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CONSIDER ADOPTING A <br />POST -EMPLOYMENT HEALTH CARE SAVINGS PLAN <br />FOR AFSCME EMPLOYEES <br />By; Givonna Reed Kon47 Human Resources Manager <br />Background <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 canbe funded with a percentage of an employee's <br />salary or accrued and unused sick or vacation leave, for example. The funds are then <br />used to reimburse the individual and qualified family :members for eligible medical <br />expenses after the individual leaves the City's employ. <br />In early 2007, the City Council adopted a post -employment health care savings plan for <br />Patrol Sergeants and in June 2008 a similar plan was adopted for non-union employees. <br />As this type of plan must be implemented by group status (e.g., union, non-union), I was <br />asked to explore the possibility of implementing a post -employment health care savings <br />plan for F wnsey's AFSCME employees. AFSCME approved the following plan design <br />option which is being presented for City Council for consideration: <br />Benefit <br />AFSCME Em to ees <br />Sick Leave <br />100% @ 10 years of service <br />City employees may accrue a maximum of 960 hours of sick leave at any point in time. <br />AFSCME employees with ten years of service to the City are eligible to receive 33% of <br />their accrued and unused sick leave hours as cash upon termination of employment. <br />Under the proposal described herein, AFSCME employees will have 100% of their <br />eligible sick leave hours deposited into the health care savings plan account. <br />Staff Recommendation <br />Staff recommends that the Personnel Committee make a motion to adopt the post <br />employment health care savings plan provision listed above effective November 1, 2008 <br />and update the AFSCME contract per the terms in the table. <br />r-31 <br />