HomeMy WebLinkAboutReso 2021-238RESOLUTION NO. 2021-238
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ADOPTING THE CITY OF CHULA VISTA
CAFETERIA BENEFITS PLAN FOR 2022
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, 2022; 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. 2021-238
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WHEREAS, the City has timed its open enrollment period for 2022 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 2022.
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Resolution No. 2021-238
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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 14th day of December 2021 by the following vote:
AYES: Councilmembers: Cardenas, 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. 2021-238 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 14th day of December 2021.
Executed this 14th day of December 2021.
Kerry K. Bigelow, MMC, City Clerk
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