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HomeMy WebLinkAboutReso 1999-19350 RESOLUTION NO. 19350 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE CITY OF CHULA VISTA CAFETERIA BENEFITS PLAN FOR 1999 WHEREAS, the Internal Revenue Code requires that employers offering cafeteria plans under Section 125 have a written plan document and that the plan document be formally adopted by the employer; and WHEREAS, in the fall of 1998, each of the City's bargaining groups was invited to send representatives to particil~ate in "designing" the City's plan in compliance with InS guidelines; and WHEREAS, the document attached for formal adoption is the result of that meet and confer process. 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 1999 as set forth in Attachment A, a copy of which is on file in the office of the City Clerk. Presented by Approved as to form by Candy EmersOn (/":~'~i"Z'~'~//' ~2~?;/L"~"z J M Kaheny ~ Human Resources Director rney Resolution 19350 Page 2 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 26th day of January, 1999, by the following vote: AYES: Councilmembers: Davis, Moot, Padilia, Salas and Horton NAYS: Councih~embers: None ABSENT: Councilmembers: None ABSTAIN: Councilmembers: None Shirley Horto~, Mayor ATTEST: Susan Bigelow, City Clerl~ ' ' STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 19350 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 26th day of January, 1999. Executed this 26'h day of January, 1999. ~/~_ ~7~'~, a ~.~ Susan Bigelow, City Clerk ~a '' Attachment A1 City of Chula Vista CAFETERIA BENEFITS PLAN January 1999 [TE/mc-TEDkk-TEMiscl-007,98] Attachment A2 ---- 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 for this plan 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. 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 [TE/mc-TEDisk-TEMi~c,-007.~8] 2 d?" Attachment A3 --- 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 I 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 I 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 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 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. Attachment A~ 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. Dental/Medical/Vision Reimbursement and Dependent Care Reimbursement Supplement Flexible Spending Accounts. In the event payroll deductions for reimbursement accounts ara 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 prorated for non-full-time unclassified or unrepresented employees. The allotments are as follows: UNIT AMOUNT Confidential $6,000 CVEA $5,157 Executive $8,500 IAF F 0 Dependents $2,150 1 Dependent $3,878 2+ Dependents $5,306 Middle Managers $6,590 POA 0 Dependents $2,103 1 Dependent $3,831 2+ Dependents $5,247 Senior Managers $7,000 WCE $5,592 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/MedicelNision 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. Attachment A5 BENEFITS All eligible employees participate in the Flexible Benefits Plan. Each employee must select one health insurance coverage, unless covered by another health insurance effective January 1, or if 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. The options in this plan are as follows: 1. Health Insurance a. Insurance Opt-out (No Health) b. Kaiser (01) (A)* c, Kaiser (02) (B)* d, PacifiCare Indemnity e. PacifiCare (EPO) f. PacifiCare (HMO) g Spouse of City employee coverage *Note: A. For classifications represented by POA and WCE only. B. For all classification represented by other than POA and WCE. 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/medical/vision reimbursement 4. DependentJchild care (daycare) reimbursement 5. Employee group dental 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, Attachment A6 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-frae 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 Management Division 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 Attachment A7 PLAN AMENDMENT OR TERMINATION The City of Chula Vista reserves the right to amend the Plan from time to time if deemed necessary or appropriate to meet the requirements of the Internal Revenue Code and any similar provision of subsequent revenue or other laws or pursuant to negotiations with the Employee groups; provided that no such modification or amendment shall make it possible for any benefit contributions or payment to be used for, or directed to purposes other than for the exclusive benefit of participating employees and their beneficiaries under the Plan. The City reserves the right to discontinue or terminate the Plan at the end of any Plan Year or in accordance with negotiations with the Employee Groups. Any such amendment, discontinuance or termination shall be effective on January 1 of any given year or such date that is agreed upon by the City and Employee Groups. No amendment, discontinuance or termination shall allow the return of funds to the City nor the use of any funds for any purpose other than for the exclusive benefit or participating employees and their beneficiaries.