Title
Report regarding a resolution approving the change of administrator for the Medical After Retirement Account ("MARA") Plan to Educators Benefit Consultants, LLC d/b/a Aviben ("Aviben" or "EBC") and authorizing the City Manager to execute the necessary plan documents to effect this change (Leah Lockhart, Human Resources Director)
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RECOMMENDATION
Recommendation
Staff recommends that City Council adopt a resolution approving the change of administrator for the Medical After Retirement Account ("MARA") Plan to Educators Benefit Consultants, LLC d/b/a Aviben ("Aviben" or "EBC") and authorizing the City Manager to execute the necessary plan documents to effect this change.
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BACKGROUND/DISCUSSION
The MARA plan is a Health Reimbursement Arrangement ("HRA") plan that allows employees to accumulate earnings on a tax-free basis in a Voluntary Employees Beneficiary Association ("VEBA") trust during their working years to pay for qualified post-retirement health benefits as allowed under the Internal Revenue Code. Permanent, full time employees hired after April 24, 2010 receive a City contribution to the MARA plan in the amount of 1.5% of salary, in lieu of a defined benefit retiree health program available to employees hired before that date. Additional mandatory employee contributions to the plan vary by employee bargaining group,
The MARA plan, along with the City's other deferred compensation plans, is overseen by the City's Deferred Compensation Committee, as established by Council resolution in 1977. The committee meets on a quarterly basis to monitor the plans' investment options and ensure fees are reasonable, placing funds on watch list status, adding funds, and removing funds as appropriate. The Committee is comprised of seven members including the Finance Director, Human Resources Director or designee, four members representing the City's various labor groups and a retiree representative. The Committee is supported by NFP Retirement, ...
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