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HomeMy WebLinkAboutCC RES 97-021 RESOLUTION SETTING POLICY FOR EARLY RETIREMENT INCENTIVE FOR CITY OF ST. ANTHONY EMPLOYEES Meeting Sheet IIIIIIVIIIVIIIVIIIVIIIVIIIIIIIIIII 103227 Box: 26 Folder: RES 1997 Document: CC RES 97-021 RESOLUTION SETTING POLICY FOR EARLY RETIREMENT INCENTIVE FOR CIN OF ST. ANTHONY EMPLOYEES • CITY OF ST. ANTHONY RESOLUTION 97-021 A RESOLUTION SETTING POLICY FOR EARLY RETIREMENT INCENTIVE FOR CITY OF ST. ANTHONY EMPLOYEES WHEREAS, the City of St. Anthony has considered a proposal for an early retirement policy for certain City employees; and WHEREAS, the City intends for any decision for such early retirement to be a voluntary act by the employee to be made in the employee's sole discretion; and WHEREAS, the City wishes to limit the period of time during which employees may elect to take such early retirement; and WHEREAS, the City is willing to provide certain post retirement medical insurance coverage for City employees electing such early retirement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St. • Anthony as follows: 1. The policy shall apply only to full-time employees of the City who: (a) qualify for Public Employees Retirement Association ("P.E.R.A.") annuity payments as qualifying P.E.R.A. Basic or Coordinated Members, and (b) are age 55 or older on the effective date of the retirement, and (c) have completed 25 years of service as a full-time employee of the City on the effective date of the retirement. 2. The employee will be required to sign an election to take such early retirement, stating that the decision is the voluntary act of the employee made entirely in the employee's sole discretion. 3. The written decision to take the early retirement must be given by the employee to the City between July 1, 1997 through November 30, 1997. 4. The City's policy for early retirement must continue to be authorized by the State of Minnesota. If such authority is modified or terminated, the • City's early retirement policy will be subject to change on the basis of such change in the State policy. • 5. Commencing on the day following the date of retirement, the City will pay individual Single Health Coverage for the retiring City employee (but not the employee's family) for a period not to exceed three years from the effective date of the retirement. Adopted this I l day of "6L 1997. Ad Mayor ATTEST: City Clerk Reviewed for administration: City Manager • • DORS EY & WHITNEY L L P MINNEAPOLIS PILLSBURY CENTER SOUTH NEW YORK WASHINGTON,D C 220 SOUTH SIXTH STREET DENVER LONDON MINNEAPOLIS, MINNESOTA 55402-1498 SEATTLE BRUSSELS TELEPHONE. (612) 340-2600 FARGO HONG KONG FAX: (612) 340-2868 DES MOINES William R.Soth BILLINGS ROCHESTER (612)34429M MISSOULA Fax(612)3447800 COSTA MESA soth.william@dorseylaw.com GREAT FALLS February 11, 1997 Mr. Michael J. Mornson City Manager City of St. Anthony 3301 Silver Lake Road St. Anthony, MN 55418 Re: Early Retirement Policy • Dear Mike: You asked me to review proposed Resolution 97-021 setting a policy for early retirement for City employees. I have reviewed the resolution and have discussed the policy with lawyers in our employment law and employee benefits groups. We have the following comments regarding the proposed policy: 1. I understand from discussions with you that you are satisfied that there is authority from the State of Minnesota for the City to have such a retirement policy. 2. I understand that someone at the City has discussed this with the City's medical insurer. You should make sure the City will be able to provide the three years of coverage being proposed. You should also be sure that this will have no adverse effect on the health insurance costs for other City employees. 3. The policy must not discriminate against any person by reason of age, gender, race, or other protected class. 4. I would suggest that you delete the proposed requirement that there be demonstrated financial benefit to the City on a case by case basis. is DORSEY & WHITNEY LLP • Mr. Michael J. Morrison February 11, 1997 Page 2 As we discussed, the City should be able to determine now what employees would qualify by reason of being over age 55 and having 25 years of service. You can then determine whether most cases are likely to result in financial benefit to the City. This would eliminate any subjective case by case financial test, which should also eliminate any claims that any particular class of employees is being favored over another. I have revised the proposed resolution in order to eliminate the financial benefit requirement and to clarify the other requirements. A copy is enclosed. Please let me know whether you have any further questions or comments on this. Very tr y yours, • D William R. Soth WRS/ms Enclosure •