HomeMy WebLinkAbout2022-85 CC ResolutionRESOLUTION NO.2022-85
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TEMECULA AMENDING THE CITY OF TEMECULA
SECTION 125 CAFETERIA PLAN
THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS
FOLLOWS:
Section 1. The City Council adopted the City of Temecula Flexible Benefits Plan
Document on September 18, 1990, to provide a Section 125 Cafeteria plan, including any
applicable Healthcare Flexible Spending Account Plan, Dependent Care Assistance Program, and
group health, dental and vision insurance to eligible employees.
Section 2. The attached Amendment to City of Temecula Section 125 Cafeteria Plan
Document revises the Plan Document as follows:
A. To allow prospective election changes for Healthcare and Dependent Care Flexible
Spending Accounts;
B. To incorporate an unlimited carryover of unused Healthcare Flexible Spending
Account funds;
C. To extend the grace period for Dependent Care Assistance Program Extended
Grace Period/Claims Extension Period; and
D. To allow the Spend Down of Healthcare Flexible Spending Account once
participation has ceased.
Section 3. Approval of the Plan Document Amendment will provide the framework
for staff to take such actions that are deemed necessary and proper in order to implement the Plan,
and to setup adequate accounting and administrative procedures to provide employee benefits
under the Plan.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula
this 15'h day of November, 2022.
AT
Randi o 1, City Clerk
[SEAL]
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Matt R ayor
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Randi Johl, City Clerk of the City of Temecula, do hereby certify that the foregoing
Resolution No. 2022-85 was duly and regularly adopted by the City Council of the City of
Temecula at a meeting thereof held on the 15'' day of November, 2022, by the following vote:
AYES: 5 COUNCIL MEMBERS: Alexander, Edwards, Rahn, Schwank,
Stewart
NOES: 0 COUNCIL MEMBERS: None
ABSTAIN: 0 COUNCIL MEMBERS: None
ABSENT: 0 COUNCIL MEMBERS: None
Randi Johl, City Clerk
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AMENDMENT TO CITY OF TEMECULA SECTION 125 CAFETERIA PLAN
DOCUMENT, AS AMENDED AND RESTATED ON JANUARY 1, 2019
CONSOLIDATED APPROPRIATIONS ACT OF 2021 AMENDMENT
1.1 AMENDMENT TO PLAN
The City of Temecula ("Employer") hereby amends the Section 125 Cafeteria Plan
Document, as amended and restatement on January 1, 2019 (the "Plan"), in good faith
compliance with the Consolidated Appropriations Act of 2021 (CAA, 2021), IRS Notice
2021-15, the American Rescue Plan Act of 2021 (ARPA), and other applicable law and
guidance, unless otherwise specifically stated herein. This amendment supersedes any
inconsistent provisions of the Plan for eligible Plan Years provided by the CAA, IRS Notice
2021-15, the ARPA, and other applicable law and guidance.
a) Prospective Change of Election
1. Prospective election changes can be made to a Participant's Healthcare
Flexible Spending Account and/or Dependent Care Assistance Program
accounts during the 2020 Plan Year.
2. This Amendment is effective on January 1, 2020, and is in effect for eligible
Plan Years provided by the CAA, IRS Notice 2021-15, the ARPA, and other
applicable law and guidance.
b) Healthcare Flexible Spending Account Carryover
1. The maximum amount Participants may carryover in their Healthcare
Flexible Spending Account from the plan year beginning in 2020 to the plan
year beginning in 2021 is unlimited up to the amount of contributions for the
plan year beginning in 2020.
2. This Amendment is effective on January 1, 2020, and is in effect for eligible
Plan Years provided by the CAA, IRS Notice 2021-15, the ARPA, and other
applicable law and guidance.
c) Dependent Care Assistance Program Extended Grace Period/Claims
Extension Period
1. The claims extension period (grace period) for participants to use funds in
their Dependent Care Assistant Program from the plan year beginning in
2020 to the plan year beginning in 2021 is extended from 2 '/z months to 12
months after the end of the plan year beginning in 2020.
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2. This Amendment is effective on January 1, 2020, and is in effect for eligible
Plan Years provided by the CAA, IRS Notice 2021-15, the ARPA, and other
applicable law and guidance.
d) Spend Down of Healthcare Flexible Spending Account
1. The Participants may continue to receive reimbursements from unused
contributions in their Healthcare Flexible Spending Account for expenses
incurred through the end of the plan year in which such Participant ceased
participation.
2. This Amendment is effective on January 1, 2020, and is in effect for eligible
Plan Years provided by the CAA, IRS Notice 2021-15, the ARPA, and other
applicable law and guidance.
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