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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