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Written by Dean Enge
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Friday, 13 June 2008 |
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6-9-08
To: The Membership of AFSCME Local # 1719
From: Dean Enge, your President Dean Enge
Subject: 2nd Quarter Report
The first part of this report is going to deal with the issue of the Early Retirement Health Care Insurance Program also known as ERHIP. In negotiations this last year the county added our current ERHIP plan into the contract but discontinued it for anyone hired after 1-1-08. Those hired after that date will be in new plan that requires employees to put 1% of their salary in the Health Savings Account administered by MSRS a state agency. In addition to that they will also get an amount each year put in to the account starting after five years of service according the contract which will be listed below. Current employees will have an option to change to the new plan no later than August 1, 2008 if they desire. Those close to retirement, especially those who do not plan to work until age 65 may be better off to stay in the old plan. For those who plan to work until age 65 or do not believe the county will still have ERHIP by their retirement date may want to make the switch. In the past the ERHIP was a benefit decided on each year by the county board which could have ended it at any time. Now it is in the contract but is now a negotiable item for future years. The current ERHIP plan covers your single coverage until age 65 when you become eligible for Medicare. Below is the contract language regarding these plans.
Section 10. Early Retiree Health Insurance Program (ERHIP).
Subd. 1. Benefit. The County shall provide access to the County’s group health insurance program for eligible employees until the end of the month in which the employee turns age 65. An eligible employee shall receive the same County contribution towards the health insurance continuation benefit provided for in the ERHIP as though the employee is actively working and has elected single coverage in the County’s group health insurance program. An eligible employee may elect to continue coverage under the County’s group health insurance program for dependents provided the employee pays 100% of the cost of dependent coverage in addition to any required share of the single premium. The County may establish appropriate policies and procedures to implement and administer the ERHIP that are not inconsistent with the requirements of this section. These include, but are not limited to, the application process and the time period required to apply for EHRIP benefits, the process for remitting premium payments, adding or deleting dependents from coverage or the termination of coverage for the non-payment of premiums.
Subd. 2 Eligibility. Only employees that have County group health insurance coverage in force on the date of employment termination and who were hired by the County prior to January 1, 2008, are eligible to participate in the ERHIP. Employees newly hired, re-hired or re-instated after January 1, 2008, are ineligible to participate in the ERHIP. To receive the health insurance continuation benefit provided for in the ERHIP, the employee must meet at least one of the following three eligibility requirements:
A. The eligible employee meets one of the following age and years of service requirements:
Age Years of Service--Non Continuous Hours
55 but less than 62 20 (41,600 hours)
62 but less than 63 15 (31,200 hours)
63 but less than 64 14 (29,120 hours)
64 but less than 65 13 (27,040 hours)
B. The eligible employee at the time of retirement qualifies for and applies for a full, unreduced retirement annuity (other than a deferred annuity), based on a minimum of ten (10) years of Hennepin County service, from an approved Minnesota public service retirement program.
C. The eligible employee at the time of retirement qualifies for and applies for a retirement annuity (other than a deferred annuity), from an approved Minnesota public service retirement program with at least twenty-five ( 25) years of covered service, at least ten (10) of which must have been with Hennepin County.
Subd. 3 Opt-out. Employees eligible to participate in the ERHIP may opt out of the program. Employees desiring to opt-out must elect in writing prior to July 1, 2008, whether they will maintain their current retiree insurance benefit, or opt out of the ERHIP and participate in the Health Care Savings Plan (HCSP) option. This is a one-time, irrevocable election. Employees who do not make an election in writing prior to July 1, 2008, will be deemed to have elected to retain their current retiree insurance benefit under the ERHIP. ( Opt out date changed to August 1, 2008 due lateness of information being passed on this subject by the county to its employees )
Subd. 4. No Guarantee of Future Benefit. Nothing in this section shall be construed to be a guarantee of future retiree health insurance benefits beyond the expiration date of this AGREEMENT. The County and the Union (or in the case of an unit of essential employees, an interest arbitrator) reserve the right during subsequent negotiations to modify, amend, or terminate, in whole or in part, this ERHIP. In the event the union is decertified as the exclusive representative, the County may, at any time after the expiration of this AGREEMENT, modify, amend, or terminate, in whole or in part, this ERHIP.
Section 11. Health Care Savings Plan (HCSP)
Subd. 1. Establishment of HCSP. A Health Care Savings Plan (HCSP) is established to enable Hennepin County employees to save money on a pre-tax basis to pay post-County employment medical expenses and/or health insurance premiums. EMPLOYER and employee contributions designated below shall be deposited with a HCSP provider selected by the EMPLOYER. The County and the HCSP provider may establish appropriate policies and procedures to implement and administer the HCSP that are not inconsistent with the requirements of this section.
Subd. 2 Eligibility. Only permanent employees that are participating in the County’s group health insurance program are eligible to participate in the HCSP. Employees hired, re-hired or re-instated after January 1, 2008, and employees that exercised their right to opt-out of the ERHIP, are required to participate in the HCSP.
Subd. 3. Employee Contribution. Eligible employees shall contribute one percent (1%) of their salary on a per pay period basis to the HCSP beginning the first full payroll period in 2009.
Subd. 4. County Contribution The County shall make the following annual contributions to an eligible employee’s HCSP account beginning in 2009. The County’s annual lump sum contribution shall be made in the first full pay period following an employee’s anniversary date as follows:
Years of Service County Annual Contribution
More than 5 years (10,400 compensated hours) and less than 10 years (20,800 compensated hours) of service. $500.00 per year
More than 10 years (20,800 compensated hours) and less than 15 years (31,200 compensated hours) of service. $600.00 per year
More than 15 years (31,200 compensated hours) of service. $700.00 per year
The county is going to have a representative from Benefits on Monday, June 16 at 1:00 PM and 3 PM in the Chapel in the Programs and Services unit at the ACF. If you need information on these changes please attend that meeting. I suspect Jeanne Foster will have the opt-out forms for those you feel they want to go that way. Later in the year we will be voting on another part of the HCSP on whether some or part of your severance would go to an HCSP. This needs to be done by early 2009 by each bargaining unit as part of the last contract agreement with the county. You may have already heard talk of this from the unorganized staff who have been voting on it. We will be talking about this at the next couple of meetings with a vote probably in the fall. Since this will be a contract issue the vote will be done like the contract with the ballot box in the lobby in the morning and afternoon.
Grievances
The union has been involved with a couple of grievances for staff. One was concerning a three day suspension which was reduced to a written reprimand by the Superintendent. There is another grievance pending in the process which has not been resolved.
Family Medical Leave
Federal protects staff for up to 12 weeks per year for certain conditions of illness or that of family members. It is your responsibility to let your supervisor (CIS or PM) that you may need this leave. There is a 30 day advance requirement for use of this type of leave and it is used in conjunction with your sick and vacation leave if necessary. You cannot be disciplined for using FML, but if you do not apply for it when you have qualifying events you could be. On the county intranet site is a nice 36 pages of the rules on FML if you think you may need it, please consult those pages or contact Human Resources. I am also available for some questions on the subject as I printed out the 36 pages.
A lot of the members have e-mail capability and if you desire to contact me in that manner you can write to either of these addresses:
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I can also put you on the mailing list for information that is passed on periodically if you desire. Also Council 5 has its own web site with valuable information about the council and our contract is on-line there. The address of the council is www.afscmemn.org. Our own website is www.afscme1719.org.
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Last Updated ( Friday, 13 June 2008 )
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