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<br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />Mayor and City Council <br /> <br />FROM: <br /> <br />Lauren Wipper <br /> <br />DATE: <br /> <br />June 12, 2006 <br /> <br />SUBJECT: <br /> <br />Post Employment Insurance <br /> <br />After months of study and consideration, the Post Employment Insurance Committee <br />decided to forgo implementing a Post Employment Insurance Plan (PEIP) for the City's <br />non-union employee group. <br /> <br />The main motivator for this decision was our comparison ofPEIPs and 457 Deferred <br />Compensation Plans. While employees will pay tax on the money they receive from their <br />457 account, as opposed to money from a PEIP which is tax free, the committee did not feel <br />this was a strong enough motivator to require the mandatory participation and restricted use <br />of a PEIP. Additional information is provided on the attached employee memo. <br /> <br />While we were considering our options, one method the committee contemplated for <br />contributing into a PEIP was the use of severance pay. In our research, we found that the <br />City's severance pay policy falls behind comparable City's in the percent of hours paid out <br />and the years of service required. I am wondering if you would like the committee to review <br />this and bring information and some options to a future meeting. <br /> <br />I would like to commend the committee members for their hard work and dedication to this <br />project. What we anticipated to be a difficult task went way beyond in our need to learn <br />about options and employees' desire, and our desire to do the best for the most employees. <br />Everyone's input was truly appreciated and valued. <br /> <br />PEIP Committee: Tina Allard, Cliff Anderson, Chris Clark, Ross Demant, Mike Donais, <br />Joan Frick, Case Hayward, Doug Wellner, Lauren Wipper <br />