CR 91-261 Early Retirement Insurance PolicyNovember 25, 1991
Steven C. Mielke, City Manager
EXTENSION OF THE EARLY RETIREMENT
INSURANCE BENEFIT POLICY
Council Report. 91 -261
Proposed Action
No action is necessary on this item. Council is being
informed of this extension of the early retirement insurance
benefit as per section 315.03 of the Hopkins City Code.
This item is presented for the Council's review and possible
discussion.
Overview
The City of Hopkins has had a program in place since 1985
that allowed employees to retire early and still receive
single health insurance benefits until they reach the age of
65. A number of employees have taken advantage of this
program since then.
In 1991, the program was extended on a 1 -year basis to allow
employees at age. 55, or age 50 in the case of police, to
retire early and receive single health insurance benefits
until age 65.
This program was put in place as a cost saving measure, and
under today's current tight fiscal restraints, it appears to
be wise to continue this program for one more year. At the
end of 1992, the policy will revert back to the pre - 1991
policy language. It is my hope that the City will
experience savings in expenditures by extending this
program.
Primary Issues to Consider
Has the program been utilized in 1991?
Two employees, one in police and one in Community
Development, have utilized this program. Some economic
savings have resulted due to this response.
o Why extend this policy for an additional year?
It appears that there are still eligible employees who may
utilize the program and help in reducing City expenditures.
While health insurance costs continue to rise, the savings
in personnel wages offsets the cost in health insurance.