5.3. ERMUSR 11-17-2009 - Laserfiche WebLink

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The task group met to discuss possible implementation of a Health Care Savings Plan to benefit the employees of ERMU. The task group determined that we should take a vote and, if we receive a 75% majority (27 out of 35) of yes votes, we should present a recommendation to the ERMU commission. The contribution rates were discussed and include the following three items: Sick pay balance when leave employment to a maximum of 50% of 100 days 50% of sick pay accumulation over 960 hours per year (instead of a cash payout of 40%) 1 % Gross Wages Are you interested in participating in a Health Care Savings Plan at the above contribution rates? Yes 0 No 0 Comments Section 16 of our employee hand book currently states: "...Employees accrue sick leave at a rate of one day per month of employment to a maximum of 120 days. An employee, upon resignation, termination or retirement, will be paid for unused sick leave to a maximum of 40% of 100 days (40 days) at his or her then prevailing wage. At the end of any calendar year, an employee who has over 120 days accrued will be paid for 40% of any amount over 120 days to bring the balance back to 120 days. The resigning, terminating or retiring employee may elect, in lieu of being paid cash for the previously defined unused sick leave, to have SO% of the unused sick leave to a maximum of SO% of 100 days (SO days) placed in a fund which will be used for payment of medical insurance by the Utility. This medical insurance may be one of the employee's choosing, or the group policy in effect for the Utilities at that time. It can be used for either single or family coverage. If the employee dies before the fund is expended, the remainder shall be paid to the employee's designated beneficiary. " Staff is recommending the above language be deleted and the following language be inserted in a new section. Elk River Municipal Utility employees are eligible to participate in the Minnesota Post Employment Health Care Savings Plan (HCSP) established under Minnesota Statutes, section 352.98 (Minn. Supp. 2001) and as outlined in the Minnesota State Retirement System 's Trust and Plan Documents. All funds collected by the employer on the behalf of