HomeMy WebLinkAbout2014-042 CCR Member Dan Ryan introduced the following resolution and
moved its adoption:
RESOLUTION NO. 2014-42
RESOLUTION AMENDING SECTION 9.5 OF THE CITY'S PERSONNEL
RULES AND REGULATIONS BY MODIFYING BENEFITS FOR CITY
RETIREES
WHEREAS, on September 8, 1997,the Council adopted the City's Personnel Rules
and Regulations by Resolution No. 97-161; and
WHEREAS, the City has reviewed the current liability established as a result of
providing retiree health insurance benefits into the future; and
WHEREAS, the City has determined that savings may result by offering an
alternative means of saving for retirement health care costs in the form of a one-time payout option
where the dollars are placed in retirement health savings accounts.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center that the City's Personnel Rules and Regulations, Section 9.5 Benefits for City
Retirees is amended as attached.
March 24 2014 fir Lam/
Date Mayor
ATTEST: 4\OK 6�!M
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
Lin Myszkowski
and upon vote being taken thereon, the following voted in favor thereof
Tim Willson, Carol Kleven, Kris Lawrence-Anderson, Lin Myszkowski, :and Dan Ryan;
and the following voted against the same: none;
whereupon said resolution was declared duly passed and adopted.
RESOLUTION NO. 2014-42
9.5 Benefits for City Retirees
On August 13, 1990, Brooklyn Center City Council adopted Resolution 90-166
establishing Retirement Health Insurance Program. Benefits for City Retirees have
continued to be approved by Council through the date of adoption of this document.
It is in the best interest of the City of Brooklyn Center that retiring employees have
available to them at their option a quality health insurance program. Therefore the City
established a Retirement Health Insurance Program as follows:
1. Benefits for City Retirees
a. Employees Eligible for PERA Retirement
All employees eligible for a PERA pension separating employment from
the City shall have the option of retaining membership in the City of
Brooklyn Center's employee health and dental insurance plans as
specified in MN Statute 471.61, subd.2a. Retirees may retain coverage of
elected benefits upon prompt monthly payment of the full cost of all
applicable premiums. Retirees may retain coverage until such time as the
retiree is eligible for Medicare coverage or at age 65,whichever is sooner.
b. Employees Retiring on or before December 31,2007 after 25 years of
Service with the City of Brooklyn Center
Employees who are retiring after twenty-five consecutive years of service
with the City of Brooklyn Center and are eligible and receiving a pension
from PERA shall have the option of retaining membership in the City of
Brooklyn Center's employee health insurance plan for which the
employee will pay the premium until such time as the retiree is eligible to
receive a full retirement annuity under PERA or PERA police. At that
time,the City will pay the single-person premium until such time as the
retiree is eligible for Medicare coverage or at age 65,whichever is sooner.
If the retiree desires to continue coverage other than single coverage,and
is enrolled in that coverage at the time of retirement and if such coverage
is available under the City's policies the additional cost for the coverage
shall be paid promptly on a monthly basis by the retiree to the City of
Brooklyn Center. The City will follow continuation benefits as specified
in MN Statute 471.61, subd.2a. Participation in this program shall be
closed to persons retiring after December 31,2007.
C. Employees Retiring with Full Unreduced PERA Pension with
Continuous Full-time Uninterrupted Service with the City of
Brooklyn Center and who were hired on or before January 1, 1992
Employees, on the day of his/her retirement,who meet eligibility
requirements for a full-retirement annuity under PERA or PERA Police
without reduction of benefits because of age, disability, or any other
reason for reduction shall have the option of retaining membership in the
City of Brooklyn Center's employee health insurance plan for which the
RESOLUTION NO. 2014-42
City will pay the single-person premium until such time as the retiree is
eligible for Medicare coverage or at age 65,whichever is sooner. If the
retiree desires to continue coverage other than single coverage and is
enrolled in that coverage at the time of retirement and if such coverage is
available under the City's policies,the additional cost for the coverage
shall be paid promptly on a monthly basis by the retiree to the City of
Brooklyn Center. The City will follow continuation benefits as specified
in MN Statute 471.61, subd.2a.
Effective March 25,2014 employees with continuous full-time
uninterrupted service with the City of Brooklyn Center and who were
hired on or before January 1, 1992 have an alternative option to elect a
lump sum distribution to a post-employment health care savings plan in
lieu of the post-employment City paid single-person premium The eligible
participant must make this election by April 11, 2014. This is a one-time
irrevocable election per IRS rules.
The lump sum distribution will be based on 80%of the actuarial
calculated present value of the City's policy to pay the single-person
insurance premium until such time the retiree is eligible for Medicare
coverage or at age 65,whichever is sooner.