Title
Resolution Amending the VantageCare Retirement Health Savings Plan Program (B)
Explanation
Included in the Communications Workers of America's (CWA) labor agreements is a provision to amend the Retiree Health Savings Plan to increase the contribution to 1.5% of their base pay rate. This contribution, by a mandatory salary reduction, will be made to each covered members individual account beginning the first pay period after July 1, 2010. The CWA is utilizing their general wage increase to fund the increased contribution.
This change only effect those employees covered by the CWA Supervisory and CWANon-supervisory bargaining units and is a result of the normal labor negotiating process. This represents the first increase in any mandatory contribution since the Retiree Health Savings Plan was first adopted in 2002. Covered members can use the funds available in their individual account to help pay for the cost of medical, dental and vision expenses after they meet the Plan's benefit eligibility criteria as outlined in the plan document and the attached plan amendment. Coupled with the City Retiree Health Plan, these funds will help members cover the cost of post-employment health care needs.
Fiscal Note
The employer's contributions, via a mandatory salary reduction, have been included in the Fiscal Year 2010 Budget. It is also included in the 2011-2012 personal services projections for CWA covered employees
Recommendation
The City Commission adopt the proposed resolution.