HomeMy WebLinkAbout2008-25 HRA VEBA Plan
RESOLUTION NO. 2008- A S-
A RESOLUTION AUTHORIZING THE ESTABLISHMENT
OF A HEALTH REIMBURSEMENT ARRANGEMENTNOLUNTARY EMPLOYEES'
BENEFICIARY ASSOCIATION ("HRA VEBA") PLAN
Recitals:
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, IRS regulations and guidelines allow an employer to offer health
reimbursement arrangement (HRA) plans; and
WHEREAS, such HRA plans are available to governmental employers in the Northwest;
and
WHEREAS, the Voluntary Employees' Beneficiary Association for Public Employees in
the Northwest Trust ("Trust") offers and will administer an HRA entitled "Voluntary
Employees' Beneficiary Association Medical Expense Plan for Public Employees in the
Northwest as Amended and Restated January 1, 2007" ("Plan"); and
WHEREAS, The City of Ashland ("Employer") has determined that establishing an HRA
plan which provides a tax-free defined contribution account for employees to pay for
medical, dental, vision and tax qualified long-term care premiums and non-covered
healthcare expenses is in the best interest of the Employer and its employees; and
WHEREAS, the Employer desires to establish an HRA plan for its employees; and
WHEREAS, the Employer desires to use the services of the Trust to administer such
Plan; and
WHEREAS, such HRA established by the Employer will be administered in accordance
with the Plan documents provided by the Trust on file in the Employer's main office.
THE CITY OF ASHLAND RESOLVES AS FOllOWS:
Section 1. Effective, July 1, 2008 the Employer hereby elects to participate in the Plan and
Trust as presently constituted or hereafter amended using the Trust as its plan
administrator for the benefit of eligible employees as defined by Employer
policies or collective bargaining agreements.
Section 2. The Plan will be funded with Employer contributions in amounts determined from
time to time pursuant to Employer policies and collective bargaining agreements.
Section 3. The City Administrator is authorized to execute documents and establish
procedures consistent with Plan and Trust provisions and applicable Employer
polices and collective bargaining agreements necessary to effect the adoption
and administration of the Plan.
071508 HRA VEBA Plan.res.doc
This resolution was duly PASSED and ADOPTED this /~ day of ~
20AAffect~~or.
Barbara Christensen, City Recorder J.. d.
SIGNED and APPROVED this ~ day of ~ ' 2008.
~eViewed ~s to form: L
Richard Appicell ity Attorney
071508 HRA VEBA Plan.res.doc