HomeMy WebLinkAboutResolution 1940 . , • '.- .
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C�t� o� ORONO
� R�SOLUTION OF THE CITY COUNCIL
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� NO. 1940
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A ItSSOLIITION APPROVING A HEALTH INSURANCE POLICY FOR �
EARLY RETIREES A�ID DISABLED PERSONNEL
, • WHEREAS , the City of Orono is a participant in the
Hennepin County Health Insurance Group and the County requires
the City to adopt a policy to provide health insurance for early
retirees and disabled personnel, •
WH�REAS, State Statute does allow any qualified employee
may continue at their own expense, group coverage for up to 12
months as outlined in Minnesota Statutes 62A.17,
WHEREAS, the County requirements are as follows:
• Retirees need to meet the following guidelines
Age at Time Years of Full
of Retirement Time Service
at least 58 but less than 62 20
n n 62 ° n ° 63 15
n n 63 n n n 64 . 14
, n n 64 „ n n 65 1.3
The police age requirement would be 55 with at least 2�
years of service .
Disabled need to meet the following quidelines
Disabled �personnel must be disabled and totally �unable
. to work and so qualify under the provisions of the
Public Employee Retirement Association.
WHIl�REAS, the County requires that the City pay a share
of the premium cost for retirees.
WH�REAS, the City is not required to pay the cost of the'
health insurance premium for the permanently disabled personnel.
WHEREAS , the City has provided the following for
• personnel meeting the criteria, prior to retirement:
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Clt� o� ORONO
• � R�SOLUTION OF THE CITY COUNCIL
� NO. 1940
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That they can receive their unused accrued vacation up
to 3� days as permitted in Section 318 of Administrative
and Personnel Policy together with one third of their
unused sick leave up to 4� days,
NOW, THSREFORE, the City of Orono Council approves
offering as an option that if qualified above the employee may
select as an alternative and instead of severance pay and normal
insurance continuation under Minnesota Statute 62A.17 that:
1. For employee insurance the employee may continue as •
a retiree on the health insurance as a substitute
' benefit in exchange for their unused vacation (3P! day
• maximum) and 1/3 of unused sick leave calculated at
current rates. At the time of their retirement the
. amount of City contribution toward the employees share •
will be calculated to equal the normal severance and
divided by the number of months until they reach 65.
2. That for dependent coverage retirees will be
responsible for payment of that amount and that they
must continue to pay by the first of every month to the
City. As an option they can pay in a lump sum in
advance .
This policy is contingent upon the City continuing to
offer insurances with the County program. At any time
in the fut�ire the City can terminate the arrangement
� they will return any unused or banked monies to the
retiree ha ving given the employee six months notice of
termination of the option. Should retiree terminate
their coverage prior to exhausting of the trade off
benefits, the balance shall be returned.
NOW, TH�It�FOR� •BE IT R�SOLVED, that the City of Orono
Council hereby allows persons permanently disabled continuing at -
the employee's expense the availability of group insurance.
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C�t� o� ORONO �
� RESOLUTION OF THE CITY COUNCIL
Q�
� NO. 1940
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Adopted by the City Council of the City of Orono,
' Minnesota at their meeting held March 10, 1986.
Mary C. Bu er, Mayor
� ATT T:
D r thy M. allin, City Clerk
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