TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Lisa Jenkins, Human Resources Director
SUBJECT:Title
Consideration of a Resolution Approving Participation of the Manhattan Beach Firefighters’ Association in the International Federation of Firefighters (IAFF) Medical Expense Reimbursement Plan (No Budget Impact) (Human Resources Director Jenkins).
ADOPT RESOLUTION NO. 25-0110
Body
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RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 25-0110 approving employee contributions to the Washington State Council of Firefighters Employee Benefits Trust to provide retiree medical benefits through the International Association of Firefighters (IAFF) Medical Expense Reimbursement Plan.
FISCAL IMPLICATIONS:
There are no fiscal implications associated with the recommended action, which approves employees making contributions to the Trust for the provision of retiree medical benefits. As part of the approval of the Plan, the City Council authorized 50% of the value of accrued sick leave hours to be contributed to the Trust at the time a Fire Captain promotes to a Division Chief in the future. No budgetary changes are required given that this contribution will be budgeted to the same extent as the current authorization for a 50% cashout of sick leave at the time of retirement.
BACKGROUND:
In 2024, the Manhattan Beach Firefighters Association (MBFA) requested that the City approve their participation in the IAFF medical expense reimbursement plan. The City Council subsequently provided authorization for City staff and contract tax counsel to review administrative and tax requirements in order to establish participation in the Washington State Council of Firefighters Employee Benefits Trust to provide the IAFF Plan benefits.
DISCUSSION:
The Washington State Council of Firefighters Employee Benefits Trust (Trust) partners with the IAFF to provide various health and retirement benefits to participating labor associations via their IAFF membership. One plan offered is a retiree benefits reimbursement plan called the IAFF Medical Expense Reimbursement Plan (Plan). In 2024, the MBFA reached out to the City requesting to participate in the Plan, with employee contributions as the funding mechanism. While this plan does not include employer contributions at the present time, participating in the plan required City staff and tax counsel to review the plan documents, and then staff time for the ongoing administration of the plan (e.g. biweekly transfer of contributions and associated reporting).
The MBFA and the City are currently in a three-year memorandum of understanding (MOU) governing the terms and conditions of their employment, which can only be amended by mutual agreement of the parties. Accordingly, the City Council previously provided authorization for City staff to engage in this implementation effort and administer the plan, which would require a side letter to initiate participation during the term of the current MOU.
As part of the Plan participation, the Council also authorized a benefit to be included in the MBFA MOU, which would allow for 50% of the value of accrued sick leave to be transferred to the Trust as part of the Plan, at the time of promotion to a position outside of the bargaining unit that receives general leave in lieu of vacation and sick leave (e.g. Division Chief). Currently, MBFA members are eligible to cash out up to one-half of their unused and accrued sick leave upon service retirement from the City.
Staff recommends that the City Council approve Resolution No. 25-0110, which will also authorize the City Manager to execute the joinder agreement and side letter to establish participation in the plan and meet associated requirements.
PUBLIC OUTREACH:
Staff determined that public outreach was not required for this issue.
LEGAL REVIEW:
Special labor counsel and tax counsel have reviewed the agreements and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Resolution No. 25-0110
2. Joinder Agreement
3. Side Letter of Agreement - Manhattan Beach Fire Association (Redlined Version)