Insurance Information for Retirees

Health Insurance

No person hired on or after January 1, 2021, shall be entitled to remain on the City’s health insurance program upon retirement.

Employees hired on or before December 31, 2020, who retire under the provisions of the Wisconsin Retirement System may remain in the City’s health plan post-retirement, subject to the follow eligibility requirements:

1. Rule of 75. An employee hired on or before December 31, 2020, who has attained the age of 55 years and has the combination of age and full years of service totaling 75 at time of retirement and who retires on or before June 30, 2021, may remain in the City’s health plan post-retirement.

2. Rule of 77. An employee hired on or before December 31, 2020, who has attained the age of 55 years and has the combination of age and full years of service totaling 77 at time of retirement and who retires between July 1, 2021, and December 31, 2021, inclusive, may remain in the City’s health plan post-retirement.

3. Rule of 79. An employee hired on or before December 31, 2020, who has attained the age of 55 years and has the combination of age and full years of service totaling 79 at time of retirement and who retires between January 1, 2022, and December 31, 2022, inclusive, may remain in the City’s health plan post-retirement.

4. Rule of 81. An employee hired on or before December 31, 2020, who has attained the age of 55 years and has the combination of age and full years of service totaling 81 at time of retirement and who retires between January 1, 2023, and December 31, 2023, inclusive, may remain in the City’s health plan post-retirement.

5. Rule of 83. An employee hired on or before December 31, 2020, who has attained the age of 55 years and has the combination of age and full years of service totaling 83 at time of retirement and who retires between January 1, 2024, and December 31, 2024, inclusive, may remain in the City’s health plan post-retirement.

6. Rule of 85. An employee hired on or before December 31, 2020, who has attained the age of 55 years and has the combination of age and full years of service totaling 81 at time of retirement and who retires on or after January 1, 2025, may remain in the City’s health plan post-retirement.

An employee retiring from the Water or Wastewater Utility and is at least fifty-five (55) years of age, and has the combination of age and full years of service totaling eighty (80), except that employees with a combination of sixty (60) by January 1, 2011 the threshold of benefit shall be a combination of seventy-five (75), may remain in the City’s health plan prior to reaching the age of Medicare eligibility and is required to pay the current premium contribution in effect. Retired employees will receive the same insurance benefits as active employees and will be subject to the same plan changes as active employees. Employees hired on or after January 1, 2007 will not be allowed to remain in the health plan upon reaching the age of Medicare Eligibility. An employee hired into the Police Union on or after January 1, 2010 will not be allowed to remain in the health plan upon reaching the age of Medicare eligibility. An employee hired into the Water or Wastewater Utility on or after May 1, 2007 will not be allowed to remain in the health plan upon reaching the age of Medicare Eligibility. 

Retirees are required to enroll in Medicare Part B and the City will continue to provide insurance and pay for Medicare Part B. Employees hired on or after January 1, 2007 are not eligible for Medicare Part B payments. Employees hired into the Police Union on or after January 1, 2010 are not eligible for Medicare Part B payments. Employees hire into the Water Utility or Wastewater Utility on or after May 1, 2007 are not eligible for Medicare Part B payments. For employees retiring on or after January 1, 2021, the City will not reimburse any portion of the Medicare B premium for a retired employee’s spouse.

If an employee retires with a single health insurance policy, this retiree will not be allowed to add any spouse or children after retirement. An employee who retires with a family policy will be allowed to add a new spouse or children after retirement. 

To view the benefits for Pre-Medicare eligible retirees, visit the following website; Pre-Medicare Eligible Retirees Health Insurance Information

The prescription coverage is through CVS Caremark, and all prescription costs that you pay will go towards the deductible. A quarterly invoice is mailed to retirees. If you are retiring from the Police or Fire Union, you may use your deferred compensation account to pay for your health insurance premiums throughout retirement. Please contact your deferred compensation provider to speak with them about this process.

Sworn Public Safety Employees

Sworn Public Safety employees who retire under the provisions of the Wisconsin Retirement System may remain in the City’s health plan post-retirement, subject to the following eligibility requirements: 

Sworn Fire Department Employees Hired Prior to 1/1/2007:

A sworn Fire Department employee hired prior to January 1, 2007 who retires under the provisions of the Wisconsin Retirement System at age 52 or over with 20 years or more of continuous service immediately preceding retirement may remain in the City’s health plan post-retirement.

For retired sworn Fire Department employees hired prior to January 1, 2007, the Employer will continue to pay Medicare B and provide City health insurance and retirees will be required to enroll in Medicare B.

Sworn Fire Department Employees Hired On or After 1/1/2007:

A sworn Fire Department employee hired on or after January 1, 2007 who retires under the provisions of the Wisconsin Retirement System at age 53 or over and has the combination of age and full years of continuous service totaling 78 may remain in the City’s health plan post-retirement.

Any retired sworn Fire Department employees hired on or after January 1, 2007, and their spouses, are not eligible to remain in the City’s health plan upon reaching the age of Medicare eligibility.

Sworn Police Department Employees Hired Prior to 1/1/2010:

A sworn Police Department employee hired prior to January 1, 2010 who retires under the provisions of the Wisconsin Retirement System at age 50 or over with 20 years or more of continuous service immediately preceding retirement may remain in the City’s health plan post-retirement.

For retired sworn Police Department employees hired prior to January 1, 2010, the Employer will continue to pay Medicare B and provide City health insurance and retirees will be required to enroll in Medicare B.

Sworn Police Department Employees Hired On or After 1/1/2010:

A sworn Police Department employee hired on or after January 1, 2010 who retires under the provisions of the Wisconsin Retirement System at age 53 or over and has the combination of age and full years of continuous service totaling 78 may remain in the City’s health plan post-retirement.

Any retired sworn Police Department employees hired on or after January 1, 2010, and their spouses, are not eligible to remain in the City’s health plan upon reaching the age of Medicare eligibility.

Any sworn Public Safety employee who is forced to retire by virtue of duty incurred injury or disease may remain in the City’s health plan post-retirement upon the City’s receipt of a disability approval notice from the Wisconsin Department of Employee Trust Funds.

Any sworn Public Safety employee who is forced to retire by virtue of non-duty related injury or disease and has at least 15 years of continuous service with the Department may remain in the City’s health plan post-retirement upon the City’s receipt of a disability approval notice from Wisconsin Department of Employee Trust Funds.  This provision shall not apply if the disability is incurred due to performing services while working for another employer.

In the event that a sworn Public Safety employee or retiree who is enrolled in family health insurance benefits dies leaving a surviving spouse and/or dependents, the surviving spouse and/or dependents may remain in the City’s health plan under the conditions set forth herein.  This privilege will terminate if the surviving spouse of the deceased remarries, obtains other health insurance coverage, or becomes eligible for Medicaid or Medicare, whichever event occurs first.  This privilege shall also terminate for the dependent survivors when they no longer meet the age and eligibility requirements for coverage under the policy.

Any sworn Public Safety employee who has met the eligibility requirements to continue on the City’s health insurance upon retirement shall be subject to placement within the insurance program established for active bargaining unit employees or, if the retiree is eligible for continued coverage upon reaching the age of Medicare eligibility, the retiree will be placed in the Medicare Advantage plan selected by the City.  This does not apply to retired sworn Public Safety employees who are on the Base Major Medical or 4A plans.

Retired sworn Public Safety employees and surviving spouses/dependents shall pay the same premium-equivalent percentage as may from time-to-time be determined by resolution of the common council for active employees.  The actual dollar amount for retired sworn Public Safety employees and surviving spouses/dependents may differ from the dollar amount paid by active employees based upon differing actuarial calculations.

All retired sworn Public Safety employees, their spouses, and surviving spouses of deceased sworn Public Safety employees must enroll in Medicare upon their earliest eligibility under the law.

If a sworn Public Safety employee retires with a single health insurance policy, this retiree will not be allowed to add a spouse or children after retirement.  A sworn Public Safety employee who retires with a family policy will be allowed to add a new spouse or children after retirement.

Notwithstanding anything else contained herein, retired sworn Public Safety employees and surviving spouses/dependents are not eligible to remain in the City’s health plan during any period as they are eligible for health insurance coverage under their own then-current employment.  Retired employees and surviving spouses/dependents annually shall be required to certify to the City’s Human Resources Department whether they are eligible for health insurance coverage under their own then-current employment.  Eligible retired employees and surviving spouses/dependents shall be reinstated under the City’s plan upon the City’s receipt of notice that their subsequent employment, and any associated health insurance coverage, have been terminated.  Any such notice should be directed to the City’s Human Resources Department.

To the extent that this policy conflicts with other subjects addressed in the Employee Handbook, this policy controls.  This policy does not grant any additional benefits over and above or in addition to any employment contract.

Violations of this policy may result in the termination of health insurance coverage as would otherwise be provided under this policy.

This policy shall take effect for all retired sworn Public Safety employees and surviving spouses/dependents upon passage by common council.  This policy shall take effect for sworn Public Safety active employees on July 1, 2023.

Dental & Vision Insurance

Dental and Vision Insurance end at the end of the month you retire. If you are enrolled in the dental and vision insurance coverage upon retirement, you will be offered dental and vision insurance coverage through COBRA. The City will mail you a COBRA notice.

Life Insurance

The Life Insurance Policy is through Employee Trust Funds. The Basic Unit and each Additional Unit of life insurance is equal to your highest annual earnings throughout your employment at the City of Racine. The Unit amount stays the same starting at retirement, until the age of 65. The Basic Unit and Additional Unit premiums will be deducted out of your pension check. The City will reimburse you on a quarterly basis for the Basic Unit premium. Once you turn 65, the Additional Units of Life Insurance (if applicable) will automatically be dropped from your policy, so you will be left with the Basic Unit of Life Insurance. At age 65, 66, and 67 the worth of that Basic Unit of Life Insurance will decrease by 25% each year. For example; If you have $83,000 in coverage at retirement at age 62, this will stay the same until you turn age 65, where the coverage will be worth $62,250 (decreasing by 25%). At age 66, the policy will be worth $41,500 (50% of original value, dropping an additional 25%). At age 67, the policy will be worth $20,750 (25% of original value, dropping an additional 25%). The original value of the Basic Unit of Life Insurance will drop 75% total by the age of 67. You will keep the remaining amount for the rest of life. Spouse and Dependent Units of Life Insurance will end at retirement unless you convert it to a whole life policy within 31 days. 

AFLAC Policies

You may be able to continue certain policies after retirement. Call AFLAC at (800) 992-3522 for more information.