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Section B.Medical_Retirement Subsidy Plan. <br />A. The City's current annual contribution towards the Medical Retirement Subsidy <br />Plan for Executive Management (EM) employees covered under this Resolution is <br />1.75% of the base salary, which is based on the first payroll period in October and <br />deposited no later than October 31st of each year. <br />B. The plan will be administered by the City, at no cost to Executive Management <br />(EM) employees pursuant to the written directives of Executive Management (EM) <br />employees. The funds contributed by the City will be maintained in such a manner as to <br />ensure that the funds are invested in a reasonably secure plan that bears a reasonable <br />rate of interest/growth given current financial markets. For purposes of this Resolution, <br />investments made pursuant to the then current Statement of Investment Policy for the <br />City of Santa Ana, will be deemed to meet the requirements of this section. This <br />program is for medical insurance premium reduction only. <br />C. Effective November 28, 2011, the City adopted a resolution authorizing <br />implementation of the "Vantage Care" Retirement Health Savings Plan (RHS), which <br />designated ICMA -RC as the administrator of the plan. <br />1. The City agrees to amend the current contract with ICMA -RC to allow <br />unrepresented Executive Management (EM) employees to participate in the Retiree <br />Health Savings Plan upon approval of the majority of Executive Management (EM) <br />employees. <br />2. Upon establishment of the RHS and adoption of the RHS plan by <br />Executive Management (EM) employees, and upon instructions from Executive <br />Management (EM) employees the City's annual contribution of 1.75% deposited in the <br />Medical Retirement Subsidy Plan will cease. Concurrently with said cessation, the City <br />will increase the base pay of each Executive Management (EM) employee by 1.25% <br />with said amount being deposited into employees' individual RHS accounts each pay <br />period. This 1.25% increase in base is in -lieu of the Annual City Contribution of 1.75% <br />paid to the Medical Retirement Subsidy fund in October each year. <br />3. If said RHS Plan is established after the annual payment of 1.75% into the <br />existing Medical Retirement Subsidy plan has been made, the salary adjustment and <br />deposit into the RHS of the 1.25% described in paragraph 8,C.2. above will be effective <br />July 1, 2015. <br />4. Upon approval to participate in the RHS, Executive Management (EM) <br />employees will determine how the existing Medical Retirement Subsidy Plan funds will <br />be distributed among its membership and, if applicable, its retired members. Executive <br />Management (EM) employees will dissolve the existing Medical Retirement Subsidy <br />plan by June 30, 2016, unless said deadline has been extended by mutual agreement <br />of Executive Management (EM) employees and the City. <br />Section 9. Auto Allowance. With the exception of the Police Chief who receives a City <br />vehicle, the City will contribute five hundred dollars ($500) per month to each Executive <br />Management (EM) employee to offset reasonable and necessary expenses for the <br />55A -12 <br />