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R-1714 - 03/27/2018 - ICMA - Resolutions Supporting DocumentsBOT AGENDA Page 1 BOARD OF TRUSTEES MEETING SAMUEL E. DEAN BOARD ROOM BUTLER GOVERNMENT CENTER 1200 OAK BROOK ROAD OAK BROOK, ILLINOIS 630-368-5000 AGENDA ITEM Regular Board of Trustees Meeting of March 27, 2018 SUBJECT: Contract Amendment - ICMA-RC Retiree Health Savings (RHS) FROM: Kathy Vonachen, Human Resources Manager BUDGET SOURCE/BUDGET IMPACT: N/A Funded via Employee Contributions RECOMMENDED MOTION: I move that the Village Board approve Resolution R-1714, A Resolution amending the contract between the Village and ICMA-RC as it relates to the Retiree Health Savings (RHS) plan. Background/History: In 2012, the Village implemented a Retiree Health Savings (RHS) account plan option through ICMA-RC and the Village amended this plan on December 8, 2015 to add additional group to the plan. The plan allows defined employee groups to defer a percentage of their income to be used only toward health expenses incurred during retirement. Along with gross salary contributions, it also requires any pay-out of sick time, vacation time and holiday time to be deposited into this account upon separation from the Village. The Village already has a contract in place for RHS services. We are requesting a second amendment to the existing plan so a new employee group (Police Command Staff) can participate, effective April 1, 2018. This amendment is administrative in nature and will only allow applicable employee groups to also participate in the existing RHS plan. The financial impact will fall entirely on participating employees. The draft contract amendment is attached for your review. Recommendation: Staff recommends that the Village Board approve proposed amendment allowing new employee groups to participate in the ICMA-RC RHS plan. Agenda Item 6.D.3 RESOLUTION 2018-ICMA-CNTRCT-RHS-AMND-R-1714 A RESOLUTION APPROVING AND AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE VILLAGE AND ICMA-RC TO PROVIDE ADDITIONAL VILLAGE EMPLOYEES AN RHS ACCOUNT PLAN OPTION WHEREAS, in 2012, the Village entered a contract with ICMA-RC (“Contract”) to provide the Village’s defined employee groups with a retiree health savings (RHS) account plan option allowing certain employees to defer a percentage of their salaries to be used towards health expenses that may be incurred during retirement (“Plan Option”); and WHEREAS, a group of Village employees has requested that the Village amend its Contract with ICMA-RC to allow an additional group of employees to participate in the Plan Option (“Amendment”); and WHEREAS, the Amendment will not have any financial impact on the Village because all costs for the Plan Option will be paid for entirely by the Village employees that choose to participate in the Plan Option; and WHEREAS, the President and Board of Trustees have determined that it is in the best interest of the Village to approve the Amendment; NOW THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows: Section 1: Recitals. The foregoing recitals are hereby incorporated into, and made a part of, this Resolution as the findings of the President and Board of Trustees of the Village of Oak Brook. Section 2: Approval of Amendment. The President and Board of Trustees hereby approve the Amendment in substantially the same form as attached as Exhibit A and in a final form approved by the Village Attorney. Provided that as to this group of added employees, the Village may, at its discretion, terminate their participation in this program and so amend the Contract at any time. Section 3: Authorization and Execution of Amendment. The Village Manager is authorized to execute the Amendment upon final approval by the Village Attorney. Section 4: Effective Date. This Resolution shall be in full force and effect upon passage and approval in the manner provided by law. [SIGNATURE PAGE FOLLOWS] Resolution 2018-ICMA-CNTRCT-RHS-AMND-R-1714 Authorizing Amendment to Contract With ICMA re: RHS Account Plan Option Page 2 of 3 2 APPROVED THIS 27th day of March, 2018 Gopal G. Lalmalani Village President PASSED THIS 27th day of March, 2018 Ayes: Nays: Absent: ATTEST: Charlotte K. Pruss Village Clerk Resolution 2018-ICMA-CNTRCT-RHS-AMND-R-1714 Authorizing Amendment to Contract With ICMA re: RHS Account Plan Option Page 3 of 3 3 EXHIBIT A AMENDMENT 4826-9707-2223, v. 1