Title
Resolution Adopting the VantageCare Retirement Health Savings Plan Program for Fire District Chiefs (B)
This agenda item requests the adoption of a Resolution and the authorization of the Mayor or City Manager, as appropriate, to execute the necessary documents to establish a Retiree Health Savings Program for Fire District Chiefs.
Explanation
Beginning in January 2002, the City of Gainesville began offering the Retiree Health Savings Accounts administered by the ICMA Retirement Corporation for employees covered by the Communication Workers of America, Amalgamated Transit Union collective bargaining agreements. The original plan also included managers, professional and administrative employees. Recently, the City of Gainesville and the International Association of Fire Fighter - District Chiefs agreed to start a Retiree Health Savings Program for Fire District Chiefs effective the first full pay period in January 1, 2009.
The Retiree Health Savings Plan will enable these employees to prepare for the cost of post-employment benefits. The Plan allows for mandatory pre-tax contributions to be placed in individual accounts and these funds can be used tax free for any out of pocket medical, dental or vision expenses after retirement. The allowable expenses include the retiree's contribution for post-employment health insurance premiums. This new RHS Plan will require covered members to contribute 2% of their gross wages to their individual accounts through a salary reduction. The contribution is being funded by the wage increase agreed to in the current collective bargaining agreement.
The Plan include a graduation clause, meaning that all employees holding the rank of Fire District Chief as of January 1, 2009 and all those employees attaining the rank of Fire District Chief in the future will remain in the this plan until retirement or termination.
Fiscal Note
The contributions are included in the Fiscal Year 2009 Operating Bud...
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