Title
Resolution approving an amendment to the Executive Management Compensation Plan regarding employee contributions to the Medical After Retirement Account.
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WHEREAS, the City of South San Francisco ("City") maintains a Health Reimbursement Arrangement ("HRA"), also known as a Medical After Retirement Account ("MARA"), for eligible employees; and
WHEREAS, the MARA plan provides a tax-advantaged method for employees to accumulate funds to pay for qualified post-retirement health care expenses in accordance with applicable provisions of the Internal Revenue Code; and
WHEREAS, the Executive Management Compensation Plan for the period of July 1, 2025, through June 30, 2027 ("Compensation Plan"), establishes compensation and benefit provisions for department directors, the Assistant City Manager, and Deputy City Managers; and
WHEREAS, the Compensation Plan provides that during the first year of the Compensation Plan, the City would meet with executive management employees regarding proposed changes to mandatory employee contributions to the MARA plan and that any amendment would take effect no sooner than July 1, 2026, upon approval of the City Council; and
WHEREAS, under the current Compensation Plan, employees hired after April 24, 2010, are required to contribute accrued leave payouts upon separation from City service to the MARA plan; and
WHEREAS, staff has consulted with members of the executive management unit regarding a proposed amendment to extend the mandatory contribution of accrued leave payouts to all employees covered by the Compensation Plan, regardless of hire date; and
WHEREAS, requiring all covered employees to contribute accrued leave payouts to the MARA plan will increase tax-advantaged funds available for post-retirement health care expenses and will not create any additional cost or financial obligation for the City.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco hereby:
Approves the side letter...
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