HomeMy WebLinkAbout5.7 A Resolution Repealng Resolution No 49-03 - Retirement Health Savings Compensation Page 1 of 2
Agenda Item Details
Meeting Mar 1 , 2019 - REGULAR MEETING OF THEM UT PROSPECT VILLA ARD -
7:00 p.m.
Category 5. CONSENT AGENDA
Subject 5.7 A RESOLUTION PLI RESOLUTION . 4 -0 , "A RESOLUTION T
INCLUDE COMPENSATION DIRECTED TO A RETIREMENT HEALTH SAVINGS PLAN
AS ILLINOIS MUNICPAL RETIREMENT FUND EARNINGS"
Access Public
Type Action (Consent)
Preferred Date Mar 19, 2019
Absolute Date Mar 19, 2019
Fiscal Impact No
Budgeted No
Recommended Board approval of a resolution repealing RESOLUTION NO. 49-03, "A RESOLUTION
Action TO INCLUDE COMPENSATION DIRECTED TO A RETIREMENT HEALTH SAVINGS
PLAN AS ILLINOIS MUNICPAL RETIREMENT FUND EARNINGS"
Public Content
Information
The Illinois Municipal Retirement Fund (IMRF) Authorized Agent Manual indicates that,
"Retirement health savings plans are employer-sponsored health benefit savings vehicles that allow pre-
tax savings for the cost of medical expenses (health insurance premiums, co-pays, prescription costs, etc.)
after retirement. These plans are funded in a variety of ways.
Compensation directed into a retirement health savings plan is not included as IMRF earnings, and
therefore not reportable to IMRF, unless the employer's governing body adopts a resolution making that
compensation reportable.
If the employer wants to report to IMRF the compensation directed into the retirement health savings
plan, its governing body would adopt a resolution, IMRF Form 6.73, "Resolution - To Include Compensation
Paid Under a Retirement Health Savings Plan as IMRF Earnings."
The Village adopted Resolution No.49-03 "A Resolution to Include Compensation Directed into a
Retirement Health Savings Plan as Illinois Municipal Retirement Fund Earnings" on December 2, 2003 for
VOLUNTARY contributions only.
At the time Resolution No.49-03 was adopted, there were multiple funding choices that could be elected by
employees in order to contribute to the Villages RHS plan. Contributions could be VOLUNTARY but there
was also a MANDATORY contribution requirement. The Resolution allowed only for VOLUNTARY
contributions to be included as compensation paid under a RHS plan as IMRF Earnings. MANDATORY RHS
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contributions were NOT included in the Resolution and therefore are EXCLUDED as compensation
reportable as IMRF earnings.
The Village of Mount Prospect's Retirement Health Savings (RHS) plan is administered in accordance with
the IRS guidance for Health Reimbursement Arrangements (HRAs) and the Village's RHS plan was revised
to eliminate the voluntary contribution option for its RHS plan on January 1, 2008, in order to comply with
the tax favorability described in IRS Rev. Rule 75-539.
Since revising the plan on January 1, 2008, there are no longer voluntary RHS contributions to be reported
as IMRF earnings. Therefore, Resolution No.49-03 should be repealed to eliminate confusion.
Alternatives
1. Board approval of a resolution repealing Resolution No. 49-03, "A Resolution to include compensation
directed to a Retirement Health Savings Plan as Illinois Municipal Retirement Fund earnings."
2. Action at discretion of Village Board.
Staff Recommendation
Staff recommends approval of a resolution repealing Resolution No. 49-03, "A Resolution to include
compensation directed to a Retirement Health Savings Plan as Illinois Municipal Retirement Fund
earnings."
[ZHS C&ntribL1ti&ns (002).pdf (1.3 KB)
-i to eal 49-03
Resoluti&r rep
Administrative Content
Executive Content
All items under Consent Agenda are considered routine by the Village Board and will be enacted by one
motion. There will be no separate discussion of those items unless a Board member or member from the
audience so requests, in which the item will be removed from the Consent Agenda and considered in its
sequence on the agenda.
Motion &Voting
Motion to approve the Consent Agenda as presented.
Motion by Paul Hoefert, second by Richard Rogers.
Final Resolution: Motion Carries
Yea: William Grossi, Eleni Hatzis, Paul Hoefert, Richard Rogers, Colleen Saccotelli, Michael Zadel
RESOLUTION NO.
A RESOLUTION REPEALING RESOLUTION NO. 49-03, "A RESOLUTION TO INCLUDE
COMPENSATION DIRECTED TO A RETIREMENT HEALTH SAVINGS PLAN AS ILLINOIS
MUNICPAL RETIREMENT FUND EARNINGS"
WHEREAS, the President and Board of Trustees of the Village of Mount Prospect approved
Resolution No. 49-03, "A Resolution to Include Compensation Directed into a Retirement Health
Savings Plan as Illinois Municipal Retirement Fund Earnings" on December 2, 2003; and
WHEREAS, Resolution No. 49-03 included compensation solely from voluntary contributions
directed into the Village's Retirement Health Savings (RHS) plan as Illinois Municipal Retirement
Fund (IMRF) earnings; and
WHEREAS, the option for voluntary contributions to the Village of Mount Prospect's Retirement
Health Savings (RHS) plan was eliminated due to plan changes required by federal law effective
January 1, 2008; and
WHEREAS, the repeal of Resolution No. 49-03 will eliminate confusion and clarify language to
reflect the plan changes and current practice.
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENTAND BOARD OF TRUSTEES OF
THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS A HOME RULE
MUNICIPALITY:
SECTION ONE: That the Mayor and Board of Trustees of the Village of Mount Prospect do hereby
repeal and replace Resolution No. 49-03 in its entirety.
SECTION TWO: That this Resolution shall be in full force and effect from and after its passage and
approval in the manner provided by law.
AYES:
NAYS:
ABSENT:
PASSED and APPROVED this 19th day of March, 2019.
Arlene A. Juracek
Mayor
ATTEST:
Karen M. Agoranos
Village Clerk