St. Charles is working to set up a health savings plan for the city’s firefighters.
At last week’s City Council Government Operations Committee meeting, aldermen unanimously recommended the creation of a retirement savings plan for the Association of IAFF Local 3322. professional firefighters of Saint-Charles, which represents the city’s firefighters.
The recommendation will now go to the full council for consideration. Jennifer McMahon, the city’s director of human resources, said the city and the union agreed to meet and negotiate in good faith to establish specific terms for a retiree health savings plan.
“One of the reasons the union is interested in this is simply because often, depending on the structure of their pensions, they retire at a younger age,” she said. “So this type of plan allows them to set aside dollars and invest them tax-free and then have those distributions paid after retirement for things like health insurance premiums or deductibles or co The benefit is that the dollars put into the trust reduce the employee’s taxable income (which also saves the city tax).
There is no cost to the city, McMahon said.
“The contribution comes from their paycheck and vacation and sick time,” McMahon said in response to a question from Ward 2nd Alderwoman Rita Payleitner. “There is no report that the city has to do. We just have to deduct the money and send the funds to the financial institution. And that’s something we already do, in fact, on the police side. , so there is minimal impact in terms of administrative function.”