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HomeMy WebLinkAboutReso 2021-070RESOLUTION NO. 2021-070 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING A POST-EMPLOYMENT HEALTH PLAN FOR ELIGIBLE PUBLIC EMPLOYEES WHEREAS, in response to requests from staff to address the cost of health care post retirement, the Human Resources Department is proposing to enter into a Post Employment Health Plan (“PEHP”) with Nationwide for Association of Chula Vista Employees bargaining group represented employees at no cost to the City and amending their respective Memorandum of Understanding as appropriate; and WHEREAS, PEHP is a tax-exempt Voluntary Employee’s Beneficiary Association (“VEBA”) Trust, which provides employee benefits pursuant to IRC Code section 501(c)(9); and WHEREAS, a PEHP creates a defined contribution health reimbursement program that allows for money to be set aside to pay for future medical expenses; and WHEREAS, a PEHP may be funded with Employer contributions, mandatory Eligible Employee contributions or combination of both on behalf of the eligible employees in a manner permitted under the Plan; and, with regard to the proposed PEHP, it will be funded with mandatory eligible employee contributions, specifically any unused vacation and compensatory time off (CTO) balances due to the employee at the time of retirement will be rolled over into the PEHP. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it hereby does adopt a Post-Employment Health Plan (PEHP) for eligible public employees. [SIGNATURES ON THE FOLLOWING PAGE] DocuSign Envelope ID: 4984A3CB-665D-485E-B777-D839105AC730 Resolution No. 2021-070 Page No. 2 Presented by Approved as to form by Courtney Chase Glen R. Googins Director of Human Resources /Risk Management City Attorney PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 4th day of May 2021 by the following vote: AYES: Councilmembers: Cardenas, Galvez, McCann, Padilla, and Casillas Salas NAYS: Councilmembers: None ABSENT: Councilmembers: None Mary Casillas Salas, Mayor ATTEST: Kerry K. Bigelow, MMC, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2021-070 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 4th day of May 2021. Executed this 4th day of May 2021. Kerry K. Bigelow, MMC, City Clerk DocuSign Envelope ID: 4984A3CB-665D-485E-B777-D839105AC730