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HomeMy WebLinkAboutAGENDA REPORT 2018 0321 CCSA REG ITEM 10K CITY OF MOORPARK, CALIFORNIA City of Moorpark of March 21, 2018 ACTION Adopted Reso No. 2018-386388 rescinding Reso No 2009 2M�enson Item: 10.K. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Ron Ahlers, Finance Director DATE: March 9, 2018 (CC Meeting of March 21, 2018) SUBJECT: Consider Resolution Rescinding Resolution No. 2009-2835, which Suspended a Retirement Health Savings Program BACKGROUND In October 2004, the City Council passed Resolution No 2004-2249 which established the VantageCare Retirement Health Savings Program (RHSP) for city employees This program is offered by International City Manager's Association-Retirement Corporation (ICMA-RC) and allows employees to save money, pre-tax, for future medical expenses during their retirement years The Internal Revenue Service (IRS) subsequently released Publication 969, which placed numerous restrictions upon the RHSP At that time, the City employees requested the RHSP be suspended from accepting new contributions The employees who had money in the RHSP could keep their funds invested and use the program as stipulated The City Council passed Resolution No 2009-2835 on July 1 , 2009 This resolution suspended the RHSP Since 2009, the IRS has made modifications to the regulations about the RHSP City staff is now recommending that City employees be allowed to contribute into the revised ICMA-RC RHSP The attached resolution rescinds Resolution No 2009-2835, thereby allowing city employees the ability to contribute once again to the RHSP Staff recommends this action be retroactive to December 1 , 2017 Staff will be scheduling a follow-up agenda item on a subsequent agenda to consider amending Resolution No 2004-2249, including approval of a revised RHSP adoption agreement FISCAL IMPACT None STAFF RECOMMENDATION Adopt Resolution No 2018- Attachment Draft Resolution 103 ATTACHMENT RESOLUTION NO. 2018-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, UNSUSPENDING THE VANTAGECARE RETIREMENT HEALTH SAVINGS PROGRAM (RHSP) WITH THE ICMA RETIREMENT CORPORATION AND RESCINDING RESOLUTION NO. 2009-2835 WHEREAS, Resolution No. 2004-2249 adopted on October 6, 2004, previously established the Vantagecare Retirement Health Savings Program (RHSP); and WHEREAS Resolution No. 2009-2835 adopted on July 1, 2009, suspended the RHSP; and WHEREAS, the City desires to unsuspend the RHSP and allow new enrollments and new deposits into the RHSP. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Resolution No. 2004-2249 is hereby unsuspended. The RHSP will accept new enrollments and new deposits. SECTION 2. This resolution shall be effective as of December 1, 2017. SECTION 3. City Council Resolution No. 2009-2835 is hereby rescinded. SECTION 4. The City Clerk shall certify to the adoption of the resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 21st day of March, 2018. ________________________ Janice S. Parvin, Mayor ATTEST: Maureen Benson, City Clerk 104