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4.3 Public Employment Retirement Association ("PERA") <br />Almost all City employees in the State of Minnesota are covered by a public pension system <br />known as PERA, to which both the City and employees contribute. For specific information on <br />annual contribution rates, employees should contact Human Resources. Vesting time varies <br />depending on membership eligibility date, and the pension is portable among public employers <br />throughout the state. Being vested allows employees to qualify for benefits at the minimum <br />allowable age. <br />Both the City and the employee contribute a percentage of the employee's eligible gross <br />salarywage to PERA. However, Minnesota law provides that some income received by an <br />employee are not eligible for PERA contributions. For specific questions on contributions, <br />employees should contact Human Resources. <br />The City offers PERA's Phased Retirement Option on a case -by -case basis, subject to approval <br />by the Administrative Services Director, Department Head, and the City Administrator, if it <br />aligns with the City's strategic goals. This agreement can be teiminated at any time. Employees <br />interested in this option should contact Human Resources for more information. <br />4.4 Employee Savings Plans <br />All employees eligible to enroll in PERA are also eligible to place a portion of their earnings in a <br />457 savings plans; pre-tax and/or post tax programs. Contact Human Resources for additional <br />information. <br />4.5 Health Savings Account <br />Employees must be enrolled in one of the City's qualified high -deductible health plans (HDHP) <br />to contribute to a Health Savings Account (HSA). Both employees and the City may contribute <br />to the HSA. An HSA is a tax-exempt savings account used to accumulate funds for eligible <br />health care expenses. These funds may be used to pay for health care expenses as they occur, <br />contingent upon available funds, or saved for future use. For additional details, employees should <br />contact Human Resources. <br />4.6 Retiree Benefits <br />Minnesota law provides for continuation of health and dental coverage to certain former <br />employees who are receiving a disability benefit or annuity from PERA, or who have met the <br />age and service requirements for PERA. Unless otherwise required by federal or state law, <br />former employees are responsible for paying the full premium. Failure to pay the premium will <br />result in termination of coverage. Employees should contact Human Resources for additional <br />details. <br />19 <br />