Title
Resolution Adopting The VantageCare Retirement Health Savings Plan Program (B)
Explanation
Included in the Communications Workers of America's (CWA) labor agreement is a provision to provide a vehicle to accumulate assets for post-employment health benefits. After approximately two years of researching the various options to accomplish this, it was determined that the ICMA-RC Vantagecare Retirement Health Savings (RHS) Plan provided the best method. Effective the first full pay period following January 1, 2002, the City will be making a pre-tax contribution, through a salary reduction, of 0.5% to the RHS Plan for all eligible employees. The CWA contract allows for a 0.5% increase in gross pay to offset the salary reduction. The funds in the employee's account can be used to reimburse the employee for medical, dental and vision expenses after certain eligibility requirements have been met.
In addition to the CWA, this benefit will include all managers, professional, confidential employees and Charter Officers. The Amalgamated Transit Union employees will be eligible upon ratification of this benefit in their collective bargaining agreement. These groups will also receive a 0.5% increase in gross pay to offset the salary reduction consistent with the CWA collective bargaining agreement.
Fiscal Note
The employer's contributions have been included in the Fiscal Year 2002 Budget.
Recommendation
The City Commission: 1) Adopt the Resolution; 2) authorize a 0.5% increase to the employees not covered by a collective bargaining agreement and Charter Officers; and 3) authorize the Mayor or City Manager as appropriate to execute the necessary documents to establish the Retiree Health Savings Plan subject to final approval of the City Attorney as to form and legality.