Health Benefits for Retirees Changed
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The Hawthorne City Council agreed this week to provide retired workers with the same health benefits that active employees receive, a change that could cost the city as much as $6,000 a month.
The council’s decision came three months after the state Public Employee Retirement System informed city officials that eligibility standards for calculating retirees’ health benefits did not meet state guidelines.
The city had been preventing some retirees with less than 15 years of experience from receiving some health benefits, Personnel Director Douglas Gates said.
PERS began reviewing the way the city calculates health benefits for retired employees in August after receiving complaints from two retirees, said Tom Elkin, assistant executive officer of health benefits for PERS.
City Manager James Mitsch estimated that about 30 retirees will be eligible for additional health benefits as a result of the change.
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