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Council amends employee handbook to add retiree health reimbursement arrangement
Summary
Council approved a resolution adding a retiree health reimbursement arrangement to the employee handbook that allows monthly reimbursements (up to $850) to roll over month‑to‑month until age 65; staff described mechanics as an HRA/IKRA‑style account.
Council approved an amendment to the employee handbook to establish a retiree health reimbursement arrangement for eligible retirees. Staff explained the arrangement functions like a non‑taxable HRA (described in the packet as an IKRA account), permitting eligible retirees to submit for reimbursement of eligible medical expenses and premiums. The policy allows unused portions of the monthly $850 allocation to roll over month‑to‑month and accumulate for reimbursement until the retiree turns 65, at which point remaining balances would not be paid out in cash.
Staff and council members discussed eligibility criteria and the mechanics of rollover; staff said the eligibility requirements remained consistent with earlier drafts and clarified that the funds could be used for premiums and other eligible medical expenses. The resolution passed on a voice vote.
