HomeMy WebLinkAboutReso 2011-229RESOLUTION NO. 2011-229
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ADOPTING THE CITY OF CHULA VISTA
CAFETERIA BENEFITS PLAN FOR 2012
WHEREAS, the Intemal Revenue Code requires that the Section 125 Cafeteria Benefits Plan
offered by the City to its employees be in a written document and that the document be formally
adopted by the City Council on or before the first day of the plan year; and
WHEREAS, in June 1998, the City established its first Section 125 Cafeteria Benefits Plan;
and
WHEREAS, in compliance with Internal Revenue Code §125(d) the City Council annually
adopts a written plan document prior to the first day of the plan year; and
WHEREAS, the first day of the City's plan year is January 1, 2012; and
WHEREAS, this Plan Document lays out how the City offers eligible employees the choice
between cash and certain nontaxable benefits (such as health insurance), thereby allowing employees
to pay for the benefits they choose on a pre-tax basis; and
WHEREAS, the specific health plans offered and their structure are not part of this Cafeteria
Plan Document; and
WHEREAS, they are included in what is known as the Summary Plan Document that was
given to eligible employees as part of their open enrollment materials to assist them in making their
benefit choices; and
WHEREAS, the plans offered and their structure are determined afrer our broker, Barney
and Barney, extensively markets and negotiates with providers to provide coverage comparable to
the prior year while keeping the increase in costs to the City and its benefited employees to a
minimum; and
WHEREAS, all employee groups aze advised of the offers and the plan structures that will
provide the least increase in premium costs; and
WHEREAS, under current cafeteria plan regulations having an approved written plan is
critical; and
WHEREAS, without a written plan or if the written plan does not comply with applicable
requirements regarding content and timing of adoption, then the plan is not a cafeteria plan and
employees' elections will be taxable; and
Resolution No. 2011-229
Page 2
WHEREAS, the City has timed its open enrollment period for 2012 to comply with these
regulations and to meet provider cutoff deadlines for enrollment to ensure employees are covered
without interruption; and
WHEREAS, the City's Plan includes the following required information: description of
available benefits, participation rules, election procedures, manner of contributions, maximum
amount of contributions, the plan year, and the plans provisions for complying with flexible spending
arrangements (FSAs).
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby adopt the City of Chula Vista Cafeteria Benefits Plan for 2012.
Presented by
Kelley con
Director of Human Resources
and Information Technology Services
Approved as to Form by
G en R. oogins
Ci Atto ey
Resolution No. 2011-229
Page 3
PASSED, APPROVED and ADOPTED by the City Council of the City of Chula Vista,
Califomia, this 6th day of December 2011 by the following vote:
AYES: Councilmembers: Aguilar, Bensoussan, Castaneda, Ramirez and Cox
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Cheryl Cox, yor
ATTEST:
Donna R. Norris, CMC, City Clerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
I, Donna R. Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2011-229 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 6th day of December 2011.
Executed this 6th day of December 2011.
Donna R. Norris, CMC, City Clerk