HomeMy WebLinkAbout6.m. Post Employment Health Care Savings Plan (Teamsters Unit) '�CROSEMOLINT EXECUTIVE SUMMARY
CITY COUNCIL
City Council Meeting: April 17, 2012
AGENDA ITEM: Post Employment Health Care Savings AGENDA SECTION:
Plan (Teamsters Unit) Consent
PREPARED BY: Emmy Foster, Assistant City AGENDA NO.
Administrator
ATTACHMENTS: None APPROVED BY:
RECOMMENDED ACTION: Motion to Approve the MSRS Post Employment Health Care
Savings Plan for the Teamsters Unit
BACKGROUND
Teamsters employees are eligible to participate in the Minnesota State Retirement System's Post
Employment Health Care Savings Plan established undex Minnesota Chapter 352.98 (2001) and as
outlined in the Minnesota State Retirement System's Trust and Plan Documents. All funds collected by
the employer on behalf of the employee will be deposited into the employee's post health caxe savings
plan.
ISSUE
The employees of the Teamsters group have determined that they would like to participate in the MSRS
(Minnesota State Retirement System) Health Care Savings Plan. Three other emploqee groups currendy
have a similar plan in place non-union, LELS (Police), and LELS Sergeants.
According to the MSRS (Minnesota State Retirement System) guidelines, employees of each represented
group must vote to implement a plan. The Teamsters employees voted on April 9, 2012 on the structure
of the contribution:
Eligib�� to Partici�ate:
Member of the Minnesota Teamsters Public and Law Enforcement Employee's Union Loca1
No. 320.
Must have been continuo�sly employed by the City of Rosemount for at least 6 consecutive
months.
Retirement Pa�Out:
•'The retirement payout of eligible sick leave and eligible vacation pay due at the time of
retirement will be deposited into the employee's Post Employment Health Care Savings Plan.
Bi-weekl� Contribution:
Members must contribute $30 pex pay period to the Employee's account in the MSRS Post
Employment Health Care Savings Plan.
By allowing this plan, there will be no increase to the oveYall ret�ement severance costs paid by the City
funds to the account will be pxovided by the employee. Because of its "tax-free in/tax-free out" design
this approach is very beneficial to the xetiring employee.
CONCLUSION
Staff recommends that the Council make a motion to approve the MSRS Post Employment Health Caxe
Savings Plan for the Teamsters Unit.
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