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01-08-2025 Council Packet
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01-08-2025 Council Packet
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retirement account. If enrolled in PERA, the City does not match contributions to <br />MissionSquare. The City Administrator may opt-out of PERA for this program, subject to <br />Minnesota Statutes. <br />Employees may defer salary amounts up to the maximum allowed by IRS regulations. With <br />MissionSquare plan, employees have the flexibility to increase, decrease, stop, and restart <br />contributions as often as they wish, subject to the City's approval. <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 <br />salary amounts up to the maximums specified by the City Council into a Medical and Dependent <br />Care Flexible Spending Account. The Medical and Dependent Care Flexible Spending Plan is <br />administered for the City by a third-party administrator and is subject to IRS regulations. <br />Employees who have a Health Savings Account (HSA) may defer salary amounts for dependent <br />care, dental, and vision expenses only. <br />Health Savings Account (HSA) <br />Employees are enrolled in the high-deductible health insurance plan offered by the City will also <br />be provided with a Health Savings Account. The City will contribute an amount, to be <br />determined by the City Council, into the employee’s account. Employees can defer salary <br />amounts into their HSA account. The Health Savings Account is administered for the City by a <br />third-party administrator and is subject to IRS regulations. The City will pay the participant <br />account fee on behalf of the employee, while employees will be responsible for investment <br />account service fees. <br />Post-Employment Health Care Savings Plan <br />In an effort to help employees fund health insurance costs after employment, the City provides a <br />Post-Employment Health Care Savings Plan through the International City Management <br />Association-Retirement Corporation (ICMA-RC). All regular full-time, regular part-time <br />employees working a minimum of 20 hours per week on average, with five (5) years of service, <br />are automatically enrolled in this Plan. <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. <br />Wellness Reimbursement Program <br />The Employee Wellness Program, dependent upon annual budget approval, is designed to <br />educate employees on fitness/health issues and to support their efforts to make choices to <br />improve their overall health and wellness. <br />All regular full-time and regular part-time employees are defined as “wellness participants” and <br />are eligible for the wellness reimbursement program. Probationary, seasonal, and temporary <br />employees, city council members, or independent contractors are not eligible for this benefit.
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