93-8061r18
RESOLUTION N0. 8061
RESOLUTION ESTABLISHING A FORMAL
EARLY RETIREMENT INCENTIVES CHOICE
WHEREAS, the 1993 Minnesota Legislature has adopted a choice
of two early retirement incentives for public employees who meet
certain criteria (Minnesota Laws, Chapter 192); and
WHEREAS, the City is able to allow a pension multiplier
increase at no cost, or to allow health and dental insurance
contributions under Chapter 48$ of the Laws of Minnesota and out
of the net cost savings; and
WHEREAS, it is in the best interests for certain eligible
retirees to have an increased PERA pension multiplier, or
employer-paid health and dental insurance; and
WHEREAS, there is an opportunity for overall budget savings
by offering a choice of these. incentives in the open-window
period.
NOW, THEREFORE, BE IT RESOLVED that the City of Richfield
adopts a choice of two early retirement incentives with the
following provisions, pursuant to Minnesota Laws, Chapter 192:
1. Eligible employees shall have the option of retiring and
receiving: Option 1, an increase in the PERA pension formula
of 4 percent (.25$) for each year of service up to the first
30 years; or Option 2, for employees meeting Option 2
eligibility criteria, single or dependent health and dental
insurance coverage under the same plan and same employer
contribution to which the employee was entitled immediately
before retirement, subject to any changes in coverage and
employer and employee contributions for employees in
positions equivalent to the position from which the employee
retired.
2. For employees who are eligible for and choose Option 2,
health and dental insurance eligibility ceases when the
retired employee attains age 65, or when the person chooses
not to receive the retirement benefits for which the person
has applied, or when the person is eligible for employer-paid
health insurance from a new employer. Coverages must be
coordinated with relevant health insurance benefits provided
through Medicare.
3. To qualify under either option, an employee:
a) must be immediately eligible for a retirement annuity from
a PERA defined benefit plan, and
b) must retire on or after May 17, 1993 and before January
31, 1994, and
Resolution No. 80.61
Page 2
c) be at least
i) age 55 or older with at least 25 years of service in
one or more covered Minnesota public pension plans
or
ii) age 65 or older with at least one year of combined
service credit in one or more covered Minnesota
public pension plans.
4. To qualify under Option 2, the employer-paid insurance, an
employee:
i) must currently be eligible for employer-paid
insurance under a collective bargaining agreement or
personnel plan, and
ii) must be at least age 55 and not yet age 65, and
iii) must have at least as many months of service with the
City of Richfield as the number of months younger
than age 65 the person is at the time of retirement.
5. The City may not exclude any eligible employees.
6. Employees eligible for both options may only choose one
option.
7. Employees eligible for only Option 1, the increased pension
multiplier, may not choose Option 2, the employer-paid
insurance.
8. For purposes of this resolution, a person retires when the
person terminates active employment and applies for
retirement benefits.
9. Employees participate in this program on a voluntary basis.
10. The City is authorized to offer an increased pension
multiplier or administer the Early Retirement Health
Insurance Program and to fund this program from the General
Fund.
11. The eligibility provision of this resolution shall expire on
January 31, 1994.
12. The City is limited from hiring a replacement for the early
retiree until July 1, 1995, except under position-specific
action of the City Council.
Passed by the City Council of the City of Richfield this 13th day
of September, 1993.
~~
Martin J. it ch Mayor
A_TTE~iST : /~
~~.4-ryl ob,C\ c.
Thomas P. Ferber City Clerk