BY COUNCILOR STEWART:
RESOLVED, that the proper city officials are hereby authorized to execute a supplemental labor agreement with the city of Duluth Supervisory Association, which is on file in the office of the city clerk as Public Document No. ___________, which, beginning January 1, 2006, modifies the collective bargaining agreement language requiring employees hired on or after January 1, 2006, to pay the entire cost of their retiree health insurance and requiring the city to deposit the sum of $12,000 for these new hires into a health care savings plan account after 36 months of employment.
STATEMENT OF PURPOSE: This resolution authorizes the amendment of the 2004-2006 labor agreement with the supervisory bargaining unit and requires full-time employees in that unit who are hired on or after January 1, 2006, to pay the entire cost of their retiree health insurance. These employees are not eligible for a defined benefit retiree health care benefit. The city will deposit the sum of $12,000 into a health care savings plan account for these new employees after they complete 36 months of employment. The money, along with interest it may accumulate, can be used by the new employees for retiree health care premiums and other medical costs as allowed by law.