WHEREAS, the City of Atlanta ("City") offers insurance benefits to its active and retired employees and their families; and

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1 A RESOLUTION BY COUNCILMEMBER KWANZA HALL AUTHORIZING THE MAYOR OR HIS DESIGNEE, ON BEHALF OF THE CITY OF ATLANTA, TO CHANGE INSURANCE BENEFIT PLAN DESIGNS AND RETIREE INSURANCE BENEFIT ELIGIBILITY EFFECTIVE JANUARY 1, 2019, TO CONTINUE OFFERING RETIREE INSURANCE BENEFITS AND MAINTAINING COMPLIANCE WITH THE CHANGES IN THE FEDERAL GOVERNMENT STANDARD ACCOUNTING GUIDELINES WHICH NOW REQUIRES PUBLIC SECTOR EMPLOYERS TO INCLUDE OTHER POST-EMPLOYMENT BENEFITS- (OPEB) INSURANCE LIABILITIES ON THE ANNUAL BALANCE SHEET; AND FOR OTHER PURPOSES WHEREAS, the City of Atlanta ("City") offers insurance benefits to its active and retired employees and their families; and WHEREAS, Other Post-Employment Benefits (OPEB) covers non-pension benefits provided to full-time employees upon retirement. These benefits include healthcare insurance to eligible retirees and their dependents, and are available to eligible pa11icipants for their lifetime; and WHEREAS, since 2008 Federal Government Standard Accounting Guidelines - Local and State Governments have been required to provide annual accounting and financial reporting for Pension and other Post-Employment Benefits (Insurance) for their active and retired participants through a series of GASB Statements Reports. Beginning with the fiscal years after June 15, 2016, the OPEB Reporting guidelines changed requiring public sector employers to now include long-term financial liabilities on their annual GASB balance sheet through Accounting and Financial Reporting for Post-Employment Benefits; and WHEREAS, the Chief Financial Officer and the Commissioner of Human Resources recommends changing the Benefit Plan Design and Eligibility Requirements for Retiree insurance benefits in an strategic effort to continue offering insurance benefits while reducing the City's long-term financial liabilities associated with health insurance costs; and BE IT FURTHER RESOLVED, Effective 1/1/2019- The City's benefit plan design will change with the new insurance vendor contracts, Active Employees and Retirees will be required to manage medical costs through high deductible health plans with increasing (medical and Rx annual deductibles OOP (out-of-pocket) maximus, copays and coinsurances. The City will be contributing to either a Health Reimbursement Accounts or Health Saving Accounts to help offset the changes in individual deductibles. Last Updated: 11/22/17 Page 1 of 7

2 Active Employees and Retirees will be required to meet certain preventive screening and examinations measures (annual exam, bio-metric screening and health risk assessments to be eligible for the City's funded incentives for Health Reimbursement Accounts or Health Savings Accounts contribution. BE IT FURTHER RESOLVED, that Retiree Insurance Benefits Eligibility will be changed with the new insurance vendor contracts- Effective Retiree health insurance benefits will be available to Retirees who arc age 60 or above, with ( 15) years of service and in a full-time retirement status (Not actively working with access to a group insurance plan from a current employer and not contributing to Medicare) Retirees who arc below age 60 with 15 years of service and still working with accessibility to group health insurance from another employer will be required to participate in that group health insurance plan and will be allowed to participate in the City's health insurance benefits once they reach age 60 or above and can validate their full-time retirement status (Not actively working with access to a group insurance plan from a current employer and not contributing to Medicare) All new Employees with a hire date of after September l, 2018 will not be eligible to participate in the City's Retiree Health Insurance Program until age 65 and will be required to participate in a City sponsored Medicare Advantage or City sponsored Group Retiree Benefit Plan Spouse and Surviving Spouse insurance benefits for Retirees will be available for those participate who are age 60 and above in a full-time retirement status (Not actively working with access to a group insurance plan from a current employer and not contributing to Medicare). At age 65, all Spouse and Surviving Spouse who participate in the City's Health Insurance plans will be required to participate in a City sponsored Medicare Advantage Plan or City sponsored Group Retiree Benefit Plan All Retirees with a hire date after April 1986 will be required to enroll in a City Sponsored Medicare Advantage Plan or a City Sponsored Plan tor Retirees when they reach the Medicare Part B eligibility age of 65 to continue receiving Retiree Healthcare from the City. Spouse and Surviving Spouse will be required to enroll in a Medicare Advantage or City Sponsored Plan Effective January 1, 2019, all Retirees who elect to cover their Spouses under the City's Insurance Benefits will be required to pay a $50.00 monthly Spousal Last Updated: 11/22/17 Page 2 of 7

3 Surcharge Last Updated: 11/22/17 Page 3 of 7

4 CITY COUNCIL ATLANTA, GEORGIA SPONSOR SIGNATURES Last Updated: 11/22/17 Page 4 of 7

5 LEGISLATION HISTORY BLUE BACK CITY COUNCIL ATLANTA, GEORGIA A RESOLUTION BY COUNCILMEMBER KWANZA HALL AUTHORIZING THE MAYOR OR HIS DESIGNEE, ON BEHALF OF THE CITY OF ATLANTA, TO CHANGE INSURANCE BENEFIT PLAN DESIGNS AND RETIREE INSURANCE BENEFIT ELIGIBILITY EFFECTIVE JANUARY 1, 2019, TO CONTINUE OFFERING RETIREE INSURANCE BENEFITS AND MAINTAINING COMPLIANCE WITH THE CHANGES IN THE FEDERAL GOVERNMENT STANDARD ACCOUNTING GUIDELINES WHICH NOW REQUIRES PUBLIC SECTOR EMPLOYERS TO INCLUDE OTHER POST-EMPLOYMENT BENEFITS- (OPEB) INSURANCE LIABILITIES ON THE ANNUAL BALANCE SHEET; AND FOR OTHER PURPOSES Workflow List: Clerk of Council Completed 11/21/2017 4:11 PM Atlanta City Council Completed 11/20/2017 1:00 PM Finance/Executive Committee Pending 11/29/2017 1:00 PM Mayor's Office Pending HISTORY: 11/20/17 Atlanta City Council REFERRED WITHOUT OBJECTION RESULT: REFERRED WITHOUT OBJECTION Next: 11/29/2017 1:00 PM Last Updated: 11/22/17 Page 5 of 7

6 A RESOLUTION BY COUNCILMEMBER KWANZA HALL AUTHORIZING THE MAYOR OR HIS DESIGNEE, ON BEHALF OF THE CITY OF ATLANTA, TO CHANGE INSURANCE BENEFIT PLAN DESIGNS AND RETIREE INSURANCE BENEFIT ELIGIBILITY EFFECTIVE JANUARY 1, 2019, TO CONTINUE OFFERING RETIREE INSURANCE BENEFITS AND MAINTAINING COMPLIANCE WITH THE CHANGES IN THE FEDERAL GOVERNMENT STANDARD ACCOUNTING GUIDELINES WHICH NOW REQUIRES PUBLIC SECTOR EMPLOYERS TO INCLUDE OTHER POST-EMPLOYMENT BENEFITS- (OPEB) INSURANCE LIABILITIES ON THE ANNUAL BALANCE SHEET; AND FOR OTHER PURPOSES Last Updated: 11/22/17 Page 6 of 7

7 Certified by Presiding Officer Certified by Clerk Mayor s Action See Authentication Page Attachment Last Updated: 11/22/17 Page 7 of 7