CR 93-124 Early Retrirement Incentive
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July 28,1993
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Council Report 93-124
EARLY RETIREMENT INCENTIVE
Proposed Action
Staff recommends that the Council approve the following motion: Move that the Hopkins City Council adopt
Resolution #93-80 approving the Early Retirement Incentive as set out in Chapter 192 of Minnesota Laws,
1993.
Adoption of this motion will allow the City to offer an additional early retirement incentive consisting of a
pension increase at no cost to the City.
Overview
During the recent legislative session a bill was enacted providing an early retirement incentive to eligible
employees. Cities have the option to offer this incentive. This incentive involves an increase to retiree's
pension. This incentive would not result in any increase in costs to the City. This incentive program is
available to eligible employees who retire prior to January 31, 1994.
The purpose of the legislature in offering this incentive was to reduce personnel expenditures of local
_ governments. Because of this the legislature is also requiring local units of government to take special action
.. if they want to replace the employee who retires. The City Council would have to pass a resolution or motion
authorizing the refilling of the position.
Currently the City of Hopkins has an early retirement program which allows eligible employees to retire prior
to age 65 and receive certain health insurance benefits until age 65. This program would be continued.
Prima" Issues to Consider
· How many employees would be affected by this action?
One.
· Would the City save any money with this program?
Although the City would intend to replace the retired employee, the new employee, because he or she
is new, would be paid less and have less vacation. The City would save money.
SUPDortiD1! Information
· Resolution #93-80
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. , =:. A GenelIie
. sistant City Manager
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CITY OF HOPKINS
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HENNEPIN COUNTY. MINNESOTA
RESOLUTION NUMBER 93-80
RESOLUTION TO OFFER EARLY RETIREMENT INCENTIVES
WHEREAS, Laws 1993,Ch. 192 authorizes cities to offer an early retirement incentive
to certain Jong-service employees, and
WHEREAS, The City of Hopkins can lower costs by taking advantage of this program,
and
WHEREAS, the City of Hopkins can make this incentive available at no direct cost to
the City or its taxpayers. .
NaY" THEREFORE BE IT RESOLVED by the City Council of Hopkins, Minnesota
1. City employees who are eligible under Laws 1993, Chapter 192, and are covered un-
der Mimesota Statutes. section 353.29 and 353.30 are hereby authorized to accept
and receive the multiplier percentage increase authorized by Laws 1993, Chapter 192,
section 108, subdivision 3(b).
2. Any vacancy created when an employee has taken an early retirement incentive as au-
thorized by this resolution, shall be filled only after passage of a resolution or motion
passed by the City Council in which the vacant position is described and the need to
refill the position is stated.
Eligibility of the incentive program is limited to employees who have at least 25 years of
combined service credit in any state pension plan, or are at least age 65 with at least
one year of combined credit; are immediately eligible upon retirement for an annuity,
are at least 55 years old, and retire on or after May 17, 1993, and before January 31,
1994.
Adopted by the City Council this 3rd day of August ,1993.
ATTEST:
Charles D. Redepenning, Mayor
James A. Genellie, City Clerk