RESOLUTION CONFIRMING THE PROVISION OF HEALTH INSURANCE TO

RETIRED EMPLOYEES PURSUANT TO N.J.S.A. 40A:23-10, WITH COVERAGE TO

BE COMMENSURATE WITH THAT PROVIDED TO CURRENT EMPLOYEES

COUNCIL OFFERED AND MOVED ADOPTION OF

THE FOLLOWING RESOLUTION:

WHEREAS, New Jersey statutes authorizes local governments such as the City of Jersey City to
pay the cost of medical and health insurance coverage for eligible retired employees as defined
therein; and

WHEREAS, the statutory authorization to pay for such coverage extends both to municipalities
which are members of the New Jersey State Health Benefits Commission (Title 52) and to those
which are not members (N.J.SA. 40A:23-10);

WHEREAS, by resolution adopted in 1986, as amended thereafter, under authority of N.J.S.A.

52:14-17.38, the City of Jersey City committed itself to paying such insurance coverage for
eligible retirees; and

WHEREAS, at the time of adoption of the 1986 resolution, the City of Jersey City was a
member of the New Jersey State Health Benefits Commission and thus mandated to provide
whatever coverage was purchased by the Commission; and

WHEREAS, in 2007, the City of Jersey City withdrew from the New Jersey State Health
Benefits Commission with the intent to arrange for its own medical and health insurance for its
employees and eligible retirees; and

WHEREAS, subsequent to withdrawing from the New Jersey State Health Benefits
Commission, the City Council by resolution authorized a contract to provide benefits to both
current employees and eligible retirees through Horizon Blue Cross/Blue Shield of New Jersey;
and

WHEREAS, since the City enrolled with Blue Cross/Blue Shield of New Jersey, it has
successfully concluded collective bargaining agreements with its municipal unions authorizing
the transfer of municipal employees to a Direct Access medical insurance plan and eliminating
traditional coverage, thereby providing commensurate and more cost-effective insurance
coverage; and

WHEREAS, as of November 1, 2010 all management employees, not covered by collective

bargaining, will be transferred to a Direct Access plan pursuant to a Mayoral Executive Order;
and

WHEREAS, the Business Administrator has recommended that the council reaffirm its
commitment to providing health insurance to eligible retired employees and at the same time
authorize the transfer of all retired employees from traditional coverage to Direct Access
coverage commensurate with the coverage provided to current employees, both under collective
bargaining agreements and pursuant to executive order for managerial employees;

NOW, THEREFORE, BE IT RESOLVED by the Municipal Council of the City of Jersey City
that:
1. The City of Jersey City hereby reaffirms its commitment to pay the premium charges for
eligible retirees for medical and health insurance under the authority of N.J.S.A. 40A:10-
23; and

2. The coverage provided to such eligible retirees shall be commensurate with that provided
to active employees in accordance with collective bargaining agreements, executive
order, and managerial prerogative and shall not include an option for traditional coverage.

3. An "eligible retiree" means a retired employee of the City of Jersey City with at least 25
years of credited service all of which service must be served with the City of Jersey City;
provided, however, that this definition shall not affect the coverage of retired employees
as of the date of this resolution