City Council Meeting Date: August 20, 2019
To: Mayor and City Council
City Administrator Ben Martig
From: Communications & Human Resources Director Michelle Mahowald
Title
Consider Approval of Memorandum of Understandings for Law Enforcement Labor Services Sergeants Unit and IUOE Local 70 General Unit regarding change of Post Employment Health Plan benefit with Nationwide to Health Care Savings Plan with Minnesota State Retirement System.
Body
Action Requested:
Staff recommends the Northfield City Council approve the attached Memorandum of Understandings for Law Enforcement Labor Services Sergeants Unit and IUOE, Local 70 General Unit regarding change of Post Employment Health Plan benefit with Nationwide to Health Care Savings Plan with Minnesota State Retirement System.
Summary Report:
The Council Employment Policy Committee discussed the transition from Nationwide's post employment health plan to Minnesota State Retirement System (MSRS) Health Care Savings Plan (HCSP) at their July 17, 2019 meeting. The benefit involves making, through distribution of accumulated sick leave and some vacation leave, pre-tax contributions to an account specifically for pre-tax reimbursement of medical premiums and expenses.
BENEFIT SUMMARIES
Law Enforcement Labor Services Sergeants Unit
An Employee is eligible with a minimum of 120 hours of accumulated sick leave. Two (2) hours of sick leave per month that the Employee accrues will be converted into cash and deposited in their HCSP.
For each month that the employee has more than three hundred sixty (360) hours of accumulated sick leave, the City will convert three (3) hours of sick leave into cash and deposit it into their HCSP. For each month, however, that the employee has more than four hundred eighty (480) hours of accumulated sick leave, the City will convert four (4) hours of sick leave into cash and deposit it into their HCSP.
All severance pay (i.e., portion of sick leave upon separation of employment...
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