Laserfiche WebLink
11 <br />ICMA-RC <br />The City of Little Canada provides a tax shelter through the International City Management <br />Association-Retirement Corporation. This retirement savings program is optional. Employees may <br />have both PERA and an ICMA-RC retirement account. If enrolled in PERA, the City does not match <br />contributions to ICMA-RC. The City Administrator may opt-out of PERA for this program, subject to <br />Minnesota Statutes. <br /> <br />Employees may defer salary amounts up to the maximum allowed by IRS regulations. With the <br />ICMA-RC plan, employees have the flexibility to increase, decrease, stop, and restart contributions as <br />often as they wish, subject to the City's approval. <br /> <br />Medical and Dependent Care Flexible Spending Plan (FSA) <br />All regular full-time, regular part-time employees, and members of the City Council may defer salary <br />amounts up to the maximums specified by the City Council into a Medical and Dependent Care <br />Flexible Spending Account. The Medical and Dependent Care Flexible Spending Plan is administered <br />for the City by a third-party administrator and is subject to IRS regulations. Employees who have a <br />Health Savings Account (HSA) may defer salary amounts for dependent care, dental, and vision <br />expenses only. <br /> <br />Health Savings Account (HSA) <br />Employees who opt for enrolled in the high-deductible health insurance plan offered by the City will <br />also be provided with a Health Savings Account. The City will contribute an amount, to be determined <br />by the City Council, into the employee’s account. Employees can defer salary amounts into their HSA <br />account. The Health Savings Account is administered for the City by a third-party administrator and is <br />subject to IRS regulations. The City will pay the participant account fee on behalf of the employee, <br />while employees will be responsible for investment account service fees. <br /> <br />Post-Employment Health Care Savings Plan <br />In an effort to help employees fund health insurance costs after employment, the City provides a Post- <br />Employment Health Care Savings Plan through the International City Management Association- <br />Retirement Corporation (ICMA-RC). All regular full-time, regular part-time employees working a <br />minimum of 20 hours per week on average, with five (5) years of service, are automatically enrolled in <br />this Plan. <br /> <br />Post-Employment Health Care Savings Accounts are funded by <br />• Employer contributions (see Severance Pay-Section 20); <br />• Employer contributions equal to one-half a percent (.5%) of an employee’s gross wages. <br />Employee salary reductions of one-half a percent (.5%) of an employee’s gross wages.