Thanks to all who responded to my question regarding the issue of PERS health 
insurance for retirees.  It is my understanding that if we offer our retirees 
health coverage we must pay the same amount that we pay for our active 
employees.  Also, there can be no restriction as to tenure.  

As an alternative we could establish a Section 125 cafeteria plan for 
employees and then we could restrict the amount we pay for retirees.  

This also applies to those part-timers we have that are on PERS.  As I 
understand it, we cannot pay a pro-rata share of their health insurance.  We 
must pay the same amount that we pay for full-time employees.  

I also learned that we could hire someone who may work for us for a few 
months and retire and we would be responsible for their health insurance for 
life.  This could be very costly!

Some cities have opted for PARS or ICMC-RC as an alternative to PERS.


Cindy Borchard  
Finance Director
City of Calabasas
26135 Mureau Road
Calabasas, CA  91302
[EMAIL PROTECTED]
818-878-4242 Ext. 241  voice
818-878-4215  FAX

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