1 Collyer Lane, Basking Ridge, NJ 07920
Phone: 908-204-3001; Fax: 908-204-3015; Website: www.bernards.org
Resolution #2010-0266
Authorizing an Agreement with ICMA Retirement Corporation for the Establishment of a
VantageCare Retirement Health Savings Plan (RHSP) for Non Union Employees
WHEREAS, in order to provide assistance to employees for health care cost in retirement, Bernards Township
wishes to offer the VantageCare Retirement Health Savings Plan (RHSP); and
WHEREAS, the establishment of a RHSP for the Township’s valuable employees serves the interest of the
Township by enabling it to provide reasonable security regarding such employees’ health care needs during
retirement, as well as limiting future financial liability for the township; and
WHEREAS, the Township has determined that the establishment of the RHSP serves the above objective; and
WHEREAS, the assets of the RHSP shall be held in trust for the exclusive benefit of the Plan participants and their
survivors, and the assets of the Plan shall not be diverted to any other purpose prior to the satisfaction of all
liabilities of the Plan; and
WHEREAS, the CFO/Administrator and HR Manager are recommending the Township enter into a contract with
ICMA Retirement Corporation to administer the RHSP.
NOW THEREFORE BE IT RESOLVED by the Township Committee of the Township of Bernards as follows:
1. A contract is authorized with ICMA Retirement Corporation for a Retirement Health Savings Plan in the form of
the VantageCare Retirement Health Savings Program for township non-union employees with the exception of
the Police Chief due to Chapter 330 restrictions.
2. A Declaration of Trust of the model trust of the Integral Part Trust in the form of the Model Trust made
available by the ICMA Retirement Corporation is authorized.
3. ICMA is authorized to act as the Plan coordinator.
4. The assets of the RHSP shall be held in trust, with the Chief Financial Officer serving as trustee, [Treasurer
(Alternate #1), or Manager of Human Resources (Alternate #2)] for the exclusive benefit of Plan participants
and their survivors.
5. The Mayor and Clerk are authorized to execute the agreement with ICMA Retirement Corporation on behalf of
the Township.
Agenda and Date Voted:
11/09/2010
CERTIFICATION
I hereby certify this is a true and exact copy of a resolution adopted
by the Bernards Township Committee on 11/09/2010.
Denise Szabo, Municipal Clerk
Explanatory Statement
This resolution authorizes the establishment of a Retirement Health Savings Plan (RHSP) for Township non-union employees with the
exception of the Chief of Police, which shall be administered through ICMA Retirement Corporation.
Following are the requirements of participation of the RHSP:
 Participation upon retirement is mandatory and is employer sponsored.
 Payments into the plan occur upon an approved retirement. Retirement shall be defined as service, early, disability as
defined by the State of NJ Divisions of Pension and Benefits.
 Employees hired prior to 12/31/06 whose audited “accumulated sick leave incentive” amount exceeds $15K shall have
their RHSP contribution at retirement capped at a maximum amount equal to their 11/1/2010 calculated balance.
 Employees whose accumulated sick leave incentive balance as of 11/1/2010 is $15K or less, will be eligible for RHSP
account contributions capped at a maximum of $15K upon their retirement from Bernards Township.
 The RHSP account will be 100% vested upon an employee’s retirement, and deposit into the plan.
 In the event of a certified retiree’s death, the RHSP account will be transferred to the employee’s surviving spouse and/or
surviving eligible dependents.
 If a deceased certified retiree has no spouse or surviving dependents listed on the RHSP account, the balance in the
account will be returned to the Township, and trigger a taxable distribution to the retiree’s named beneficiary or estate.
 Each certified retiree shall manage the investments in their RHSP account.
 Contributions into a RHSP account are pre-tax. Contributions are exempt from FICA and Medicare taxes.
 Changes in the methodology as to how sick/personal time will be calculated will be:
o Sick time to be calculated at the salary rate of the year in which it was earned.
o Personal time will be calculated at a rate of 50% of all personal time unused at the salary rate of the year in which
it is earned.
 An employee must continue to meet eligibility requirements of sick time as per the long standing township policy.
Bruce McArthur, CFO/Township Administrator, Acting HR Manager