CC PACKET 01102017 - Laserfiche WebLink

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REQUEST FOR COUNCIL CONSIDERATION Meeting Date: January 10, 2017 Resolution- Adopting a restatement of the City Of St. Anthony Flexible Benefit Plan. OVERVIEW: The City of St. Anthony provides employees the opportunity to pay for certain employee benefits, health care costs and day care expenses on a pre- tax basis through an established Flex Benefit Plan. (the “Plan”) What is a flexible benefit plan? A flexible benefit plan (a.k.a., “cafeteria plan”) is a written plan maintained by an employer that allows employees the option to receive certain benefits on a pre-tax basis. The written plan must specifically describe all benefits and establish rules for eligibility and elections. Plan Documents The League of Minnesota Cities provided updated model language for Basic Plan Document that describes the various benefits the city may want to consider implementing as part of a cafeteria plan. Through the Model Adoption Agreement, cities select the appropriate benefits they want to offer to employees through the flexible benefit plan and establish other plan rules specific to their own city. The Basic Plan Document and the Adoption Agreement together constitute "the Plan." Restatement of the Plan The model language provided by the League of Minnesota Cities was written to ensure cities comply with the Flexible Benefit Plan Rules and Regulations. Given that the last restatement of the City of St. Anthony Flex Benefit Plan was adopted in 2001, a total restatement was a more practical approach than attempting to “red-line” changes. It is permissible for cities to indicate they may offer benefits that are not currently offered to staff in the Plan. This allows for changes in benefit offerings without the need to amend or restate the plan each time. As a result, no changes to the benefits currently offered to eligible staff were made in the restatement. 15