HomeMy WebLinkAboutReso 2024-231RESOLUTION NO. 2024-231
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ADOPTING THE CITY OF CHULA VISTA
CAFETERIA BENEFITS PLAN FOR 2025
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 formally adopted by the City
Council on or before the first day of the plan year in order to be offered on a pre-tax basis; and
WHEREAS, in June 1998, the City established its first Section 125 Cafeteria Benefits Plan; and
WHEREAS, in compliance with Internal Revenue Code Section 125, the City Council
annually adopts a written cafeteria benefits plan prior to the first day of the plan year; and
WHEREAS, the first day of the City’s plan year is January 1, 2025; and
WHEREAS, the 2025 Cafeteria Benefits Plan 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 the
Cafeteria Benefit Plan document, and instead 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 specific health 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 Section 125 of the Internal Revenue Code, an approved, written
cafeteria plan is critical; and
WHEREAS, a written cafeteria plan that does not comply with applicable requirements
regarding content and timing of adoption does not qualify as a Section 125 Cafeteria Benefits Plan,
rendering employees’ elections taxable; and
WHEREAS, the City has timed its open enrollment period for the 2025 plan year to comply
with these regulations and to meet provider cutoff deadlines for enrollment to ensure employees
are covered without interruption; and
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Resolution No. 2024-231
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WHEREAS, the City’s 2025 Cafeteria Benefits 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 by the City Council of the City of Chula Vista,
that it hereby adopts the City of Chula Vista Cafeteria Benefits Plan for 2025, 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]
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Resolution No. 2024-231
Page No. 3
Presented by Approved as to form by
Tanya Tomlinson Marco A. Verdugo
Director of Human Resources/ City Attorney
Risk Management
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 3rd day of December 2024 by the following vote:
AYES: Councilmembers: Chavez, Gonzalez, Morineau, 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. 2024-231 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 2024.
Executed this 3rd day of December 2024.
Kerry K. Bigelow, MMC, City Clerk
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