REPORT TO COUNCIL
SUBJECT
Title
Action on Trust and Plan Adoption Documents with Gallagher Benefit Services, Inc. to Facilitate Administration of the HealthInvest Health Reimbursement Arrangement in Support of the City's Voluntary Employee Beneficiary Association
Report
BACKGROUND
On September 4, 2001, the City Council approved a resolution authorizing the establishment of a Voluntary Employees' Beneficiary Association (VEBA) as a mechanism to create a post-retirement Health Reimbursement Arrangement (HRA) as a benefit to City employees. The HRA is an employer funded account that employees may utilize post-retirement to pay for qualified medical expenses. Establishment of the VEBA required the execution of several service agreements and a formal Plan Document. The service agreements included the administrative service agreement with A. W. Rehn & Associates, Inc., the trust agreement with Washington Trust Bank, and the benefits consulting agreement with the VEBA Service Group, LLC. On September 1, 2013, Gallagher Benefit Services replaced the VEBA Service Group, LLC as the benefit consultant and Gallagher Benefits Services has also been selected to replace A. W. Rehn & Associates as the administrative services provider. The selection was related to the fact that Gallagher had experience with the City's VEBA administration having been the benefits consultant for a number of years. An administrative services agreement with Gallagher Benefit Services was executed on January 11, 2019 and the transfer of service from Rehn to Gallagher was effective May 1, 2019. Washington Trust Bank continues as the trust bank under their original agreement.
Entering into the administrative services agreement with Gallagher Benefit Services required that the City adopt Gallagher's proprietary HealthInvest HRA product. The administrative services agreement contemplates that adoption of the HealthInvest HRA product will be predicated on execution of the Trust and Plan Adoption documen...
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