RES-9657 Retiree Savings Plan for Executive Directors and Top ManagementRESOLUTION NO. 9657
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE AMENDING RESOLUTION NO.
9562 RELATING TO A RETIREE HEALTH
SAVINGS PLAN FOR THE EXECUTIVE
DIRECTORS AND TOP MANAGEMENT
EMPLOYEES.
WHEREAS, the employees covered by Resolution No. 9562 are considered Top
Management employees and constitute the City's management personnel; and
WHEREAS, the City Council adopted Resolution No. 9562 on February 12,
2002, establishing wages, hours, and conditions of employment for top management
employees for the period of March 1,2002 through February 28, 2003; and
WHEREAS, Resolution No. 9562 included a provision allowing staff to establish
a Medical Savings Plan for these employees at no additional cost to the City; and
WHEREAS, this Medical Savings Plan would allow employees to defer qualified
paid leave benefits into a savings account to help offset the cost of medical expenses
upon retirement and no fiscal impact to the City is anticipated.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Orange authorizes staff to amend Resolution No. 9562, the City's Top Management
Resolution, as follows:
SECTION I:
Section 16.C of Resolution No. 9562 is deleted in its entirety and replaced with
the following language:
An employee may convert a maximum of up to 50% of his current armual
vacation accrual into pay in lieu of time off with pay on an armual basis. The
number of allowable vacation hours eligible for conversion to cash will be
reduced by any floating holiday hours and administrative leave hours cashed out
for contribution to the Retiree Health Savings Plan in the same calendar year. An
employee requesting such a conversion must meet the eligibility requirements as
set forth in Section 16 (A)(I)(2) and may convert twice in a calendar year, within
the cap provisions stated above. Any exception to this provision requires the
approval of the Personnel Director.
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SECTION II:
Section 22 of Resolution No. 9562 is deleted in its entirety and replaced with the
following language:
SECTION 22. RETIREE HEALTH SAVINGS PLAN
Effective October 1, 2002, the City Council approved a Retiree Health Savings
Plan for employees covered by this resolution. Each employee may voluntarily
participate in the plan by making a one-time irrevocable election to
participate during the specific armual election period identified in the plan documents.
The plan would allow employees to malce the following tax-deferred
contributions to
the plan:I) The cash value ofthe employee's unused floating
holiday and administrative leave balances at the end of each
calendar year mandatory for all
participants); and 2) Up to 15% of their annual
salary (optional);3) The cash value of 10% to 100% of vacation and/or sick leave
paid out upon separation from employment with the
City (optional).Participation and contributions must be made in accordance with
the requirements specifically delineated in the plan documents as adopted by Resolution
No. 9660 and all contributions to the plan will be at no additional cost to the
City. Each employee who participates in the Retire Health Savings Plan
recognizes that should any tax liability arise out of such participation such liability shall
be the responsibility of the
participating employee.ADOPTED this 24th day of
September,
2002.
ATTEST:I L~I-l\-<~y Ie , ity of
Orange
I hereby certify that the foregoing Resolution was duly and regularly ado;ted by
the City Council of the City of Orange at a regular meeting thereof held on the 24 day of
September, 2002, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCILMEMBERS:
COUNCILMEMBERS:
COUNCILMEMBERS:
COUNCILMEMBERS:
SLATER, ALVAREZ, MURPHY, COONTZ, CAVECCHE
NONE
NONE
NONE
c::c;,~. "~~.i<rCassanathcart, City Clerk: y of Orange
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