Res 2021 HRA VEBACOUNCIL BILL NO. 2910
RESOLUTION NO. 2021
A RESOLUTION AUTHORIZING THE ESTABLISHMENT OF A HEALTH REIMBURSEMENT
ARRANGEMENT /VOLUNTARY EMPLOYEES' BENEFICIARY ASSOCIATION ( "HRA
VEBA ") PLAN
WHEREAS, the Internal Revenue Code Section 501(c) (9) allows for the
creation of a voluntary employees' beneficiary association (VEBA), which is a
tax- exempt health and welfare trust; and
WHEREAS, IRS regulations and guidelines allow an employer to offer health
reimbursement arrangement (HRA) plans; and
WHEREAS, such HRA plans are available to governmental employers in
the Northwest; and
WHEREAS, the Voluntary Employees' Beneficiary Association for Public
Employees in the Northwest Trust ( "the Trust ") offers and will administer an HRA
entitled "Voluntary Employees' Beneficiary Association Medical Expense Plan for
Public Employees in the Northwest" ( "the Plan ") as amended and restated; and
WHEREAS, the City of Woodburn ( "the Employer ") has determined that
establishing an HRA plan which provides a tax -free defined contribution
account for employees to pay for medical, dental, vision and tax qualified long-
term care premiums and non - covered healthcare expenses is in the best interest
of the Employer and its employees; and
WHEREAS, the Employer desires to establish an HRA VEBA plan for its
employees; and
WHEREAS, the Employer desires to use the services of the Trust to
administer such Plan; and
WHEREAS, such HRA established by the Employer will be administered in
accordance with the Plan documents provided by the Trust on file in the
Employer's main office, NOW, THEREFORE,
THE CITY OF WOODBURN RESOLVES AS FOLLOWS:
Section 1. Effective January 1, 2013, the Employer hereby elects to
participate in the Plan and the Trust as presently constituted or hereafter
Page 1 - Council Bill No. 2910
Resolution No. 2021
amended using the Trust as its plan administrator for the benefit of eligible
employees as defined by Employer policies or collective bargaining
agreements.
Section 2. The Plan will be funded with Employer contributions in
amounts determined from time to time pursuant to Employer policies and
collective bargaining agreements.
Section 3. The City Administrator is authorized to execute all documents
and establish procedures consistent with Plan and Trust provisions and the
applicable Employer policies and collective bargaining agreements necessary
to effect the adoption and administration of the Plan.
Approved as to form:
Passed by the Council
e?), `- o`<O
City Atti
Submitted to the Mayor
Approved by the Mayor
Filed in the Office of the Recorder
ATTEST: � C�l\,1.�.
Heather Pierson, Assistant City Recorder
City of Woodburn
/al V 70 /Z
Page 1 - Council Bill No. 2910
Resolution No. 2021