HomeMy WebLinkAboutReso 2021-239RESOLUTION NO. 2021-239
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ADOPTING THE AMENDED CITY OF CHULA
VISTA CAFETERIA BENEFITS PLAN FOR 2021 TO REFLECT
REVISED ADMINISTRATION PERIOD AND LIMITS FOR
THE HEALTH CARE AND DEPENDENT CARE FLEXIBLE
SPENDING ACCOUNTS
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, the first day of the City’s plan year was January 1, 2021; 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
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); and
WHEREAS, on December 27, 2020, the Consolidated Appropriations Act of 2021 was
signed into law providing relief to certain employees who contributed towards a health care and/or
dependent care FSA allowing an extension to December 31, 2021 to incur eligible expenses from
their 2021 Health Care and/or Dependent Care Flexible Spending Account(s) (FSAs); and
WHEREAS, on March 11, 2021, the American Rescue Plan Act of 2021 (ARPA) was
signed into law and temporarily allowed for the maximum annual Dependent Care FSA
contribution amount to $10,500 for the 2021 tax year only; and
WHEREAS, employees who choose to increase their 2021 Dependent Care FSA
contribution amount would pay for any amount that exceeds their currently existing flex allotment
contributions out-of-pocket and these Plan Document revisions do not result in an increase of City
expenditures.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista
does hereby adopt the amended City of Chula Vista Cafeteria Benefits Plan for 2021 to reflect the
revised administration period (“grace period”) and limits for the Health Care and Dependent Care
Flexible Spending Accounts.
DocuSign Envelope ID: 47F39EC5-F591-4424-BE03-DF3F7CAF5398
Resolution No. 2021-239
Page No. 2
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. 2021-239 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
DocuSign Envelope ID: 47F39EC5-F591-4424-BE03-DF3F7CAF5398