Loading...
R-1516 - 12/08/2015 - ICMA - Resolutions Supporting Documents ITEM 8.E.2) OF oA1( 8P IV O MUM L L I I vi. tl�tmf B 9 eF oout4jI,�� AGENDAITEM Regular Board of Trustees Meeting of December 8, 2015 SUBJECT: ICMA-RC RHS Eligible Group Addition Request FROM: Kate Andris, Human Resource Generalist BUDGET SOURCE/BUDGET IMPACT: N/A Funded via employee contributions RECOMMENDED MOTION: Effective January 1,2016,I move to approve Resolution R-1516 a Resolution amending the contract between the Village and ICMA-RC as it relates to the Retiree Health Savings(RHS) plan. Backeround/History: In 2012, the Village implemented a Retiree Health Savings (RHS) account plan option through ICMA-RC. This plan allows defined employee groups to defer a percentage of their income to be used only toward health expenses incurred dining retirement. Along with gross salary contributions, it also requires any pay-out of sick 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 an amendment to the existing plan so a new employee group can participate. 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: Approve the proposed amendment allowing new employee groups participate ill the ICMA-RC RHS plan. t't-x RESOLUTION 2015-ICMA-CNTRCT-R-1516 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'l 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'j; 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's; 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. Section 3: Authorization and Execution of Amendment. The Village Manager and Village Clerk shall be, and hereby are, 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 2015-ICMA-AG-R-1516 Authorizing Amendment to Contract With ICMA re:RHS Account Plan Option Page 2 of 3 APPROVED THIS 8th day of December, 2015 Gopal G. Lalmalani Village President PASSED THIS 8th day of December, 2015 Ayes: Nays: Absent: ATTEST: Charlotte K. Pruss Village Clerk #28913130_vl 2 #37944965_vl Resolution 2015-ICMA-AG-R-1516 Authorizing Amendment to Contract With ICMA re: RHS Account Plan Option Page 3 of 3 EXHIBIT A AMENDMENT 3 437944965_vl EMPLOYER VANTAGECARE RETIREMENT HEALTH SAVINGS (RHS) PLAN ADOPTION AGREEMENT Plan Number..8 03212 Check one; New Plat, iuedmcat to Exlatieng Plan Employer Redrement Health Savings Plan Name 1. 1F;mployt Mme, VIU-AGE OF OAK BROOK State: I 1t. The Employer hereby attests beat;it is a unit of a.data or local governaeeut or an agency at iiustrumen llty of one of mwe nalts of a state or local government 11I iEffeadve Date ofthe Plans f l W. The Employer intends to utilize the Trust to fund only welfare benefits pursuant to the foliowingwellare benefit p7aAQ established by th,*EtnphXjV t..vs LAet W on DAM V. BNible Groups,lPatticipadon and Paxticlpam Eligibility Requirements A. Eligible Groups E The following group or groups of Employees are eligible to patic%pate in the VantageC:are Retirement 14&dtb Savings d plao(c hmic all applicable boxes), 0 All Employees All Pali-Time Employees t3 Non.-Union Employees El public safety Fanpl4 m—rolice Q Public Safety Employees—Faefightws El General Employees Codlettivel Barge ned Employees($secify u�tlS}j 1AFF 1..01;1#411$6 Other(specify group(s)) The Enotwyce group(s)specified must correspond to a group{s}of the same+designation that is defined in the statutes, ordinances,rules,regulations,personnel manuals or other documents or provisions i u effect in the state or locality of the Employer. B. Participation dX rrdater t'a�rtl etp zdiots:1111 Employes in t1,e cowered group(s) re pL:e l to participate in the Plan and shall receive contributions puxsuanr to Section V1. r df t If 460t 0rg R s pugs Finn�y �= lu nr�satt q ova-co[lewYtlyl$q{ ai�rQd, finse►rpdpn,Lieont(r�a4iu'lgulrepastvfInraiRswena�bode ' '�t.4�s�,�1o5(h}w�La� a�'l�ess�tesmay+�� nn�d�i�re�l?f`�igb�c� cd�dn��dys .y v +.+. il,:R s ? Ss \ 7u.n, 4 t a ���.♦ .+.. �.'x1 x4� � ha ��s �fx e,I snrl�sceFt arsatcs,nfazvortsfhsg��llre�smp ualgditt d+ta)rIn#e REe ib�1tyorbec>e is ieEs gl a€eh"N,;, . k a ♦ y i n a 1 -, .x....... ......ks.. -. .s. .....x..+..x1'11,.. _....set i i..�e7.r C. x'artitElgibiliiy$attdt+etncats 1. Mlalmum service:The minimum period of service required for participation is WA (write NIA if no minimum service is required). 2. Minimum age:The minimum age required for eligibility to pa3rticipate.is QUA (write N/A if Do minimum age is required}. 12 1!1111P1111,11 I V1.CO tautDn Sources and Amounts, A. De"on.ofBarrusgs ThedcfinitimofEaruugswillapplyro all ItHSCo-V-1udonFeaturesthatrdMn="F.a:rnings'',inclaiing Direct Employer Gonaribudons(Section VIX.1d and IvlandittoryEmployee Compensation Contributions(Secdan VI.B.2.). Definition ofearnings GROSS WAGES B. Direct Employce Contr1hudons and Mandatory C mtributiom i 1. DirectEmploytrC'ontribudons The Employer shall contribute-an beltilf of a&Participant j %ofFArn ngs Q.s each Plan Year ❑ A discretionary amount to be determined each Flan Year EJ Other(descc be): AEASE SE.,E ATTACHED 0ONT'RIStTC ON SllWT FOR MAt M'rORY EMPLOYEE CONTRIBUTION GROUP 67RUMURE 2. Maudawry Employee Come Connribudoas Ito Employer will make manda,=7 contributions o€Employsc compensation as fallowse Reduction in Salary- - %ofEarnings or$ _will'be contributed for the Plan Ycat. Decreased.Merit or Pay Plan Adjustment-All or a pordm of the Employs'aa=l merit or pay plan adjustment,will be contributed as follows: An Employee shall=& avc the right to discontinue or vary the rate of Mandatory Contributions of Empployee Compensation. 3. MaMatotyEmployee Leave Contributions The Employer will make mandatory contributions of acctued leave as l oilowa(provide formula for determining Mandatary Employee Leave contributions); - Accrued Sick Leanne 100%ACCRUED SICK LEAVE AT SEPARAtON f 3 A.c cmed Vacation Leave E3 Other(sgnc fy type of leave)'Accrued 3,cave An Employee shali ngt1mve the right to discontinue or vary the rate ofmandatory leave conaributions. C. Lbuits onTotal Contributions(chc&one box) The total contribution by the Empk er on beWf of each Participant(including Direct Erroploycr and Mandatory Employce Contributions)for each Plan Year shall not exceed the fallowing limits)below.Limits on individual contribution types are defined within,the4propriate section above. Is "Iliece is no Plan•defined limit on the permritage or dollar amount of earnings that maybe cooAuted. ❑ %ofmminge *Definition of earAings ❑ Same as Section VIA. ❑ Othcr for tho plan year. . See Section V.B.for a diowssion of nondiscrimluation rules that may apply m aw"oUccdY*batSaIned seI9bu tred Ffaus. VU. for Direct Employee Contributions A. Vesting S&ednle{check one box) f ( The account is 1, vested at all times, ❑The following vesting sclteUe"I*ply to Divert Employer Contributions as outline[!in Year$of Se"IM Vesdng Completed I'ermxntage v� orb B, Thonewuntwill become t00%vested Von tie death, bmefit el�ibiliey(as outlined an$ecpoat by a 1'art3eipants . *rWinitlon of retirement(check one box): , ❑_Rctircaucnt ac defined in the primary redrementplan of the B.nployer SeparattOJy ftoxri setvi0e 13 Gluier . ay ped aattVar 'by a Participant prrior to a rehire of tits Participant by the Employer ahaii Mt vaunt tpward the vesting schedule oudi ned in A above. VUL lFoxfdturc provisions Upon separation from the service of the Employer prior to attainment oFbcuefit eligibility,{as ourlined in Section 13C},or upon reversion to the 3knsrofa participant's account assets remaining upon the participant's death.(as oudiaed in Section XI),a Par66panes norrvtated furccls shall(check one box): ❑ Remain in the Trust to be reallocated among 211 renialning Employees particIpating bathe Plan as Direct Empl%w Contributions for the neat and succeeding contribution cycle(s). Remain in theTrust to be reallocated on an equal dollar basis among all Plan Participants. ❑ Remain in the Trust to be reallocated among all Plan Participants Erased upon Participant acoouftt balances. Revert to dw Employer. INN y I t M Bligi6il%ty Awes to Receive Medical Benei&t P'aymiats from.the Vantagel Redremen t Wattle S"Ift s Ilan A, APartidpant is di&ible to sevelve bea&cn Q At wtivemenc only(also complete Section B.) - Defaitionofictirema�t; [( Satnc�Secxaa Vll.B. i Q other i 0 At separation from scrv;icc with the following testtictions No icsaictioas Other ❑ At AP nrirY d At tetiwnlaso (also complete section B) Definition of ret'awnentt Same as Section VI B. At rel opt or De&aitian QEret'eremeatr i Q Same as Section VILB. ? ❑ Other ❑ Other,spbdfieil as follows(also complete Section B if applicable). 8. Termlruttioopriar to geneeal benefit eligihility3 In the case whoa the gell benefit ellgibiiity as andined in Section IX,A includes a setiretneut compentat,a Pardckpw who soparates fi vm the service of the EmPloyer prior to retiremaa Will be cl to roceive(tetxe&P ® Immedi lil upon separation from servitor" [Z At age G. A Partic4mut that becomes Nally and permanently disabled ❑ as tlefrraed by the-Socaai SecorityAdmkistmtion [� as d+eRacd by the Employe?s primary rctaremeut Plan 0 other-AS DEFINED BY THE COLLECTIVE 13ARGMNED UNIT PRIMARY RETIREMENT PLAN will be omc mmediaiely o ible to ivoer a medical benefit payments from his/her Vanta&Carc Retirement 14talth Savings Plan Recount, D. Upon the death of the 1'rtrtic#p tr benefirs shall become payable as outlined in Section.X1. mum, �£. 1i'ernstsslbto Mcefleal Eet Paytnettts Bcncfits'eligible'f*r reimbursement consist of Ali Medical Expenses eligible under IRC Section 213*other than dined tong-#erm carcexpensM and including non�ptescripdon nitAcacions alloyed under IRS gW&nce. [] The following MadW PxpenM- (sect Only the cxpensGS you wish to caver under the VantarCwc Retirement Health Savittp Plan): ❑ lAedical Insurance Premiums i �] Medical out-C&Pocket Expenses* 1 © Medicare Part B Insurance Premiums t s Medicare Part D IDMW4nce PreMiucns Medicate Supplemental Insurance Pnmlums ! Prescdpdon Drug Imirance Premiums Q COBRA,Insurance Prdmitums. Dental Inwrance Premiums E3 Dental Out-of-Pocket Enpetwr []<Vision Insurance Pseanituns ❑ Vision Cut-O&Po et Ezpcaucs* Qualified Long;Term Cane Insurance Premiama Non-Prescription medications allowed under IRS guidance Other qualif ingmedical expenses(describe)* *SAeSsrtims I/.�i,frira dircrru�o�ofttortdlsGrim�iratnrr trxterwbia$rtr�a,pply to trap-cva'lecrivrly 6ru�tbrrd�sc�ins�red Plnn� M.Rene m After the Death of the Pactkc pwd In the event of Participant's death,the following shall apply: A. Surviving Spouse amtloraurd*gDepenndents The surviving spouse and/or su viving eligible dependents{as domed in Section XII.I0,)of the deceased Participant ate immediatedy dgibk to tuakitain the account and unite it to fuad eligible radical benefits specified in S5cdon X.above. Upon notification ofa Participants death,the participAttes account balance will be transferred into the VantagapoWt Money Matkct Fund*(or another f and e+elected by the Emooya), ne account balance maybe millocate d by the surviving spouse or dependents. *1'1c rcrrad thr crrrtxrrt Ynatngep elnrMrrtrurf-FimrlspTOSprurrs&w*Allyprh r to Puveuing.Are hiswomwi tWrft afs rtelkhm lnsmd"#atgaarrmteed o rd them cau be so,wrtrrttla dMI tile: un4f tall 6C able toWa stain a stable Der assrtsvkre of 1'eap-shmr. fTrt►»etgepofut A9ertrr dFarrdtarEd rrrilrxted b}ICA4A R S"arka,LLC:,a r®holly-mard brokrr-d.-,&r a0lov oflG7t�i'1 Redrewal CorPmWan.ltfcutbcrFlftitR�llSfPC If a Patticip=es account balance has net been fully utilized upon the death:of the eligible spouse,the account balance may continue to be tnCilized to ley benefits of cligtble dq=ac ts.upon the death ofall eligible dependents,the accounrwill eoevert ors the Plan to be applied ns specsfted in'Sectiat:'S�III. _ r i B. No Surviving Spot or Surviving Dependents � If there arena living spouse or'dependems at the time ofdeath of tine Farb«pant,the account will revert to the Plan to 6e applied as specified in Section VIII, XH,Tim Plan.w11I operate according to the following provisions: A. >gmpl Reap 6#litie I. The Employer Will submit all Vantagocam Red sement Had th Savings Pfau t oardbution data vial eleetroalt submission. 2. The Employer will submit all Va"cCare Retirement Health Savings Plan Pats capant status updates or personal information updates via electronic submission. This includes bur is not limited to terrninatton notification and benefit eligibilitynotification. B. Participant account administration and asset-bond feeswill be paid through the redemption o0articipant account s6res,unless agreed upon otherwise in the Administrasive Services Agreement. C. Assignment of benefits is not perwitwA Benefits will be paid only to the Participant,his1her Survivors,the Employer,or au insurance provider(as allowcaby the claimsaclrtRinlsttator). Payments to an third partypayee (e.&.medical service provider)are not permitted with.the exception of mimbuner amt to the Etuploy err or insurance provi der(as allowsd by the claims odminisatur). D. An eligible dependeut'is the PartWpanes lawful spouse and any other individual who is a person described in IRC Section 42(a),as clarified by Internal Revenue Service Notice 2004-79. The Employer will be responsible for withholding,reporting and remitting any applscabk taxer for payments which are deemed to be discriminatory under IRC Section 105(h),as outlined in the VantageCare Retirement Health Savings Plan Employ.Manual. XUL.Employer Adw.,wledgemegts A. The Rmployer'hcrebp acknowledges it understands that faihue to properly fill out this Empl43rrx VantageCare Retirement Health Savings Plan Adoption Agreement may resuk in the Ions of tax eromptiou of the Trust and/or loss oFtax-clef d' atusfor.P ctyercontributims. B.©.Cl eck this 4ox if you ate indudIng sup porting doc n=w thatindade plan pmvWons.. EMPLOYER.SIGNATURE Syr iy tr V hate: 'to & I/ r� " Tida V �- Attest+ mate: Tide: anb Arxepted:VANTAG)CPO 'TRANSPERAGEN'lS LLG OE Assistant se mq;I RC JUN 072012 City of Oak Brook,IL IAFF Local 4646 Groups and contributions Hired Before 1213111990—5%Mandatory Employee Contribution Hired Between 11111991 -91112000-3%o Mandatary Employee Contribution Hired After 911/2000-2%Mandatory Employee Contribution Vantage(are Retirement Health Savings (RHS) icnnARC PLAN AMENDMENT PACKET Building Retirement Security To amend your existing RHS Plan,please complete the entire Adoption Agreement, including items that are not being amended.When you send your amendment to ICMA-RC,please summarize the changes in your cover letter. Please note that ICMA-RC does not require the use of a resolution to amend the plan. Should you require legislative action,you may use the Suggested Resolution for Amendment on the following page. If you do not require legislative action,you may complete the Suggested Affirmative Statement for Amendment which follows. Once the amendment is completed,retain a copy for your records and send the original with the cover letter and either the resolution or the affirmative statement to ICMA-RC as follows: Via Mail ICMA-RC Attn—New Business Services Suite 600 777 North Capitol Street,NE Washington, DC 20002-4240 Via Facsimile 202-962-4601 Attn—New Business Services You will receive notification that your amendment has been received and accepted. AC 23364-0115-W412