At last week’s Brown Bag Session, Chad Tustison, Asst. Director, Office of Management and Budget, made this presentation (FY 2016 RECOSA ppt) regarding the proposed budget for FY2016. Of particular interest to retirees, there will be no increase in premiums for pre-65 retirees’ United Healthcare coverage this next calendar year. A special edition of RETIREE MATTERS (FY 2016 Total Compensation Let’s Talk About FINAL) provides additional information. We appreciate the City’s willingness to hold the line on non-Medicare premiums for next year.
As for post-65 healthcare coverage, premiums are not yet known as the City is going through a process currently to determine which provider will be selected to provide that coverage. RECOSA board members are working with the review committee to evaluate the proposals and make a recommendation. This process should be completed so that information will be available to retirees prior to open enrollment scheduled for October 12 – November 6.
The proposed budget also includes an ad hoc cost of living adjustment increase of 0.53% for retirees. This amount is calculated by Texas Municipal Retirement System (TMRS) and is based on the change in the Consumer Price Index (CPI) of 0.76%. The City’s contribution of 0.53% is the maximum allowable percentage of the change in CPI (70%).