HomeMy WebLinkAbout3189 RESOLUTION NO. 3 18 9
A RESOLUTION AUTHORIZING THE ESTABLISHMENT OF A MEDICAL
SAVINGS ACCOUNTNOLUNTARY EMPLOYEE'S BENEFICIARY
ASSOCIATION CMSA VEBA") PLAN
WHEREAS, Section 105 of the Internal Revenue Code allows the City of
Auburn to establish a medical expense reimbursement plan for eligible
employees; provided subgroups and contributions are established in
accordance with regulatory requirements.
WHEREAS, Section 501 (c) (9) of the Internal Revenue Code allows for
the creation of a voluntary employees' beneficiary association which is an
employee sponsored, tax-exempt health and welfare trust; and
WHEREAS, such tax-exempt plans are available for public employees in
the State of Washington; and
WHEREAS, there is established a "Voluntary Employees' Beneficiary
Association for Public Employees in the Northwest Trust" ("the MSA VEBA
Trust"); and
WHEREAS, the Voluntary Employees' Beneficiary Association for Public
Employees in the Northwest Trust offers and will administer a Plan entitled
"Voluntary Employees' Beneficiary Association Medical Expense Plan for Public
Employees in the Northwest As Amended and Restated November 19, 1999
("the MSA VEBA Plan"); and
WHEREAS, the City of Auburn ("the City") has determined that
establishing a medical expense reimbursement plan, which provides a tax-free
account for employees to pay for medical, dental, and vision expenses that are
not paid by their individual insurance plans, is in the best interest of the City and
its employees; and
WHEREAS, the City desires to establish this MSA VEBA Plan for its
employees; and
WHEREAS, the City desires to use the services of this MSA VEBA Trust
to administer such Plan; and
Resolution 3189
February 23, 2000
Page 1
WHEREAS, such medical expense reimbursement plan established by
the City will be administered in accordance with the plan documents provided
by the MSA VEBA Trust on file in the City Clerk's office.
NOW, THEREFORE, The City Council hereby resolve as follows:
Section 1. Effective January 1, 2000, the City hereby elects to
participate in the MSA VEBA Trust as presently constituted or hereafter
amended using the MSA VEBA Trust as its plan administrator, and establishes
the MSA VEBA Plan for all City employees.
Section 2. The Plan will be funded by employee' contributions.
Unrepresented employees of the City of Aubum shall qualify for participation
whenever employee benefits policies of the City of Auburn are amended to
provide for such contributions, and represented employees shall become
qualified when pertinent collective bargaining (or Similar) agreements so
provide. The City will not make contributions to the Plan until authorized by
future resolutions approved by City Council.
Section 3. The City retains the right to modify or repeal the
MSANEBA Plan at its discretion without prior notification to City employees.
Section 4. The proper officers of the City of Auburn are hereby
authorized and directed to take such actions as are necessary to effect this
resolution.
ADOPTED this day of
·
CITY OF AUBURN
CHARLES A. BOOTH
Mayor
Resolution 3189
February 23, 2000
Page 2
ATTEST:
· Danielle E. Daskam
City Clerk
APPROVED AS TO FORM:
Michael J. Reynolds
City Attorney
Resolution 3189
February 23, 2000
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