An Overview of City Subsidy for Lower Income Retirees

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Subsidy for Lower Income Retirees Remaining on City’s Plans

For those retirees wishing to remain on the City’s medical insurance plans, a subsidy for lower income retirees is being proposed in order to mitigate the cost of potentially large increases in the insurance rates. 

Under this plan, retirees with a household income of $50,000 per year or less (subject to verification of Tax Returns), and ten or more years of salaried service time with the City, would be eligible for a monthly subsidy of up to $200 per month to bridge the gap between the amount of the blended insurance rate and unblended rate. 

The duration of the subsidy would be contingent upon whether the retiree benefitted from the retirement plan enhancements afforded to City bargaining groups (2.5% at 55 for miscellaneous; 3% at 50 for safety).  Those who benefitted from the retirement enhancements would be eligible for the subsidy until they reach Medicare age, while those retiring prior to the enhanced plan would be eligible beyond Medicare age.


As an example, a retired Medicare employee with a household income of $46,000, who met the 10 year service time limit as a Glendale City employee, on the Anthem PPO (Two Party) plan, would see his premium increase from $564.08 to $838.40 per month, a $274.32 increase.  With the subsidy, he would be eligible for a $200 reimbursement, reducing the increase to only $74.32 per month if he chose to stay on the City plan.

Similarly, an Early Retiree meeting the above criteria on the Anthem PPO plan as a Single, currently paying $548.50 per month, could choose to move to the Anthem HMO at $694.29 per month, and have the entire increase ($145.79) absorbed due to the City subsidy.

The City subsidy would only be available for those who choose to remain on the City’s insurance plans and meet all of the criteria for eligibility as set forth above.


Click here to return to the Glendale Retiree Medical homepage.