City of Oak Creek

Common Council Report

Meeting Date: 07/31/06

Item No.:        

Recommendation:  That the Common Council rescind the personnel policy related to retiree benefits issued June 2, 1998, and approve the policy statement entitled “Handling of Retiree Health Benefits for Qualified Former Employees/Retirees”, effective 07/18/06.

Background:  It is and has been the intention of the City to provide health insurance coverage to retirees as specified by the various labor contracts; a retiree’s benefits and conditions are determined by the contract under which the employee retires.  Currently, non-union and management employees are covered as listed in the annual salary ordinance, and a new statement of policy related to non-union and management employees will be included in the policy handbook that was commissioned recently.

As a follow up to the Council Report and Executive Session for the July 18, 2006 meeting, this report is intended to clearly state the Council’s intention for handling the retiree benefits for a specific group of former employees only – those who, when they left the employ of the City, had already achieved the requisite years of service under applicable contract or policy but were not yet receiving a Wisconsin Retirement System (WRS) benefit.  Under the new City labor contracts and policies, anyone retiring after December 31, 2005 with the required years of service would have to immediately receive a WRS benefit in order to qualify for retiree health insurance.

If requested, the Council intends to provide retiree health benefits for employees who achieved the requisite years of service under applicable contract or policy but were not yet receiving WRS benefits when they “retired” from the City.  Those persons currently known to fit within that definition to qualify then for the retiree health benefit are as follows:  Jon Bloy, Robert Kufrin, Scott Sikorski, Linda Quandt (Utility) and Joann Stencel.  The applicable retiree health benefit would start when the qualified employee provides written proof that they have begun receiving benefits from the Wisconsin Retirement System and also written proof that they are not engaged in full-time employment.  At the time that such written proof is received, the “retiree” will be able to choose from the available plans and participate in open enrollment.  The labor contract which applies to the “retiree” in effect when the WRS benefits begin will be used to establish the benefits, conditions and costs for the “retiree”.

Fiscal Impact:  None; costs would be incurred at such time as the former employees apply for retiree health insurance.

Prepared by and fiscal review by: Beverly A. Buretta, CMC City Clerk/Comptroller

Respectfully submitted, Patrick DeGrave City Administrator