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6.3.B. - Page 1 <br /> To the Honorable Mayor and City Cou nci I <br /> From the City Manager <br /> May 23, 2011 <br /> SUBJECT <br /> Resolution to approve the Vantagecare Retirement Health Savings (RHS) Plan <br /> administered by ICMA Retirement Corporation-Retiree Welfare Benefits Plan for <br /> members of the International Association of Fire Fighters (IAFF) Local 2400. <br /> RECOMMENDATION <br /> Approve a resolution adopting the VantageCare Retirement health Savings (RHS) Plan <br /> administered by ICMA Retirement Corporation to establish a Retiree Welfare Benefits <br /> plan for members of the International Association of Fire Fighters (IAFF) Local 2400, <br /> and authorize the City Manager to execute the administrative services agreement. <br /> BAC KG RO U N D <br /> During recent negotiations with the International Association of Fire Fighters (IAFF) <br /> Local 2400, it was agreed that upon contract ratification and Council approval of an <br /> agreement, the City will offer a Voluntary Employees' Benefit Association (VEBA) <br /> account, through a provider to be determined by mutual agreement between the Fire <br /> Fighters and the City of Redwood City. Upon separation from City service, employees <br /> may designate unused vacation, compensatory time, and/or sick leave payoffs to be <br /> deposited into a VEBA account subject to any applicable legal limitations. . The plan <br /> does not increase any payoff of leave time for City employees. It is a vehicle for payoff <br /> to be allocated on a pre-tax basis. City staff and International Association of Fire <br /> Fighters (IAFF) Local 2400 leadership and their negotiator have mutually selected the <br /> �/antageCare Retirement Health Savings (RHS) Plan administered by ICMA Retirement <br /> Corporation. <br /> The VantageCare Retirement Health Savings (RHS) plan is regulated under IRS Code <br /> 213 and is designed to allow employees and/or the City to set aside pre-tax money for <br /> payment of post employment qualified medical expenses that will be incurred after an <br /> employee separates from service. The plan will cover the Retiree, Spouse or <br /> Dependents reimbursements for Eligible Medical and Dental out-of-pocket expenses <br /> such as prescription drugs, doctor co-pays and eyeglasses. <br />