►
Description
San Bruno City Council Meeting November 9, 2010 10h. VEBA Plan
A
B
Mr.
mayor
members
of
the
City
Council,
the
Viva
plan
document
and
trust
agreement
together
established
a
health
savings
plan
allowing
employees
to
set
up
account
specifically
to
cover
after
retirement
out-of-pocket
medical
expenses
under
the
Teamsters
Local
856,
health
and
welfare
trust
fund
medical
coverage,
retiree
medical
premium
costs
are
higher
than
for
active
employees,
and
some
coverage,
such
as
dental
and
vision
care,
is
eliminated.
The
voluntary
employee
beneficiary
association,
the
Viva
health
savings
plan,
allows
employees
to
set
aside
employee
funds
on
a
pre-tax
basis
for
these
medical
expenses.
B
Additional
medical
expenses
in
retirement,
in
accordance
with
a
proposed
plan,
employees
can
fund
future
retirement
medical
expenses
by
directing
any
separation
pay
payout
at
retirement
of
accrued
vacation
or
sick
leave,
or
make
biweekly
payroll
deductions
of
lot
of
flat
dollar
amounts
or
a
percent
of
earnings
into
this
help.
This
health
savings
trust
these
transfers
would
be
on
a
pre-tax
basis,
avoiding
both
federal
and
state
taxes.
This
is
a
legal
IRS
approved
measure
for
avoiding
tax
liability.
The
Viva
health
saving
plan
provides
no
greater
benefit
to
any
employee.
All
existing
MOU
provision
provisions
remain
unchanged.
B
Currently,
active
employees
can
make
annual
contributions
to
a
flexible
spending
account,
which
is
a
very
similar
arrangement,
but
it's
only
on
an
annual
use
it
or
lose
it
basis.
The
Viva
account
allows
for
this
money
to
be
carried
over
year
to
year
after
retirement
until
is
exhausted.
That
can
only
be
used
for
future
future
medical
expenses.
B
The
actual
contribution
arrangement
will
be.
Turkey
will
be
determined
by
a
majority
vote
of
each
bargaining
unit
and
would
apply
to
all
within
the
bargaining
unit
without
individual
choice.
To
date,
our
fire
unit
has
voted
to
use
the
VEBA
plan
upon
retirement.
So
that
is
that
that
is
the
first
unit
that
if
the
council
approves
a
plan,
would
be
able
to
utilize
the
VEBA
set
up.
The
plan
document
provides
the
framework
of
the
Bieber
program,
providing
the
criteria
for
eligibility,
trust
contribution
and
claim
process.
B
C
B
It
is
by
bargaining,
unit
and
bargaining
units.
Every
time
it
is
accepted
is
for
the
duration
of
an
mou,
so
a
bargaining
unit
could
revote
at
the
end
of
an
mou
period
and
the
members
might
find
it
favorable
or
beneficial
to
that
at
that
time.
So
it
is
flexible
to
that
extent
and
could
change
we.
There
are
other
units
that
I've
heard
individual
members
have
great
interest
in
the
program
that
are
nearing
retirement,
so
I
they'll
all
be
given
an
opportunity
over
the
next
month
or
so
to
to
participate
or
not,
but.
B
The
the
city
manager
is
directed
that
our
current
flexible
spending
account
have
the
have
the
same
third
party
administrator
as
this
account,
and
so
they
have
offered
that
the
administration
fee
for
those
folks,
there's
currently
39
employees
involved
in
the
flexible
spending
account
that
that
cost
will
be
included
in
the
two
hundred
fifty
dollar
monthly
minimum.
So
if
we
continue
with
those
numbers
they're
all
the
cost
of
the
two
hundred
fifty
dollar
minimum
will
be
will
be
covered.
Great.