Adoption of a Resolution to Establish a Retiree Health Savings Plan. City of Culver City California Agenda Item Report Meeting Date: 03/08/2010 CITY COUNCIL AGENDA ITEM: Adoption of a Resolution to Establish a Retiree Health Savings Plan Contact Person/Dept.: Serena Wright Phone Number: 310 253 5640 Item Number: C 2 Fiscal Impact: Yes X No General Fund: Yes X No Public Hearing: Action Item: Attachments: X Commission Action Required: Yes No X Dates: Public Notification: (E Mail) Meetings and Agendas City Council (03/03/2010); Department Approval: Serena Wright (03/01/10) Chief Financial Officer Approval: Mark Scott (by M. Noller) (03/03/10) City Attorney Approval: Carol Schwab (by H. Baker) (03/03/10) City Manager Approval: Mark Scott (03/03/10) RECOMMENDATION: Staff recommends that the City Council adopt a Resolution to establish a Retiree Health Savings Plan. BACKGROUND: On March 1 2010 the City Council adopted a memorandum of understanding (MOU) with the Culver City Police Officers Association (CCPOA). The MOU provides for a two tier retiree medical program in which new employees receive a lower retiree medical benefit from the City. Establishment of a Retiree Health Savings Plan (Plan) will enable the City to retain the benefit levels of existing retirees and current active employees; and also allow new employees the opportunity to pre fund their retiree medical expenses on a pre tax basis. In addition the Plan will enable the City to reduce its Other Post Employment Benefits (OPEB) liability under Government Accounting Standards Board Statement 45 (GASB 45) by facilitating a two tier system. DISCUSSION: The VantageCare Retirement Health Savings Plan is a product offered by the International City Management Association Retirement Corporation (ICMA RC). This employer sponsored Plan allows employees to accumulate assets to pay for qualified medical expenses (e.g. health insurance premiums co pays prescriptions etc.) at retirement or upon separation from the City. I...
Click here for full text