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COUNCIL MEMORANDUM <br /> #2009-6 <br /> DATE: March 31, 2009 <br /> TO: Honorable Mayor Michael T. Carrigan �nd City Council <br /> FROM: Ryan P. McCrady, City Manager �� <br /> Jerry Bauer, Assistant City Manager � <br /> SUBJECT: Nationwide Post Employment Health Plan (PEHP) <br /> SUMMARY RECOMMENDATION: Staff recommends that City Council adopt the attached I <br /> resolution, authorizing the City to establish a post employment health plan with Nationwide <br /> Retirement Solutions, Inc., for the members of International Association of Fire Fighters (IAFF) <br /> Local 505. <br /> BACKGROUND: The City agreed, as an item of bargaining in the most recent round of <br /> contract negotiations, to direct $300 of holiday pay annually for each member of the Fire union, <br /> IAFF Local 505, into a post retirement health savings plan, beginning May 1, 2009. The savings <br /> plan is provided by Nationwide Retirement Solutions, and operates under the rules of Section <br /> 501(c)(9) of the U. S. Internal Revenue Code. It provides for tax exempt contributions and <br /> earnings in the plan. The amounts accumulated during employment are available for use in the <br /> payment of inedical care expenses and health insurance premiums after retirement. Aside from <br /> the annual contributions, all costs of the program are borne exclusively by the participants. The <br /> Fire union requested this specific provider. The Police Union currently maintains a similar <br /> retiree health savings plan for members (funded by sick leave payouts at retirement) through <br /> the ICMA Retirement Corporation (ICMA-RC). <br /> POTENTIAL OBJECTIONS: There are no known objections to this recommendation. <br /> INPUT FROM OTHER SOURCES: Documents for establishing the plan were provided by John <br /> Piper of Nationwide Retirement Solutions, Inc. <br /> STAFF REFERENCE: If you have questions about this item, please contact Jerry Bauer at <br /> 424-2801 or jbauerCa�decaturil.qov. <br /> BUDGET/TIME IMPLICATIONS: Payments for employee contributions will be budgeted as a <br /> salary expense in the Fiscal Year 2009-2010 personnel operating budget for the Fire <br /> Department. <br /> attachments <br />