ACTION REQUESTED:
Title
Communication from the City Manager and Human Resource Director with a Request to Authorize the City Manager to TERMINATE the CONTRACT with NATIONWIDE for the Fire Department’s Post Employment Health Plan (PEHP).
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BACKGROUND: In 2006, the City negotiated with the Peoria Fire Department Local 50 to begin a Post-Employment Health Plan (PEHP) through Nationwide. This Plan includes employer contributions into a fund that retired commissioned fire personnel use for payment of post-employment insurance premiums and out-of-pocket medical expenses.
In 2015, the City learned of a plan through the Illinois Public Pension Fund Association (IPPFA), doing business as Transamerica that offers a PEHP program for lower fees for its participants. The Peoria Fire Department Local 50 voted and requested that the City transfer its PEHP program to IPPFA and terminate the Plan through Nationwide.
In order to finalize this transfer process, Nationwide requires that the City of Peoria sign a resolution to terminate the agreement with Nationwide to facilitate the transfer of City funds from their company to IPPFA.
FINANCIAL IMPACT: None to the City of Peoria. The City would continue to fund the program at the same rates.
NEIGHBORHOOD CONCERNS: N/A
IMPACT IF APPROVED: The commissioned Fire employees will receive an enhanced benefit for post-employment by being charged lower fees for the program.
IMPACT IF DENIED: The commissioned Fire employees will pay higher fees for the post-employment benefit as negotiated.
ALTERNATIVES: None
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City Government, Effective City Organization
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Have an efficient government.
DEPARTMENT: Human Resources