HomeMy WebLinkAboutRES 4399 CITY OF RENTON, WASHINGTON
RESOLUTION NO. 4399
A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, AUTHORIZING
ADOPTION OF AND CONTRIBUTIONS TO THE HEALTH REIMBURSEMENT
ARRANGEMENT/ VOLUNTARY EMPLOYEES' BENEFICIARY ASSOCIATION ("HRA
VEBA") PLANS.
WHEREAS, RCW 35A.11.020 vests the City Council with the power to fix compensation
and working conditions and establish retirement and pension systems, of City employees; and
WHEREAS, the Internal Revenue Code Section 501(c)(9) allows for the creation of a
voluntary employees' beneficiary association (VEBA) which is a tax-exempt health and welfare
trust; and
WHEREAS, pursuant to Internal Revenue Code Section 501(c)(9), a VEBA shall consist of
employees who have an employment-related common bond, including coverage under a
collective bargaining agreement or membership in a labor union ("defined employee group");
and
WHEREAS, IRS regulations and guidelines allow an employer to offer health
reimbursement arrangement (HRA) plans; and
WHEREAS, such HRA plans are available to governmental employers in the Northwest;
and
WHEREAS, the Voluntary Employees' Beneficiary Association Trust for Public Employees
in the Northwest ("Trust") offers and will administer two HRA VEBA plans (collectively the
"Plans") as amended and restated: the Standard HRA Plan, which shall be integrated with the
City's or another qualified group health plan and which shall accept Employer contributions on
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RESOLUTION NO. 4399
behalf of eligible employees who are enrolled in or covered by such qualified group health plan
and any other contributions that may be permitted under applicable law from time to time; and
the Post-separation HRA Plan, which shall accept contributions on behalf of eligible employees,
including eligible employees who are not enrolled in or covered by the Employer's or another
qualified group health plan, and which shall provide benefits only after a participant separates
from service or retires; and
WHEREAS,the City desires to use the services of the Trust to administer such Plans; and
WHEREAS, the City has determined that it is in the best interest of the City and its
employees to establish the Plans, which provide tax-free, defined contribution accounts for
employees to reimburse qualified medical, dental, vision and tax qualified long-term care
premiums and non-covered healthcare expenses of the employees and their qualified
dependents; and
WHEREAS,the City has established the Plans for members of the defined employee group
of the Renton Police Officers' Guild as of January 2020, based on its collective bargaining
agreement with the City; and
WHEREAS, the City desires to extend access to the Plans for additional contributions and
participation by other defined employee groups;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO
RESOLVE AS FOLLOWS:
SECTION I. The City Council grants authority to the Mayor, or designee, to approve all
necessary agreements and take other appropriate actions to adopt the HRA Plans offered and
administered by the Trust.
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RESOLUTION NO. 4399
Section II. The Mayor, or designee, is authorized to make City contributions to the Plans
for the benefit of employees who belong to represented or unrepresented defined employee
groups which have agreed to have benefits contributed in lieu of amounts employees would
otherwise receive in another form of compensation.
PASSED BY THE CITY COUNCIL this 24th day of February, 2020.
i6
Jas A. Seth ity Clerk
APPROVED BY THE MAYOR this 24th day of February, 2020.
' I
A'do Pavone, Mayor
i
Approved as to form: ' ' ` a"�, �,
ti ` _
Shane Moloney, City Attorney `'> e.'""°" K,
RES.1831:12/9/19
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