The URL can be used to link to this page

Home My WebLink AboutRES 120908-V - Cafeteria Plan Health FSA RESOLUTION NO. ~2 08+ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, AMENDING THE CITY OF GEORGETOWN CAFETERIA PLAN AND THE HEALTH FLEXIBLE SPENDING ACCOUNT WHEREAS, the City Council of the City of Georgetown, Texas (the "City") has heretofore adopted the City of Georgetown Employee Cafeteria Plan (the "Cafeteria Plan"), the City of Georgetown Health Care Spending Account Arrangement (the "Health FSA") and the City of Georgetown Day Care Spending Account Arrangement (the "Dependent FSA") (the Cafeteria Plan, the Health FSA and the Dependent FSA shall be collectively referred to herein as the "Plans") for benefit of the eligible employees of the City; and WHEREAS, the City desires to amend the Plans to incorporate certain design changes and legislative and regulatory developments into the Plans; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, THAT: SECTION 1. Findings. The Plans be and hereby are amended pursuant to the terms of the instruments entitled "Fourth Amendment to the City of Georgetown Employee Cafeteria Plan" attached hereto as Exhibit A, and "Fourth Amendment to the City of Georgetown Health Care Spending Account Arrangement" attached hereto as Exhibit B, respectively, copies of which are attached hereto and are hereby directed to be marked for identification and filed with the records of the City, and the same are hereby approved and adopted on behalf of the City, effective as of the dates therein provided; and SECTION 2. Proceedings. The City Council of the City of Georgetown hereby directs that the appropriate officers of the City are hereby authorized and directed to do and perform all such acts and things, to sign such documents or instruments, and to take any other steps they or any of them may deem necessary, advisable, convenient or proper to effectuate the same and accomplish the purpose of the foregoing. RESOLVED this 9th day of December, 2008. APnE :ATTE George 49arver Sandra D. Lee Mayor City Secretary APP OVED AS TO FORM: C C r!r atricia E. Carts City Attorney Cafeteria Plan Resolution No. • Exhibit A FOURTH AMENDMENT TO THE CITY OF GEORGETOWN EMPLOYEE CAFETERIA PLAN WHEREAS, the City of Georgetown, Texas (the "City") has heretofore adopted the City of Georgetown Employee Cafeteria Plan (the "Plan") for the benefit of its eligible employees; WHEREAS, the City desires to amend the Plan to provide that Participants who elect coverage under a high deductible health plan sponsored by the City may also elect coverage under a "limited-purpose health FSA" (as defined in Revenue Ruling 2004-45) under the City of Georgetown Health Care Spending Account Arrangement; and NOW, THEREFORE, the Plan shall be amended as follows and such amendment shall supersede the provisions of the Plan to the extent those provisions are inconsistent with the provisions of such amendment: 1. Effective as of January 1, 2009, the last sentence of Section 3.02 of the Plan shall be deleted and the following shall be substituted therefor: "Notwithstanding anything to the contrary in the Plan or in any plan documents of the programs providing benefits under the Plan, in no event shall a Participant be permitted to elect Health Care Spending Account Benefits under Section 5.01(a) that provide reimbursement for expenses other than vision care, dental care or preventive care (as defined for purposes of Code Section 223(c)(2)(C)) for a Plan Year in which the Participant has coverage under any high deductible health plan (within the meaning of Code Section 223(c)(2)) sponsored by the City." II. As amended hereby, the Plan is specifically ratified and reaffirmed. IN WITNES WHEREOF, the undersigned has caused these presents to be executed this day of 2008. THE CIT F GE G OWN By: Name: o 4e 64'. (!_;9,Lrye-r Title: M"c P Res. 1; o 10 F -V E,xh;b~+ A Houston 3803430v1 0 Exhibit B FOURTH AMENDMENT TO THE CITY OF GEORGETOWN HEALTH CARE SPENDING ACCOUNT ARRANGEMENT WHEREAS, the City of Georgetown, Texas (the "City") has heretofore adopted the City of Georgetown Employee Cafeteria Plan (the "Cafeteria Plan") for the benefit of its eligible employees; and WHEREAS, the City has also heretofore adopted the City of Georgetown Health Care Spending Account Arrangement (the "Health FSA"), which forms part of and is incorporated by reference into the Cafeteria Plan; and WHEREAS, the City desires to amend the Health FSA to offer a "limited-purpose health FSA" (as defined in Revenue Ruling 2004-45) for participants enrolled in any high deductible health plan sponsored by the City; and WHEREAS, the City desires to amend the Health FSA in certain other respects; NOW, THEREFORE, the Health FSA shall be amended as follows and such amendments shall supersede the provisions of the Health FSA to the extent its provisions are inconsistent with the provisions of such amendments: 1. Effective as of January 1, 2009: 1. The first paragraph of Section 1.06 of the Health FSA shall be deleted and the following shall be substituted therefor: "1.06 `Eligible Health Care Expenses' means those expenses incurred by the Employee or the Employee's Spouse or Dependents, on or after , 2004, [Insert date provided in Section I.1 of executed copy of First Amendment] for items of medical care as described in Section 213(d)(1) or (2) of the Code, but shall not include (i) an expense incurred for the payment of premiums under any health insurance plan, whether or not sponsored by the City, (ii) amounts paid for any medicines, drugs or dietary supplements purchased without a physician's prescription if such medicines, drugs or dietary supplements are not identified on Exhibit A of the Arrangement, which Exhibit may be revised by the Plan Administrator from time to time without the need for a formal amendment to the Arrangement, in which case a revised Exhibit A will be attached hereto, and (iii) amounts paid for long term care service within the meaning of Code Section 7702(B)(s) or qualified long term care contracts within the meaning of the Code Section 7702(B)(b). Notwithstanding any provision in the Arrangement to the contrary, with respect to an Employee who is enrolled in any `high deductible health plan' (within the meaning of Code Section 223(c)(2)) sponsored by the City, the term `Eligible Health Care Expenses' shall include only expenses described in the preceding sentence incurred solely for vision care, dental care or preventive care (as defined 1a09D'?- V Exh;bs*f F3~ pa jc (off Houston 3802533v1 for purposes of Code Section 223(c)(2)(C)) by the Employee or the Employee's Spouse or Dependents." 2. Section 3.02 of the Health FSA shall be deleted and the following shall be substituted therefor: "3.02 Required Premiums As a condition to continued eligibility to receive benefits under this Arrangement, a Participant shall pay the premiums corresponding to the benefit level selected; provided, however, that the City may, but is not required to, pay a portion of such premiums on behalf of any Participant. The amount and timing of any such payment shall be determined by the City in its sole discretion. Such payments made by the City, if any, will be subject to all applicable nondiscrimination requirements, including those set forth in Code Section 125, and any applicable limits on employer contributions set forth in Internal Revenue Service guidance." 3. Section 3.03 of the Health FSA shall be deleted and the following shall be substituted therefor: "3.03 Payment of Premiums The normal mode of a Participant's payment of premiums due for a Plan Year shall be by deduction from the Participant's paychecks during the Plan Year, pursuant to the Participant's Enrollment Form." II. As amended hereby, the Health FSA is specifically ratified and reaffirmed. ~/I~N WITNESS HEREOF the undersigned has caused these presents to be executed this day of 2008. THE CIT F GE=ET 11 By : Name: • ~~LV V~r Title: Y~/I G1 ~1 f Res. ! ,ogcg-V Exhib;f S p492- 2- Houston 3802533v1