R-2010 - 04/12/2022 - ICMA - Resolutions ITEM 6.C.1
BOARD OF TRUSTEES MEETING
VILLAGE OF SAMUEL E. DEAN BOARD ROOM
OAK B R , K BUTLER GOVERNMENT CENTER
c 1200 OAK BROOK ROAD
OAK BROOK, ILLINOIS
630-368-5000
AGENDA ITEM
Regular Board of Trustees Meeting
of
April 12,2022
SUBJECT: ICMA-RC RHS Eligible Group Removal Request
FROM: Kathy Vonachen, Human Resource Director
BUDGET SOURCE/BUDGET IMPACT: 621-51400
RECOMMENDED MOTION: I move that the Village Board approve Resolution R-
2010, A Resolution Amending the Contract Between the Village and ICMA-RC, as it
Relates to the Retiree Health Savings (RHS)Plan.
Back2round/Historv:
In 2012, the Village implemented a Retiree Health Savings (RHS) account plan option
through ICMA-RC and amended this plan on April 1,2018,to add a 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, vacation, 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. The current Police Command
Staff,which consists of two employees,requests an amendment to the existing plan. They
asked to be removed from the RHS plan in the future, as stated in the attached document.
If the plan amendment is approved, the financial impact presently to the Village is
estimated to be $1100.00. This reflects the Village's share of the Medicare taxes of 1.45%
that would have to be paid on all accrual balances paid out to the Police Command Staff if
they chose to leave or retire from the Village.
The draft contract amendment is attached for your review.
i
Recommendation: The Village Board approve R-2010, the proposed amendment
allowing the Police Command Staff to end their participation in the ICMA-RC RHS plan.
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