(A RESOLUTION AUTHORIZING THE ESTABLISHMENT
OF A HEALTH REIMBURSEMENT ARRANGEMENT/VOLUNTARY EMPLOYEES’
BENEFICIARY ASSOCIATION (“HRA VEBA”) PLAN)
WHEREAS, the Internal Revenue Code Section 501(c)(9) allows for the creation of a voluntary employees’ beneficiary association which is a tax-exempt health and welfare trust; and
WHEREAS, IRS regulations and guidelines allow an employer to offer health reimbursement arrangement (HRA) plans; and
WHEREAS, such HRA plans are available to governmental employers in the Northwest; and
WHEREAS, the Voluntary Employees’ Beneficiary Association for Public Employees in the Northwest Trust (“Trust”) offers and will administer an HRA entitled “Voluntary Employees’ Beneficiary Association Medical Expense Plan for Public Employees in the Northwest as Amended and Restated October 1, 2009” (“Plan”); and
WHEREAS, City of Hood River has determined that establishing an HRA plan which provides a tax-free defined contribution account for employees to pay for medical, dental, vision and tax qualified long-term care premiums and non-covered healthcare expenses is in the best interest of the Employer and its employees; and
WHEREAS, the Employer desires to establish an HRA plan for its employees; and
WHEREAS, the Employer desires to use the services of the Trust to administer such Plan; and
WHEREAS, such HRA established by the Employer will be administered in accordance with the Plan documents provided by the Trust on file in the Employer’s main office.
NOW, THEREFORE, the Board of Directors hereby resolves as follows:
Section 1. Effective, January 1, 2010 the Employer hereby elects to participate in the Plan and Trust as presently constituted or hereafter amended using the Trust as its plan administrator for the benefit of eligible employees as defined by Employer policies or collective bargaining agreements.
Section 2. The Plan will be funded with Employer contributions in amounts determined from time to time pursuant to Employer policies and collective bargaining agreements.
Section 3. The City Manager is authorized to execute documents and establish procedures consistent with Plan and Trust provisions and applicable Employer polices and collective bargaining agreements necessary to effect the adoption and administration of the Plan.
Approved by the Hood River City Council the 14th day of December, 2009, to take effect immediately.
Arthur Babitz, Mayor
Jennifer McKenzie, City Recorder