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ITEM: |
CONSENT
CALENDAR |
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7. |
CONSIDER APPROVAL OF
RESOLUTION NO. 2013-03 REGARDING AMENDMENT TO THE FLEXIBLE BENEFITS PLAN |
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Meeting
Date: |
March 18, 2013 |
Budgeted: |
N/A |
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From: |
David J.
Stoldt, |
Program/ |
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General
Manager |
Line Item No.: |
N/A |
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Prepared
By: |
Cynthia
Schmidlin |
Cost Estimate: |
None |
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General Counsel Approval: N/A |
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Committee Recommendation: The Administrative Committee reviewed this item on March 11, 2013 and recommended approval. |
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CEQA Compliance:
N/A |
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SUMMARY: The District sponsors a Flexible Benefits Plan, under the terms of Internal Revenue Service Section 125. Employees have the opportunity to use pre-tax dollars to pay for employee-paid health premiums. They may also choose to redirect a portion of their salaries into an Unreimbursed Medical Expenses Plan and/or a Dependent Care Expense Reimbursement Plan.
The maximum amount allowable for redirection into the Unreimbursed Medical Expenses Plan was set by the Board at $5,000, as of Plan Year 2007. The Patient Protection and Affordable Care Act of 2010 (the “Affordable Care Act”) amended Internal Revenue Code Section 125(i) to limit salary reductions for Health Care Savings Accounts to $2,500, effective January 1, 2013. That change has been made administratively for Plan Year 2013. The following resolution will officially amend the District’s Flexible Benefits Plan Document to conform with current law.
IMPACTS TO STAFF/RESOURCES: There is no cost associated with this action.
RECOMMENDATION: That the Board approve Resolution 2013-03 (Exhibit 7-A) amending the District’s Flexible Benefits Plan.
BACKGROUND: The District has sponsored a Flexible Benefits Plan, under the terms of Internal Revenue Service Section 125, since 1996. AFLAC Insurance Company assisted the District in setting up its Plan, in return for allowing employees to voluntarily purchase AFLAC supplemental insurance through a payroll deduction program. Part of AFLAC’s service has been to provide Plan Documents. Sample resolution and amendment documents were received from AFLAC earlier this month and edited slightly to fit District formats.
7-A Resolution 2013 and Attachment I
U:\staff\Boardpacket\2013\20130318\Consent\07\item7.docx