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C � <br /> i�EPORT <br /> To the Honorable Mayor and City Council <br /> From the Ci Mana er <br /> October 24, 2011 <br /> SUBJECT <br /> Vantagecare Retirement Health Savings Pian (RHS) administered by ICMA Retirement <br /> Corporation's Retiree Welfare Benefits Plan for members of the Chief Officer's <br /> Association (COA) <br /> RECOMMENDATION <br /> Approve a resolution amending the existing IAFF VantageCare Retirement Health <br /> Savings (RHS) Plan administered by ICMA Retirement Corporation to establish a <br /> Retiree Welfare Benefits Plan that includes members of the Chief Office�'s Association <br /> (COA) and authorize the City Manager to execute the adoption agreement. <br /> BACKGROUND <br /> C In May 2011, Council approved a resolution to extend a Retirement HeaRh Savings <br /> (RHS) Plan for the International Association of Fire Fighters (IAFF) Local 2400. In <br /> doing so, it also adopted the Vantage Care Retirement Health Savings (RHS) Plan <br /> administered by ICMA Retirement Corporation. Also in May 2011, Council adopted a <br /> Memorandum of Understanding between the City and the Chief Officers' Association <br /> (COA). During negotiations, it was agreed that the City would meet and confer after <br /> negotiations to explore a Retirement Health Savings account, similar to the one offered <br /> to IAFF. The RHS plan offers the members of the COA a Retirement Health Savings <br /> account that upon separation from City service, employees may designate unused <br /> vacation, compensatory time, and/or sick leave payoffs to be deposited into a <br /> Retirement Health Savings (RHS) account subject to any applicable legal limitations. In <br /> September, the City's negotiators and COA mutually agreed to amend its RHS Plan to <br /> include members of the COA. <br /> ANALYSIS <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. The plan will be funded by <br /> a reduction in the employee's salary through payroll deductions or with the emp�oyee's <br /> �. � <br />