HomeMy WebLinkAboutr 10458 establishment of health reimbursement actand
RESOLUTION NO. 10458 (2013 Series)
A RESOLUTION OF THE CITY OF SAN LUIS OBISPO
AUTHORIZING THE ESTABLISHMENT OF A HEALTH REIMBURSEMENT
ACCOUNT (HRA) WrTH rCMA-RC
\ilHEREAS, the San Luis Obispo City Employees Association (SLOCEA) and the San
Luis Obispo Management Group established the San Luis Obispo Retiree Medical Trust (RMT) in
July 2004; and
WHEREAS, on February 21, 2012 City Council repealed Resolution No 9562 (2004
Series) and in doing so terminated San Luis Obispo Management Group's participation in the RMT;
and
\ryHEREAS, on April 13,2012 the SLOCEA also voted to cease contributions to the RMT;
WHEREAS, the termination of contributions to the RMT caused the RMT Board of
Trustees to explore options to terminate the trust and distribute the trust's assets to the participating
employees and benehciaries in accordance with the Internal Revenue Service (IRS) guidelines; and
\ryHEREAS, the most cost effective and expedient way to dissolve the trust and transfer the
assets is to establish a HRA; and
WHEREAS, the IRS requires HRA plans to be employee sponsored; and
\ryHEREAS, after a thorough review of HRA plans available, the Trustees recommend
ICMA-RC.
NOW, THEREFORE, BE IT RESOLVED, that the Council of the City of San Luis
Obispo hereby authorizes the establishment of a HRA through ICMA-RC for the sole purpose of
distributing assets from the dissolution of the RMT and authorizes the City Manager to execute any
necessary documents.
Upon motion of Council Member Ashbaugh, seconded by Vice Mayor Smith, and on the
following roll call vote:
AYES:
NOES:
ABSENT:
Council Members Ashbaugh, Carpenter and Christianson, Vice Mayor
Smith and Mayor Marx
None
None
R 10458
ResolutionNo. 10458 (2013 Series)
Page 2
The foregoing resolution was adopted this 3rd day of September 2013.
(\Tv1t^-/-
Mayor J
ATTEST:
MMC
Interim City Clerk
APPROVED AS TO FORM:
Dietrick
City Attomey