Agmt11 Vantagecare - Laserfiche WebLink

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� REPORT To the Honorable Mayor and City Council From the Ci Mana er October 24, 2011 SUBJECT Vantagecare Retirement Health Savings Pfan (RHS) administered by ICMA Retirement Corporation's Retiree Welfare Benefits Plan for members of the Chief Officers Association (COA) RECOMMENDATION Approve a resoiution amending the existing IAFF VantageCare Retirement Health Savings (RHS) Plen administered by ICMA Re6rement Corporation to establish a Retiree Welfare Benefits Plan that inGudes members of the Chief.Officers Association (COA) and authorize the City Manager to execute the adoption agreement. BACKOROUND C In May 2011, Council approved a resolution to extend a Retirement Health Savings (RFIS) Plan for the Intemational Association of Fire Fighters (IAFF) Local 2400. In doing so, it also adopted the Vantage Care ReGrement Health Savings (RHS) Plan administered by ICMA Retirement Corporation. Also in May 2011, Council adopted a Memorandum of Understanding between the City and the Chief Offcers' Association (COA). During negotiations, it was agreed that the City would meet and confer after negotiaGons to explore a Retirement Health Savings account, similar to the one offered to IAFF. The RHS plan offers the members of the COA a Retirement Health Savings account that upan separation from City service, employees may designate unused vacation, compensatory time, and/or sick leave payoffs to be deposited into a Retirement Health Savings (RHS) account subject to any applicable legal limitations. In September, the City's negotiators and CQA mutually agreed to amend its RHS Plan to include members of the COA. ANALYSIS The VantageCare Retirement Health Savings (RHS) plan is regulated under IRS Code 213 and is designed to ailow employees and/or the City to set aside pre-tax money for payment of post employment qualified medical expenses that will be incurred after an employee separates from service. The plan will cover the Re6ree, Spouse or Dependents reimbursements for Eligible Medical and Dental out-of-pocket expenses such as prescription drugs, doctor co-pays and eyeglasses. The pian will be funded by a reduction in the employee's salary through payroll deductions or with the employee's C _ .