Agenda - Council - 01/23/2007 - Laserfiche WebLink

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CASE #: I CONSIDER APPROVING A POST-EMPLOYMENT HEALTH CARE SAVINGS PLAN FOR THE LELS SERGEANTS BARGAINING UNIT By: Givonna Reed Kone, Human Resources Manager Background In 2006, at the request of the Sergeants union, staff began researching post-employment health care savings plans. The purpose of post-employment health care savings plans is to use pre-tax dollars to help defray some of the costs associated with health insurance for retirees. The proposed post-employment health care savings plan allows employees who are members of the Sergeants union to contribute eligible sick and vacation leave to an interest bearing trust account. The monies go into the account at the termination of employment and are available to the retiree and covered dependents as reimbursement for eligible medical expenses. Without this program, retirees would be required to take any sick or vacation severance they are entitled to as taxable income. If approved, the proposed post-employment health care savings plan would be administered by America's VEBA Solution, the City's Third Party Administrator for its flexible spending plan and VEBA health care savings accounts for active employees. Funding Source Expenses associated with implementation of this plan consist of a $250 plan amendment fee which will be paid from Administrative Services' Professional Services Fund. Staff Recommendation Staff recommends that the Personnel Committee approve the attached Memorandum of Understanding describing the post-employment health care savings plan designed for the City of Ramsey Sergeants union. Committee Recommendation Motion recommending that the City Council approve the attached Memorandum of Understanding describing the post-employment health care savings plan designed for the City of Ramsey Sergeants union. G:lAdministrationlHumanResourceslBenefitsIPEHCSP\consider reso approving PEHCSP 1-23-07.doc -377-