MUNICIPAL OPERATIONS COMMITTEE

DECEMBER 13, 2005

COUNCIL CHAMBER

Convened: 6:26 p.m.

Adjourned: 7:05 p.m.

 

Present were:                Chairperson Councilor Paul P. Clancy, Jr.

                                      Councilor Philip P. Palmieri

                                      Councilor Frederick C. Rushton

 

Also:                              Chief Financial officer John Pranckevicius

                                      Director of Human Resources Kathleen G. Johnson

                                      City Auditor James DelSignore

                                      City Clerk David J. Rushford, clerk

 

Communication of the City Manager

 

1.       Relative to the matter of prescription drug reimbursements for City of Worcester Medicare eligible retirees in accordance with the Medicare Modernization Act of 2004.

          #29B CM October 25, 2005

Recommend File

 

Communications of the City Auditor

 

2.       Transmitting report regarding post retirement cost of healthcare and life insurance.

#15 CC March 8, 2005

          In Committee April 12, 2005 – Held

Recommend File

 

3.       Transmitting article as a possible solution to OPEB liability.

          #41 CC March 29, 2005

          In Committee April 12, 2005 – Held

Recommend File

 

4.       Transmitting PowerPoint presentation from the Town of Wellesley relative to their plan for dealing with other post employment benefits (OPEB).

          #52 CC CM April 12, 2005

Recommend File

 

5.       Transmitting a copy of an article that recently appeared in the Wall Street Journal.

          #29 CC November 29, 2005

Recommend File

 

Chairman’s Orders:

 

1.     Request the City Manager clarify for the City Council the rights of retirees to various levels of health insurance coverage.

 

2.     Request the City Manager report to the City Council under what legal auspices the co-payments for health insurance coverage can be changed.

 

3.     Request the City Manager to continue working with the hired actuary, Segal Co., to determine the post-employment benefit other than OPEB pension liability for the City of Worcester and the annual funding requirement associated with this liability.

 

4.     Request the City Manager, in conjunction with the assistance of the City Auditor and the hired actuary, Segal Co., to provide a cost/benefit analysis associated with utilizing federal Medicare Part D reimbursements to establish an investment fund that will be designated solely for the purposes of beginning to fund this liability.

 

5.     Request the City Manager, with assistance from the City Auditor, pursue with the local State Delegation any special legislation that may be necessary to establish a post employment benefit fund, other than pensions, that would allow the City to maximize it’s investment opportunities.