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HomeMy WebLinkAboutORDINANCE 1995-2003Suggested by: Administration CITY OF KENAI ORDINANCE N0. 1995-2003 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KMC 23.40.080 AND 23.40.120 TO ALLOW EMPLOYEES TO ELECT THE OPT-OUT PROVISION OF THE PUBLIC EMPLOYEES RETIREMENT SYSTEM (PERS) AS STATED IN AS 39.35.150(b) AND/OR OPT OUT OF MUNICIPAL MEDICAL AND HOSPITAL INSURANCE. WHEREAS, KMC 23.40.080 requires City employees to participate in the PERS system; and, WHEREAS, in 2001 the Alaska Legislature enacted AS 39.35.150(b) which allows persons who retire in the PERS system to be re-employed within the PERS system and opt-out of participation in PERS while keeping their eligibility for PERS retirement; and, WHEREAS, reemployment of such persons could save the City thousands of dollars because the City would not pay for medical insurance or have to make PERS contributions for them while keeping experienced employees in the workforce at a substantial cost saving to the taxpayer. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that KMC 23.40.080 and 120 are amended as follows: I. 23.40.080 Retirement Employees are required to participate in the State Public Employees Retirement System (PERS) unless the employee participates in the opt-out provision of AS 39.35.150(b). See the PERS handbook for details. II. 23.40.120 Medical and Hospital Insurance Medical and hospital insurance shall be provided by a group policy for all employees with all premiums paid by the City unless the employee declines such coverage. Life, major medical, dental and vision insurance are included as part of group insurance. ~,, Ordinance No. 1995-2003 ~ Page Two PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of March, 2003. ATTEST; Carol L. Freas, City Clerk (2/26/03) kh Introduced: Adopted: Effective: March 5, 2003 March 19, 2003 April 19, 2003