Agenda Packets - 2004/09/27 - Laserfiche WebLink

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Mounds View City Council September 13, 2004 Regular Meeting Page 13 1 Ayes-4 Nays-0 Motion carried. 2 3 T. Resolution 6352 Adding Section 3.45 to the Mounds View Personnel Policy Regarding 4 Retirement Health Savings Plans. 5 6 City Clerk/Administrator Ulrich stated that the resolution adds Section 3.45 to the Mounds View 7 Personnel Policy regarding retirement health savings plans. He stated that this would include only A, 8 B, C, and D. He stated this is for employees and their dependents after the employee retires, and it is 9 not to be used while the employee is in service. He stated the plan document specifies what is 10 allowed in terms of contributions, and that this will be in the City’s Personnel Manual and also 11 included in the labor contracts where it has to be included in those. He passed out some 12 information on the health savings account which is administered by Health Partners. He stated 13 it’s Staff’s recommendation to approve this based on the condition established by the 14 Resolution. 15 16 Mayor Linke stated that the RHS is for retiring and the RHA is for current employees. 17 18 City Clerk/Administrator Ulrich stated that that was correct. He stated that the advantage for the 19 employees is it’s tax deductible and it carries over from year to year, so the employee or the City may 20 initially make the same health care payments contribution to the employee, but because of the 21 high deductibles, the theory is that the tremendous increases that have been seen will be less 22 in years to come for both the employee and the employer. 23 24 Council Member Stigney stated he felt it would be the wrong thing to do at this time because 25 the RHA lock them into something that they’re going to do for people when they retire maybe 26 many years from now, and by doing this program, it may be detrimental or have a negative 27 effect on the health savings accounts. He stated they should take a closer look at RHA’s that 28 have been around for quite some time. He stated the League of Minnesota Cities is currently 29 looking at some programs coming out for health savings accounts. He stated he was afraid to 30 lock into this without weighing the benefits of other available programs. 31 32 Mayor Linke stated that this was brought forth by the employee group. 33 34 Council Member Stigney stated that they had not made an analysis. 35 36 Council Member Marty stated he was in agreement with Council Member Stigney, and that they 37 could always vote on this five or six months from now after making an analysis. 38 39 Council Member Stigney stated that the health savings accounts have an overall benefit of 40 trying to reduce health care costs for the employees that work here, not just to reduce costs once 41 they retire until they get to Medicare age. He stated this is an ongoing program, and the whole 42 intent of this new HSA is to get employees to look at options. 43 44 Council Member Gunn stated her agreement with Council Members Stigney and Marty, and she 45