Employee Manual 2025 - Flipbook - Page 55
to amend the formula or eliminate the payment in lieu of health insurance based upon
the City’s financial condition and Health Care Reform requirements.
Retiree Health Care/Retirement:
The City provides health insurance for individuals who have retired from the City at the same
coverage level as an active employee in accordance with the following:
Employees hired prior to July 1, 1989 and vesting under the ten year requirement, will receive
medical, dental and vision insurance for themselves and their spouses with the premiums 100
percent paid by the City. Coverage shall become effective immediately upon receipt of MERS
retirement benefits.
Employees hired on or after July 1, 1989 will receive medical, dental and vision insurance for
themselves and their spouses as stated below.
• 15 years but less then 20 years of Service and if retirement benefits are received
immediately upon leaving the City: 50 percent of premiums to be paid by the City.
• 20 or more years of service and if retirement benefits are received immediately upon
leaving the City: 100 percent of premium to be paid by the City.
Each full-time employee hired prior to July 1, 1997, who is a participant in the MERS Defined
Benefit plan, shall be entitled to retirement benefits in accordance with the B-3 plan, including the
F50/25 program, the V-8 vesting program, and the E-2 Cost-of-Living program of the Michigan
Municipal Employees Retirement System. These benefits are fully paid by the City, subject to the
terms and conditions of Act No. 135, P.A. of 1945, as amended. Employees hired on or after July 1,
1997, or those hired prior to July 1, 1997, who converted to a defined contribution program, will be
entitled to retirement benefits in accordance with the defined contribution program.
Effective July 1, 2012, due to the State of Michigan EVIP, the following changes are in place as it
relates to retirement:
• All new hires shall have the City's contribution rate capped at 10% of members’ base salary.
• All current employees shall have the City's contribution rate capped at 13% of employees’
gross salary.
• Vesting schedule is based on the following:
Year 1 – 20%
Year 2 – 40%
Year 3 – 60%
Year 4 – 80 %
Year 5 – 100%
Effective July 1, 2025, the following changes are in place as it relates to retirement:
• All current employees that have a City contribution rate capped at 10% of members’ base
salary and new employees will now have a City contribution rate capped at 12% of member’s
gross wages.
• Vesting schedule is based on the following:
City of Plymouth Employee manual - Page 55 – May 2025
