City Council Meeting Date: April 16, 2019
To: Mayor and City Council
City Administrator Ben Martig
From: Communications & Human Resources Director Michelle Mahowald
Title
Consider Approval of Amendments to City of Northfield Employee Handbook, Section 10.05 (Retirement).
Body
Action Requested:
Staff recommends the Northfield City Council approve the attached Employee Handbook, Section 10.05 (Retirement).
Summary Report:
The Council Employment Policy Committee discussed this policy consideration at their March 27, 2019 meeting.
The City of Northfield is required by law to provide City-sponsored group health, dental, and/or life insurance coverage for retired employees meeting certain requirements, but it is not legally required to pay anything for such coverage. The City has paid for City-sponsored group health insurance premiums for retired employees meeting certain requirements for over 20 years. Staff reviewed this policy in detail as a result of the City's new actuary interpreting this policy and financial impacts on the City differently than the prior actuary. The differing interpretations involved whether individuals had to be eligible for an early retirement or just full retirement to receive the payment for group health insurance premiums.
City staff recommends clarifying this policy to make it clearer and less redundant with amendments as summarized below for eligible employees hired before January 1, 2007 who retire on or after the changes are made:
* The employee, and, for payment of the premium for a dependent(s), the dependent, must be enrolled in the city-provided group health insurance plan on the date of separation from employment with the city.
* The employee meets the age, service, and/or disability requirements for an annuity from a Minnesota public pension on the date of separation from employment with the city.
o Currently, these requirements include the following:
* For non-peace officer employees that began PERA qualifyi...
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