Agenda - Council Work Session - 02/14/2012

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Costs for eligible employees not currently on the City health planhave beencalculated at the $290monthly benefit which is paid by the City to employees hired prior to 2001 for waiving health insurance. **Assumes no rehire or contracted service expenses The numbers listed on page 1 of this memo werederived from the guidelines listed below, as proposedby the League of Minnesota Cities, as well as Anoka County; subject to City Council authorization. 10 to 19 years of service at time of termination (includes cumulative total for non- consecutive service and/or pro-rated part-time service) The City will provide the terminating employee, a payout of $10,000. For each o additional full year of service above 10 years, an employee will receive an additional $500 for each year of service, to a total maximum of $22,500 (35 years of service)and, The cash equivalent of nine (9) months of the city’s contribution towards the o employee’s selected health premium in effect at the time the incentive program is adopted. 20+ years of service at time of termination (includes cumulative total for non- consecutive service and/or part-time service) The City will provide the terminating employee, a payout of $10,000. For each o additional full year of service above 10 years, an employee will receive an additional $500 for each year of service, to a total maximum of $22,500 (35 years of service) and, The cash equivalent of nine (9) months of the city’s contribution towards the o employee’s selected health premium in effect at the time the incentive program is adopted. If authorized, all employees approved for this program would continue to receive the normal separation benefits available through current labor agreements or the non-represented vacation and sick leave program. Note: If too many employees were to choose to retire form one department and it createda hardship for the department to operate, employees may be required to stagger their retirement date as determined by their department.