2003_1013_packet - Laserfiche WebLink

Home

Funds may be invested on behalf of the employee with no tax on the investment yield. The H A is considered "funded" for purposes of GASB 34 to the extent deposited funds offset the future liability of the Liter. Once deposited, the funds must be used for the sole purpose of providing benefits and may not revert to the City. In an effort to provide employees with this option to help with these post employment health related expenses the City looked to the vendor through a request for proposal that would be most suitable to our population. There are a total of 165 eligible possible participants within 5 employee groups. Of those employees, 73 are represented within one of the 3 bargaining groups. Through the Benefits and wellness Committee, which consists of employees from the various employee groups, the three proposals received were reviewed. The recommendation of the onunittee was unanimously MIS State retirement System's plan. Through a ballot process this benefit was voted for or declined by each of the 5 employee groups. This process was concluded on Monday October 6, 2003 at which time both of the non -union groups voted for it and all 3 of the bargaining units declined it at this point in time. However, since this is a bargained benefit the unions may wish to bargain for it at their next negotiations tune. Enclosed you will find a presentation developed for the City of Roseville which incorporates the proposed plan for Roseville staff into the States administrative plan that surrounds the IRS requirements. In an effort to maintain a uniform, nondiscriminatory, consistent benefits package this program was offered to all employee groups at the same level of benefits. Financial- The financial impact to the City is largely determined by the design of the plan. The recommended plan will cause the City to incur some expenses to administer the plan and to convert half of the unused, annually accrued, sick time assuming the minimum bank is maintained. The estimated cost annually of the sick leave conversion piece for the two participating groups will be approximately $25,000. However, the total cost of the program will result in less than the $25,000 due to the FICA tax savings of 7.65% on each of the three fanding sources used as shorn In the presentation. Staff Recommendation Staff recommends that the Council authorize a contract agreement to be signed with MST State Retirement Systems and authorize staff implement the plan described above. Council Action Requested Motion authorizing the staff to prepare and initiate a contract agreement with MN State retirement Systems and authorize staff to implement the plan as presented for the provision of a post employment health care spending plan to go into effect as a City benefit 1/1/04.