92-7894R
RESOLUTION N0. 7894
RESOLUTION ESTABLISHING A FORMAL
,;,' EARLY RETIREMENT HEALTH INSURANCE PROGRAM
WHEREAS, the 1992 Minnesota Legislature has adopted an early
retirement incentive for public employees who meet certain
criteria (House File 2694, Article 4, Sections 58 and 59; and
WHEREAS, the City is able to continue health insurance
contributions under COBRA continuation and on January 1, 1993
under Chapter 488 of the Laws of Minnesota; and
WHEREAS, it is in the best interest for certain eligible
''s retirees to have a quality health insurance plan; and
WHEREAS, there is an opportunity for the City to experience
budget savings by offering this early retirement incentive.
NOW, THEREFORE, BE IT RESOLVED that the City of Richfield
adopts a formal early retirement health insurance program with
the following provisions pursuant to House File 2694, Article 4,
Sections 58 and 59:
1. Qualified employees shall have the option of retiring and be
eligible for single or dependent health 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. Health insurance eligibility ceases when the retired employee
attains age 65, or when the employee chooses not to receive
retirement benefits for which the employee has applied, or
when the employee is eligible for employer paid health
insurance from a new employer.
3. Coverages must be coordinated with relevant health insurance
benefits provided through Medicare.
4. To qualify under this program, an employee:
a) must be eligible for employer-paid health insurance under
a collective bargaining agreement or personnel plan in
effect the day before the effective date of the
employee's retirement;
b) must have at least 25 years of continuous service with
the City of Richfield;
c) upon retirement, must immediately be eligible for a PERA,
PERA Police and Fire Fund retirement annuity, or a Police
or Fire Relief Association Retirement Program, without
reduction of benefits because of age;
d) is at least 55 and not yet 65 years of age; and
46
e) retires on or after July 1, 1992, and before October 1,
1992.
Resolution No. 7894
5. The City may not excl
6. For purposes of this r
person terminates acti
retirement benefits.
7. Employees participate
8. The City is authorized
Health Insurance Progr
-2-
any eligible employees.
lution, a person retires when the
employment and applies for
this program on a voluntary basis.
administer the Early Retirement
and to fund this program from the
General Fund.
9. The eligibility provision of this resolution shall expire on
October 1, 1992.
Passed by the City Council bf the City of Richfield this 27th day
of July, 1992. ',
~~ ~ ~i
s` i- i ~ r
~'
Martin J. !Kirsch Mayor
ATTEST:
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Thomas P. Ferber CitylClerk