)

Special retirees' self-insured life insurance line item account.

(1)

The special retirees' self-insured life insurance line item account is hereby created as a part of the group health insurance fund previously established by Ordinance No. 3059-9-85 by the city. The city treasurer is authorized to maintain said line item account as part of the group health insurance fund.

(2)

Said life insurance benefit is specifically limited to retirees, who the city originally thought would have been insured under a policy with Fort Dearborn Insurance Company through the group health insurance fund, and said retirees are those listed on exhibit A, attached to the ordinance from which this section is derived and incorporated by reference in and made a part of this section.

(3)

Each retiree, unless said retiree signs a waiver in writing with the city clerk of the city, expressing desire not to participate in this self-funding life insurance program, shall pay to the city clerk of the city, on a monthly basis, the sum of $9.88 per month for the benefits as further set out herein. In addition, any funds previously paid to Fort Dearborn Life Insurance Company on behalf of said designated retirees, upon receipt from Fort Dearborn Life Insurance Company, shall be deposited into this fund to the credit of the participants or refunded to the nonparticipants.

(4)

The city does hereby guarantee each of the enumerated retirees on the list known as exhibit A, a death benefit of $3,200.00. Said death benefit shall be payable to those beneficiaries designated in writing with the city clerk; if any of the retirees herein fails to designate in writing such a beneficiary, the same shall be paid to his estate.

(5)

All payments made by retirees for their premiums and all monies refunded by Fort Dearborn Life Insurance Company shall be deposited in the group health insurance fund.

(6)

All necessary expenses and claims against the self-insured life insurance shall be made from the fund upon recommendation of the city council. Upon receipt of the approval from the city council, the city clerk and the city treasurer are authorized to pay claims.

(Code 1978, § 256.12; Res. of 8-17-1982; Ord. No. 3059-9-85, 9-3-1985; Ord. No. 4011-8-86, 8-5-1986; Ord. No. 4026-10-86, 10-7-1986; Ord. No. 4251-3-89, 3-21-1989; Ord. No. 5427-01-03, 1-7-2003)