HomeMy WebLinkAboutVI- L Lump Sum Option for Health Insurance During REtirement C a
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AZUSA
TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVE KENOYER, ACTING FINANCE DIRECTOR
VIA: ROBERT PERSON, ASSISTANT CITY MANAGER/2"4c'
DATE: JANUARY 21, 2003
SUBJECT: LUMP SUM OPTION FOR HEALTH INSURANCE DURING RETIREMENT
RECOMMENDATION
It is recommended that the City Council authorize the attached Budget Amendment
Request to fund the lump sum option for health insurance during retirement for Dottie
Wallace. ($117,910)
BACKGROUND
Per the MOU for the AMMA, section 19.3. offers a retiring employee the option to
receive in a lump sum the present value of his or her health insurance during
retirement in lieu of receiving monthly health insurance coverage.
Dottie Wallace, the former Human Resources Manager, worked for the City for 20
years and was eligible to receive 75% of the single-coverage premium during
retirement. Instead of the monthly coverage, she exercised her option to receive a
lump sum.
The City hired an actuary to perform the present value calculation, Mary Paull, and the
value came to $117,909.81 . Dottie accepted this value and is awaiting payment from
the City.
FISCAL IMPACT
The source of funding for this amendment is fund balance from the General Fund.
0.3
CITY OF AZUSA BUDGET AMENDMENT REQUEST
(New Appropriation)
Department: I 1\,/ Fiscal Year: RvU to 3 *Round to the highest$10 '-
Requested by: Date: i / L//U 3
PROJECTED EXPENDITURE(S): FUNDING SOURCE:
Account# Project # Amount* Account# Project # Amount *
(, . 4 its 9 10 ( --co- :--c>e,- 3(0O j CI 10 'lc oc > Ocx� - 3. i i i 1 �1 ( U
Total:
Total: t c"j ( c ( U Ci''/ ( �,
Reason for Amendment: t_;,,,y,f, 5,,,,, c ,t,'v„ / "-t'f-i L,L,,(I« c Impact on other programs: rt
I/T
NOTE. 1.Amendments of$25,000 or less require approval of the Finance Director.
2.Amendments between$25,000 and$100,000 require the approval of the City Manager and the Finance Director.
2.Amendments between$100,000 and$1,000,000 require adoption of a resolution by City Council.
3.Amendments over$1,000,000 shall be approved by City Council following a public hearing.
APPROVAL FINANCE ONLY
Department Head: Date: ) Processed By: Date:
Finance Director: 5 Date: // 14143 GL Batch: GL Budget Ref:
City Manager: Date: JL Batch: JL Budget Ref:
Council Approved on: