Adopt a Resolution Establishing a Retiree Health Reimbursement Arrangement Plan. Item Number: C 8 City of Culver City California Agenda Item Report Meeting Date: 07/02/2012 CITY COUNCIL AGENDA ITEM: Adopt a Resolution Establishing a Retiree Health Reimbursement Arrangement Plan Contact Person/Dept.: Jeff Muir/Finance Department Fiscal Impact: Yes x No Public Hearing: Commission Action Required: Yes No Date: _______________ Public Notification: (Email) Meetings and Agendas City Council (06/28/12) Department Approval: Jeff Muir (06/19/12) Chief Financial Officer Approval: Jeff Muir (06/19/12) Phone Number: (310) 253 5865 General Fund: Yes x No Attachments: X City Attorney Approval: Carol Schwab (by H. Baker) (06/25/12) City Manager Approval: John M. Nachbar (06/27/12) Action Item: x RECOMMENDATION: Staff recommends the City Council take the following actions relative to the establishment of a Retiree Health Reimbursement Arrangement Plan: 1. Adopt the attached proposed resolution approving and adopting the attached City of Culver City Retiree Health Reimbursement Arrangement Plan; and 2. Authorize the City Manager City Attorney and Chief Financial Officer to finalize and execute all documents and take all necessary actions to implement the Plan. BACKGROUND: On March 12 2012 the City Council approved the establishment of a Post Employment Welfare Benefits Program Trust. The purpose of the Trust was to provide a mechanism whereby the City may begin to adequately fund its future liabilities for retiree medical benefits pursuant to Government Accounting Standards Board Statements 43i (GASB 43) and 45ii (GASB 45) which required government entities to begin treating Other Post Employment Benefits (OPEB) in a similar fashion to pensions. This Trust is a long term investment program to pay for future liabilities. It will take many years of funding and annual returns before costs are paid out of this Trust. On a monthly basis the City makes payments to existing retirees for m...
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