HomeMy WebLinkAboutReso 2020-272RESOLUTION NO. 2020-272
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA ADOPTING THE CITY OF CHULA
VISTA CAFETERIA BENEFITS PLAN FOR 2021
WHEREAS, the Internal 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, 2021; 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 after our broker,
Marsh and McLennan Agency, 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 are 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
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Resolution No. 2020-272
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WHEREAS, the City has timed its open enrollment period for 2021 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 adopts the City of Chula Vista Cafeteria Benefits Plan for 2021.
[SIGNATURES ON THE FOLLOWING PAGE]
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Resolution No. 2020-272
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Presented by Approved as to form by
Courtney Chase Glen R. Googins
Director of Human Resources/Risk Management City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 3rd day of December 2020 by the following vote:
AYES: Councilmembers: Diaz, Galvez, McCann, Padilla, and Casillas Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Mary Casillas Salas, Mayor
ATTEST:
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2020-272 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 3rd day of December 2020.
Executed this 3rd day of December 2020.
Kerry K. Bigelow, MMC, City Clerk
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