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BACKGROUND <br /> Agreement was reached to adopt a reduced retiree medical program for employees <br /> hired after July 1, 2012 in the Memorandum of Understanding (MOU) between the City <br /> of Pleasanton and the Pleasanton Police Officers' Association (PPOA) negotiated in <br /> 2011. The program changed from dual medical coverage for employee and spouse to <br /> single coverage of employee only, and ending at the time of Medicare eligibility. <br /> Accompanying this reduced coverage was an agreement to establish a retiree health <br /> savings plan (RHSP). <br /> DISCUSSION <br /> The RHSP is a program that allows participants to accumulate assets to pay for a <br /> variety of medical expenses after retirement. The employee manages his/her <br /> investments selected from a number of options. Both the contributions funding the <br /> vehicle and the investment gains are not taxed. Eligible medical reimbursements range <br /> from health related premiums to out-of-pocket expenses to prescription drugs. When <br /> withdrawals are used for these eligible purposes, they also are not taxed. <br /> Representatives from the City and the PPOA met with two providers to review their <br /> programs. The VantageCare program from ICMA Retirement Corporation was selected <br /> based on a number of factors, including flexibility of the program, number of <br /> participating agencies and ease of administration. To implement this program, ICMA <br /> Retirement Corporation requires that the City adopt a resolution establishing a RHSP <br /> and identify the ICMA Retirement Corporation's VantageCare Retirement Health <br /> Savings Program as the selected plan. Should the City decide at a later time to add <br /> additional groups to this plan, the City may amend the plan by outlining the specific <br /> parameters for each group. <br /> Submitted by: Fiscal Review: Approved by: <br /> - _LL cviar <br /> lie Yuan- iM uwG Emily Wagner Nelson Fialho <br /> ssistant City Manager/ Director of Finance City Manager <br /> Director of Administrative Services <br /> Attachments: <br /> 1. Resolution <br /> Page 2 of 2 <br />