HomeMy WebLinkAbout2011-080 - ICMA-RC Vantagecare Retirement Health Savings PlanLES 11/8/11
RESOLUTION NO. 2011-080
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA ANA FOR ADOPTION OF THE ICMA-RC
VANTAGECARE RETIREMENT HEALTH SAVINGS PLAN
ACCESSIBLE TO ALL BARGAINING GROUPS
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS
FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines
and declares as follows:
A. Each bargaining unit (SEIU, FBA, FMA, POA, PMA, SMA, EM and CASA)
of the City has established a Medical Retirement Subsidy Plan for its
members for the purpose of partially subsidizing the cost of retiree health
insurance premiums. These plans (except for POA) are administered by
the City, at no cost to the bargaining unit or its members. The City
recently learned that the annual retiree health subsidy amounts deposited
by the City are construed as a future unfunded liability for the City.
B. The establishment of a retiree health savings plan for the employees
serves the interests of the City by enabling it to provide reasonable
security regarding such employees' health needs during retirement, by
providing increased flexibility in its personnel management system, and by
assisting in the attraction and retention of competent personnel.
C. The City has determined that the establishment of a retiree health savings
plan serves the above objectives and would benefit both the City by
eliminating the unfunded liability associated with retiree medical plans,
and be of benefit to the bargaining unit members.
D. PMA has requested the City to proceed with implementation steps
required to adopt the ICMA Retirement Corporation's VantageCare
Retirement health savings plan. ICMA-RC has been in business 39 years
and provides retirement savings plans, products and services to over
8,700 public sector agencies with more than 900,000 participants. ICMA-
RC will assess to participant accounts an annual account fee of $25.00
and an asset fee of 40 basis points quarterly.
E. The City will make this plan accessible to all bargaining units on a
voluntary basis. Under this plan, bargaining unit members are allowed to
accumulate assets to pay for health insurance and out-of-pocket medical
expenses at retirement. A bargaining unit member may contribute unused
Resolution No. 2011-080
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sick leave, vacation, and other benefits to an account, which is tax-free at
deposit and tax-free at withdrawal when used to pay for qualified medical
expenses.
F. The existing medical retirement subsidy funds for participating bargaining
units will be deposited into the trust and distributed equitably to current
and retired bargaining unit members. Each bargaining unit will determine
how the existing funds will be split among their membership. Any future
negotiated City contributions for participating bargaining units will be
deposited into the trust.
G. The plan will be administered by ICMA-RC at no cost to the City.
Reimbursement requests will be handled directly by a third party
administrator and no longer handled by the City of Santa Ana.
Section 2. The City hereby adopts the ICMA-RC VantageCare Retirement
Health Savings Plan. The City Manager and Executive Director of Personnel or their
respective designees are hereby authorized to execute any documents required in
furtherance of the establishment of this health savings plan.
Section 3. This Resolution shall take effect immediately upon its adoption by
the City Council, and the Clerk of the Council shall attest to and certify the vote adopting
this Resolution.
Resolution No. 2011-080
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ADOPTED this 28th day of November 2011.
APPROVED AS TO FORM:
Joseph Straka, Interim City Attorney
By:
Lisa Storck
Assistant City Attorney
AYES: Councilmembers: Benavides, Bustamante Martinez Pulido
Sarmiento, Tinajero (6)
NOES: Councilmembers: None (0)
ABSTAIN: Councilmembers: None (0)
NOT PRESENT: Councilmembers: Alvarez (1)
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached
Resolution No. 2011-080 to be the original resolution adopted by the City Council of the
City of Santa Ana on November 28, 2011.
Date:
,,.Clerk of the Council
City of Santa Ana
Resolution No. 2011-080
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