11/10/1992 - City Council Human Resources Committee AGENDA
CITY COUNCIL PERSONNEL COMMITTEE MEETING
CITY OF EAGAN
Tuesday
November 10, 1992
3:00 p.m.
Eagan Municipal Center
I. ROLL CALL
II. PERFORMANCE APPRAISAL
III. OTHER PERSONNEL ITEMS
IV. ADJOURNMENT
The City of Eagan is committed to the policy that all
persons have equal access to its programs, services,
activities, facilities and employment without regard to
race, color, creed, religion, national origin, sex,
disability, age, marital status or status with regard to
public assistance. Auxiliary aids for persons with
disabilities will be provided upon advance notice of at
least 96 hours. If a notice of less than 96 hours is
received, the City of Eagan will attempt to provide such
aid.
MEMO TO: CITY ADMINISTRATOR HEDGES
FROM: ASSISTANT TO THE CITY ADMINISTRATOR DUFFY
DATE: OCTOBER 29, 1992
SUBJECT: PERSONNEL COMMITTEE'S RECOMMENDATION/EARLY RETIREE
HEALTH INSURANCE/POLICE ASSOCIATION
As directed by the City Council, the Personnel Committee, comprised
of City Councilmembers Awada and McCrea, met on October 20 and on
October 27, 1992 to review the proposal of the Police Association
regarding the provision of and funding of health insurance coverage
for early retirees of the association. Also present were City
Administrator Hedges and Assistant to the City Administrator Duffy.
As the Council is aware, the 1992-1993 bargaining agreement with
the Police Association contains a reopener regarding either wages
or the City's contribution toward health insurance for 1993 if the
City and Association are not able to agree regarding the funding of
health insurance for early retirees.
New legislation was passed during this year's legislative session
mandating that pension eligible early retirees must be able to
continue on the City's health plan upon retirement. They will be
pooled with active employees regarding experience and premium
rates.
The Police Association proposed that the City contribute the same
amount toward health insurance premiums to early retirees as that
contributed to active bargaining unit members.
The Personnel Committee reviewed in detail what other cities are
planning to do or already do regarding retiree insurance, funding
alternatives for the proposal, the advantages and disadvantages of
contributing toward the premiums and language which would protect
the City's interests.
It is the recommendation of the Personnel Committee that the City
accept the proposal of the Police Association with the following
provisions:
"The City will contribute to bargaining unit employees
who retire from the Eagan Police Department at the age of
55 years or older, who are eligible to receive PERA
pension benefits and who collect said pension benefits,
the same amount towards health insurance premiums as that
contributed to active bargaining unit employees. This
contribution would continue until the ex-bargaining
association member reaches the age of 65 or becomes
eligible for Medicare, whichever comes sooner, unless the
City of Eagan no longer provides group health coverage to
any of its employees or unless the ex-bargaining unit
member is employed and is eligible to be covered under
his/her new employer's group health plan (unless that
plan contains any exclusions or limitations with respect
to any pre-existing conditions the ex-bargaining unit
member or his/her covered dependents may have) . "
This language is acceptable with the understanding that the City
will fully fund its expense of early retirees' insurance premiums.
The method of funding is related to the difference between the
retiring employee's level of compensation and that of a new
employee and also related to the vacant period between the
retirement and hiring a replacement employee.
Please note that pension eligible early retirees who do not meet
the above conditions would be eligible to remain on the health
insurance plan according to state law but would not be eligible for
any contribution from the City for the premiums.
The language is currently being reviewed by our labor attorney. If
any changes are suggested, those will be forwarded with the
Administrative Agenda. The language is acceptable to the Police
Association.
Again, it is the recommendation of the Personnel Committee that the
City Council approve the proposal of the Eagan Police Association
regarding health insurance for early retirees of the Police
Association with the above restrictive language.
If further information is needed, please contact me.
—k5) t,
Assistant to the City dministrator