HomeMy WebLinkAboutR-2013-117 Amending Section 125 Flexible Benefit Plan due to Healthcare Reform RESOLUTION NO. R- 2013 -117
A RESOLUTION AMENDING THE SECTION 125 FLEXIBLE BENEFIT PLAN DOCUMENT
FOR A MID -YEAR ELECTION DUE TO HEALTHCARE REFORM FOR THE CITY OF
RIVERSIDE MISSOURI
WHEREAS, the Board of Aldermen previously approved the Cafeteria Plan, Flex
Spending Account, and Dependent Care Assistance Plan on January 15 2001, as amended;
and
WHEREAS, the Board of Aldermen find there is a need to update the Section 125
Cafeteria Plan, Flex Spending Account and Dependent Care Assistance Plan as set forth in the
Section 125 Flexible Benefit Plan and to further modify the plan year to run from July 1 through
June 30; and
WHEREAS, Section XI of the Section 125 Flexible Benefit Plan ( "plan ") permits
amendment to the Plan;
WHEREAS, the Employer desires to amend the Plan in order to permit additional
election changes during Plan years beginning in 2013 in accordance with healthcare reform;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE
CITY OF RIVERSIDE, MISSOURI, AS FOLLOWS:
THAT, the Plan is hereby amended, effective upon execution of this amendment unless
otherwise specified in this Amendment, as follows:
1.
Section 4.03 of the Plan is amended by adding a new paragraph 4.03(0 to the end of
that section as follows:
"(0 Special Election Change 2014 Plan Year. Notwithstanding any other provision of the Plan to
the contrary and only in the case where the 125 Plan is a non - calendar year plan, effective for
the first day of the plan year beginning in 2013, an Eligible Employee may:
(i) Revoke or change his Elective Contribution for any Group Medical Insurance as
listed in Section F.1. of the Plan's Adoption Agreement once during the plan
year, without regard to whether there has been a change in status or other
permissible event under the Treasury Regulations; or
(ii) If the Eligible Employee failed to make and Elective Contribution for any benefit
listed in Section F.1. of the Plan's Adoption Agreement prior to the deadline for
making such election under applicable law and the Plan document for the plan
year beginning in 2013, make a new Elective Contribution election for such
coverage during the plan year, without regard to whether there has been a
change in status or other permissible event under the Treasury Regulations.
An election change under this provision shall be effective for the balance of the plan year
following the change of election unless a subsequent event allows for a further election change
RESOLUTION NO. R- 2013 -117
and shall become effective no earlier than the first day of the next calendar month following the
date that the election change was filed, or as soon as administratively possible thereafter.
FURTHER THAT the City Administrator, Mayor and /or Finance Director are hereby
• authorized to execute all such other documents necessary to implement the Plan Amendment
and to set up adequate accounting and administrative procedures to provide benefits under the
Plan Amendment.
PASSED AND ADOPTED b he Board of Aldermen and APPROVED by the Mayor of
the City of Riverside, Missouri, the day of November, 2013.
It ` M or Kathleen Lose
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Robin l Cit Clerk
CITY OF
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2950 NW Vivion Road
Riverside, Missouri 64150
AGENDA DATE: 2013 - -
TO: Mayor and Board of Aldermen
FROM: Meredith Hauck, Director of Administration
RE: Mid -Year Election for Section 125 Plan
Under Healthcare Reform, employees have the option to enroll in individual major medical plans through the
Exchange to have coverage beginning January 1, 2014. Generally, the 125 Plan (Flexible Spending Plan) rules
do not permit a participant to change his or her election to pay for health care premiums in the middle of a
plan year except upon events specified in the 125 Plan regulations. In order to allow all individuals to have the
opportunity to elect health coverage through the Exchange or to elect employer provided coverage, the IRS
provided special relief for non - calendar year 125 Plans. An employer may amend its 125 Plan to allow a
participant to change his or her election under the plan one time during the plan year which began in 2013.
This amendment to our 125 Plan document will provide our employees with this opportunity.
RESOLUTION NO. R- 2013 -052
A RESOLUTION ADOPTING AND RATIFYING A SECTION 125 FLEXIBLE BENEFIT PLAN
DOCUMENT FOR THE CITY OF RIVERSIDE
WHEREAS, the Board of Aldermen previously approved the Cafeteria Plan, Flex
Spending Account, and Dependent Care Assistance Plan on January 15 2001, as amended;
and
WHEREAS, the Board of Aldermen find there is a need to update the Section 125
Cafeteria Plan, Flex Spending Account and Dependent Care Assistance Plan as set forth in the
Section 125 Flexible Benefit Plan and to further modify the plan year to run from July 1 through
June 30; and
WHEREAS, the Board of Aldermen further find it in the best interest to approve and
ratify the plan and related servicing agreements attached hereto as Exhibit A and Exhibit B for
services provided by American Fidelity Assurance Company;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE
CITY OF RIVERSIDE, MISSOURI, AS FOLLOWS:
THAT the Section 125 Flexible Benefits Plan Adoption Agreement effective as of July
1, 2013 is hereby approved, adopted, and ratified, and that the Mayor and /or City Administrator
are hereby authorized and directed to execute and deliver such agreement to American Fidelity
Assurance Company as the third party administrator to assist in the administration of the Plan;
and
FURTHER THAT the Statement of Terms and Conditions of Flex Spending Account
Recordkeeping by American Fidelity Assurance Company attached hereto as Exhibit B is
hereby approved and ratified; and
FURTHER THAT the City Administrator, Mayor and /or Finance Director are hereby
authorized to execute all such other documents necessary to implement the Plan and to set up
adequate accounting and administrative procedures to provide benefits under the Plan.
FURTHER THAT the proper officers of City of Riverside shall act as soon as possible to
notify the employees of the group of the adoption of the Cafeteria Plan by delivering to each
employee a copy of the summary description of the Plan in the form of the Summary Plan
Description presented to this meeting, which form is hereby approved.
PASSED AND ADOPTED by the Board of Aldermen and APPROVED by the Mayor of
the City of Riverside, Missouri, the _ day of July, 2013.
Mayor Kathleen L. Rose
ATTEST:
Robin Littrell, City Clerk