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 ICMA-RC for the Police Department’s Post Employment Retiree Health Savings Plan (RHS).
Body
BACKGROUND: In 2007, the City negotiated with the Peoria Police Benevolent to begin a Post-Retirement Health Savings plan (RHS) through ICMA-RC. This Plan includes employer contributions into a fund that retired commissioned police personnel use for payment of post-employment insurance premiums and out-of-pocket expenses.
In 2015, the City learned of a plan through the Illinois public Pension Fund Association (IPPFA), doing business as Transamerica, that offers an RHS program with lower fees for its participants. The Peoria Police Benevolent voted and requested that the City transfer its RHS program to IPPFA and terminate the Plan through ICMA-RC.
In order to finalize this process, ICMA-RC requires that the City of Peoria sign a resolution to terminate the agreement with ICMA-RC to facilitate the transfer of funds from their company to IPPFA.
FINANCIAL IMPACT: None to the City of Peoria. The City will continue to fund the program at the same rates.
NEIGHBORHOOD CONCERNS: NA
IMPACT IF APPROVED: The commissioned Police employees will receive an enhanced benefit for post-employment by being charged lower fees for this program.
IMPACT IF DENIED: The commissioned Police employees will pay higher fees for their post-employment benefit as negotiated.
ALTERNATIVES: NA
EEO CERTIFICATION NUMBER: NA
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