AGENDA ITEM REPORT
TITLE:
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A RESOLUTION AMENDING VANTAGECARE RETIREMENT HEALTH SAVINGS PLAN NUMBER 800800 AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE ATTACHED AGREEMENT WITH ICMA-RC.
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BACKGROUND:
The City is committed to providing a competitive compensation and benefits package designed to attract and retain highly-qualified employees while maintaining fiscal responsibility. Accordingly, in 2004, the City established a Retirement Health Savings (RHS) Plan with ICMA-RC for Administrative Officers to provide reasonable security for health needs during retirement and to assist in the attraction and retention of highly-qualified personnel.
In 2017, the City amended its Retiree Medical Insurance Program for Civil Service employees, Administrative Officers, and Police Lieutenants changing the funding method from monthly retiree payments to a one-time pretax lump sum contribution to the RHS Plan.
DISCUSSION:
Most recently, with an October 1, 2019 effective date, the City has negotiated with the Officers’ and Corporals’ and Sergeants’ units to change the funding method for the retiree medical stipend to a one-time pretax lump sum contribution to an RHS Plan. The City also desires to expand eligible group members to include City Commissioners.
Approval of this agreement will expand eligible group members of the City’s current RHS Plan to include Police Officers, Corporals, and Sergeants, as collectively bargained, and City Commissioners. This agreement will supersede and replace the October 1, 2004 and June 22, 2017 agreements.
RECOMMENDATION:
Staff recommends approval of this resolution.
FISCAL IMPACT:
REVENUES: N/A
EXPENDITURES: TBD
BUDGETED? N/A
NOTES: The short-term fiscal impact of this program will vary depending on the timing of retirements. The City’s Other Post-Employment Benefits (OPEB) liability will be reduced by eliminating post-retirement monthly stipends.