Chapter 3.32
SELF-INSURED HEALTH AND WELFARE RESERVE FUND
Sections:
3.32.030 ADMINISTRATION AND EXPENDITURE.
3.32.040 ADJUSTMENTS TO RESERVES.
3.32.010 FUND ESTABLISHED.
There is established a fund to be called the "Self-Insured Health and Welfare Reserve Fund" ("reserve fund"). The reserve fund is established to fund the City of Bremerton’s Self-Insured Health and Welfare Program ("program"). (Ord. 5273 §1 (part), 2015)
3.32.020 AMOUNT AND SOURCE.
The minimum reserve fund balance shall be established in the amount equal to at least four (4) months of program expenses or at an amount recommended by an independent actuarial, whichever is greater ("minimum reserve"). The minimum reserve established herein includes the minimum reserve amount for program expenses as well as an additional contingency reserve required pursuant to WAC 200-110-040. All of the revenues from City and employee contributions to the program shall be deposited into the reserve fund. The reserve fund shall be fully funded to the minimum reserve amount by the end of the first three (3) years of the program, December 31, 2017. (Ord. 5273 §1 (part), 2015)
3.32.030 ADMINISTRATION AND EXPENDITURE.
The reserve fund shall be operated as a separate fund administered by the City Treasurer and the Human Resources Manager pursuant to the requirements of Chapter 200-110 WAC. All monies received by the fund, together with investment earnings thereon, shall be expended only to administer and operate the program including payment for services and payment of medical and prescription claims authorized under the program. The City shall obtain an audit on claims expenditures and fund balances of the reserve fund every three (3) years or as otherwise required by WAC 200-110-120, as currently enacted or hereinafter amended. (Ord. 5273 §1 (part), 2015)
3.32.040 ADJUSTMENTS TO RESERVES.
The reserve fund shall be adjusted as follows:
(a) If at any time the cash reserve balance of the reserve fund is less than the minimum reserve, a repayment plan shall be established by the Mayor and approved by the City Council to replenish the reserve fund to its minimum level if deemed necessary to administer and operate the program.
(b) Should the cash reserve balance of the reserve fund at any time exceed the minimum reserve, the excess cash reserve shall be used for reduction in premiums made by the City and employees to the program, used to add additional benefits and/or be maintained in the reserve fund if deemed appropriate. (Ord. 5273 §1 (part), 2015)