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i <br />CITY COUNCIL, MEETING DATE: <br />NOVEMBER 28, 2011 <br />TITLE: <br />AGREEMENT WITH ICMA -RC TO <br />ESTABLISH A RETIREE HEALTH <br />SAVINGS PLAN ACCESSIBLE TO <br />ALL BARGAINING GROUPS ON A <br />VOLUNTARY BASIS <br />CITY MANAGER <br />APPROVED <br />❑ As Recommended <br />As Amended <br />❑ Ordinance on 151 Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Flearing Far`_ <br />CONTINUED TO <br />FILE NUMBER <br />1, Adopt a resolution authorizing the implementation of the "Vantage Care" Retirement Health <br />Savings Plan ( "RHS ") and designating ICMA -RC as the administrator of the RHS plan. <br />Bargaining units that elect to voluntarily participate in the RHS plan will transfer funds from <br />their current Medical Retirement Subsidy Plan to establish the trust required under the plan; <br />2. Authorize the City Manager and the Clerk of the Council to execute the attached agreement <br />with ICMA -RC to establish and administer the plan for a period of five years with provision <br />for year -to -year extensions, contingent upon Council *approval, and to execute any other <br />documents required to establish the trust and implement the plan for each bargaining unit <br />choosing to voluntarily participate; <br />3. Appoint the Executive Director of Finance & Management Services Agency, or his <br />designee, as the City's Plan Trustee authorized to maintain compliance with any regulations <br />regarding the trust. <br />4. Appoint the Executive Director of Personnel Services, or his designee, as the City's Plan <br />Administrator for the Plan, authorized to implement the plan, amend the plan, and to take <br />additional actions as necessary to maintain the City's participation in the plan, maintain <br />compliance with any regulations regarding the plan, and to administer the plan for current <br />and retired bargaining unit members, on behalf of the City. <br />DISCUSSION <br />Each bargaining unit (SEIU, FBA, FMA, POA, PMA, SAMA, EM, and CASA) has established a <br />Medical Retirement Subsidy Plan for its members for the purpose of partially subsidizing the cost <br />of retiree health insurance premiums. The plans (except for POA) are administered by the City, at <br />no cost to the bargaining unit or members. It has recently come to the City's attention that the <br />annual retiree health subsidy amounts deposited by the City are construed as a future unfunded <br />liability for the City. <br />Llrl!T�: "s' <br />