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<br />Pc CASE #: \ <br /> <br />CONSIDER ADOPTING A <br />POST-EMPLOYMENT HEALTH CARE SAVINGS PLAN <br />FOR NON-UNION EMPLOYEES AND APPOINTING A <br />THIRD PARTY ADMINISTRATOR <br /> <br />By: Givonna Reed Kone, Human Resources Manager <br /> <br />Background <br /> <br />A post-employment health care savings plan is a tax free account (deposits and <br />withdrawals) that reimburses individuals for eligible medical expenses. Post- <br />employment health savings plans can be funded with a percentage of an employee's <br />salary and accrued and unused sick and/or vacation leave, for example. The.funds are <br />then used to reimburse the individual and qualified family members for eligible medical <br />expenses after the individual leaves the City's employ. <br /> <br />In early 2007, the City Council adopted a post-employment health care savings plan for <br />Patrol Sergeants. As this type of plan mustbe implem~nted by group. status (e.g., union, <br />non-union), Iwas asked to explore the possibility of implementing a post-employment <br />health care savings plan for Ramsey's non-union employees. Non-union employees <br />recently voted to present plan design options to the City Council for consideration. Those <br />plan options are outlined below for your review. <br /> <br />Third Party Administrator <br /> <br />As the Sergeants post-employment health care savings plan has sunset, staff took this <br />opportunity to evaluate the products and services offive vendors who administer post- <br />employment health care savings plans. After a careful review of the information <br />submitted, staff is recommending that Minnesota State Retirement System. (MSRS) be <br />appointed plan administrator for the City's post-employment health care savings plan. <br />MSRS has 410 public employer members in MN, 37,OQO participants and $166 million in <br />assets. <br /> <br />-125- <br />