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HomeMy WebLinkAboutR-2014-105 Amendments Section 125 Flexible Benefit Plan Mid-Year Elections RESOLUTION NO. R-2014-105 A RESOLUTION APPROVING AMENDMENTS TO THE SECTION 125 FLEXIBLE BENEFIT PLAN DOCUMENT FOR MID-YEAR ELECTIONS 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, Section XI of the Section 125 Flexible Benefit Plan ("Plan") permits amendment to the Plan; and WHEREAS, the Employer desires to amend the Plan in order to permit expanded application of permitted change rules for health coverage in accordance with Internal Revenue Service Notice 2014-55. 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 the execution of t h is amendment unless otherwise specified in this Amendment, as follows: 1. Section IV (Contributions) is amended by adding paragraph 4.02(h) and 4.02(1) as follows: "(h) Cancellation due to reduction in hours of service. A Participant may cancel group health plan (as that term is defined in Code Section 9832(a)) coverage, except Health FSA coverage, under the Employer's Plan if both of the following conditions are met: (i) The Participant has been in an employment status under which the Participant was reasonably expected to average at least 30 hours of service per week and there is a change in that Participant's status so that the Participant will reasonably be expected to average less than 30 hours of service per week after the change, even if that reduction does not result in the Participant ceasing to be eligible under the group health plan; and (ii) The cancellation of the election of coverage under the Employer's group health plan coverage corresponds to the intended enrollment of the Participant, and any related individuals who cease coverage due to the cancellation, in another plan that provides minimum essential coverage with the new coverage effective no later than the first day of the second month following the month that includes the date the original coverage is cancelled. (i) Cancellation due to enrollment in a Qualified Health Plan. A participant may cancel group health plan (as that term is defined in Code Section 9832(a)) coverage, except Health FSA coverage, under the Employer's Plan if both of the following conditions are met: (i) The Participant is eligible for a Special Enrollment Period (as defined in Code Section 9801(f)) to enroll in a Qualified Health Plan (as described in section 1311 of the Patient Protection and Affordable Care Act (PPACA)) through a competitive marketplace established under section 1311(c) of PPACA Human Services and any other applicable guidance, or the Participant seeks to enroll in a Qualified Health Plan through a Marketplace during the Marketplace's annual open enrollment period; and (ii) The cancellation of the election of coverage under the Employer's group health plan coverage corresponds to the intended enrollment of the Participant and any related individuals who cease coverage due to the cancellation in a Qualified Health Plan through a Marketplace for new coverage that is effective beginning no later than the day immediately following the last day of the original coverage that is cancelled." 2. Other than changes made herein, the Plan, as amended, shall remain in full force and effect. FURTHER THAT the City Administrator and other City Officials are hereby authorized to execute any documents necessary to implement the Plan Amendment and to take such other actions and execute such other documents as may be necessary to carry out the intent of this Resolution. PASSED AND ADOPTED by the Board of Aldermen of the City of Riverside, Missouri, the /64 day of 20_!!I( . Mayor Kathleen L. Rose ATT ST: Robin Littrell, City Clerk CITY OF ,��RIVERSIQF� Upstream from ordinary. 2950 NW Vivion Road Riverside, Missouri 64150 AGENDA DATE: 2014-12-16 TO: Mayor and Board of Aldermen FROM: Stacey Rasco, Executive Assistant RE: Mid-Year Election for Section 125 Plan The Internal Revenue Service has issued two new election change events for participants for the 2015 enrollment year. Under this amendment mid-year election changes under the 125 Plan may be permitted if: • Cancellation due to reduction in hours of service • Cancellation due to enrollment in a Qualified Health Plan 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 2014. This amendment to our 125 Plan document will provide our employees with this opportunity.