HomeMy WebLinkAbout2002-03-13 02-126 RESOLVEItem No. 02-126
Date: 3-13-02
Item/Subject: RESOLVE, Adopting and Establishing the Vantagecare Retiree Savings Plan for
Certain Unionized Employee Groups
Responsible DeparGnent EXecutive
The attached Resolve will formally establish the Vantagecare Retiree Health Savings (RHS) Plan
for various unionized employee groups with the City of Bangor. The RHS Plan is administered
by the International City Management Assoclatlon-Rethement Corporation (ICMA-RC), the same
organization administering the Clrys 401(a) Retirement Plan and 457 deferred compensation
plan.
The establishment of the plan and employee accounts is a requirement contained in the various
collective bargaining agreements for the Seven unions included (Police Command, Patrol, and
Support; Motor Pool; Public Works; BIA Almraft Mechanics and Airfield/Building Maintenance). A
similar Resolve for unionized Fire Department employees was approved by the City Council in
July 2001.
Once established, each employee will have an Individual account Into which funds on be placed
to pay for eligible medical expenses in retirement years. Earnings on accumulated balances are
tax-deferred to the employee, creating a benefit to the employee in retirement.
Your consideration and approval is recommended. //''
Department Head
ManagWs Commends:J. • . r �/
City Manager
Associated Information: Resolve, Draft Adoption Agreement
Budget Approval:
France Director
7
/ City Solicitor
�
uced for
Passage
_ Rod: Reading Page _ of
Referral
a2-126
Asslgued to councilor exlmr March 13, 2002
Fi. roi
CITY OF BANGOR
(TITLE.) Resolve, Adopting and Establishing the Vainloaciecare Retimis Health Navinsis
Plan for Certain Unionized Employee Groups
RESOLVED,
WHEREAS, the City of Bangor, Maine (employer) has employees rendering valuable servkes; and
WHEREAS, the establishment of a retiree health savings plan for each employees serves the interests
of the Employer by enabling R to provide reasonable security regarding such employees'
heaRh needs during retirement, by providing increased flexibility in Its personnel
management system, and by asisfi g in the altractlon and retention of competent
personnel: and
WHIREAS, the Employer has determined that the establishment of a retiree health savings plan to be
administered by the ICMA Retirement Corporation and/or IN affillates serves the above
objectives; ark
WHEREAS, the Employer desires that IN retiree health savings plan (the "Plan? be administered by
the ICMA Retirement Corporation and/or it affiliates;
NOW, THEREFORE BE TT RESOLVED, that the Employer hereby adopts the Plan In the form of the ICMA
Retirement Corporabon3 VantageCare Retiree Health savings Man for each of Me fell separate
unionized employee groups:
Police Pand Officers, Account #808137
Police Commanding Ofcers, Account #MUB
Police Support Employees, Account #800139
Public Works Employees, Account #800140
Mother Pool Employees, Account #800141
BTA -Aircraft Mechanics, Account #800142
BIA-Airport ark Bulking Maintenance Workers, Account #800143
BE tT MIRTHER RESOLVED that the assets of Me Plan shall be held In trust, with the Employer serving
as trustee, for the exclusive benefit of Man pvddpants and their beneficiaries, and the risers of Me
Plan shall not be diverted to any other purpose.
BE IT FURTHER RESOLVED, that the City of Bangor Human Resources Director shall be the cpo dInator
and mntaot for the Fan and shall receive necessary reports, notices, etc.
I9 CITY COD9CIL
March 13. 2002
Passed
CIlY
02-126
ORDER
Title, Mopting and Establishing the
Vantageeare Retiree Health Savings
Plan for Certain Unionized Employee
Groups
Assigned to
ew Councilor
02-126
OOtd' VANTAGECAPE RETIREE HEALTH SAVINGS PLAN U�fT
VO*
EMPLOYER VANTAGECARE RETIREE HEALTH SAVINGS PIAN I'
AA ADOPTION AGREEMENT
Plan Numbec8 I0.7W�I //�!e 1
Employer northerHealthSrving Plan Name: 664p Kil
L Employer Nzme: � � /e/L•
if noEmpIma hereby awnthat iziaaunut do we or lad gowmmeur m an agency or iwarmmdiry acne or mom
unin ofa$rate or lad gaemmem.
111. 13e E&dire Date often P[an: O d7U/axe�
N. TheEmployer mtmd$to utilize she ]SugTVSam only wel6re benean pmaiunr to We faowvg Vase benefit plan(,)
ataehmol by the Employer
V. RLmI GI and Pamtipmt Maichgo Rumnomenn
A 3'he follovainggonpmponp o(Emplayarae eligilde to paadeipe[e in WeV tageGrc Re[itee Heilth Sating Pian:
The roup ryxfied mug correspond to a Pump ofthe >ng, manages that is defined in rhe gas ordinance"es.
regilatiora. pmom e) Mamas m mhu mnm d on e&a in rhe mare or lociliry of the Emplga.
If me Employai mdedyna welfi broth plm or fording order thoVantageCate Rem a Hea1W Saving PW u in
whI V,Pon A mmeofiecriMy Rampaged, odsomamM plan, the nondiaviminarion requhemenn oflnraoal Rew.nue
Code (IRC) Section 105(h) VnR apply These rule$ may impose motion on We me efin received by highly emnpernatM
employees ifthe Plan disengages irfavor of highly compemsed employms in remu ofeligibiime or bendn.The
Employe WaWd aiscun chose rdes tenth Appropriate munseL
B. Parunpint EGgbWty
1. M' mpaiodofaevicemquiredfarpartidpadanis 'Y �' (vrzne N/Aifan employees etl®ble to
Parfiopam arms employment).
E
02-126
VANTAGECAPE RETIREE HEALTH SAVINGS PLAN
T
2 Nwvmum agr mquiad (oc e4®bi4ry mpaetiopueu Nle hvriae N/A d,o miatimum agem aequ,,I
Vt. Connibudao 5auacv andAmoun¢
A. "fbae aaeno limits mVmbgeCaa Resins, Hv4hSaving, Plan couiWuom and connibudont do pq{cowt eomNs
IKC Semon 415 timid.
B. Employes ContrN,I !!JAa
1. The anplgxt sFWl ronariburcau bebalfo(eacM1 Pacotipvu %o(eanting oto �JV.� aheM���/
De6rudon o(vminm: ``//
2 The emplayet wJl male manAwrycovlaibutioau ofarmuilleave azfollovrs:
Accrued Rck Ceava* 0Y,, ❑ No
AccmedVaaadon* ❑Yes ❑ No
*Plum Provide she (oamuhnor demmiviog he A,wM Sick Cerve and/or Accrued acadon counibudon:
ata.
VIL Ybdug S'Im",
OA ]fie acwunr is LOOK stated at all dmv, unless aI otheawire in Be 6eWv,
B The WBowing wring schedule applies.
Y of Specified
SOMI Nassau
COURI sum
%
%
%
%
%
%
%
%
%
W-126 —�
VANTAGECAPE RETIREE HEALTH SAVINGS PLAN
C. The xcowtwJl becmne TC Nomad upon rhe Beath,duabJiry,aedaemmSor amwmem fbenefit eligibility by
Desn:dmnrredtemmt: JAM �'t StINCC u�27rC �u! u(if�a-td�C/lgi�✓e /5
kgln- ft2runr. R(f d�r'i %m a qY�'4�%x rf/l%M a Je�crir%
cfI
D. Mypeaiod o(w+nce bye Pactiapantpawtwa¢Nr<ofthe Pardtiptntby tM1e Employe sM1an vot count towaN rrye
vaung ached 1, onr4oed io B. abore.
VITT. Foafnmre lineation
Please complete did Section So waiting s,hedol, as indicated in Section VII. S.
VPnn aepacauon Extent the service of Ne Employ," PN,NdI norree¢d Emds Tall
❑ Aemtin in the 4vt to be ,J1, red among all PW Participants as Employe Connibudmv fir, 6,near and meceed-
ing cmnibomo traded).
❑ Amain in rhtTw[wbe reallooted paom(on an egtul dollazbvh)among all PBn Paaudpm¢.
❑
Pretend in the hnrzto beae,11I among all PW Participants board upon Participant account ba6oces.
❑ Mrertwthe EmPltryrer.
IX EBgibiliry Requiaemm¢m Receiva Medid 131 Payments fiom Mel5nogeC Retiree Health Saving PW
A. A Partici"' u'El ible m receiw benefice
)At redre'nt only (v Sledded in SecdanVlLC.)
t rg only
At Movement and age
At wtnemrnr or age
B. APartitlp' wbo diu or bectiI wally and petrunendy disabled as defined by the Social5ecuairyAdmirtimdan)
will become immediately digible to motive malica) benefit paymen¢ fiom NarbaY tageCare Redman Health Stennis
Plan account.
X Pemieible Medial BI paymen¢
Bene6c eligible for payru m random of
A. __MediM EVpeve e4gible under IRC Sidon 313'+
OR
=i'1lll
02-126
VANTAGECAPE RETIREE HEALTH SAVINGS PLAN
O.
The foEowing McNdEapevsv(select only the eryrnsv you Prod, m over undo th,VmuseCate Items Health
Stange PW):
Me&cal Wuavu Pmriiurm
Mamicoe Pao B hommuce Premwrons
Medicare Supplement Wunnce Premiuvu
Dmvl lvswance Premiums
Oend putts -Pocket Eryenav
TongTerm Costs Immm,, Prmtiume
Uthee *(Moat be Apble order IRC Section 213)
* See SxdonVA, for a d'ucmvon olnonducawinadou cdee which wry apply to non collectively baagaimd, mif
shouted PWs.
XL Death Beneht
A. Inthe eventola PaztinPavtS death, the lnllowmgahall apPlY
AcmunaTzm fm The surviving spouse and/ore suaviving eligible depmdenv (ss defined in Secdon XIII F) ofthe
deceved prospect or immediately eligible in mainuin Her a,mm, and utilize it to fund eligible method board"
mcc5cd in Scram X abwe.
Money Moran
fe ala Am.PmIS bailout may
he
collocated
by
surnmo0T w,o wpoodu theVanugepoint
MonryMvket Fund Th...... nt balvtce mry be reallocated by Ne surnving ryouae w depetWenu.
In the event dan AccoumTiaudv, if, Participants account balance by not been hilly uWn,d upon the death of the
stable apowe, tM account balance mry counter, to be wi4zed to pry bemire ofeligible dep ndmn who have not
touched Ne rage of 19 (or 24 fm mEHiare student). Bno eligible dependent survive the ryouo, HE tm'"og account
balance will be Pori to Ae eligible spawns one, v soon a mmtmd. Aha the death Probe spaces, noun Has comment
of use 19 (m 24 for fill -time Towns) by nB eligible dependents. Anp amairvug amount baWce w0 be paid to such
depmdmt(u Upon the deatholdl eis ibl,dependents,the, dmce will be Wid AS the vnre Pforce Int daGeMentm
dievsoonv Lr entby agelimitfiteligible yep hm¢mrybew.....ptheinonoccaualpoor a theel(-
sraitling emp uds eTh by rev tl ofmmd of phyvd h be wiled the incapacitation occuardptior m the
Pudiied as ddepum t of accou
tbtlancemrymndrn tobeuWved mos mrs me plan utaacusedi&a Rhe otshe
,shqualin 3vasofwhtof thenotheist casit during toer6,PAT liwrethePW oresnats, Thduepmolofiourns;ry
mourn ]t doped o to rhe monotheist 'iml mm underrue Plan, The lNawiuwmi pro TM1eise Trained win may be such mcd as lug as the individual unarm inapacieued The Plan may trymtpmofofthe mndnoetl aivt-
rnce of such incapaury fiom time in time.
Than: trip be no elective withholding offeded. state, or lob A, =T, death benefit lump sum account payments m
the Puddpanth spawns coast dependent's), or depmdent's cown.
Times, we no Bring spouse at dependmn at the time of room ofthe PamcTua, she amount will be Paid ro the
duigoamd benehuary(im) w an Amount Dimibuum in rhe year ofpryow at elected m B. below If them arc no living
broommo0ed, me momm will be paid to the rotational, emmm rhe year of Payout v dnmd in 8 below.
oirzro9 10
02-126
VANTAGECAPE RETIREE HEALTH SAVINGS PLAN
These wllbe no elecvve,i okicg offedeN.matp,,kdnapes To death bme6tlnmp nor, Vienna pediw
bmefidaryPes) or the Pamapanh mate.
I(thisbarhchec4edin lieu ofwAccowtTnmf.�M1e(ollowinB SM1all apply indV rase oftbe deah ol�he Pudcipnt.
The emplgxk account filmes Vol! be Paid an the Pcounpanh chmipumd b,n,6cimTpes).
Upony Madedm ofa The
account
bidde the my beipant3 and by hilae si nat be ti>� aed inm theVanngepoina
Monty Mar4u Fuvd. 'Ihe azcountbalauce maybe mllocrted by the designated bmefidary(ies).
IfNere am no hying lienfi uy(iee),the accowt will be paid m`he Nmapantk esgte Tfiere will be no III
wiAhdding ofhdwl. sawn, an lad mace No death benefit lump cum account Torturer, to bm fimry(wn or the
pardopams marc
EL In SHE erxnt upon Acewm Dominion due mrhe parocipmt's dearh.the dot], functions will be paidin rhe calendaryear
511 ing rhe dmdar year of the Putldpami rEad,
❑ firob.box Emplayaric lapone eaborxpangreanddo2hmeny wNbepvd int he cilmdV yeazolthe Paotlm Rad
doth. Tee Employe' u mpuaable (m repotting and remiadng any applicable adds. to ont4nd in de Wiu,geCerc Rehm
HmIJl Savirg Plan Enplgn ManmL
Xll. gew.mmelkii
A. No aeannce trnefit shillbe provided cadet abiuVanugeGre Retiree Heilth gavavg PW UNese orhervi�e paovidN in
E.bekw.
B. O Iflhia � is cheded, ahe £mployer'aVmngeCaae Redrte HeYda Sorting: PW puvidc (m de paymem of�he
Pvtidpamk ecco priorwbmahe Puti iblefrToon beenfin unemployment in adtance olretlrcmmt(u defined in
SectionVll C) m prim ao becoming eligible (ormedid bmefin under the PW.
The following amwmdon crew qualify the Participant for severance benefits:
If the plan pmvido veverame benefi¢, the cared vilue of the Participant's account will be paid u a lump nor m she
procedure upon notification hom ahe Employer putffie Pardapear He rcamim[d empkymeot and u niNbleto
mcewe a sevemice benefit.
M uvmnce bene6n will be Paid as, lump anm The employnwin be npowble(m report and nu imng any
appliobk am, in ourWnd in the 4i pI Retina Health SaLV Plan Empbpr Manuel.
XIII. The Plan And opeore according in 16(illowng Provialom:
A. Employer RnpomibWties
1. TM1e Employs will eubmi� allVmngeCaae Retiree Heilda Savings Plan conuihuon tiara via ekcuonic submision.
2. Pamapu�mms uPtlues and/orchangeam Pmomli�dormadon npdans and/m cbanges (PamciPa^v'nrminatlan
duos, Pamapan¢'bmefit e4gibJiry daav,enJ wi06e providN via elecwnic nbminion.
03/200) 11
02-126
VANTAGECAPE RETIREE HEALTH SAVINGS PLAN
B, gmcipv:[ acwumadm- fees will be Said dvough the mode P ofPaMaPan[ xcow[aham titian a8[een
upon othenweia [he juddiddri Swicrs Agreement,
C. Employe[ Thus CAP; PAR be Paid by th employs As outlined in[he Ad r, Puente, AsS,,I.
Y.
' y D. dadedot of lands, is m[pemua[ed.
E, gymen¢ to an Ali payee (payee tubes than a Participant) are not permitted with the exception o(aeimhrsemrn[
of health imu[ance Pa®tinm to she emplryu.
^wb
F Mm1edepend<n[v she participates lawful aPomeand anY o[Fn individuil who isaPsson dscsibed in IRC
Sectitlw 152(x).
G Upon [sidditheNadeploymm[prion an a Pamapant becoming eligible for ms4cal benefit, from aVanvgeCaae
Renme Health Swags Than ,,AI Parnapon[Accolade dust am55,000 or less wall be comiderol de mwmia and wW
be Said in toe PaaHCII
H. The employs will be impossible for repoa6ng and mmmng any apphcableaiI A oud fined in the WmageCam Ream
Health Swings Plan Empbyer Manual
1. Tedeail income isms will he,d:held athe ass of 38%onA,,,not Loanable paymmu and de mrvm: acmwt
disillusion payments. Snce inane aim wW be witMeld in rug uirzd by not law.
%IV. The Employer hemby a<Mondedis i[nMenunds that hilus to pmpedy 0 a side EmploysVsnngeCare Retiree Heil[h
Rising PIM AdopdonAgreement nI mI in the las o(us comption of the hat and, or loss o(ax-0e(sred arms to,
Q Employer mnmbdinds.
B.P aa:
n ... b. Rasmus., tie
�^•a•ea:n
Coryonmhessu:s
N2oN 12