Page | 69 employee, a reduction in an employee’s hours or a leave of absence, an employee’s divorce or legal separation, and a dependent child no longer meeting eligibility requirements. The monthly cost of continuation coverage is the sole responsibility of the employee or his/her qualified beneficiaries and is equal to the City’s current group rate plus an administration cost as allowed by law. Individuals have sixty (60) days from the date of the qualifying event or the date they receive notification, whichever is later, to inform the Human Resources department, or its agents, whether they elect continuation coverage. Employees or covered dependents have a responsibility to inform the City’s Human Resources department of a divorce, legal separation or loss of dependent status within sixty (60) days of the qualifying event or the date on which group coverage would be lost because of the event. If proper notice is not received within sixty (60) days, continuation coverage may not be available. The City provides written notice describing rights granted under COBRA when an employee becomes eligible for coverage under the City’s health/dental/vision insurance plan. The notice contains important information about the employee’s rights and obligations. ELIGIBLE RETIREE CONTINUATION COVERAGE 706 As defined under Kansas statute, employees that have retired under the KPERS system are allowed to maintain coverage under the city’s health plan until age 65, become eligible for Medicare, or become eligible to be covered under the plan of another employer. Additionally, in order to qualify for continuation coverage under this statute, the retiring employee must also have a minimum of ten (10) years of credited service with the City of Hutchinson (credited service may be cumulative) and be actively enrolled in the health plan at the time of retirement. Qualified dependents of the retired employee may also continue coverage under the city’s health plan provided they were actively enrolled in the plan at the time of the employee’s retirement. Qualified dependents are no longer eligible to continue coverage when he/she becomes eligible to become covered under a plan of another employer; or when the retired employee loses his/her eligibility for coverage. When the retired employee is no longer eligible for coverage under the city’s plan, qualified dependents have the option of continuing coverage under COBRA (if applicable). In addition to the above, coverage under the city’s plan will be discontinued if the retired employee fails to make the required premium payments on a timely basis. Should a break in coverage occur, re-enrollment in the city’s plan is not allowed. The city reserves the right to apply or modify fees for coverage under this provision as allowed by statute (up to 125% of premium). Please contact Human Resources for any administrative fees that may be in effect. KPERS AND KP&F PENSION PROGRAM 707 The City is a participating member in Kansas Public Employees Retirement System (KPERS) and Kansas Police and Fire Retirement System (KP&F). Employee participation in the KPERS or KP&F plans is mandatory if in a covered position upon his/her date of hire. The State of Kansas is responsible for determining the amount or percentage the City and employees will contribute to the plan. Employee contributions are based on gross salary and are deducted through payroll. Specific questions regarding KPERS or KP&F benefits should be addressed directly to KPERS at www.kpers.org or 1-888275-5737.
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