Res 13-653RESOLUTION NO. 13 -653
A RESOLUTION of the City Council of the City of Federal Way,
Washington, Amending Resolution 05 -465 Authorizing the
Establishment of a Health Reimbursement ArrangementNoluntary
Employees Beneficiary Association ("HRA VEBA ") Plan by
Incorporating the Amended and Updated July 1, 2013 Plan.
WHEREAS, the Internal Revenue Code Section 501(c)(9) allows for the creation of a
voluntary employee's beneficiary association which is an employee sponsored tax- exempt health and
welfare trust; and
WHEREAS, IRS guidelines and regulations allow an employer to offer Health
Reimbursement Arrangement ( "HRA ") plans; and
WHEREAS, such HRA plans are available to government employees in the Northwest; and
WHEREAS, the City Council for the City of Federal Way ( "City ") established the HRA plan
for its employees in Resolution No. 05 -465, and
WHEREAS, the City Council determines an HRA plan which provides a tax -free defined
contribution amount for employees to pay for medical, dental, vision, and tax qualified long term
care premiums and out -of- pocket expenses is in the best interest of the City and its employees; and
WHEREAS, the Voluntary Employees' Beneficiary Association for Public Employees in the
Northwest Trust ( "Trust ") offers and will administer an HRA entitled "Voluntary Employees
Beneficiary Association Medical Expense Plan for Public Employees in the Northwest" as Amended
and Restated July 1, 2013 ( "Plan "), and
WHEREAS, the City desires to use the services of the Trust to administer such Plan; and
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WHEREAS, such HRA established by the City will be administered in accordance with the
Plan documents provided by the Trust on file in the City office.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
RESOLVES AS FOLLOWS:
Section 1. Plan Established. Effective, January 1, 2014, the City hereby elects to participate
in the Plan and Trust as presently constituted or hereafter amended using the Trust as its plan
administrator for the benefit of eligible City employees as defined by employer policies or collective
bargaining agreements.
Section 2. Plan Funding. The Plan will be funded by employer contributions in amounts
determined from time to time pursuant to employer policies and collective bargaining agreements.
Section 3. Plan Administration. The Human Resources Manager is authorized to execute
documents and establish procedures consistent with Plan and Trust provisions and applicable
employer policies and collective bargaining agreements necessary to effect the adoption and
administration of the Plan.
Section 4. Severability. If any section, sentence, clause or phrase of this resolution should be
held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or
unconstitutionality shall not affect the validity or constitutionality of any other section, sentence,
clause or phrase of this resolution.
Section 5. Corrections. The City Clerk and the codifiers of this resolution are authorized to
make necessary corrections to this resolution including, but not limited to, the correction of
scrivener /clerical errors, references, resolution numbering, section/subsection numbers and any
Resolution No. 13 -653 Page 2 of 3
references thereto.
Section 6. Ratification. Any act consistent with the authority and prior to the effective date
of this resolution is hereby ratified and affirmed.
Section 7. Effective Date. This resolution shall be effective January 1, 2014.
RESOLVED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON this 3rd day of December, 2013.
CITY OF FEDERAL WAY
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MAYOR, IP PRIEST
ATTEST:
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CITY CLERK, CAROL MCNEILLAJMC
APPROVED AS TO FORM:
CITY ATTORNEY, PATRICIA A. RICHARDSON
FILED WITH THE CITY CLERK: 11 -25 -2013
PASSED BY THE CITY COUNCIL: 12 -3 -2013
RESOLUTION NO.: 13 -653
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