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LES 11/8/11 <br />RESOLUTION NO. 2011- <br />RESOLUTION OF THE CITY COUNCIL OF THE <br />CITY OF SANTA ANA FOR ADOPTION OF THE ICMA-RC <br />VANTAGECARE RETIREMENT HEALTH SAVINGS PLAN <br />ACCESSIBLE TO ALL BARGAINING GROUPS <br />BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS <br />FOLLOWS: <br />Section 1. The City Council of the City of Santa Ana hereby finds, determines <br />and declares as follows: <br />A. Each bargaining unit (SEIU, FBA, FMA, POA, PMA, SMA, EM and CASA) <br />of the City has established a Medical Retirement Subsidy Plan for its <br />members for the purpose of partially subsidizing the cost of retiree health <br />insurance premiums. These plans (except for POA) are administered by <br />the City, at no cost to the bargaining unit or its members. The City <br />recently learned that the annual retiree health subsidy amounts deposited <br />by the City are construed as a future unfunded liability for the City. <br />B. The establishment of a retiree health savings plan for the employees <br />serves the interests of the City by enabling it to provide reasonable <br />security regarding such employees' health needs during retirement, by <br />providing increased flexibility in its personnel management system, and by <br />assisting in the attraction and retention of competent personnel. <br />C. The City has determined that the establishment of a retiree health savings <br />plan serves the above objectives and would benefit both the City by <br />eliminating the unfunded liability associated with retiree medical plans, <br />and be of benefit to the bargaining unit members. <br />D. PMA has requested the City to proceed with implementation steps <br />required to adopt the ICMA Retirement Corporation's VantageCare <br />Retirement health savings plan. ICMA-RC has been in business 39 years <br />and provides retirement savings plans, products and services to over <br />8,700 public sector agencies with more than 900,000 participants. ICMA- <br />RC will assess to participant accounts an annual account fee of $25.00 <br />and an asset fee of 40 basis points quarterly. <br />E. The City will make this plan accessible to all bargaining units on a <br />voluntary basis. Under this plan, bargaining unit members are allowed to <br />accumulate assets to pay for health insurance and out-of-pocket medical <br />expenses at retirement. A bargaining unit member may contribute unused <br />55B-3 Resolution No. 2011-XXX <br />Page 1 of 3