Sec. 22-81.1. There is established the City of Tucson Self-Insured Health Benefits Trust. The mayor and council shall adopt a Trust Agreement that sets forth the specific terms of the Health Benefits Trust, with a stop-loss provision shall be incorporated into the Trust Agreement.
Sec. 22-81.2. Initially, the Trust shall provide funding for medical and pharmacy benefits made available to officers, employees and retirees of the city and their dependents. In the uniform discretion of the city, tax-preferred health care funding vehicles such as health savings accounts and health reimbursement accounts may be funded through the Trust in connection with the self-insured health plan coverage. The Trust may be expanded at future dates to include the self-funding of other employee welfare benefits as directed by the mayor and council and as may be authorized by the annual appropriation of funds by the mayor and council.
Sec. 22-81.3. The Trust shall be held separate from the general assets of the city and the Self-Insured Trust Fund established pursuant to Tucson Code Chapter 18. The Trust Agreement may be amended by the mayor and council at any time in their discretion. The board shall have the power and discretion to recommend amendments to the Trust Agreement to the mayor and council, and shall be afforded a reasonable opportunity to review and comment on any proposed amendments before action is taken by the mayor and council.
Sec. 22-81.4. An annual audit of the Trust Fund shall be conducted by an external auditor designated by the board. A copy of the audit report shall be kept on file in the city's retirement and benefits office for a period of not less than five (5) years.
Sec. 22-81.5. The city manager shall designate a risk management consultant or an insurance administrator licensed pursuant to Title 20, Chapter 2, Article 3 of the Arizona Revised Statutes. Any insurance administrator or risk management consultant shall present evidence of licensure in accordance with state law to the board periodically and upon request.
Sec. 22-81.6. Any health benefits plan adopted by the city shall include terms and conditions of coverage and exclusions of coverage. Neither the implementation of the Self-Insured Health Benefits Trust, nor anything in a benefit plan document, the Trust Agreement or this Chapter 22, Article IV of the Tucson Code shall be interpreted to expand or increase the liability of the city for any health benefit claim.
(Ord. No. 11628, § 3, 3-5-19)