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<br />Regular City Council Minutes -7/28/03 <br />Page 6 <br /> <br />Ms. Bacon reviewed policy and financial implications and <br />comparison 2003 current rates with 2004 projected rates at <br />an anticipated 12% overall premium increase. <br /> <br />Councilmember Kough sought clarification on impacts to <br />the City and on retirees. <br /> <br />Councilmember Schroeder reviewed his perceived <br />advantages and disadvantages of offering an additional tier <br />and the impacts on the majority of employees to benefit a <br />few; opined that he was not in favor of adding this <br />additional tier, given the information provided to-date. <br /> <br />Mayor Kysylyczyn suggested that by breaking the <br />premiums into more groups, the billing would more <br />closely reflect the true benefit; but opined his support of <br />overhauling the entire benefit system to make it more <br />consistent and less discriminatory to employees using the <br />single coverage. <br /> <br />Councilmember Schroeder concurred with his support in <br />revising the entire system, but reiterated his lack of <br />support for the motion on the table. <br /> <br />Dave Berglund, (former 31-year employee with the <br />City's Police Department employee and union <br />negotiator) <br />Mr. Berglund opined that retired couples on fixed pensions <br />paid too much money for coverage they didn't need when <br />required to carry family coverage for two people and that <br />the current system was discriminatory. Mr. Berglund <br />spoke of reduced increases in pension benefits through the <br />Public Employees Retirement Association (PERA) due to <br />investment and economic concerns, with PERA projecting <br />a maximum of 2.5% in annual cost of living increases over <br />the next ten years. <br /> <br />Mr. Berglund further addressed concerns that employees <br />nearing retirement have no incentive to retire and are often <br />forced to remain in the work force due to health insurance <br />