Loading...
HomeMy WebLinkAboutReso 2000-433 RESOLUTION NO. 2000-433 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE CITY OF CHULA VISTA CAFETERIA BENEFITS PLAN FOR 2001 WHEREAS, the Internal Revenue Code requires that employers offering cafeteria plans under Section 125 have a written plan document and that the employer adopt the plan document annually; and WHEREAS, in June of 1998, Council authorized updates to the City's flexible benefit plan in compliance with Intemal Revenue Service guidelines; and WHEREAS, the document attached for formal adoption is the result of the meet and confer process and the 2001 Plan Document has been updated to reflect the 2001 beginning Flex Plan amounts, current health plan options, current IRS accepted changes in family status. NOW, THEREFORE, BE IT RESOLVED the City Cotmcil of the City of Chula Vista does hereby adopt the City of Chula Vista Cafeteria Benefits Plan for 2001 as set forth in Exhibit-A. Presented by Approved as to form by d Jo . Kaheny Human Resources Director Resolution 2000-433 Page 2 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, Califomia, this 5th day of December, 2000, by the following vote: AYES: Councilmembers: Davis, Padilia, Rindone, Salas, and Horton NAYS: Councilmembers: None ABSENT: Councilmembers: None Shirley Hort~,'M/gayor ATTEST: Susa~nlge~low~L~,'City Ci'~"~i~ ~ ~, ~ STATE OF C~IFO~ ) -- CO~TY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Sus~ Bigelow, CiW Clerk of Chula Vista, Califomia, do hereby ce~ify that the foregoing Resolution No. 2000-433 was duly passed, approved, ~d adopted by the CiW Co~cil at a regul~ meeting of the Chula Vista City Council held on the 5th day of December, 2000. Executed this 5th day of December, 2000. Sus~ Bigelow, City Clerk R2000-433 EXHIBIT A City of Chula Vista CAFETERIA BENEFITS PLAN January 2001 H:\Home\Personnel\Margarita%2001 Plan Document.doc 1 City of Chula Vista Cafeteria Benefits Plan This is a "Cafeteria Plan" of benefits for City of Chula Vista employees and is intended to qualify under Section 125 of the Internal Revenue Code. ELIGIBILITY FOR PARTICIPATION This Plan is for the exclusive benefit of employees of the City of Chula Vista. Eligible employees are defined as individuals who are: 1. Directly employed by the City of Chula Vista, and 2. Working in a half time, three quarter time or full time benefit status. Hourly employees are not eligible forthis plan except for School Site Coordinators under the STRETCH Program. Employees who are on approved leave, with or without pay, under the provisions of the Family Medical Leave Act (FMLA), are entitled to full access to their flexible benefit plan during their absence. if an employee fails to return to work after such leave for any reason other than the serious illness of the employee or the family member for whom the leave was granted or through no fault of the employee, they will be required to pay all flexible benefit plan monies paid to them, or on their behalf during the absence. Employees who are on an approved unpaid leave of absence for their own disability or illness, beyond the 12 weeks allowed under the FMLA will continue to have their health insurance and their basic life insurance premiums paid by their Flexible Benefit Plan, but will not have access to any other portion of their flexible benefit plan allotment. Upon their return, their flexible benefit plan allotment will be prorated for the balance of the year. The City of Chula Vista does not pay for an employee's benefits if the employee is in an unpaid status for any reason than those indicated above. The employee may choose to continue their health, and certain optional benefits coverage at their own cost until they return to work or for the designated length of time as determined by the City of Chula Vista. If the premiums are not paid, the coverage will be short-term canceled. The coverage will be reinstated immediately upon the employee's return to work, or the first of the month after their return if premiums were not paid during the employee's absence. PLAN YEAR The Plan Year is from January 1 to December 31 of each year. H:\Home\Personnel\Margarita%2001 Plan Document.doc 2 / ELECTIONS Elections of benefits must occur during the open enrollment period prior to the start of each Plan Year or, in the case of a newly hired employee, as soon after commencement of employment as administratively practical. Elections must be made in writing on forms/worksheets provided by the Risk Management Division. An authorization form must be signed by employees to allow for necessary deductions from their paychecks to provide the benefit coverages selected. In addition to the benefit election form (if applicable), the employee must also complete and sign all appropriate applications and enrollment forms for the specific benefits selected. If an employee fails to complete the election of benefits prior to the start of the Plan Year, that employee will automatically be enrolled at their previous year Health Insurance Plan (including dependent health offset). If not available, Risk Management will enroll the employee in a comparable plan. The remainder of the annual allotment will be placed in the cash payment. The elections are effective for the period of January 1 to December 31 of each year or, for employees hired after January 1 of a Plan Year, for the remainder of the Plan Year following the first date of enrollment. Benefits are prorated for employees hired after January 1 of each Plan Year. Benefits terminate at the time an employee terminates employment except for health and dental, which terminate on the last day of the month in which the employee terminates his/her employment. Eligible employees who terminate and are reinstated or rehired within the same Plan Year will have their previous benefit elections reactivated. No new selections will be allowed until the new Plan Year commences. Elections are irrevocable except to accommodate changes in family status as defined in the Income Tax Regulations, 26 CFR Part 1, or to accommodate any significant curtailment or reduction of coverage under any given benefit plan, or in the case of any significant premium increase or decrease imposed by a third-party insurer. Participants who experience a change in family status may be allowed to change or revoke elections. Several examples, although not all inclusive, of the types of events that constitute a change in family status are as follows: · The marriage or divorce of the employee. · The birth or adoption of a child. The death of the employee's spouse or dependent. · Termination or commencement of employment by employee's spouse. · Unpaid leave of absence by the employee or the employee's spouse. Changes are also permitted in the event of significant changes in health coverage of the H:\Horne\Personnel\Margarita~001 Plan Document.doc 3 employee or the employee's spouse that are related to the spouse's employment or are subject to the Special Enrollment Period as described in the Health Insurance and Portability and Accountability Act (HIPAA). Changes to benefit elections will be permitted only to the extent that they are consistent with and appropriate to the reason the change is requested. CONTRIBUTIONS Employer contributions are a fixed amount provided by the City to each eligible employee on a non-elective basis. Salary reduction agreements are provided for in this Plan for Dependent Health Insurance. In the event payroll deductions for reimbursement accounts are selected and subsequently stopped due to an eligible family status change, the reactivation of the account will not be permitted until the next plan year if elected during open enrollment. MAXIMUM CONTRIBUTIONS Eligible employees are allotted funds based on their bargaining groups. These amounts are prorated for non-full-time unclassified or unrepresented employees. The allotments are as follows: UNIT AMOUNT Confidential $6,540 CVEA $5,707 Executive $9,050 IAFF Level1 $2,324 Level 2 $4,292 Level 3 $5,792 Middle Managers $7,140 POA Level1 $2,283 Level 2 $4,165 Level 3 $5,751 Senior Managers $7,550 WCE $6,132 H:\Home%Personnel\Margarita~O01 Plan Document.doc 4 Eligible employees may elect the cost of their dependent health insurance to be paid on a pre-tax (salary reduction) basis. In addition, an eligible employee may elect up to $2,500 for a Dental/Medical/Vision Reimbursement Supplement account. Single or married (filing a joint return), eligible employees may also set aside up to $5,000 from all sources per plan year for a Dependent Care Reimbursement Supplement Account. A married employee filing returns separately may set aside up to $2,500 per plan year. BENEFITS All eligible employees participate in the Flexible Benefits Plan. Each employee must select one health insurance coverage, unless married to another City employee and are covered under the spouse's policy. All employees except those represented by IAFF, POA and WCE must elect the premium for $3,000 in life insurance coverage currently $8.00 per year. The options in this plan are as follows: 1. Health Insurance a. Kaiser (01) (A)* b. Kaiser (02) (B)* c. PacifiCare Indemnity d. PacifiCare (HMO) Low Option e. PacifiCare (HMO) High Option f. Spouse of City employee coverage *Note: A. For classifications represented by POA, WCE, Confidential and IAFF only. B. For all classifications represented by other than POA, WCE, Confidential and IAFF. 2. Life Insurance a. $3,000 (C)* *Note: C. Does not apply to POA, IAFF or WCE. Remaining money may be used for: 1. Dependent Health Insurance 2. Cash Payment (taxable) 3. Dental/MedicalNision reimbursement 4. Dependent/Child Care (daycare) reimbursement 5. Employee group dental H:\Home\Personnel\Margarita~2001 Plan Document.d0c 5 Each of these benefits is described in more detail in the Flexible Benefits Plan Summary for the Plan Year and in the respective plan documents or insurance contracts which are incorporated here by reference. CONSTRUCTION If the plan contains contradictory provisions or if there appears to be a conflict between its provisions, the following rules apply: a. The interpretation that favors the Plan as a tax-free plan over any interpretation that might render the Plan taxable. b. Subject to paragraph (a), the rules established by the Supreme Court of California for the construction of like instruments will apply. PLAN PARTICIPATION RIGHTS As a participant in the plan, you are entitled to examine, without charge, at the Plan Administrator's office all plan documents including insurance contracts; obtain copies of all Plan Documents (at a reasonable cost) and other Plan information upon request to the Administrator. PLAN IS NOT AN EMPLOYMENT CONTRACT This plan document is not a contract of employment. Neither the creation of the Plan nor any amendment to it gives any legal or equitable right to any person against the employer. Participation in the Plan does not give any member any right to continued employment. PLAN ADMINISTRATOR The Plan Administrator is the Risk Manager of the Human Resources Department or his/her designees. The address of the Plan Administrator is: 276 Fourth Avenue Chula Vista, CA 91910 Telephone: (619) 691-5096 H:\Home\Pers0nnel\Margarita~2001 Plan D0cument,doc 6