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ICMA -RC RHS Plan Investment Change <br />June 21, 2016 <br />Page 2 <br />3. Authorize the City Manager to approve the Participation Agreement with Vantage Trust <br />Company, LLC, trustee of the Vantage Trust II Multiple Collective Investment Funds Trust on <br />behalf of the City's various Retirement Health Savings Plans, subject to nonsubstantive changes <br />approved by the City Manager and City Attorney. <br />In November 2011, the City established a Retirement Health Savings Plan administered through <br />ICMA -RC and made it accessible to all full -time bargaining units and officers on a voluntary <br />basis. Under this plan, bargaining unit members are allowed to accumulate assets to pay for <br />health insurance and out -of- pocket medical expenses at retirement. <br />Full time members of SEIU, PMA, SAMA, CASA, EM, APPOINTED Officials and PTCS SEW <br />elected to participate in the RHS Plan. Initially, ICMA -RC made available Vantagepoint Funds, a <br />no -load, diversified mutual fund for public employer plan assets, including RHS Plan assets. <br />Recently, ICMA -RC restructured its proprietary investment options to a collective investment <br />trust ( "CIT ") -only structure and offered a new series of funds, the VantageTrust II Funds ( "VT II <br />Funds "), for the RHS Plan. Details from ICMA -RC as to the VT II Funds are attached hereto as <br />"Exhibit 1 ". CIT's combine the assets of multiple investors into a single fund with a specific <br />investment strategy. The change to a CIT -only structure will deliver a simplified investment <br />structure, improved flexibility, and more cost - efficient investment options that lower participant <br />costs by approximately 0.08 %. Total costs paid by the plan participants amounts to <br />approximately 0.22% of assets under management along with applicable quarterly transaction <br />charges. <br />Personnel and the Finance Department request that the City Council approve entering into the <br />Participation Agreement (Exhibit "2 ") with Vantage Trust Company, LLC., the trustee of the <br />Vantage Trust II Multiple Collective Investment Funds Trust which will replace the Vantagepoint <br />Funds currently available to the City's RHS Plan participants with VT II Funds. It is anticipated <br />that the change will reduce participant costs by approximately 0.08 %. <br />It is also requested that the City Council amend Resolution No. 2011 -080, which authorized the <br />adoption of the ICMA -RC VantageCare Retirement Health Savings Plan Accessible to All <br />Bargaining Units (attached hereto as Exhibit "3"), to affirm the appointment of the Executive <br />Director of Personnel Services, or his or her designee, as the City's Plan Administrator of the <br />RHS Plan, authorized to implement the RHS plan, amend the RHS plan, and to take additional <br />action as necessary to maintain the City's participation in the RHS plan, maintain compliance <br />with any regulations regarding the RHS plan, and to administer the RHS plan for current and <br />retired bargaining unit members on behalf of the City. Additionally, it is requested that the City <br />Council amend Resolution No. 2011 -080, to affirm the appointment of the Executive Director of <br />Finance, or his or her designee, as the City's Plan Trustee authorized to maintain compliance <br />with any regulations regarding the trust for the VantageCare Retirement Health Savings Plan <br />55E -2 <br />