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ITEM 12
City Council Memorandum Human Resources Memo No.
N/A
Date:
July 17, 2023
To:
Mayor and Council
Thru:
Joshua Wright, City Manager
Tadd Wille, Assistant City Manager
Rae Lynn Nielsen, Human Resources Director
From:
Fernanda Acurio, Benefits & Compensation Manager
Subject:
Resolution No. 5716, Approving and authorizing execution of Amended and Restated Retirement Health Savings Adoption Agreements for employees and elected officials to increase the City contribution based on years of service at the time of retirement, increase employees' annual maximum mandatory leave contribution, and reduce minimum service for plan participation
Proposed Motion:
Move City Council pass and adopt Resolution No. 5716 authoring execution of Amended and Restated Retirement Health Savings Adoption Agreements for Plan No. 801217 (Employees) and Plan No. 801218 (Council Members) to increase the City’s contribution based on years of service, increase employees’ annual maximum mandatory leave contribution, and reduce minimum service for plan participation.
Background:
On February 23, 2006, the City Council approved Administrative Services Agreements between the City of Chandler and MissionSquare (formerly ICMA Retirement Corporation) to provide administrative and investment services for the City’s Retirement Health Savings Plans for current employees (Plan No. 801217), City Council Members (Plan No. 801218), and a group of individuals in the former Medical Expense Reimbursement Plan (“MERP”) (Plan No. 801427). On December 13, 2007, the City Council approved Retirement Health Savings Adoption Agreements applicable to each of the three covered groups; the various Retirement Health Savings Adoption Agreements were amended and restated in May 2009, October 2009, March 2015, and October 2017.
Discussion:
This amendment of the Retirement Health Savings Adoption Agreements for Plans No. 801217 and 801218 is necessary to increase the City's contribution based on years of service at the time of retirement from $800.00 per year of service to $900.00 and to ratify administratively approved changes to employees' annual maximum mandatory leave contribution and minimum service for plan participation. This change was, in part, due to items negotiated in the meet and confer process to be effective July 1, 2023. Due to the IRS restrictions of the plan, the changes are applied to all employees.
Financial Implications:
Based on a three-year average of the number of City employee retirees, the estimated annual increase is projected at $130,000. This increase, however, is dependent on and will fluctuate based upon the number of retirees and their years of service.
Attachments
Resolution No. 5716
Agreement 801217
Agreement 801218
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