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CITY OF WEST CHICAGO
FINANCE COMMITTEE
AGENDA ITEM SUMMARY
ITEM TITLE:
AGENDA ITEM NUMBER: 4. A.
Resolution No. 25-R-0019 — VEBA — Group 2
FILE NUMBER:
COMMITTEE AGENDA DATE: 03/03/2025
COUNCIL AGENDA DATE: 03/03/2025
STAFF REVIEW: SIGNATURE
APPROVED BY CITY ADMINISTRATOR: SIGNATURE
ITEM SUMMARY:
In December 2023, the City Council approved a Retirement Healthcare Funding Plan whereby members
of the FOP, as provided for in the Collective Bargaining Agreement, would deposit certain existing money
into a VEBA Account from compensatory time earned and sick leave accumulated at retirement that was
previously paid out per current regulations. This change did not cost the City any additional money; in
fact, it saved funds because the City didn’t have to pay payroll taxes on these contributions.
At that time, per the City’s practice since 2001, the City Council committed to doing the same for non-
Union employees, which is what this Resolution does. There is one primary difference between the two
groups: for this second group, employees (after the second full year) deposit a certain percentage of their
earnings into the VEBA account, again at no cost to the City. The City would no longer need to pay
payroll taxes on the funds comprising these contributions, which it is currently doing now.
STAFF RECOMMENDATION:
Staff recommends approval of Resolution No. 25-R-0019.
COMMITTEE RECOMMENDATION:
This item is being presented to the Finance Committee on March 3, 2025.

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RESOLUTION NO. 25-R-0019
RESOLUTION AMENDING A RETIREMENT HEALTHCARE FUNDING PLAN
WHEREAS, The City of West Chicago is a Municipal Corporation, organized as a
Municipality and is a member of the National Public Pension Fund Association ("NPPFA"); and
WHEREAS, NPPFA has created a Retirement Healthcare Funding Plan (the "Plan") for
the use of its member jurisdictions and offers the Plan for adoption by Governmental Employers
for the benefit of their respective employees and beneficiaries; and
WHEREAS, NPPFA has created for execution a Health and Welfare Document, and the
corresponding Specifications; and
WHEREAS, NPPFA, on behalf of sponsoring entities that adopt and maintain the Plan,
has provided for coordinated investment management and administrative services for the
accumulation phase of the Plan through an Administrative Services Agreement, hereto (the
"Services Agreement"), pursuant to which Transamerica Retirement Solutions (the "Service
Agent") has been appointed to provide certain record keeping and administrative services with
respect to the Plan, as more specified in the Services Agreement and to provide investment
management under a Group Mutual Fund Agreement; and
WHEREAS, the City Council approved a Retirement Healthcare Funding Plan for FOP
members via Resolution No. 23-R-0093 on or about December 4, 2023; and
WHEREAS, the City of West Chicago has concluded that it would be prudent and
appropriate to amend that Plan on behalf of the non-Union employees of the City of West Chicago
to achieve a primary goal of maintaining parity among employee groups, where possible; and
WHEREAS, the City of West Chicago is empowered by the laws, rules and regulations of
State of Illinois to take on its behalf the actions contemplated by this Resolution.

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NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of West
Chicago in regular session assembled, that the City of West Chicago hereby amends the Health
and Welfare Document, and the corresponding Trust Agreement, and corresponding
Specifications to add a Group 2 as detailed in the attached Amended Exhibit A to the original
Plan Documents.
Approved this day of 3" day of March, 2025.
AYES:
NAYS:
ABSTAIN:
ABSENT:
Mayor Ruben Pineda
ATTEST:
Executive Office Manager, Valeria Perez

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AMENDED EXHIBITA
SCHEDULE OF SPONSORING ENTITY CONTRIBUTIONS
Group 1 - Fraternal Order of Police Lodge No. 85
The City shall set up a retirement health savings plan for the Employees effective
January 2024. The VEBA 115 Plan is paid for entirely by the Employees. The
deposits for the account will come from the Employee’s compensatory time bank.
The first payroll that occurs in the month of February, May, and November, deposits
will be made into the member’s account. Depending on the hours of comp time in
the member’s bank, a percentage of those hours will be converted to cash and
deposited in the account. The percentages may change once per year following
VEBA and IRS rules. The following are the percentages to be deposited:
0-50 hours in comp bank 0 hours deposited
51-100 hours in comp bank 10% of hours will be deposited
101-150 hours in comp bank 15% of hours will be deposited
151-200 hours in comp bank 20% of hours will be deposited
Sick Leave Buy Back
At the Employee’s retirement, the Employee will be paid eight (8) hours’ pay for
each thirty-two (32) hours’ sick leave time earned and not taken, up to a maximum
of five hundred (500) hours (e.g., an Employee with two-thousand five hundred
(2,500) hours of sick leave will only be paid for five hundred (500) hours. For
purposes of this Section, retirement is defined as any Employee having twenty (20)
years or more of employment service with the City, and who will receive retirement
pension payments from the West Chicago Police Pension Fund. Effective January 1,
2024 an employee who participates in the VEBA 115 Plan will have their sick leave
buy back deposited into the VEBA account.
Group 2 - City of West Chicago non-union City Employees
After two full years of employment with the City of West Chicago, you will automatically
be enrolled in the Retirement Healthcare Funding Plan program.
If you opt out of the Retirement Healthcare Funding Plan program, you can no longer
participate during your tenure with the City. The same is true if you begin participating
in the Program, you cannot discontinue using it during your tenure.
The Program is formula driven, and if you meet any of the chosen benchmarks, monies
will be contributed to it, regardless of your circumstances.
The benchmarks are as follows:

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Once an employee reaches 20 years of service with the City and separates from the
City, one-quarter of any remaining sick leave bank hours will be deposited into the
Retirement Healthcare Funding Plan Account.
For compensatory time, deposits will be made quarterly into employees account using
the following schedule:
0-50 hours in comp bank 0 hours deposited
51-100 hours in comp bank 10% of hours will be deposited
101-150 hours in comp bank 15% of hours will be deposited
151+ hours in comp bank 20% of hours will be deposited
At retirement, the value of any remaining accrued vacation time will be deposited into
the Retirement Healthcare Funding Plan Account.
A percentage of an employee’s bi-weekly paycheck (base pay only) will be deposited
into the Retirement Healthcare Funding Plan Account according to the following
schedule:
Years of % of
Service Paycheck
2-10 3%
10-20 4%
20+ 5%