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