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Home My WebLink AboutES06-271 - Amendment - ICMA Retirement Corp - Retirement Health Savings (RHS) Plan - 12/16/2010 Records M =- emei KENT _ Document WASHINGTON - CONTRACT COVER SHEET This is to be completed by the Contract Manager prior to submission to City Clerks Office. All portions are to be completed. If you have questions, please contact City Clerk's Office. Vendor Name: `EMA -RC Vendor Number: JD Edwards Number Contract Number: ES O(0 - 5-71 This is assigned by City Clerk's Office Project Name "l1��» �� PrUL CGS (CaJ*J LM—%I,Cb) Description: ❑ Interlocal Agreement ❑ Change Order Amendment ❑ Contract ❑ Other: Contract Effective Date: I Q-Ilo - lC) Termination Date: t%L U f4 i L Q P ffKt�D -iWJ?-A Contract Renewal Notice (Days): N tG,O'nA 0AJY5 Number of days required notice for termination or renewal or amendment Contract Manager: Department: &b. Detail: (i.e. address, location, parcel number, tax id, etc.): S Publlc\RecordsManagement\Forms\ContractCover\adcc7832 1 11/08 VANTAGECARE RETIREMENT HEALTH SAVINGS PLAN ANNOUNCEMENT LETTER Re City of Kent Retirement Health Savings Plan VantageCare Retirement Health Savings Plan Dear Employee We are very pleased to inform you that you are eligible to participate in our VantageCare Retirement Health Savings (RHS) Plan a benefit provided through the ICMA Retirement Corporation (ICMA-RC) that gives you tools to help you save for healthcare expenses on a tax-advantaged basis All of the information contained in the accompanying Employee Enrollment Kit is very important Many of your questions may be answered by referencing the VantageCare Retirement Health Savings Employee Question and Answer Brochure included in the Enrollment Kit There are, however, individual features that have been selected for our RHS Plan that are detailed in the attachment to this letter Please keep this Announcement Letter with your other benefits information so that you may refer to it as needed You should also carefully read the forms that you will be given for enrollment What is VantageCare RHS? The VantageCare Retirement Health Savings (RHS) Plan is a tax-advantaged savings plan dedicated to funding one of your most significant financial exposures -- healthcare costs RHS allows you to accumulate assets now to pay, on a tax-free basis, medical expenses you incur later Medical costs are likely to be one of your largest expenditures in retirement The national average for health care premiums for a retired couple is $11,000 per year While your cost may be lower or higher than this, you should know that the cost of health care increases outpace general inflation at the rate of three to one each year You can use your pension or deferred compensation savings to help pay for retirement health expenses, but these payments will be taxable to you The VantageCare RHS Plan allows you to receive reimbursements for health care expenses on a tax-advantaged basis Some of the benefits of our RHS Plan include- ■ tax-free contributions and tax-free investment growth ■ tax-free medical expense reimbursements ■ Vantagepoint Mutual Funds*that provide you with a full range of investments, ■ upon your death, the funds are passed along to your surviving spouse and/or eligible dependents for their health expenses ■ experienced health benefit claims processing, and ■ quarterly account statements *Please consult the current Vantagepoint Funds prospectus carefully for a complete summary of all fees, expenses, charges, financial highlights and investment objectives, risks and performance information prior to investing any money Vantagepoint securities are distributed by ICMA-RC Services, LLC, a broker dealer affiliate of ICMA-RC, member NASD/SIPC For a current prospectus, contact ICMA-RC Services LLC< 777 North Capitol Street NE< Washington, DC 20002-4240 1-800-669-7400 The attached Summary of Plan Provisions provides information on the details of our RHS Plan Please direct any questions you may have to your benefits office VantageCare RHS - It's a benefit for you that can last a lifetime VANTAGECARE RETIREMENT HEALTH SAVINGS (RHS) PLAN SUMMARY OF PLAN PROVISIONS (Amended December 16, 2010) RHS Plan Information Plan Name: City of Kent Plan Number: 803016 Account Number: Your ICMA-RC assigned Reference Number Eligible Employees The following groups of employees are eligible to participate in our VantageCare RHS Plan Public Safety Employees-Police (Captain, Lieutenant, Police Deputy Chief, Non-Rep out of Captain, Lieutenant Contract) Participation Your participation in the RHS plan is mandatory, you may not choose to opt out of the RHS program To enroll, simply fill out the VantageCare RHS Plan Employee Enrollment/Change Form and return it to your benefits office Contributions The contribution feature(s) shown below are available in our RHS Plan All RHS contributions are made to your account on a pre-tax basis No Social Security, Medicare, or income'taxes are payable on these amounts Military employees eligible for Military retire health care benefits shall be excluded from the City's Retirement Health Savings(RHS)Account The following contribution types are available in our RHS plan Direct Employer Contributions: The Employer shall contribute 3% of earnings on behalf of each participant *Check with your benefits office regarding state taxes Most states do not tax RHS contributions Mandatory Employee Contributions: The following rules will apply per Memorandum of Understanding - Under Age 50—3% base pay per check (equals City contribution of 3%at the Lieutenant's base pay rate in lieu of Deferred Compensation contributions) - Age 50 to 52 -6% base pay per check (equals City contribution of 3% at the Lieutenant's base pay rate in lieu of Deferred Compensation contribution and remainder to be deducted from employee's base pay) - Age 53—55 —0% employee contribution per check, City contribution of 3% base pay to deferred compensation (equals City contribution of 3% at lieutenant's base pay rate) - Age 56—60—6% base pay per check(equals city contribution of 3% at the Lieutenant's base pay rate in lieu of Deferred Compensation contribution and remainder to be deducted from employee's base pay) - Over Age 60—No contributions Mandatory Employee Leave Contributions: The Employer will make mandatory contributions of accrued sick and vacation leave for eligible groups as follows - Under age 50 -0% at retirement or at separation - Ages 50—52— 100% at retirement or at separation - Ages 53—55—0% at retirement or at separation - Ages 56—60- 100% at retirement or at separation - Over age 60— No contributions Limits on Total Contributions: There is no Plan-defined limit on the percentage or dollar amount of earnings that may be contributed Definition of Earnings: Base Pay Vesting Schedule The account is 100% vested at all times Healthcare Benefits Timing of Eligibility: You are eligible to submit for reimbursements of healthcare benefits at retirement or at separation from service You will also become eligible for benefits if you become totally and permanently disabled Total and permanent disability is as defined by the Employer's primary retirement plan Permissible Healthcare Benefit Payments: Healthcare benefits eligible for reimbursement consist of All Medical Expenses eligible under IRC Section 213 other than direct long-term care expenses, and including non-prescription medications allowed under IRS guidance. ❑ Medical Insurance Premiums ❑ Medical Out-of-Pocket Expenses ❑ Medicare Part B Insurance Premiums ❑ Medicare Part D Insurance Premiums ❑ Medicare Supplemental Insurance Premiums ❑ Prescription Drug Insurance Premiums ❑ COBRA Insurance Premiums ❑ Dental Insurance Premiums ❑ Dental Out-of-Pocket Expenses ❑ Vision Insurance Premiums ❑ Vision Out-of-Pocket Expenses ❑ Qualified Long-Term Care Insurance Premiums ❑ Non-Prescription medications allowed under IRS guidance ❑ Other Qualify medical expenses (describe) Amounts paid from your account to reimburse qualifying healthcare benefits for you, your spouse, and your dependents will be tax-free Please note that if your plan amends the allowable healthcare benefits during your benefit eligibility period, the timing of the amendment could cause certain claims to be denied. Reimbursement Requests: Once you are eligible for healthcare benefits, your Employer will notify ICMA-RC of your eligibility You must also complete the VantageCare RHS Plan Benefit Eligibility Form to provide ICMA-RC your spouse and dependent information Then you may begin requesting reimbursements by filing the VantageCare RHS Plan Reimbursement Request Form Reimbursement requests are submitted directly to Mentain Health, ICMA-RC's third-party claims processor for RHS Plans Mentain's address and telephone number are on the form You may call Mentain directly with any claims related questions Post-Death Account Use In the event of your death, ■ Your account will be transferred to your surviving spouse and/or surviving eligible dependents for continuing tax-free healthcare benefits ■ If no spouse or eligible dependents survive you, your remaining account assets will remain in the RHS Plan trust to be reallocated on an equal dollar basis among all Plan Participants Please refer to the VantageCare RHS Plan Employee Enrollment/Change Form for important information on this designation Questions? For further information on our new VantageCare RHS Plan, please contact your benefits office or ICMA-RC's Investor Services associates at 1-800-669-7400 You can also read important information about the plan in your VantageCare RHS Plan Employee Enrollment Kit VantageCare RHS - It's a benefit for you that can last a lifetime