08-67 - 12-16 - Health Reimbursement Arrangement Authorizing Establishment of Voluntary Employee Beneficiary Association PlanResolution 08-67
December 16, 2008
® Member Pentel introduced the following resolution and moved its adoption:
RESOLUTION AMENDING THE HEALTH REIMBUSEMENT ARRANGEMENT
AND AUTHORIZING THE ESTABLISHMENT OF A VOLUNTARY EMPLOYEE
BENEFICIARY ASSOCIATION ("HRA VEBA") PLAN
WHEREAS, the City Council previously adopted the City of Golden Valley Heath
Reimbursement Arrangement ("HRA") for certain current and former employees of the
City; and
WHEREAS, the HRA is being amended to allow participants to suspend their
participation in the HRA for a future Plan Year by submitting a Health Reimbursement
Arrangement Suspension Election Form to the City of Golden Valley (the "Employer")
before the beginning of the Plan Year; and
WHEREAS, the City of Golden Valley desires to use the services of a Trust to
administer such plan; and
WHEREAS, the Internal Revenue Code Section 501(c)(9) allows for the creation of a
voluntary employees' beneficiary association which is a tax-exempt health and welfare
trust; and
WHEREAS, the Voluntary Employees' Beneficiary Association (VEBA) through
is OptumHealth Financial Services offers and will administer an HRA entitled "Voluntary
Employees' Beneficiary Association Medical Expense Plan" (VEBA); and
WHEREAS, the Plan will be funded with Employer contributions in amounts
determined from time to time pursuant to Employer policies and collective bargaining
agreements.
NOW, THEREFORE, BE IT RESOLVED that the City of Golden Valley HRA as
presented to the City Council of the City of Golden Valley is amended and restated, and the
establishment of a VEBA as an employee benefit plan of this City, effective January 1,
2009; and
BE IT FURTHER RESOLVED, that the City Manager is hereby authorized to
execute the Plan on behalf of the City; and
BE IT FURTHER RESOLVED, that the City is hereby designated as the Plan
Administrator of the HRA VEBA Plan and the Human Resources Coordinator of the City is
directed to maintain a copy of the Plan with the permanent records of the City and to make
duplicates thereof available to participating employees upon request; and
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Resolution 08-67 - Continued
December 16, 2008
BE IT FURTHER RESOLVED, by the City Council of the City of Golden Valley that the
amendments to the City of Golden Valley Health Reimbursement Arrangement/Voluntary
Employees' Beneficiary Association Plan, dated January 1, 2009, are hereby adopted, and
the revised plan supersedes all previously adopted plans and the City hereby consents to the
adoption of the amendments and restatement of the Plan by any affiliates of the City as
defined by the Plan.
• . I'I • • •
ATTEST:
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8usan M. Virnig, City Clerk
The motion for the adoption of the foregoing resolution was seconded by Member Shaffer
upon a vote being taken thereon, the following voted in favor thereof: Freiberg, Loomis,
Pentel and Shaffer; and the following was absent: Scanlon, and the following voted against
the same: none, whereupon said resolution was declared duly passed and adopted, signed
by the Mayor and her signature attested by the City Clerk.
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