R-36-26 to Approve a Retirement Healthcare Funding Plan�E1VIUIVT
R_3�_2�
418 Main Street I Lemont, IL 60439
TO: Village Board Meeting
FROM: Stacy Patrianakos, Administration
THROUGH:
SUBJECT: Resolution to Approve a Retirement Healthcare Funding Plan
DATE: April 27, 2026
SUMMARY/BACKGROUND
The proposed resolution adopts the NPPFA Retirement Healthcare Funding Plan to help the
Village responsibly fund future retiree healthcare obligations for eligible employees.
Participation provides a cost-effective, structured approach to long-term planning.
ANALYSIS
Consistency with Village Policy
STAFF RECOMMENDATION
Approval of Resolution
BOARD ACTION REQUESTED
Approval of Resolution
ATTACHMENTS
04272026 Resolution-115 Plan-525-43.2-Lemont (003).pdf
08-Retiree Death Benefits-115 Plan-525-85-Lemont.pdf
02-Specifications-115 Plan-525-44.2-Lemont.pdf
VILLAGE OF LEMONT
RESOLUTION NO. �I
Resolution Approving Participation in the NPPFA Retirement Healthcare
Funding Plan for Eligible Employees
ADOPTED BY THE
PRESIDENT AND BOARD OF TRUSTEES
OF THE VILLAGE OF LEMONT
THIS 271' DAY OF APRIL 2026
Published in pamphlet form by authority of the
President and Board of Trustees of the Village of
Lemont, Counties of Cook, Will and DuPage,
Illinois on this 27TH day of April 2026.
VILLAGE OF LEMONT
Resolution Approving Participation in the NPPFA Retirement Healthcare
Funding Plan for Eligible Employees
WHEREAS the Village of Lemont is a member of the National Public Pension Fund
Association (NPPFA); and
WHEREAS NPPFA offers a Retirement Healthcare Funding Plan (RHF Plan) and Retiree Death
Benefit Plan (RDB Plan) for participating employers; and
WHEREAS the Village desires to adopt these plans to provide retirement healthcare funding
benefits for eligible employees, at this time;
NOW, THEREFORE, BE IT RESOLVED by the President and Board of Trustees of the Village
of Lemont, Cook, DuPage and Will Counties, Illinois, as follows:
SECTION ONE: The Village hereby adopts the NPPFA Retirement Healthcare
Funding Plan and Retiree Death Benefit Plan for eligible
employees, as may be amended from time to time.
SECTION TWO: The Village authorizes participation in the associated
administrative and investment services necessary to implement the
plans.
SECTION THREE: State Street Bank and Trust is hereby appointed as trustees for the
plan.
SECTION FOUR: The Village Administrator (or designee) is authorized to act as
program coordinator and to execute all necessary agreements and
documents to implement and administer the plans.
ADOPTED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF LEMONT, COUNTIES OF COOK, WILL, AND DUPAGE,
ILLINOIS, ON THIS 27TH DAY OF APRIL 2026.
PRESIDENT AND VILLAGE BOARD MEMBERS:
AYES: NAYS: ABSENT:
Samuel J. Forzley
Janelle Kittrid e
g
V
Ken McClafferty
Kevin Shaughnessy
Rick Sniegowski
Ron Stapleton
Attest:
Charlene M. Smollen, Village Clerk
OF
0
(SEAL
111inois
ABSTAIN:
John Egofske, Village President
RETIREE DEATH BENEFITS PLAN
Village of Lemont
Retiree Healthcare Funding Trust & Plan
RETIREE DEATH BENEFITS PLAN
Table of Contents
Article I Preamble
1.01 Establishment of Plan
1.02 Purpose of Plan
Article II Definitions
2.01
'Beneficiary"
2.02
"Employer"
2.03
"Entry Date"
2.04
"Participant"
2.05
"Plan Administrator"
2.06
"Plan Year"
2.07
"Retiree"
Article III Eligibility
3.01 General Requirements
Article IV Amount of Benefits
4.01 Annual Benefits Provided by the Plan
4.02 Cost of Coverage
Article V Payment of Benefits
5.01 Eligibility for Benefits
5.02 Claims for Benefits
Article VI Plan Administration
6.01
Allocation of Authority
6.02
Provision for Third -Party Plan Service Providers
6.03
Several Fiduciary Liability
6.04
Compensation of Plan Administrator
6.05
Bonding
6.06
Payment of Administrative Expenses
6.07
Timeliness of Payments
Article VII Claims Procedure
7.01
Procedure if Benefits are Denied Under the Plan
7.02
Requirement for Written Notice of Claim Denial
7.03
Right to Request Hearing on Benefit Denial
7.04
Disposition of Disputed Claims
7.05
Preservation of Other Remedies
Table of Contents ( continued)
Article VIII Amendment or Termination of Plan
8.01 Permanency
8.02 Employer's Right to Amend
8.03 Employer's Right to Terminate
Article IX General Provisions
9.01
No Employment Rights Conferred
9.02
Nonalienation of Benefits
9.03
Mental or Physical Incompetency
9.04
Inability to Locate Payee
9.05
Requirement of Proper Forms
9.06
Source of Payments
9.07
Tax Effects
9.08
Multiple Functions
9.09
Gender and Number
9.10
Headings
9.11
Applicable Laws
9.12
Severability
RETIREE DEATH BENEFITS PLAN
ARTICLE I
Preamble
THIS INSTRUMENT made and published by the Village of Lemont (hereinafter called "Employer") on
the , 202_, creates the Village of Lemont Retiree Death Benefits Plan, as follows:
1.01 Establishment of Plan
The Employer named above hereby establishes a Retiree Death Benefits Plan as of the day of
, 202
1.02 Purpose of Plan
This Plan has been established to pay to the Beneficiaries of the deceased eligible Retirees of the
Employer a death benefit amount equal to the Employer "special reversion" amount paid to the Employer
pursuant to the Name of Employer Retiree Healthcare Funding Plan, and Name of Employer Retiree
Healthcare Funding Plan 115 Trust Agreement.
ARTICLE II
Definitions
The following words and phrases as used herein shall have the following meanings, unless a different
meaning is plainly required by the context:
2.01 "Beneficiary" means the person or persons who have been designated to receive the Retiree's
death benefit payable pursuant to Section 4.01. A Retiree may designate any person or persons (who may
be designated contingently or successively and who may be an entity other than a natural person) as his
Beneficiary or Beneficiaries to whom the Retiree's death benefit is paid. Each Beneficiary designation
shall be in the form prescribed by the Plan Administrator and will be effective only when filed with the
Plan Administrator during the Retiree's lifetime. Each Beneficiary designation filed with the Plan
Administrator will cancel all Beneficiary designations previously fled with the Plan Administrator. If
any Retiree fails to properly designate a Beneficiary in the manner provided above, or if the Beneficiary
designated by the Retiree dies before the Retiree, the default Beneficiary(ies) shall be the Retiree's heirs at
law as if the Retiree died in intestate as an Illinois resident.
2.02 "Employer" means the unit of state or local government creating this Plan, or any affiliate or
successor thereof that likewise adopts this Plan.
2.03 "Entry Date" means the first day the Participant meets the eligibility requirements of Article III
as of such Date.
2.04 "Participant" means any Retiree who has met the eligibility requirements set forth in Article III.
2.05 "Plan Administrator" means the Employer or other person appointed by the Employer who has
the authority and responsibility to manage and direct the operation and administration of the Plan.
2.06 "Plan Year" means the annual accounting period of the Plan, which begins on the day of
202 and ends on the day of , 202 , with respect to the first Plan Year, and
thereafter as long as this Plan remains in effect, the period that begins on January 1st, and ends on
December 31 st.
2.07 "Retiree" means any individual who, while in the service of the Employer, was considered to be
in a legal employer -employee relationship with the Employer for federal withholding tax purposes, and
who was part of the classification of employees designated as covered by the Name of Employer Retiree
Healthcare Funding Plan.
ARTICLE III
Eligibility
Each Retiree who meets the eligibility requirements outlined in the Name of Employer Retiree Healthcare
Funding Plan shall be eligible to participate in this Plan.
ARTICLE IV
Amount of Benefits
4.01 Death Benefit Provided by the Plan
Each Participant's Beneficiary(ies) shall be entitled to a payment upon the death of the Participant in the
amount of the account balance of the Participant in the Name of Employer Retiree Healthcare Funding
Plan that is forfeited to the Employer pursuant to the terms of the Name of Employer Retiree Healthcare
Funding Plan "special forfeiture provision."
4.02 Cost of Coverage
The expense of providing the benefits set out in Section 4.01 shall be contributed solely from the "special
forfeiture" amounts actually paid to the Employer with respect to the Retiree pursuant to the Name of
Employer Retiree Healthcare Funding Plan.
ARTICLE V
Payment of Benefits
5.01 Eligibility for Benefits
(a) Each Participant in the Plan shall be entitled to a death benefit hereunder on or after the Entry
Date of his or her participation (and after the effective date of the Plan), subject to the limitations
contained in this Article V.
(b) In order to be eligible for benefits, the Participant must separate from service or separate from
service and meet the benefit eligibility criteria outlined in the Name of Employer Retiree
Healthcare Funding Plan Adoption Agreement and must be a participant in the Name of
Employer Retiree Healthcare Funding Plan prior to his date of death.
5.02 Claims for Benefits
No benefit shall be paid hereunder unless a Beneficiary has first submitted a written claim for benefits to
the Plan Administrator on a form specified by the Plan Administrator, and pursuant to the procedures set
out in Article VI, below. Upon receipt of a properly documented claim, the Plan Administrator shall pay
the Beneficiary the benefits provided under this Plan as soon as is administratively feasible.
ARTICLE VI
Plan Administration
6.01 Allocation of Authority
The Employer shall control and manage the operation and Administration of the Plan. The Employer shall
have the exclusive right to interpret the Plan and to decide all matters arising thereunder, including the
right to remedy possible ambiguities, inconsistencies, or omissions. All determinations of the Employer
with respect to any matter hereunder shall be conclusive and binding on all persons.
Without limiting the generality of the foregoing, the Employer shall have the following powers and
duties:
To decide on questions concerning the Plan and the eligibility of any Employee to participate in the Plan,
in accordance with the provisions of the Plan;
To determine the amount of benefits that shall be payable to any person in accordance with the provisions
of the Plan; to inform the Plan Administrator, as appropriate, of the amount of such benefits; and to
provide a full and fair review to any Participant whose claim for benefits has been denied in whole or in
part; and
To designate other persons to carry out any duty or power which would otherwise be a fiduciary
responsibility of the Plan Administrator, under the terms of the Plan.
To require any person to furnish such reasonable information as it may request for the purpose of the
proper administration of the Plan as a condition to receiving any benefits under the Plan;
To make and enforce such rules and regulations and prescribe the use of such forms as he shall deem
necessary for the efficient administration of the Plan.
6.02 Provision for Third -Party Plan Service Providers
The Plan Administrator, subject to approval of the Employer, may employ the services of such persons as
it may deem necessary or desirable in connection with operation of the Plan. The Plan Administrator, the
Employer (and any person to whom it may delegate any duty or power in connection with the
administration of the Plan), and all persons connected therewith may rely upon all tables, valuations,
certificates, reports and opinions furnished by any duly appointed actuary, accountant, (including
Employees who are actuaries or accountants), consultant, third party administration service provider,
legal counsel, or other specialist, and they shall be fully protected in respect to any action taken or
permitted in good faith in reliance thereon. All actions so taken or permitted shall be conclusive and
binding as to all persons.
6.03 Several Fiduciary Liability
To the extent permitted by law, neither the Plan Administrator nor any other person shall incur any
liability for any acts or for failure to act except for his own willful misconduct or willful breach of this
Plan.
6.04 Compensation of Plan Administrator
Unless otherwise agreed to by the Employer, the Plan Administrator shall serve without compensation for
services rendered in such capacity, but all reasonable expenses incurred in the performance of his duties
shall be paid by the Employer.
6.05 Bonding
Unless otherwise determined by the Employer, or unless required by any Federal or State law, the Plan
Administrator shall not be required to give any bond or other security in any jurisdiction in connection
with the administration of this Plan.
6.06 Payment of Administrative Expenses
All reasonable expenses incurred in administering the Plan, including but not limited to administrative
fees and expenses owing to any third party administrative service provider, actuary, consultant,
accountant, attorney, specialist, or other person or organization that may be employed by the Plan
Administrator in connection with the administration thereof, shall be paid by the Employer.
6.07 Timeliness of Payment for Benefits
Payment for Benefits shall be made as soon as administratively feasible after the required forms and
documentation have been received by the Plan Administrator.
ARTICLE VII
Claims Procedure
7.01 Procedure if Benefits are Denied Under the Plan
Any Beneficiary, or his duly authorized representative may file a claim for a plan benefit to which the
claimant believes that he is entitled. Such a claim must be in writing on a form provided by the Plan
Administrator and delivered to the Plan Administrator, in person or by mail, postage paid. Within thirty
(30) days after receipt of such claim, the Plan Administrator shall send to the claimant, by mail, postage
prepaid, notice of the granting or denying, in whole or in part, of such claim, unless special circumstances
require an extension of time for processing the claim. In no event may the extension exceed forty-five
(45) days from the end of the initial period. If such extension is necessary, the claimant will be given a
written notice to this effect prior to the expiration of the initial 30-day period. If such extension is
necessary due to a failure of the Beneficiary to submit the information necessary to decide the claim, the
notice of extension shall describe the required information and the claimant shall be afforded at least
4
forty-five (45) days from receipt of the notice within which to provide such information. The Plan
Administrator shall have full discretion to deny or grant a claim in whole or in part. If notice of the denial
of a claim is not furnished in accordance with this Section, the claim shall be deemed denied and the
claimant shall be permitted to exercise his right to review pursuant to Sections 7.03 and 7.04.
7.02 Requirement for Written Notice of Claim Denial
The Plan Administrator shall provide, to every claimant who is denied a claim for benefits, written notice
setting forth in a manner calculated to be understood by the claimant:
(a) The specific reason or reasons for the denial;
(b) Specific reference to pertinent Plan provisions on which the denial is based;
(c) A description of any additional material of information necessary for the claimant to perfect the
claim and an explanation of why such material is necessary, and
(d) An explanation of the Plan's claim review procedure.
7.03 Right to Request Hearing on Benefit Denial
Within one -hundred eighty (180) days after the receipt by the claimant of written notification of the denial
(in whole or in part) of his claim, the claimant or his duly authorized representative, upon written
application to the Plan Administrator, in person or by certified mail, postage prepaid, may request a
review of such denial, may review pertinent documents, and may submit issues and comments in writing.
7.04 Disposition of Disputed Claims
Upon its receipt of notice of a request for review, the Plan Administrator shall make a prompt decision on
the review. The decision on review shall be written in a manner calculated to be understood by the
claimant and shall include specific reasons for the decision and specific references to the pertinent plan
provisions on which the decision is based. The decision on review shall be made not later than sixty (60)
days after the Plan Administrator's receipt of a request for a review, unless special circumstances require
an extension of time for processing, in which case a decision shall be rendered not later than one hundred -
twenty (120) days after receipt of a request for review. If an extension is necessary, the claimant shall be
given written notice of the extension prior to the expiration of the initial sixty (60) day period. If notice
of the decision on the review is not furnished in accordance with this Section, the claim shall be deemed
denied and the claimant shall be permitted to exercise his right to legal remedy pursuant to Section 7.05.
7.05 Preservation of Other Remedies
After exhaustion of the claims procedures provided under this Plan, nothing shall prevent any person from
pursuing any other legal or equitable remedy otherwise available.
ARTICLE VIII
Amendment or Termination of Plan
8.01 Permanency
While the Employer fully expects that this Plan will continue indefinitely, due to unforeseen, future
business contingencies, permanency of the Plan will be subject to the Employer's right to amend or
terminate the Plan, as provided in Sections 8.02 and 8.03, below.
8.02 Employer's Right to Amend
The Employer reserves the right to amend the Plan at any time and from time -to -time, and retroactively if
deemed necessary or appropriate to meet the requirements of the Code, or any similar provisions of
subsequent revenue or other laws, or the rules and regulations in effect under any of such laws or to
conform with governmental regulations or other policies, to modify or amend in whole or in part any or
all of the provisions of the Plan.
8.03 Employer's Right to Terminate
The Employer reserves the right to discontinue or terminate the Plan at any time without prejudice.
ARTICLE IX
General Provisions
9.01 No Employment Rights Conferred
Neither this Plan nor any action taken with respect to it shall confer upon any person the right to be
continued in the employment of the Employer.
9.02 Nonalienation of Benefits
No benefit under the Plan shall be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance or charge, and any attempt to do so shall be void. No benefit under the
Plan shall in any manner be liable for or subject to the debts, contracts, liabilities, engagements or torts of
any person . If any person entitled to benefits under the Plan becomes bankrupt or attempts to anticipate,
alienate, sell, transfer, assign, pledge, encumber or charge any benefit under the Plan, or if any attempt is
made to subject any such benefit to the debts, contracts, liabilities, engagements or torts of the person
entitled to any such benefit, except as specifically provided in the Plan, then such benefit shall cease and
terminate in the discretion of the Plan Administrator, and he may hold or apply the same or any part
thereof to the benefit of any dependent of such person, in such manner and proportion as he may deem
proper.
9.03 Mental or Physical Incompetency
If the Plan Administrator determines that any person entitled to payments under the Plan is incompetent
by reason of physical or mental disability, he may cause all payments thereafter becoming due to such
person to be made to any other person for his benefit, without responsibility to follow the application of
amounts so paid. Payments made pursuant to this Section shall completely discharge the Plan
Administrator and the Employer.
9.04 Inability to Locate Payee
If the Plan Administrator is unable to make payment to any Beneficiary or other person to whom a
payment is due under the Plan because he cannot ascertain the identity or whereabouts of such
Beneficiary or other person after reasonable effort have been made to identify or locate such person
(including a notice of the payment so due mailed to the last known address of such Beneficiary or other
person as shown on the records of the Employer), such payment and all subsequent payments otherwise
due to such Beneficiary or other person shall be escheated under the laws of the State of the last known
address of the Participant or other persons eligible for benefits.
9.05 Requirement of Proper Forms
All communications in connection with the Plan made by a Participant or Beneficiary shall become
effective only when duly executed on forms provided by and filed with the Plan Administrator.
9.06 Source of Payments
The amounts actually forfeited to the Employer with respect to an individual Participant pursuant to the
Name of Employer Retiree Healthcare Funding Plan and the Name of Employer Retiree Healthcare
Funding Plan 115 Trust Agreement shall be the sole source of benefits under the Plan. No Participant or
Beneficiary shall have any right to, or interest in, any assets of the Employer, except as provided from
time to time under the Plan, and then only to the extent of the benefits payable under the Plan to such
Beneficiary.
9.07 Tax Effects
Neither the Employer nor the Plan Administrator makes any warranty or other representation as to
whether any payments received by a Beneficiary hereunder will be treated as includible in gross income
for federal or state income tax purposes.
9.08 Multiple Functions
Any person or group of persons may serve in more than one fiduciary capacity with respect to the Plan.
9.09 Gender and Number
Masculine pronouns include the feminine as well as the neuter gender, and the singular shall include the
plural, unless indicated otherwise by the context.
9.10 Headings
The Article and Section headings contained herein are for convenience of reference only, and shall not be
construed as defining or limiting the matter contained thereunder.
9.11 Applicable Laws
The provisions of the Plan shall be construed, administered and enforced according to the laws of the
State of Illinois.
7
9.12 Severability
Should any part of this Plan subsequently be invalidated by a court of competent jurisdiction, the
remainder thereof shall be given effect to the maximum extent possible.
IN WITNESS WHEREOF, we have executed this Plan Agreement the date and year first written above.
EMPLOYER:
Signature of Authorized Official
ATTEST (if applicable)
Signature of Attestor
525-85
SPECIFICATIONS
OF YOUR
RETIREE HEALTHCARE FUNDING PLAN
VILLAGE OF LEMONT
Effective:
VILLAGE OF LEMONT
RETIREE HEALTHCARE FUNDING PLAN
SPECIFICATIONS
TABLE OF CONTENTS
1. SPONSORING ENTITY IDENTIFICATION............................................1
2. PLAN AND TRUST IDENTIFICATION...................................................1
3. DEFINITIONS.............................................................................................1
4. ELIGIBILITY REQUIREMENTS..............................................................2
5. CONTRIBUTIONS AND ACCOUNTS.....................................................2
6. MEDICAL BENEFITS................................................................................2
7. EARNED BENEFITS AND FORFEITURES.............................................3
VILLAGE OF LEMONT
RETIREE HEALTHCARE FUNDING PLAN
SPECIFICATIONS
The undersigned hereby adopts the Village of Lemont Retiree Healthcare Funding Plan ("Plan")
and the Village of Lemont Retiree Healthcare Funding Trust ("Trust") for the benefit of Eligible
Employees, their Dependents and Beneficiaries under the provisions of these specifications. The
definitions set forth in the Plan and Trust shall apply herein unless the context requires
otherwise.
1. SPONSORING ENTITY IDENTIFICATION
Name and Address: Village of Lemont
418 Main Street
Lemont, IL 60439
(a) Contact Person: Stacy Patrianakos
Phone No.: 630-257-1550
Email: spatrianakos(cr�,lemont.il.us
(b) Form of Business: Local Government
(c) Tax Identification No.: 36-6005968
2. PLAN AND TRUST IDENTIFICATION
(a) Name of Plan: VILLAGE OF LEMONT RETIREE HEALTHCARE FUNDING PLAN
(b) Name of Trust: VILLAGE OF LEMONT RETIREE HEALTHCARE FUNDING TRUST
(c) Collectively Bargained Plan:
3. DEFINITIONS
(a) Plan Administrator. The Plan Administrator of the Plan shall be Babbitt
Municipalities Inc.
(b) Effective Date. The Effective Date of the Plan is
(c) Compensation. Compensation (as defined in the Plan) shall be determined on
the basis of the calendar year.
(d) Separation of Service. Any separation of service including furlough or
application of FMLA.
(e) Plan Year. The Plan Year shall be the 12-month period commencing on
January 1 and ending on December 31.
(f) Coverage Period. The period for which Participant elections, if applicable, are
valid under this Plan shall be the calendar year.
4. ELIGIBILITY REQUIREMENTS
(a) Covered Group Requirement. Entry Date. To the extent participation is
authorized under a collective bargaining agreement or policy adopted by the
Board of Trustees of the VILLAGE OF LEMONT, an employee becomes eligible
to participate beginning on the later of the date such employee meets the
following conditions: (i) he or she is an employee of the VILLAGE OF
LEMONT, (ii) he or she has completed his or her probationary period, and (iii)
her or she is enrolled for retirement benefits under the Pension Fund pursuant to
Article 4 of the Illinois Pension Code or the Illinois Municipal Retirement Fund
pursuant to Article 7 of the Illinois Pension Code unless such enrollment is not
otherwise required under the collective bargaining agreement or adopted policy.
5. CONTRIBUTIONS
Contributions. Contributions shall be made in accordance with the current
collective bargaining agreement between the VILLAGE OF LEMONT and any
UNION NAME or otherwise provided in a policy adopted by the Board of
Trustees of the VILLAGE OF LEMONT.
6. MEDICAL BENEFITS
A Participant may be eligible to be reimbursed for the payment of medical benefits (as specified
in the Plan) or for the purchase of insurance made available under the Plan.
(a) Following retirement, a Participant may, as specified in writing by the Trustee, be
eligible to be reimbursed for the following benefits as permitted by applicable
law:
Premiums
• Medicare Part B coverage (or other Medicare premiums)
• Medicare -supplement ("Medigap") insurance
• COBRA continuation coverage
• Other health insurance approved by the Administrator, including any
post -retirement medical plan sponsored by the Sponsoring Entity
• Dental coverage
• Vision care coverage
• Prescription drug coverage
• Qualified long-term care insurance
As permitted by the Plan and applicable law, reimbursement of out-of-pocket medical expenses
such as deductibles, co -pays, prescription drugs, eyeglasses, dental work, hearing aids, etc.
7. EARNED BENEFITS AND FORFEITURES
(a) Earning of Benefit Rights. Benefits shall be earned pursuant to written rules
established by the Trustee.
SPONSORING ENTITY
These Specifications and the corresponding provisions of the Plan and Trust documents are
approved and adopted by the Sponsoring Entity on , 20
Signature:
Title:
525-44.2