Laserfiche WebLink
The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community <br />engagement that encourages and inspires prosperity <br /> <br /> <br />Request for Action <br /> <br />To <br />City Council <br />Item Number <br />4.11 <br /> <br />Meeting Date <br />May 6, 2024 <br />Prepared By <br />Lauren Wipper, Human Resources Manager <br /> <br />Item Description <br />Post Employment Health Care Savings Plan <br />Reviewed by: <br />Lauren Wipper <br />Cal Portner <br />Tina Allard <br /> <br />Action Requested <br />Approve, by motion, the addition of a Post Employment Health Care Savings Plan policy for retiring <br />department directors and city administrator. <br /> <br />Background/Discussion <br />Post-Employment Health Care Savings Plans (HCSP) are authorized for public employees under Minnesota <br />State Statute 352.98. These are tax-free medical savings accounts which are frequently utilized by union <br />employee groups. The statute requires a defined employee group and all members of that group must <br />participate according to the terms of the policy. <br /> <br />Upon the next Personnel Policy Manual update, the attached policy will be incorporated into the General <br />Benefits section of the policy. <br /> <br />Financial Impact <br />Severance Pay is currently paid directly to the employee as gross income. Because HCSP contributions are <br />pre-tax, there is actually a savings to the city for the employer's share of Medicare and Social Security <br />contributions. <br /> <br />Mission/Policy/Goal <br />N/A <br /> <br />Attachments <br />1. Directors and CA PEHCSP <br /> <br /> <br />Page 82 of 254