HomeMy WebLinkAbout[04c] FSA AmendmentC[T1' OF ST. IU.SkME[ r
Council Agenda Item 4 C
MEETING DATE:
April 2, 2009
AGENDA ITEM: FSA Amendment -Requested Action: Authorize the
Mayor and Administrator to execute Resolution 2009-006 amending the FSA Cafeteria Plan.
SUBMITTED BY:
BOARD/COMMISSION/COMMITTEE RECOMMENDATION:
PREVIOUS COUNCIL ACTION:
BACKGROUND INFORMATION: Effective April 1, 2009, group health plans that are not excepted
benefits under the HIPAA portability rules will be required to permit special enrollment in two new
circumstances. The first new special enrollment opportunity adds loss of eligibility for Medicaid or
coverage under a state children's health insurance program (SCHIP) to the types of coverage losses that
can give rise to special enrollment rights. The second new opportunity arises if an employee or
dependent becomes eligible for a state premium assistance subsidy under the plan through Medicaid or
SCHIP. (States may offer such subsidies to eligible low-income children and their families.) Special
enrollment under these two new circumstances must be requested within 60 days after the termination
of coverage or the determination of eligibility for a state premium assistance subsidy, as applicable. In
contrast, as noted above, a 30-day period applies to the special enrollment rights that are already in
effect. This difference in special enrollment timeframes can create an added complexity for plan
sponsors and administrators.
In order to update your current Cafeteria Plan Document and Summary Plan Description with the
required language to allow for the changes described above, I am recommending a full restatement of
your documents to include all prior amendments and SMM's since your last restatement date of
9/1/2001. ERISA requires that Plan Documents be restated every five years if there are changes and
every 10 years regardless of any plan changes. Although you are not governed by ERISA, due to the
number of changes that have been made to the Plan since your last restatement date, I encourage you
to consider making the change at this time. In addition, with this restatement, we will be able to update
your documents in our new program which will allow us to provide future restatements at no charge.
Attached is a Board Resolution to amend and restate your documents. Please have this signed and
returned to me by April 1St. If this is not possible, please notify me by that date. As indicated in your
Service Agreement, the charge for amending and restating your documents will be $550.
BUDGET/FISCAL IMPACT: $ 550.00
ATTACHMENTS: Resolution 2009-006
REQUESTED COUNCIL ACTION: Authorize the Mayor and Administrator to execute resolution 2009-
006amending the employee cafeteria plan document and summary plan description to bring the plan to
current State and Federal regulations.
Resolution 2009-006
Amending the FSA Cafeteria Plan
WHEREAS, the City of St. Joseph previously adopted the Flexible Benefit Plan on February 1, 2002; and
WHEREAS, the City of St. Joseph desires to amend and restate such Plan to include the following:
The Plan desires to amend and restate the Plan to incorporate all previous Summary of
Material Modifications and to comply with the most recent and relevant regulatory
changes since the last amendment and restatement of the Plan.
NOW, THEREFORE, BE IT RESOLVED, that the City of St. Joseph Flexible Benefit Plan be and the same is
amended and restated effective as of April 2, 2009;
BE IT FURTHER RESOLVED, that any property members of the City are hereby authorized to make such
contributions from the funds of the City as are necessary to carry out the provisions of said plan at
anytime; and
BE IT FURTHER RESOLVED, that in the event any conflict arises between the provisions of said Plan and
the Employee Retirement Income Security Act of 1974 (FRIBA) or any other applicable law or regulation
(as such law or regulation may be interpreted or amended), the City shall resolve such conflict in a
manner which complies with ERISA or such law or regulation.
Adopted this day of .2009
AI Rassier, Mayor
Judy Weyrens, Administrator