Agenda

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County Administrator's Report 11. 3.

BCC Regular Meeting

Budget & Finance Consent

Meeting Date:	07/10/2014
Issue: Flexible Benefits Plan Administrative Services (P.D. 12-13.029)
From:	Thomas Turner
Department:	Human Resources
CAO Approval:

RECOMMENDATION:

Recommendation Concerning the Flexible Benefits Plan Administrative Services (PD 12-13.029) - Thomas G. "Tom" Turner, Human Resources Department Director

That the Board take the following action concerning the Flexible Benefits Plan Administrative Services (PD 12-13.029):

A. Approve an amendment to the Plan Document that enables employees to have an option to rollover $500 of unused money from health care reimbursement each year under the new Federal law covering flexible benefits;

B. Approve a short Plan Year from October 1, 2014, to December 31, 2014; and

C. Amend subsequent plan years to coincide with the calendar year.

[Funding Source: Fund 501, Internal Service Fund, Cost Center 150107, Object Code 53101]

BACKGROUND:

A. Federal law permits Flexible Benefit Plan (IRD Section 125 Plans) to allow employees to rollover up to five hundred dollars ($500) annually from one plan year to another when an employee has not incurred sufficient eligible expense to exhaust the amount in the plan. This will reduce the extent of potential forfeiture employees may incur in any given plan year.

B. Approve a short Plan year for Health Care Reimbursement and Dependent Care to move all benefit programs together on a calendar year basis. The amount employees will be able to payroll deduct during the short plan year will be prorated. The maximum amount for health care reimbursement will be $624 and for Dependent Care it will be $1,249. Employees will have the option to enroll again during the upcoming open enrollment (January 1, 2015 to December 31, 2015).

C. Amend the Flexible Benefits Plan Administrative Services (PD 12-13.029) to establish a January 1 to December 31 plan year. In order to establish a single plan year and deductible year, all benefit plan years will be adjusted to a calendar year. This simplifies the benefit structure and facilitates movement between plans as appropriate for employees.

D. Effective October 1, 2014, the Other Health Insurance Plan will no longer be offered due to the change in the IRS laws.

BUDGETARY IMPACT:

N/A

LEGAL CONSIDERATIONS/SIGN-OFF:

N/A

PERSONNEL:

The Human Resources Department will coordinate the short plan year and conduct open enrollment meetings and service all employee groups. Human Resources has advised all appointing authorities (payrolls) of any administrative changes in the program. This program was taken to the market in 2013 for competitive bid.

POLICY/REQUIREMENT FOR BOARD ACTION:

N/A

IMPLEMENTATION/COORDINATION:

A Purchase Order will be the instrument utilized for making payment against the Contract.

The Human Resources Department will coordinate with the County Attorney’s Office and other appointing authorities to ensure changes are made.

Attachments
No file(s) attached.