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Meeting Date: 9/15/93 <br /> Agenda Item: P 2 <br /> CITY OF FALCON HEIGHTS <br /> REQUEST FOR COUNCIL CONSIDERATION <br /> ITEM DESCRIPTION: Offer of early retirement option to eligible <br /> employees under Minnesota State Law <br /> SUBMITTED BY: Susan Hoyt, City Administrator <br /> EXPLANATION /SUMMARY: <br /> During the 1993 legislative session the Minnesota Legislature <br /> passed a law that gives Minnesota public employers the right to <br /> offer two early retirement options to its employees. <br /> Option 1. An increase in the pension formula of 1/4 percent <br /> (.25 for each year of service up to the first 30 <br /> years (the maximum formula increase is 7.5 percent). <br /> There is no cost to either the employer or employee for <br /> this option. <br /> Option 2. Employer paid health insurance for employees who are <br /> between ages 55 and 65 with certain service <br /> requirements. <br /> Service requirements are: <br /> 1. Membership in PERA <br /> 2. Terminate employment by January 31, 1994 <br /> 3. Be age 55 or older with at least 25 years of service in one <br /> or more qualified Minnesota public pensions <br /> 4. Be age 65 and have at least one year of service credit in <br /> one or more qualified Minnesota public pension plans <br /> In Falcon Heights only one employee, Shirley Chenoweth, qualifies <br /> for the program. Sheds interested in Option 1 which has no cost <br /> to the city. <br /> ATTACHMENTS: <br /> A 1993 Early Retirement Program Questions and Answers <br /> ACTION REQUESTED: <br /> Offer Option 1 of the early retirement program to qualified <br /> employees. <br />