Agenda

Back to Calendar Return

County Administrator's Report 12. 25.

BCC Regular Meeting

Budget & Finance Consent

Meeting Date:	05/25/2017
Issue: Flexible Benefits Plan Administrative Services
From:	Eric Kleinert
Department:	Human Resources
CAO Approval:

RECOMMENDATION:

Recommendation Concerning Flexible Benefits Plan Administrative Services - Eric Kleinert, Human Resources Department Director

That the Board take the following action concerning the Flexible Benefits Program:

A. Approve the updated Escambia County Board of County Commissioners Flexible Benefits Plan to reflect changes in relevant Federal Laws and governance. The updated document reflects the organization's ability to provide par and other benefits in lieu of health insurance coverage. The option to "opt out" of health insurance coverage requires proof of other health insurance coverage. Employees who elect to "opt out" would receive $10,000 in additional life insurance coverage, a $12.98 discount on their dental coverage, and a $100 per calendar month stipend; and

B. Authorize the County Administrator to sign the Escambia County Board of County Commissioners Flexible Benefits Plan document.

[Funding Source: Fund 501, Internal Service Fund, Cost Center 150108, Object Code 53101. The budgetary impact will be determined by the number of eligible employees who enroll in the opt out provision.]

BACKGROUND:

The plan document requires updates periodically as the laws change, either through a Summary Material Modification (SMM)
or rewrite depending on the changes in the plan. In 2013 and 2014, a SMM was approved for changing the plan year, adding a $500 rollover, and increased the limit for Health Care Reimbursement, per IRS requirements. Due to these changes, it was determined a rewrite would be appropriate to include the prior language changes and add an "opt out" provision for employees declining to take County-sponsored health coverage. The interpretation of relevant communications on this subject is that the $100 stipend will be considered taxable income and employees that are TRICARE eligible or employees who are eligible for Medicare will not be eligible for the benefit due to prohibitions of such payments by the Centers for Medicare and Medicaid Services and the Department of Defense.

BUDGETARY IMPACT:

[Funding Source: Fund 501, Internal Service Fund, Cost Center 150108, Object Code 53101]

The budgetary impact will be determined by the number of eligible employees who enroll in the opt out provision.

LEGAL CONSIDERATIONS/SIGN-OFF:

We will continue to monitor the guidance issued by the Internal Revenue Service (IRS) regarding provisions of providing payments
to employees who elect to "opt out" as guidance on this topic from the IRS has been limited to date. The County Attorney's Office has reviewed the Plan Document and deemed it legally sufficient.

PERSONNEL:

N/A

POLICY/REQUIREMENT FOR BOARD ACTION:

N/A

IMPLEMENTATION/COORDINATION:

The Human Resources Department will coordinate with the Lockard and Williams Insurance Company to ensure the plan document is updated. The Human Resources Department will coordinate with the Clerk of Courts to ensure the procedures for employees to receive appropriate payment if they elect to "opt-out" are mutually agreeable and efficient.

Attachments
Flex Plan Document 052517