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HomeMy WebLinkAboutReso 2023-195 RESOLUTION NO. 2023-195 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE CITY OF CHULA VISTA CAFETERIA BENEFITS PLAN FOR 2024 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 next plan year is January 1, 2024; 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 market and negotiate 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 ; and WHEREAS, the City has timed its open enrollment period for 2024 to comply with these regulations and to meet provider cutoff deadlines for enrollment to ensure employees are covered without interruption; and Resolution No. 2023-195 Page No. 2 WHEREAS, t available benefits, participation rules, election procedures, manner of contributions, maximum amount of contributions, the plan year, and the plan provisions for complying with flexible spending arrangements (FSAs). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it does hereby adopt the City of Chula Vista Cafeteria Benefits Plan for 2024, in the form presented, with such minor modifications as may be approved by the City Manager, in consultation with the City Attorney. \[SIGNATURES ON THE FOLLOWING PAGE\] Resolution No. 2023-195 Page No. 3 Presented by Approved as to form by Courtney Chase Jill D.S. Maland Deputy City Manager Lounsbery Ferguson Altona & Peak Acting City Attorney PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 5th day of December 2023 by the following vote: AYES: Councilmembers: Cardenas, Chavez, Gonzalez, Preciado, and McCann NAYS: Councilmembers: None ABSENT: Councilmembers: None John McCann, 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. 2023-195 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 5th day of December 2023. Executed this 5th day of December 2023. Kerry K. Bigelow, MMC, City Clerk