The URL can be used to link to this page

Home My WebLink AboutRES NO 145-05 RESOLUTION NO. 1 4 5 · 0 5 RESOLUTION OF THE CITY COUNCIL FOR THE CITY OF BAKERSFIELD FOR ADOPTION OF THE V ANT AGECARE RETIREMENT HEAL TH SAVINGS (RHS) PROGRAM FOR THE EMPLOYEES IN THE MANAGEMENT UNIT Plan Number: 801164 Name of Employer: City of Bakersfield State: California Resolution of the City of Bakersfield (Employer): WHEREAS, the Employer has employees rendering valuable services; and WHEREAS, the establislunent of a retiree health savings plan for such employees serves the interests of the Employer by enabling it to provide reasonable security regarding such employees' health needs during retirement, by providing increased flexibility in it personnel management system, and by assisting in the attraction and retention of competent personnel; and WHEREAS, the Employer has determined that the establislunent of the retiree health savings plan (the "Plan") serves the above objectives; NOW, THEREFORE BE IT RESOLVED, that the Employer hereby adopts the Plan in the form of the ICMA Retirement Corporation's VantageCare Retirement Health Savings program. BE IT FURTHER RESOLVED that the assets of the Plan shall be held in trust, with the Employer serving as trustee, for the exclusive benefit of Plan participants and their beneficiaries, and the assets of the Plan shall not be diverted to any other purpose prior to the satisfaction of all liabilities of the plan. The Employer has executed the Declaration of Trust of the City of Bakersfield integral Part Trust in the model trust made available by the ICMA Retirement Corporation. BE IT FURTHER RESOL VED, that the Finance Director shall be the coordinator and contact for the Plan and shall receive necessary reports, notices, etc. ----------000---------- - f- (;'. I HEREBY CERTIFY that the foregoing Resolution was passed and adopted, by the Council of the City of Bakersfield at a regular meeting thereof held on JUN 2 2 2005 by the following vote: Gill) NOES: ABSTAIN: V" .....-- .....--- .----...--- ---- ./ COUNCILMEMBER: CARSON, BENHAM, MAGGARD, COUCH HANSON, SULLIVAN, SCRIVNER COUNCILMEMBER: COUNCILMEMBER: COUNCILMEMBER: ABSENT: ÚJ¡/rv,.Dl (L VYI« ~ PAMELA A. McCARTHY, C City Clerk and Ex Officio ClerK of the Council of the City of Bakersfield APPROVED JUN 22 2005 HA Y L. HALL Mayor of the City of Bakersfield APPROVED as to form VIRGINIA GENNARO City Attorney By: ¡?øw; In~ Exhibit "Au - Plan Adoption Agreement - Management Unit (> ('.; ,- ,) '-'[':;'!. :~ EMPLOYER VANTAGECARE RETIREMENT HEALTH SAVINGS (RHS) PLAN ADOPTION AGREEMENT Plan Number: 8 0 II ~1 Employer Retirement Health Savings Plan Name: ~ 1 ß4~ ~' I. Employer Name: ~ l' j~ State: M II. The Employer hereby attests that it is a unit of a state or local government or an agency or instrumentality of one or more units of a state or local government. III. The Effective Date of the Plan: ¡~ ~ ¿Jet:? 5 IV. The Employer intends ta utilize the Trust ta fund only welfare benefits pursuant ta the fallowing welfare ben- efit plan!s) established by the Employer: V. Eligible Groups and Participant Eligibility Requirements A. The following group or groups of Employees are eligible to participate in the VantageCare Retirement Health Savings Plan: All Employees All Full-Time Employees Non-Union Employees Public Safety Employees -- Police Public Safety Employees -- Firefighters General Employees Collectively-Bargained Employees (Specify unit) Other (specify belowl ~ I' .\ _m.l/Y'A'T (J"'-77'./-?'--?- I~AA- ~ß,,(J't)R<J./ <::0-.r~ The group specified must correspond to a group of the same designation that is defined in the statutes, ordi- nances, rules, regulations, personnel manuals or other material in effect in the state or locality of the Employer. o If this box is checked, in lieu of mandatory participation, the Employer provides for a one-time irrevoca- ble election by eligible Employees to participate in RHS, Until such time as the election is made, the Employee shall not participate in the Plan or receive contributions pursuant to Section VI. Newly eligible Employees shall be provided an election window of 00 days (no more thar)60,,: calendar days) from the date of initial eligibility during which they may make the election to participai~':i1 Participation may begin no earlier than the calendar month following the e'nd of the election windoW:..·.:_ ',", ,.." If the Em~loyee does not make the elect.ion in. the year oftðal eligibility, the,e, lection,to,' P, artic,i,P~,te,lT),a,V,: be made In a later year. An annual election window of ' days (no l'I10re than 60 calendaL',' ;v;YS) shall be provided duri~ which the election may be, made,.The elec, tion Wind"ow, S, h,,~1I run,f~o,rn "i~~",~"",j, {,(".Jr I to '1"/Av.J ~ (insert your annual time frame for the election window, 'e.g. Octob~r1 to.. i November 29). Participation may begin no earlier than the calendar year following the year of the !i,Ie'S::', tion. . , 'i,'~}~l Once made, the election is irrevocable and m¡¡y not be revoked while the participant is a J11embergtt~~S.i group covered by the RHS plan. '" . ,'i," ,,' .'- " '···;·!:·,~.);i ",..:,....,."''''J If the Employer's underlying welfare benefit plan or funding under this VantageCare Retirement Health Savings Plan is in whole or part a non-collectively bargained. self-insured plan, the nondiscrimination requirements of ~ ~P.K~-9 Internal Revenue Code (lRC) Section 1 05(h) will apply. These rules may impose taxátion on the benefits receivéð ~ "- - ~ J!! C> t> 11 ORIGINAL by highly compensated Employees if the Plan discriminates in favor of highly compensated Employees in term, of eligibility or benefits. The Employer should discuss these rules with appropriate counsel. B. Participant Eligibility 1. Minimum period of service required for participation is ¡)/A- {write N/A if an Employee is eligible to partici- pate or to elect to participate immediately upon emp,oymeT 2. Minimum age required for eligibility to participate is JJ!Ir-- (write N/A if no minimum age is required), VI.Contribution Sources and Amounts A. Mandatory Contributions o 1. Direct Employer Contributions The Employer shall contribute on behalf of each Participant ~% of earnings or $ Year. for the Pia Definition of earnings: o 2. Mandatory Leave Contributions The Employer will make mandatory contributions of leave as follows: Accrued Sick Leave' 0 Yes 0 No Accrued Vacation' 0 Yes 0 No Other' (describe) o Yes 0 No , Please provide the formula for determining the Accrued Leave contribution: An Employee shall not have the right to discontinue or vary the rate of annual leave contributions. o 3. Mandatory Employee Compensation Contributions The Employer will make mandatory contributions of Employee compensation as follows: o Reduction in Salary - % of earnings (as defined in VI.A.1.) or $ contributed for the Plan Year. will be o Decreased Merit or Pay Plan Adjustment - Allor a portion of the Employees' annual merit or pay plan adjustment will be contributed as follows: An Employee shall not have the right to discontinue or vary the rate of mandatory contributions of Employee compensation. 12 X 'òMi:'?> a ~ >- - t- m - ,.... "'ORIGINAC> B. Elective Contributions 1. Elective Pre-Tax Contributions The Employer will permit each Employee to make the following elections to make pre-tax contributions to the Plan: ~:. Irrevocable Election for Pre-Tax Contributions from Compensation: A one-time, irrevocable election of the amount of Employer contributions of compensation made on his or her behalf. The Employer limits the amount elected to either a fixed percentage or a range of percentages of an Employee's earnings .1-/ ~ "l t !11.- 10 % of earnings (as defined in VIA 1.) or up to VIA 1) for the Plan Year. % of earnings (as defined in Newly eligible Employees shall be provided an election window of days (no more than 60) from the date of initial eligibility during which they may make the election to contribute. Contributions may begin no earlier than the calendar month following the end of the election window. If the Employee does not make the election in the year of ~itial eligibility, the election to contribute mav'}" be made in a later year. An annual election window of 0 days (no more tha~ shall be , provided during which the election may be made. The election window shall run from a I to III ~ 2-1 (insert your annual time frame for the election window). Contributions may begin no ear- lier than the calendar year following the year of the election. Once made, the election is irrevocable and may not be revoked. ŒY'b. Irrevocable Election for Pre-Tax Contributions of Accrued Leave: A one-time, irrevocable election of the amount of employer contributions of Employee accrued IJ:rsick o Yes ~vacation o No o other (describe) leave made on his or her behalf. The Employer limits the amount elected as shown below: Newly eligible Employees shall be provided an election window of days (no more than 60 calendar days) from the date of initial eligibility during which they may make the election to contribute. Contributions may begin no earlier than the calendar month following the end of the election window. If the Employee does not make the election in the year of initial eligibility, the election to contribute be made in a later year. An annual election window of kJ days (no more than 60 calendar days) shall beJcrovided during which the election may be made. The election window shall run from §-Æ } to (,$1) t <1 (insert your annual time frame for the election window). Contributions may begin no earlier than the calendar year following the year of the election. Once made, the election is irrevocable and may not be revoked. o c. Annual Prospective Election for Pre-Tax Contributions of Leave: An annual, irrevocable election to have his or her 0 sick 0 vacation 0 other (describe) leave to be accrued in the calendar year contributed to the Plan on his or her behalf. 13 '< 'òM~'9 o ¡¿;, >- - t:: ~ "ORIGINAle:> The Employer limits the amount elected as shown below: Contributions of future leave accruals will be remitted to the Plan o as earned o at the end of the calendar year. The election to contribute must be made in the calendar year before the year in which contributions are to begin. Once made, the election shall apply to succeeding calendar years unless otherwise revised or revoked by the Employee on an annual basis. An annual election window of _days (no more than 60 calendar days) is provided during which eligible Employees may make the election to contribute. The election window shall run from to (insert your annual time frame for the election window). In adopting section a, b, and/or c, the Employer acknowledges that the Internal Revenue Service has not ruled on irrevocable election contributions in an integral part trust. ICMA-RC has obtained the advice of counsel that such contributions are allowable under the conditions outlined in this Adoption Agreement. n Employer should discuss this issue with appropriate counsel. 2. Voluntary After-Tax Contributions Each Employee may contribute up to _% of earnings (as defined in VI.A.1.) or $ for the Plan Year Of a voluntary after-tax basis. In no event may aggregate Employee voluntary after-tax contributions exceed 25% of total contributions in any Plan Year. An Employee shall have the right to discontinue or vary the rate of elective after-tax contributions of Employee earnings. By adopting this section, the Employer acknowledges that the Internal Revenue Sérvice has declined to rule on Employee after tax contributions in an integral part trust. ICMA-RC has obtained the advice of counsel that sue contributions are allowable in an insubstantial amount (i.e. no more than 25% of total contributions in any Plan Year). The Employer should discuss this issue with appropriate counsel. C. Limits on Total Contributions The total contribution on behalf of each Participant (including both Mandatory and Elective Contributions) for each Plan Year shall not exceed the following limit(s): .:J % of earnings (as defined in VLA.1.), OS . rs;f There is no Plan-defined limit on the percentage or dollar amount of earnings that may be contributed. Limits on individual contribution types are defined within the appropriate section above. See Section V.A. for a discussion of nondiscrimination rules that may apply to non-collectively bargained self- insured Plans, , ~fi.Kt?> 0< (1 "" .". t-,: ~ o <::1 ORIGINAL 14 VII. Vesting Schedule @ The account is 100% vested at all times, unless specified otherwise in 8. below. 8. The following vesting schedule applies to Direct Employer Contributions outlined in VI.A.1: Years of Service Completed Specified Percent Vesting % -% % =-=% % -% =-=% % =-=% C. The account will become 100% vested upon the death, disability, retirement, or attainment of benefit eligibility by a Participant. Definition of retirement: D. Any period of service by a Participant prior to a rehire of the Participant by the Employer shall not count toward the vesting schedule outlined in 8. above. VIII. Forfeiture Provisions Jpon separation from the service of the Employer or upon reversion to the Trust of a Participant's account 1ssets remaining upon the participant's death (as outlined in Section XI), a Participant's non-vested funds shall: o Remain in the Trust to be reallocated among all Plan Participant's as Direct Employer Contributions for the next and succeeding contribution cycJe(s). ~emain in the Trust to be reallocated on an equal dollar basis among all Plan Participants. o Remain in the Trust to be reallocated among all Plan Participants based upon Participant account bal- ances. o Revert to the Employer. the case of separation from service, the Participant's non-vested funds shall be applied as shown above. In the 1se of reversion due to the Participant's death under Section XI, the remaining account assets shall be applied ; shown above. . Eligibility Requirements to Receive Medical Benefit Payments from the VantageCare Retirement Health Ivings Plan A Participant is eligible to receive benefits: v' At retirement only (as defined in Section VII.C.) At separation from service with the following restrictions At age only At retirement and age _At retirement or age 15 « 'ò{>./(i:-9 () <!;, ;,.. - .... "' - r-- c> 't> ORIGINAL ~ B. Termination prior to general benefit eligibility: A Participant who separates from the service of the Employer prior to attaining benefit eligibility as outlined in Section IX.A. or C. will be eligible to receive benefits: d Immediately upon separation from service. o At age C. A Participant who dies or becomes totally and permanently disabled (as defined by the Social Security Administration) will become immediately eligible to receive medical benefit payments from his/her VantageCare Retirement Health Savings Plan account. X. Permissible Medical Benefit Payments Benefits eligible for payment consist of: A. All Medical Expenses eligible under IRC Section 213* other than direct long-term care expenses, OR B. The following Medic~1 Expenses (select only the expenses you wish to cover under the VantageCare Retirement Health Savings Plan): v'" Medical Insurance Premiums Medical Out-of-Pocket Expenses* Medicare Part B Insurance Premiums Medicare Supplement Insurance Premiums COBRA Premiums Dental Insurance Premiums Dental Out-of-Pocket Expenses* Long Term Care Insurance Premiums Other (Must e eligible unde IRC Section 213)* v V V v v * See Section V.A. for a discussion of nondiscrimination rules which may apply to non-collectively bargained, self-insured Plans. XI. Death Benefit In the event of a Participant's death, the following shall apply: Account Transfer: The surviving spouse and/or surviving eligible dependents (as defined in Section XIII.F.) of the deceased Participant are immediately eligible to maintain the account and utilize it to fund eligible medical bene- fits specified in Section X above. Upon notification of a Participant's death, the Participant's account balance will be transferred into the Vantagepoint Money Market Fund*. The account balance may be reallocated by the surviving spouse or dependents. * Please read the current prospectus carefully prior to investing. An investment in this fund is neither insured nor guaranteed and there can be no assurance that the Fund will be able to maintain a stable net asset value of $1.00 per share. Vantagepoint Mutual Funds are distributed by ICMA-RC Services, LLC, a controlled affiliate of ICMA Retirement Corporation. Member NASD/SIPC. If a Participant's account balance has not been fully utilized upon the death of the eligible spouse, the account balance may continue to be utilized to pay benefits of eligible dependents. Upon the death of all eligible depend- ents, the balance will be available for medical benefits for the designated beneficiary of the last dependent or spouse to die. Assets remaining upon the death of a designated beneficiary shall be available for medical bene- fits of the beneficiary's designated beneficiary. If there is no living beneficiary(iesL the account will revert to the Plan to be applied as specified in Section VIII. 16 x'òM~?>. ;: r; I--"':' m ð T- o ORIGINA[> ".",.-..."", There will be no elective withholding of federal, state, or local taxes for medical benefit payments to the Participant's spouse's or dependent's designated beneficiarylies). If there are no living spouse or dependents at the time of death of the Participant, the account will be available for medical benefits for the designated beneficiary{ies) of the Participant. Assets remaining upon the death of all designated beneficiaries shall be available for medical benefits of the beneficiary's beneficiary. If there is no liv- ing beneficiary(ies), the account will revert to the Plan to be applied as specified in Section VIII. There will be no elective withholding of federal, state, or local taxes for medical benefit payments to the Participant's beneficiary(ies) or any beneficiary's beneficiary. XII. De Minimis Accounts Upon separation from the service of the Employer prior to a Participant becoming eligible for medical benefits from a VantageCare Retirement Health Savings Plan account, Participant accounts that are considered de min- imis as specified below will be paid to the Participant. o The de minimis account value shall be $5,000 or less. a:1The de minimis account value shall be $ :;.5oò, 00 (insert dollar amount between $0 and $5,000) or less. o The Plan shall not allow de minimis account distributions. XIII. The Plan will operate according to the following provisions: A. Employer Responsibilities 1. The Employer will submit all VantageCare Retirement Health Savings Plan contribution data via electronic submission. 2. Participant status updates and/or changes or personal information updates and/or changes (Participants' termination dates, Participants' benefit eligibility dates, etc.) will be provided via electronic submission. B. Participant account administration fees will be paid through the redemption of Participant account shares, unless agreed upon otherwise in the Administrative Services Agreement. C. Employer plan fees will be paid by the Employer as outlined in the Administrative Services Agreement. D. Assignment of benefits is not permitted. E. Payments to an alternate payee (payee other than a Participant) are not permitted with the exception of reim- bursement of health insurance premiums to the Employer. F. An eligible dependent is the Participant's lawful spouse and any other individual who is a person described in IRC Section 152(a). G. The Employer will be responsible for withholding, reporting and remitting any applicable taxes, as outlined in the VantageCare Retirement Health Savings Plan Employer Manual. XIV. The Employer hereby acknowledges it understands that failure to properly fill out this Employer VantageCare Retirement Health Savings Plan Adoption Agreement may result in the loss of tax exemption of the Trust and/or loss of tax-deferred status for Employer contributions. 17 ~ ~AK~~ o c¡;, ~ - I- m - ,... "'ORIGINAf :~PLOYER ¿ £ "", ~~~~ Attest: '1/1/1' _ ~ Accepted: Vantagepoint Transfer Agents, LLC ~C2..-<. "- J~ Corporate Treasurer 18 '< 'òf>..KÇ"-s> o ~ >- - .... m - ,... o t::J ORIGINAL -··r', '..--- ,¥""'--' ":"-'\'";<'" _..._~.'" _ h" '-'-'7~-'--:""-'.'~'"_''''''';'~',''''' "._.,...,.... '. . , Instructions for Completing the VantageCare Retirement Health Savings Plan Implementation Data Form Please ensure that each section of this form is completed before returning it to ICMA-RC along with the other RHS Plan adoption materials. You may contact Employer Services at 1-800-326-7272 if you have questions. The following list of designations should help you while completing the Implementation Data Form: 5. Primary Contact This person is responsible for the day-to-day administration and processing of RHS transactions. This is the per- son we call if general questions arise concerning your RHS Plan. ICMA-RC will also call this person regarding all EZ Link transmission questions with the exception of questions regarding contributions. 16. Payroll Contact This person(sl will be responsible for coordinating with Zenith Administrators, Inc. 19. Contribution Contact This person is responsible for sending contributions to ICMA-RC. If there are discrepancies in the actual EFT, check or wire amounts and the corresponding detail transmitted via EZ Link, this is the person we will contact to resolve the issue. This person should have access to all payroll/contribution information to ensure efficient pro- cessing of contributions. 20. Trustee The title of this person is designated in the resolution, if required by state or local law. If a different person obtains the same title, you may use this form to update the name change. If your state or local law requires a resolution, you must have your legislative body pass a new resolution to update the title of the person designat- ed as Trustee. This person will receive all quarterly statements as well as confirmations for each contribution received and confirmations for all reinvested dividends. 21. Billing (Fees) If ICMA-RC charges any employer paid fees to your account, this person will receive the invoices. 19 ~ ~AK~~ o é!;, >- - ~ ~ ORIGINAL VantageCare Retirement Health Savings Plan Implementation Data Form - Page 1 ~ Instructions to Employer: Provide necessary information to establish your plan properly. Please contact your New Business Analyst at 1-800-326-7272, jf you have any questions. ICMA RETIREMENT CORPORATION ICMA-RC Use Only 1. Employer # General Information 2. 19021 Employer's Full Name: ~ ~ ~~ 3. 1924) Street Address: /501 0~~ ~. 1925) 4. (918) City: ¡8a/2.b~ 19191 State (!ßr 1~2d) Zip Code: c¡..z, ¿, 0 I 5. 16331 Primary Contact: ~J ~ 4 ' 6. (634) Primary Contact Title: ::;TØ~¿) ~ 7. 16311 Primary Contact Telephone #: (b[j) ) !3:).lJl- :3 '7tf D 8. 16321 Fax #: ~ '3 éJ. G:> - '3760 í ! I ¡ , , , , I ¡ I I I I 9, (PTOO) E-mail Address: 10, (882) Employer's Federal Tax Identification Number: q s- - 6D?ð6 7,::}.., 11. # of Employees: Ifðo 12. # of Employees Eligible for Plan Participation: (; 6 13. # of Employees Eligible to Receive Medical Benefits: Plan Implementation Information 14. Plan Level Quarterly Statements: INote:' ~ default) a. Sort Order: (629) 0 S~SSN* I3'"'1IfName b. Output Media: (6271 U/P~Paper' 0 M~Microfiche c, Type: (626) ~~Summary' 0 D~Detail o B~Bound 15, (6111 Contribution Information: INote: * ~ default) a. Frequency: Icheck onel: rQ1O) Bi-weekly* o (11 Weekly o (2) Semi-weekly o (31 Bi-monthly o ( 1 Other: (624) ~eck * o 14) Monthly o (5) Semi-Monthly o (6) Bi-quarterly o (7) Quarterly o (8) Semi-quarterly o 19) Bi-annually o 1101 Annually o 1111 Semi-annually b. Deposit Medium: o Wire o EFT c. Data Medium: EZ Link Required to participate in RHS Plan d. First Contribution Date Following Implementation: /fIla. /0 S- f X ~I\K~~ a % ICMA Retirement Corporation' Attn: Records Management Unit· P'Q, Box 96220' Washington, DC 20090-6220' Toll Free 1-800 669-74\Ìb ¡¡¡ Õ b ORIGINAL 20 :':::-:t~;;~~;:<-';I' :'¡ ~:".\-"'~~'!~~~''-:~~'':~-;~':''~~~~~~l'~.'''''''..~~-.~~~n''',~-.~.. ~W;T~7,",_'~" "....,.".......;." --_.._'-~~----~_.._.-