Title
Resolution Amending the Retiree Health Savings Program (B)
Explanation
Beginning in January 2002, the City began offering Retiree Health Savings Plan Accounts for employees which are administered by the ICMA Retirement Corporation. In the original Adoption Agreement there were limited provisions for elective contributions. Since that time, ICMA Retirement Corporation has added various elective contribution methods to the Plan design. Included in these additions was the ability to allow employees to make irrevocable pre-tax contributions to their individual accounts through a salary reduction elected by the employee.
The intent of offering the Retiree Health Savings Program to the City of Gainesville's eligible employees was to enable those eligible employees to better prepare for the cost of post-employment health-related expenses. Currently, the City contributes 0.5% of each eligible member's gross wages to the individual employee's account. By adding the additional voluntary employee contribution method, an employee will be able to put aside additional funds to help offset those costs.
Fiscal Note
The voluntary contributions being added are funded through salary reductions. There is no associated employer required contributions and therefore, no fiscal impact.
Recommendation
The City Commission adopt the proposed resolution which amends the original agreement with ICMA Retirement Corporation.