HomeMy WebLinkAboutResolution 2012 - 01 Amending the Rexburg HRA Insurance Plan*exeuor
�o a CITY O P
Y REXBURG
America's Family Community
RESOLUTION FOR AMENDMENT TO THE HRA PLAN FOR
THE CITY OF REXBURG
Resolution 2012— 01
The undersigned Principal of City of Rexburg (the Employer) hereby certifies that resolution
2010-11 was adopted by the City Council on July 21, 2010 to create the City of Rexburg
Health Reimbursement Arrangement (HRA) plan, and that such resolution is now being
amended on February 15, 2012 with the following changes:
WHEREAS, City of Rexburg has previously adopted a HRA Plan and;
WHEREAS, certain changes are now desirable;
NOW, THEREFORE, the City of Rexburg HRA Plan is hereby amended in the following
particulars only;
And
FURTHER, the effective date of this amendment is January 1, 2012.
ARTICLE I DEFINITIONS has been amended with the addition of the following
language:
1.8 "Eligible Retiree" means any Eligible Retiree as stated in Section 2.1 and as provided
herein. Eligible Retiree shall not include any individual who was not at any time prior to
retirement reported on the payroll records of the Employer as a common law employee. In
particular, it is expressly intended that individuals who at no time prior to retirement were
treated as common law employees by the Employer on its payroll records are not Eligible
Retirees and are excluded from Plan participation even if a court or administrative agency
determines or previously determined that such individuals had been common law employees
and not independent contractors. However, a retiree who is currently a 2-percent
shareholder as defined under Code Section 1372(b) shall not be eligible to participate in this
Plan.
1.18 "Retiree" shall mean any individual who has met the conditions for retirement
established by the Employer.
ARTICLE III BENEFITS
Section 3.1 (c) Establishment of Plan has been amended to read as follows:
(c) The Employer shall make available to each Participant an Employer Contribution for the
reimbursement of Qualifying Medical Expenses. A wellness exam (physical) each Plan
Year by the Participant and spouse (if applicable) is required. A physical is not required
for children. If the Participant has two deductibles, but no spouse, only the Participant is
required to receive the physical in order to receive the HRA contribution. The physicals
must be completed in the previous HRA Plan Year to receive the HRA contribution in the
current year. The following describes each benefit:
i. Employees with the City of Rexburg Group Health Insurance:
The Employer shall contribute an amount as set forth by motion or resolution
of the City Council to pay for all 213 expenses.
ii. Employees without the City of Rexburg Group Health Insurance:
In lieu of the Health Insurance Premium payment by the City, the City will
reimburse the employee for the cost of insurance he or she provides on their
own. This reimbursement amount will be up to the maximum portion of the
insurance premium that would otherwise be paid by the City for the employee.
In addition to the cost of insurance that the City will reimburse, the City will
also reimburse the cost of the HRA contribution the employee would have
received if they were enrolled in the City's health insurance less the cost of the
employee's share of the health insurance premiums. To maintain the integrity
of the plan sponsored by the City, the employee must have been covered by
this reimbursable insurance before the employee was hired by the City, unless
the employee is an elected official or has special permission by the Mayor and
the Human Resource Department. The City shall reimburse only after the
employee has submitted a written request along with documentation of the
premium amount they will be paying for. The benefit is paid out on an annual
basis by the City.
iii. Retirees:
The Employer shall contribute an amount as set forth by motion or resolution of
the City Council to pay for all 213 expenses and Insurance Premiums. The
contribution to the Participant during their retirement year will be pro -rated
based on the retirement date. Account balances can be carried over from year to
year until the entire balance has been depleted.
No salary reductions may be made to this Health Reimbursement Arrangement.
NOW THEREFORE, the City of Rexburg does hereby accept and adopt the Health
Reimbursement Arrangement amendments as noted above on this 15`s day of February
2012.
The undersigned further certifies that the newly adopted amendments will be added to the
HRA Summary Plan Description and other applicable HRA documents.
IN WITNESS WHEREOF, this Amendment has been executed this 15`h day of
February, 2012.
,/ ED : Richard S. Woodland
Mayor
� F�
ATTEST: Blair D. Kay
City Clerk �
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