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Home My WebLink About17-185CITY OF LAKEVILLE RESOLUTION NO. 17-185 RESOLUTION AMENDING THE HEALTH CARE SAVINGS PLAN POLICY WHEREAS, the Health Care Savings Plan (HCSP) is an employer-sponsored program that allows employees to invest in a tax-free medical savings account while employed by a Minnesota public employer; and WHEREAS, removing the language addressing the City's value of the applicable FICA/Medicare tax savings being added to the retiring employees HSCP account would be consistent with the spirit of the creation of plan; and WHEREAS, amending the Health Care Savings Plan would be similar with contract language for LELS and Teamsters. NOW, THEREFORE, BE IT RESOLVED that the City Council approves the amendment to Health Care Savings Plan policy 6.60. ADOPTED by the Lakeville City Council this 4th day of December 2017 Douglas P. Anderson, Mayor Charlene Friedges, City HEALTH CARE SAVINGS PLAN (HCSP) Policy 6.60 1) POLICY a) To help defray some of the costs of continuing health insurance benefits for employees who retire from the city by providing a funding mechanism utilizing pretax dollars. 2) ELIGIBILITY a) The employee must reach age and service requirements to be qualified for retirement under PERA. b) The employee must be eligible for separation pay per city policy. c) For employees represented by a collective bargaining agreement, the specific terms of the HCSP must be defined as part of their contract. d) The retirement must be voluntary. For purposes of this program, "voluntary" means a choice by the eligible employee to leave under circumstances where the employer would not otherwise be entitled to discharge the eligible employee for severe or gross misconduct. e) Upon retirement, the employee must i) Be receiving a retirement annuity from a Minnesota public pension plan, other than a volunteer firefighter plan; ii) Be receiving a disability benefit from a Minnesota public pension plan, other than a volunteer firefighter plan; or iii) Have met the age and service requirements necessary to receive an annuity from a Minnesota public pension plan, other than a volunteer firefighter plan. 3) CONTRIBUTION a) At the time of retirement, the value of the employee's separation pay will be calculated based on sick accruals and years of service with the city. One hundred percent (100%) of separation pay will be transferred to the Minnesota State Retirement System (MSRS) Health Care Savings Plan in trust of the employee.