City of Fort Lauderdale Important and Useful Information

City of Fort Lauderdale Important and Useful Information about City Benefits at Retirement & Beyond September 27, 2019

City of Fort Lauderdale Benefits at Retirement and Beyond Agenda Ø Introduction – Health Benefit Options Ø Retirement Health Insurance Benefit – Stipends Ø Medical – Health Benefits Ø Dental & Vision Benefits Ø Other Voluntary Benefits ØQ & A 2

Health Benefit Options Only those covered under the City’s Health Plan at retirement have an option to continue in the selected City plan • Medical, Dental and Vision. • There are other market options available. – • Choices vary based on whether you are under age 65 or 65 and over. If eligible, the City provides stipends to be used to pay health plan premiums. 3

Retirement Health Insurance Benefit Retiree Stipends Management/Federation • Employees with 8 or more years of service who retire on or after their retirement date are paid a $400 monthly health insurance stipend. • Employees who are age 50 or older and terminate after 8 years of service but prior to normal retirement date will be eligible for $400 monthly beginning at normal retirement date or a reduced benefit beginning the month after retirement in accordance with the reduction formula applicable to early retirement. • The stipend was discontinued for employees hired on or after April 1, 2014. Subject to IRS taxability rules 4

Retirement Health Insurance Benefit Retiree Stipends Teamsters • The City will pay a $200 monthly health insurance stipend for employees who retire while in the bargaining unit, under normal retirement. • Retiree stipend discontinued for employees hired after ratification of last contract (2014). Subject to IRS taxability rules 5

Retirement Health Insurance Benefit Retiree Stipends IAFF Retirees • The City will pay a $400 monthly health insurance stipend to bargaining unit members who retire after normal retirement date if they are under age 65. • The stipend will become effective beginning the month following termination. Subject to IRS taxability rules 6

Retirement Health Insurance Benefit Retiree Stipends FOP Police Retirees • The City will pay a $400 per month health insurance stipend to bargaining unit members who retire after normal retirement date for retiree health benefits. • Employees who are granted service-incurred disability pension receive $400 monthly for health insurance benefits. • The stipend will become effective beginning the month following termination and will cease upon attainment of age sixty-five (65) or eligible for Medicare. Subject to IRS taxability rules 7

Retirement Health Insurance Benefit Retiree Stipends • The Internal Revenue Service (IRS) deems contributions such as the City’s monthly Retiree Insurance Health Benefits are taxable income if a recipient does not maintain retiree health coverage, directly through the City of Fort Lauderdale, with premiums at least equal to the Retiree Insurance Health Benefit. • For tax year 2019, the City of Fort Lauderdale will include and report all income you receive from the Retiree Insurance Health Benefit, to the IRS. This income will also be included on Form 1099 R issued to you in January 2020. • Retiree stipend payments continue until the retiree is age sixty-five (65) or eligible for Medicare. 8

2019 Retiree Health Benefits • Three Cigna plans available: HMO 1, HMO 2, HDHP • National network of providers • To find out if your doctor participates in the OAP Plans: – Call (800) 244 -6224 or visit www. mycigna. com 9

2019 Monthly City Retiree Medical Rates Cigna Medical HMO 1 (OAPIN 1) HMO 2 (OAPIN 2) HDHP (No HRA) Retiree Only $988. 53 $899. 75 $868. 01 Retiree + Spouse $2, 028. 00 $1, 878. 82 $1, 780. 98 Retiree + 1 Child $1, 335. 43 $1, 265. 57 $1, 158. 25 Retiree + Children $1, 830. 29 $1, 720. 19 $1, 603. 40 Retiree + Family $2, 820. 01 $2, 596. 25 $2, 493. 68 2020 rates are being formulated, and will be available in October 10

HMO 1 (OAPIN 1) Benefit Deductible Coinsurance Out-of-Pocket Maximum Primary Care Office Visit Specialist Office Visit Prescription Drugs - Retail Member Responsibility No deductible 10% $5, 000 single coverage $7, 000 two (2) enrollees $10, 000 family $40 $60 $20 generic, $40 preferred brand, $60 non-preferred 11

HMO 2 (OAPIN 2) Benefit Deductible Coinsurance Out-of-Pocket Maximum Primary Care Office Visit Specialist Office Visit Prescription Drugs - Retail Member Responsibility $1, 000 single coverage $2, 000 two (2) enrollees $3, 000 family 20%* $6, 350 single coverage, $10, 000 2 enrollees, $12, 700 family $40 $60 $20 generic, $40 preferred brand, $60 non-preferred * Some services such as x-ray and lab are subject to 10% coinsurance 12

HDHP (No HRA) Benefit Member Responsibility In Network $2, 000 single coverage $3, 000 2 enrollees $4, 000 family Deductible Coinsurance Out-of-Pocket Maximum Member Responsibility Out of Network 10% 30% $5, 000 single coverage $7, 000 2 enrollees $10, 000 family Primary Care Office Visit Deductible + 10% coinsurance Deductible + 30% coinsurance Specialist Office Visit Deductible + 10% coinsurance Deductible + 30% coinsurance Prescription Drugs - Retail Deductible + 30% generic, Deductible + 40% preferred brand, Deductible + 60% non-preferred Not covered 13

Other Medical Plan Options: www. healthcare. gov 14

Individual Health Insurer Websites Apply for Coverage Directly on Insurance Company Website www. avmed. org www. floridablue. com Short-Term Plans Available at www. uhone. com www. ehealthinsurance. com 15

2019 Retiree Dental Plan Options Three (3) Dental Plans Offered by Cigna • Dental HMO for City retirees • Dental PPO for Firefighter retirees 16

2019 Monthly City Retiree Dental Rates City DPPO DHMO IAFF DPPO Retiree Only $16. 43 $51. 59 $30. 26 Retiree + Spouse $28. 76 $96. 67 $55. 32 Retiree + Child(ren) $34. 52 $99. 38 $49. 05 Retiree + Family $48. 38 $125. 26 $86. 66 Cigna Dental 17

2019 Monthly City Retiree Vision Rates United. Healthcare Plan V 1588 Eye Exam (every 12 months) Eyeglass Frames (every 24 months) In Network Out of Network (reimbursement) $10 copay Up to $40 $25 copay $130 allowance Up to $45 $25 copay Up to $80 $25 copay for up to 4 boxes to $105 allowance Up to $105 Eyeglass Lenses (every 24 months) single vision, bifocal, trifocal lined, lenticular Contact Lenses (in lieu of eyeglass lenses every 12 months) 18

2019 Monthly City Retiree Vision Rates United. Healthcare 2019 Rates Retiree Only $4. 96 Retiree + Spouse $9. 49 Retiree + Child(ren) $10. 05 Retiree + Family $15. 56 19

Other Retiree Benefits • Life Insurance – The Standard • Voluntary Benefits (Aflac): – – Critical Illness Accident Disability Hospital Confinement • Legal plans – ARAG Contact Aflac regarding continuation of 20 these benefits