HomeMy WebLinkAboutRes 1445 - Mecial Savings Account (MSA) and Voluntary Employee Beneficiary Association (VEBA) 4 1 .0.:. JILA w
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City of Tukwila
Washington
Resolution No. /19:5
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, ADOPTING THE "MEDICAL SAVINGS
ACCOUNTIVOLUNTARY EMPLOYEE BENEFICIARY ASSOCIATION
(MSAJVEBA) PLAN FOR PUBLIC SERVICE EMPLOYEES IN THE
STATE OF WASHINGTON."
WHEREAS, a Voluntary Employee Beneficiary Association (VEBA) is an employee
sponsored, tax exempt health and welfare trust under Internal Revenue Code (IRC), Section
501(c)(9); and
WHEREAS, such tax exempt VEBA plans are available for public sector employees in the
State of Washington; and
WHEREAS, the VEBA plan provides a tax -free savings account for employees to pay for
plan qualified medical, dental and vision expenses that are not paid for through any other
method; and
WHEREAS, the City of Tukwila has determined that it is in the best interest of the City
and its employees to establish a Medical Savings Account /Voluntary Employee Beneficiary
Association (MSA /VEBA) plan; and
WHEREAS, the City desires to use the services of REHN Associates, Inc. to administer
the MSA /VEBA plan in accordance with the plan document maintained in the City Clerk's
office records;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. The MSA /VEBA Plan for Public Service Employees in the State of Washington,
to be substantially in the form of the plan document on file in the City Clerk's office, is hereby
adopted.
Section 2. The design of the specific employee group plan(s) shall be as determined by
each employee group (i.e. non represented or designated bargaining unit) and as approved by
the Mayor, within the rules as provided for under the terms of the plan document and IRC
rules.
PASSED BY THE CITY COU IL OF THE Y OF TUKWILA, WASHINGTON, at a
Regular Meeting thereof this /9 7 day of 2000.
MU iiA, e, .uncil Pre At
ATTEST /AUTHENTICATED:
.l J.. 2 e. .,,il,C-,!
a e E. Cantu, CMC, City Clerk
APPROVED AS TO FORM:
By:
Office of tl4e City .orney
Filed with the City Clerk: 6 -/5
Passed by the City Council:.4 /9-'
Resolution Number l 4I4
VEBA PLAN 2 -2000
CITY OF TUKWILA
Voluntary Employee Beneficiary Association (VEBA) Plan
For
Non Represented Employees
Effective October 1, 2000, the City of Tukwila shall participate in a Medical Savings
Account/Voluntary Employee Benefit Association MSA/VEBA), consistent with
Resolution No. /4545 subject to the provisions below for all City non-
represented employees.
I. The MSA/VEBA Trust Administrator shall be REHN Associates, Inc., of
Spokane, Washington.
II. All current regular full -time and part-time (at least 20 hours per week), non
represented employees shall be required to participate in the City of Tukwila's VEBA
Plan effective October 1, 2000. Non represented employees hired after October 1, 2000,
shall be required to participate effective the first of the month following their date of hire.
III. All non represented employee participants shall be required to make a monthly
contribution from their base wage salary (as reflected on the adopted non represented
salary schedule) into their plan account as follows:
Employee's Monthly Wage Amount of Monthly Contribution
Up to $4000 1%
$4001 $4500 1%
$4501 $5000 2%
$5001 $5500 2%
$5501 $6000 2%
$6001 $6500 2%
$6501 $7000 2%
$7001 $7500 3%
$7501 3%
IV. Upon an employee's voluntary quit in good standing or retirement from City
employment, the City shall deposit into the employee's MSA/VEBA account, the dollar
amount the employee would have been paid for his/her accumulated sick leave as
contained in Section 2.52.040(2) of the Tukwila Municipal Code. If required and
applicable, the City shall exclude from the MSA/VEBA, the sum of unused sick leave
accruals used by the Department of Retirement Systems in calculating the employee's
average final compensation.
V. This initial plan design for the non represented employees shall be reviewed
during the first quarter of 2003, with any changes going into effect on October 1, 2003.
Thereafter, the plan design shall be reviewed as needed, but not more frequently than
every three years.
DATES this /7 day of 1 2000.
CITY Off' TUKWILA
c i efo.ciJ r\A US“
Steven M. Mullet, Mayor