Laserfiche WebLink
// <br />Elk River <br />Municip al Utilitie s <br />13069 Orono Parkway <br />F.lk River, MN 55330 <br />May 1, 2007 <br />To: Elk River Municipal Utilities commission <br />Jerry Takle <br />Jim Tralle <br />Jerry Gumphrey <br />From: Theresa Slominski <br />Subject: Health Care Savings Plan update <br />phone: 763.441.2020 <br />Fax: 763.441.8099 <br />At the last commission meeting, staff was asked to seek out alternatives to the HCSP <br />presented, to see if there is a comparable product out there that doesn't have mandatory <br />participation as a requirement. A review of alternative products is attached, and, <br />unfortunately, there is not a truly comparable product available. The alternatives most <br />closely resembling the HCSP product are HSAs and VEBAs but they are both tied to a <br />high deductible health insurance plan. Annuities are an option, but they do not represent <br />the same tax savings since they are taxable upon distribution, regardless of the use of the <br />funds distributed. <br />This information was brought forward to the task group, and after review, it was <br />determined that the HCSP is still the best product for setting aside funds to use for health <br />care costs after retirement. It was noted that for the employees that said no, it was most <br />likely not because they are against the contribution rates now, but that they are concerned <br />about down the road if employees want to set up groups with higher contribution rates. It <br />was also noted that there would still need to be dialogue before any additional groups <br />would be set up in the future. <br />The policy manual language drafted and presented last commission meeting is included <br />again. Staff recommends adopting the HCSP as presented. <br />