HomeMy WebLinkAboutCity Council - 2009-87 RESOLUTION NO. 2009-87
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF HUNTINGTON BEACH ADOPTING THE VOLUNTARY EMPLOYEES
BENEFICIARY ASSOCIATION PLAN DOCUMENT FOR NON-REPRESENTED
EMPLOYEES
This Plan is adopted as restated as of December 23, 2009 by the City of Huntington
Beach (the "Plan Sponsor") and, together with the trust established to hold the assets of the Plan,
evidences the Voluntary Employees' Beneficiary Association established by the Plan Sponsor for
the benefit of its eligible employees; and
The Plan Sponsor wishes to establish a comprehensive integrated program under which
the Plan Sponsor, other Plan Sponsors, and collective bargaining units can negotiate for a variety
of health and welfare benefits for its Employees; and
Such comprehensive program, known as the California Government Voluntary Employee
Beneficiary Association was implemented to effect economics of scale through the commingling
of assets for investment purposes and centralizing of administrative services to provide the Plan
Sponsors with a cost effective vehicle through which to offer benefits to their Employees; and
It is the intent of the Plan Sponsor to establish a voluntary employees' beneficiary
association ("VEBA") Plan as an integral part of California Government Voluntary Employees'
Beneficiary Association Trust; and
The Plan Sponsor will provide for a Trust to hold he funds of the VEBA for the benefits
specified in this Plan under and in accordance with this Plan; and
The Plan Sponsor intends that the Plan hereby established, when taken together with the
Trust, shall constitute a voluntary Employees' beneficiary association under Section 501(c)(9) of
the Internal Revenue Code of 1986, as amended (the "Code"),
NOW, THEREFORE, in consideration of the foregoing, the Plan Sponsor adopts the
following plan:
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Resolution No.2009-87
Article I
Name& Documents
1.1 Name. The name of this Plan shall be the California Government VEBA Plan (the
"Plan'). It is established pursuant to the .provisions of Code Section 501 (c)(9), and
together with the Trust adopted to.fund the benefits evidences the Plan Sponsor's intent
to form a VEBA.
1.2 Plan Documents. This Plan,together with the Trust Agreement shall constitute the entire
Plan. This Plan document together with such documents attached as. Schedule A, shall
compose the entire plan.
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Resolution No.2009-87
Article II
Definitions
2.1 "BeneficiM": A person or persons who are entitled to receive benefits under the Plan
following the death of the Member and who are identified in a form prescribed by the
Trust Administrator.
2.2 "Contributions":Amounts deposited in the Trust pursuant to the terms of this Plan.
2.3 "Effective Date": The Effective Date shall be the date the Plan and Trust are adopted by
the Plan Sponsor.
2.4 "Employee":Any employee of the Plan sponsor.
2.5 "Individual Account":An account as described in Article VI.
2.6 "Plan Sponsor": Any public agency or political subdivision thereof which has adopted
and not terminated a Plan and Trust as part of the California Government VEBA.
2.7 "Member": Any of the following persons who meet the eligibility requirements provided
in the Plan:
2.7.1 An actively employed Employee.
2.7.2 An inactive Employee.
2.7.3 A retired former Employee.
2.7.4 A dependent of an active, inactive, or retired Employee who is a Member
including the Employee's spouse; a minor child residing with the Employee; a
child of the Employee who is a student within the meaning of Code Section
151(e) (4); any other person who is a dependent of the Employee within the
meaning of Code Section 152(a).
2.7.5 A beneficiary of an active, inactive or retired Employee who is or was a
Member.
2.7.6 "Inactive Employee"means: An Employee who, although not actively employed
by the Plan Sponsor,retains eligibility for benefits.
2.9 "Plan Administrator": The individual, position or organization designated by the Trustee
to act in matters relating to the administration of the Plan and its Documents.
2.10 "Trust Administrator": The entity appointed by the Trustee to perform the duties listed
herein.
2.11 "Trustee": The Trust Committee appointed by the forming agency Plan Sponsor, or such
other individual or entity as determined pursuant to the California Government Code.
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Resolution No.2009-87
Article M
Participation
3.1 Eli ibili .
3.1.1 In General. Subject to the limitations of section 3.2, every Employee shall be
eligible to become a Member under this Plan at the time of the first Plan Sponsor
contribution to this Plan on the Employee's behalf. The PIan Sponsor may
contribute to the Plan on behalf of its Employees on terms pursuant to the Plan
Sponsor's leave conversion programs, flat rate contribution program, or any
other Plan Sponsor sponsored program permitting contributions to the Plan and
Trust.
3.2 Limitations.
3.2.1 Participation shall be limited to those Employees by or on behalf of whom a
contribution is made to the Trust.
3.2.2 This Plan does not permit any condition for eligibility which would limit
participation or benefits to officers or highly compensated Employees.
3.3 Procedure. After satisfying all eligibility requirements, an Employee shall participate in
this Plan when the Trustee receives the initial contribution for the Member.
3.4 Duration of Participation. Once an Employee becomes a Member in the Plan, his
participation shall continue as long as funds remain in or are required to be deposited in
his/her Member's Individual Account.
3.5 Voluntary Participation. The participation by an Employee shall be voluntary in
accordance with the collectively bargained provisions for member contributions. Such
participation shall be governed by the applicable provisions of the Internal Revenue
Service(IRS).
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Article IV
PIan Benefits
4.1 Description. The purpose of the Plan is to provide health and welfare benefits and similar
benefits permitted under section 501 (c)(9) of the Internal Revenue Code, for use during
periods of employment, layoff or retirement. Health Benefits may include benefits as
defined by Code Section 213 and excludable from income under Code Sections 105 and
106 as amended from time to time. Such benefits may be provided through
reimbursement or through the payment of premiums to a medical benefit or health
insurance program. Benefits may include payment for services or benefits designed to
safeguard or improve the health of Members or clinical care services by visiting nurses,
nursing homes and transportation for medical care. Welfare benefits may include,but are
not limited to health,severance,unemployment,life and/or education benefits.
4.2 Commencement of Benefits. Benefits commence for.covered expenses incurred on or
after the date an Employee becomes a Member in the Plan.
4.3 Beneficiaries. Benefits are payable for covered expenses incurred by the Member, the
Member's dependents or the Member's Beneficiaries.
4.4 Designation of Beneficiaries. The Member shall have the sole right to designate the
Beneficiary or Beneficiaries eligible to receive any benefit under the Plan. Such
designation must be on a form or forms supplied by the Plan Administrator and shall be
effective when delivered to the Plan Administrator in accordance with established
procedures.
4.5 Termination of Benefits. Benefits for Members shall terminate when there are no longer
any assets available for payment.
4.6 Beneficiary Payments Individual Accounts. If an Individual Account is established, in
the event of the Member's death, any funds then remaining in the Member's Individual
Account shall be used for medical expenses of the Member's spouse and qualified
dependents.
4.7 Unallocated Benefits. The Plan Sponsor may participate in this Plan without establishing
Individual Accounts for Members. The Plan Sponsor shall specify the Employees to
whom benefits are to be paid, and the amount and type of benefits. The assets
contributed for such Employees and earnings thereon shall be accounted for in a separate
sub account of the Trust. Benefits shall then be paid to Members as prescribed by the
provisions of this Plan and any other instrument that is deemed a part of this Plan for the
purpose of determining benefits to be paid. When the assets in such sub account are
exhausted no further,benefits shall be paid.
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Resolution No.2009-87
Article V
Funding of Benefits
5.1 Plan Sponsor's Contributions. Plan Sponsor contributions made to this Plan and Trust for
medical benefits shall be specifically allocated to an Individual Account for each
Member for the purpose of providing payment of the benefits described herein unless the
Plan Sponsor is providing for Unallocated Benefits pursuant to Section 4.7.
5.2 Determination of Benefits. Unless the benefits are being provided on an Unallocated
Basis pursuant to Section 4.7, amounts contributed on behalf of each Member shall be
determined pursuant to the provisions of the collective bargaining agreement and Plan
Sponsor personnel practices under which the benefits and compensation to be provided
to the Employee under this Plan are determined. If benefits are being provided on an
Unallocated Basis benefits shall be determined on the same basis.
5.3 Termination of Plan Sponsor Contributions. Contributions shall cease when the
applicable bargaining agreements or Plan Sponsor policies no longer provide for
contributions. The Plan Sponsor shall be responsible for informing the Plan
Administrator when Plan Sponsor Contributions for any Employee or Employees will
cease.
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Resolution No.-2009-87
Article VI
Allocation to IMember's Accounts
6.1 Members' Individual Accounts. A separate account shall be maintained by the Plan
Administrator for each Member to account for the income, gains,losses, and expenses or
benefit payments attributable to his or her account unless benefits are being provided on
an Unallocated Basis.
6.2 Receipt of Contributions. Contributions will be credited when received by the Trustee.
6.3 Accounting. The Plan Administrator shall develop such accounting procedures as are
deemed appropriate for the accurate reflection of the Members' Individual Account
balance or the assets contributed,earnings thereon and benefits paid if benefits are being
provided on an Unallocated Basis.
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Article VII
General Provisions
7.1 Source of Benefits. The Plan and Trust's Iiability to any Member for benefits under the
Plan shall be limited to the sum of the contributions made by the Member to his/her
Individual Account and/or the amount contribution made by the Plan Sponsor and
interest thereon for the specified benefit of said Member if benefits are being provided on
an Unallocated Basis.
7.2 Mechanics of Payment. The Member shall, with respect to any benefit,and subject to the
reasonable procedures established by the Plan Administrator, direct the Plan
Administrator:
7.2.1 To pay benefits directly to an insurance company for qualified insurance
premiums;or
7.2.2 To pay benefits to a Plan Sponsor for qualified Medical premium payments; or
7.2.3 To pay benefits to the Member for reimbursement of qualified medical expenses;
or any combination as allowed under the procedures adopted by the Plan
Administrator.
7.3 Claims Procedure. At such time when a Member believes he/she is entitled to receive a
benefit under the Plan, such Member shall deliver a request for such benefit in writing to
the Plan Administrator. The Plan Administrator shall review the claimant's request for a
Plan benefit and shall, within a reasonable time thereafter, notify the claimant of its
decision as follows:
7.3.1 If the claimant's request for a Plan benefit is approved, the Plan Administrator
shall proceed with the distribution of such Plan benefit pursuant to the
reimbursement method selected by the Member.
7.3.2 If the claimant's request for a Plan benefit is denied, in whole or in part, by the
Plan Administrator, the Plan Administrator shall notify the claimant of such
denial and shall provide the claimant with a reasonable procedure for review.
7.3.3 Any claimant whose request for Plan benefits has been denied, in whole or in
part, may appeal said denial of Plan benefits in accordance with the appeal
process established by the Plan Administrator. Such request for review must be
delivered to the Plan Administrator within the specified time period after the date
the claimant received written notification of the Plan Administrator's initial
denial of the claimant's request for Plan benefits.
.7.3.4 The Plan Administrator shall permit the claimant to review pertinent documents
and submit written issues and comments concerning the denial of claimant's
request for Plan benefits.
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Article V111
Administration
8.1 Trust Administrator. The Trust Administrator of the California Government Voluntary
Employees Beneficiary Association Master ("Trust") shall perform such duties as
directed by the Trustee and the terms of this agreement.
8.2 Trust Administrator Duties. The Trust Administrator shall have responsibility for
maintaining records of the balances, claims, and contributions to the Individual Accounts
as well as such records as are needed to maintain the Plan if contributions are made on an
Unallocated Basis. The Trust Administrator shall enforce this Plan in accordance with its
terms and those of.the Trust and shall be charged with the general administration of the
Plan. In addition, the Trust Administrator, or its delegatee, shall have the following
duties:
8.2.1 to determine all questions relating to the eligibility of Employees to participate.
8.2.2 to report to the Trustee as directed;
8.2.3 to compute and certify to the Trustee the amount and kind of benefits payable to
the Members,their dependants and Beneficiaries;
8.2.4 to maintain all the necessary records for the Administration of this Plan;
8.2.5 to account for the investments made by the Trustee in a manner consistent with
the objectives of the Plan and authorized by the Trust;
8.2.6 to make and publish such rules for the regulation of this Plan as are not
inconsistent with the terms hereof
8.3 Information. To enable the Trust Administrator to perform its functions, the Plan
Sponsor shall supply it with full and timely information on all matters relating to the
compensation of all Employees,their services,their retirements, deaths or the causes for
terminations of employment and such other pertinent facts as the Trust Administrator
may require.
8.4 Expenses. All expenses shall be paid from the earnings on the assets held in the Trust,
unless otherwise authorized by the Trustee.
8.5 Consultants, Advisors & Managers. The Trust Administrator may employ such
consultants, advisors and investment managers as it deems necessary or useful in
carrying out its duties hereunder, with the cost thereof to be paid from the Trust assets.
Such Consultants,Managers and Advisors are subject to approval by the Trustee.
8.6 Funding Policy & Procedures. The Trustee, Trust Administrator and Plan Sponsor shall
formulate policies, practices and procedures for contributions to, payments from, and
funding of the Plan,which shall be consistent with the Plan objectives and the provisions
of applicable law. Without limiting the generality of the foregoing, the Trust
Administrator may, from time to time,.accomplish the following:
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Resolution No.2009-87
8.6.1 Establish a regular and convenient schedule of planning meetings,not less often
than annually.
8.6.2 Review short term,intermediate and long range investment goals.
8.6.3 Determine and project benefit liabilities.
8.6.4 Make plans to satisfy the liquidity needs of the Plan; and
8.6.5 Consult with such other advisors as may be necessary to assure the efficient
payment of Plan benefits.
8.6.6 Recommend asset investment models,fund managers and investment options.
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Resolution No.2009-87
Article XI
Liability
9.1 No Rights. Neither the establishment of this Plan,nor any modification or amendment
thereof, nor the payment of any benefits, shall be construed as giving any Member, or any
person whomsoever, any legal or equitable right against the Trustee, Trust Administrator,
Plan Sponsor, or the assets of the Plan.
9.2 Obligations of the Plan Sponsor. Only assets in the Trust shall be available to pay the
benefits and claims which arise under this Plan. No obligation of the Plan shall constitute
an obligation of the Plan Sponsor, except as such Plan Sponsor is obligated to make
contributions under the Plan.
9.3 Liability Limitation. Neither the Trustee, Plan Sponsor or the Trust Administrator shall
be liable for the acts or omissions of any Investment Manager or other person appointed
to manage the assets of the Plan and Trust if the Trustee or Trust Administrator in
appointing such person acted with the care, skill,prudence and diligence under the
circumstances then prevailing that a prudent man would use in the conduct of an
enterprise of a like character and with like aims.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 21 st day of December , 2009
M�a
REVIE A APPROVED: INI N P D
City dmin'strator it for of Human Resources
APPROVED AS TO FORM:
ty Attorney ILL 16.
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Res. No. 2009-87
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, JOAN L. FLYNN the duly elected, qualified City Clerk of the
City of Huntington Beach, and ex-officio Clerk of the City Council of said City,
do hereby certify that the whole number of members of the City Council of the
City of Huntington Beach is seven; that the foregoing resolution was passed
and adopted by the affirmative vote of at least a majority of all the members of
said City Council at an regular meeting thereof held on December 21, 2009
by the following vote:
AYES: Carchio, Coerper, Hardy, Green, Bohr, Dwyer, Hansen
NOES: None
ABSENT: None
ABSTAIN: None
6ry Clerk and ex-officOClerk of the
City Council of the City of
Huntington Beach, California