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HomeMy WebLinkAboutRes 02-95 01/17/1995 AF/ 1111/95 RESOLUTION NO. 2-95 A RESOLUTION PROVIDING FOR AN EXTENSION OF THE RETIREE MEDICAL BENEFIT PROGRAM TO CERTAIN VILLAGE EMPLOYEES WHEREAS, various benefits have been established for Village employees; and WHEREAS, it has been determined by the Mayor and Board of Trustees of the Village of Mount Prospect that retiree medical benefits granted to certain Village employees as part of a negotiated labor agreement should be extended to all Village employees who are not part of a recognized bargaining group. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION ONE: That the Mayor and Board of Trustees of the Village of Mount Prospect have various benefits for Village employees, as amended from time to time. SECTION TWO: That the Mayor and Board of Trustees do hereby authorize the extension of the "Retiree Health Insurance Program" to all employees who are not members of a Village recognized bargaining group. SECTION THREE: That this Resolution shall be in full force and effect from and after its passage and approval in the manner provided by law. AYES: Corcoran, Hoefert, Hendricks, Skowron, Wilks NAYS: None ABSENT: Clowes PASSED and APPROVED this 17th day of January , 1995. ATTEST: Carol A. Fields Village Clerk VILLAGE OF MOUNT PROSPECT RETIREE MEDICAL BENEFIT PROGRAM Any employee of the Village of Mount Prospect (hereinafter referred to as "Village") who retires (hereinafter referred to as "Retiree") from the Village of Mount Prospect between May 1, 1994 and April 30, 1997 shall establish a Sick Leave Deferred Payment Account (hereinafter referred to as "SLDPA',) with the Village. The SLDPA shall be funded with the value of the Retiree's accumulated sick leave hours up to a maximum of that number of sick leave hours granted to that employee over a five-year period. The value of the Retiree's eligible sick leave hours shall be determined by multiplying the number of eligible sick leave hours by the Retiree's regular hourly rate at the date of his/her retirement. The Village shall establish and shall fund the SLDPA with the value so determined on the first day of the Retiree's retirement. The amount established in each Retiree's SLDPA shall be distributed to the Retiree in forty-eight (48) consecutive monthly installments commencing on the last day of the month of retirement. Subsequent installments shall be paid on the last day of each month thereafter. Each Retiree with an active SLDPA shall receive an annual statement of account from the Village. Any Retiree with a balance in her/her SLDPA shall be eligible to participate in the Village's Section 125 Flexible Compensation Plan (hereinafter referred to as "Flex Comp Plan") for the payment of qualified medical expenses on a pre-tax basis. The Retiree has the option of designating any or all of his/her SLDPA monthly installment as his/her contribution to a Medical Spending Account in the Flex Comp Plan. The balance of any monthly installment not designated for the Flex Comp Plan shall be subject to all applicable taxes. VVhen the Retiree's SLDPA is depleted, the Retiree shall no longer be eligible to participate in the Village's Flex Comp Plan. The Medical Spending Account (hereinafter referred to as "MSA") may be used for the payment of medical insurance premiums of the Village's Medical Insurance Plan or any other qualified medical expenditures. Reimbursements to the Retiree from the MSA will be made pursuant to provisions of the Flex Comp Plan. If the portion of a Retiree's SLDPA monthly installment designated as a contribution to the Flex Comp Plan is not sufficient to pay the Retiree's medical insurance premium, the balance shall be paid from the Retiree's pension. If there is a balance in the SLDPA at the time of death of a Retiree, the Retiree's beneficiary(s) shall have the option of receiving the balance in the SLDPA in a lump sum or continue to receive the remaining monthly installments. A deceased Retiree's spouse or eligible dependents may continue as participants in the Village's Medial Insurance Plan, but will not be eligible to participate in the Village's Flex Comp Plan.