12-09-1985 Council Packet - Laserfiche WebLink

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To: Mark E. Bernhardson, City Administrator From: Joan Lattin, Office Coordinator Date: December 5, 1985 Subject: health Insurance - .,ity Share As per the Administrative and Personnel Policy, the City Council will estabi..i sh a separate dollar amount for tho-,e selecting family c-;verge each year. It is recommended that the Ci.ty's share be $146.00 for the year 1986. This amount. is for non -union employees. The City of Oron- participates in the Hennepin County Group Insurance Program, and as a participant of this group, the City should adopt a policy for early retirees and disabled employees. The County Group requires that the City pay at least the employees share of the health insurance coverage. It is recommended that the early retiree leave their accumulated sick leave rather than take the one third as severence pay. Therefore, the City could draw on the dollar amount of the accrued sick leave to off -set the cost of the single coverage. At the present time there is a limit of 960 hours of sick leave that one employ-e can accumulate. Should an employee retire at the age of 58 and ea-n $9.50 per hour he could bank $9,120.00 in sick leave at the 960 hours maximum. At todays premium rate of $99.57 per :month, the cost for health insurance for the seven years until age 65 at this cost would be $8,363.88 leavino a balance of $756.12. This could provide for any increase in pr#.•m i ums . The totally disabled employee would have the option of continuing his or her health coverage, but the City would not be liabl.- for the premium. The following are age and years of service requirements for early retirees with the exception of the police: Age at Time of Retirement Years of Full Time Service at least 58 but less than 62 20 n N 62 " n w 63 15 N n 63 " N N 64 .14 64 65 13 The police age requirement would be 55 with at least 20 years of service.