Laserfiche WebLink
Item No: 10G <br />Meeting Date: 10/25/04 <br /> Type of Business: Council Business <br />Administrator Review: _______ <br />City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: Charles Hansen, Finance Director <br />Item Title/Subject: Resolution 6352, a Resolution Adding Section 3.45 to the Mounds <br />View Personnel Policy Regarding Retirement Health Savings Plans <br /> <br />Background: <br />On April 12, 2004, the City Council approved a resolution adopting the City’s participation <br />in a retirement health savings (RHS) program as an additional benefit for the employees. <br />The International City Manager’s Association (ICMA) Retirement Corporation was selected <br />as the administrator of the plan. This item was reviewed at the September 7, 2004 Work <br />Session in preparation for amending the Personnel Manual to include specific benefits. <br /> <br />Resolution 6352 was first brought before the City Council at the September 13th City <br />Council meeting. No action was taken due to concerns raised about a possible conflict <br />between the HRS program and Health Savings Accounts (HSA), which are part of a new <br />type of insurance for active employees. <br /> <br />A presentation was made at the October 4, 2004 work session on RHS and HSA accounts. <br />No direction was given by the City Council regarding the RHS accounts. <br /> <br />An executive session of the City Council was held on October 11, 2004 to discuss labor <br />negotiations with the Public Works bargaining unit. Implementation of a RHS program is a <br />priority for the Public Works bargaining unit. <br /> <br />The City Council directed that the RHS item be placed back on an agenda for discussion. <br /> <br />Discussion: <br />If given final approval by the City Council, the RHS program would be provided by the <br />ICMA Retirement Corporation. ICMA already provides a separate deferred compensation <br />plan for city employees. <br /> <br />The legal experts at ICMA have assured me that there will be no conflict between a RHS <br />plan and a HSA plan as long as the following two conditions are met: <br /> <br /> No benefits may be drawn from the RHS plan while the recipient is employed by the <br />City of Mounds View. <br /> <br /> AND <br />