HomeMy WebLinkAbout5.D.1. Amendment to section 125 cafeteria plan 01611,..1411 Consent Business 5. D. 1.
SHAKO 'E F
TO: Mayor and City Council
FROM: Kris Wilson, Assistant City Administrator
DATE: 06/16/2015
SUBJECT: Amendment to Section 125 Cafeteria Plan (F)
Action Sought
The Council is asked to approve the attached amendment to the City's Section 125
Cafeteria Plan, for the purpose of incorporating the new vision insurance benefit.
Background
The City's Section 125 Cafeteria Plan is the legal document governing our
employee benefit offerings. Keeping the document in good order is essential to
being able to withhold employees' share of various monthly premiums on a pre-tax
basis.
At the beginning of 2015, the City began offering vision insurance as a new benefit
option. This benefit is entirely optional and employee-paid. However, in order to
allow for employee premiums to be withheld on a pre-tax basis, the vision
insurance needs to be incorporated into the City's Section 125 plan.
The plan document was originally prepared for the City by Alliance Benefit Group
(ABG) -- a company that also provides other benefit-related services to the City.
They have now prepared the attached plan amendment to incorporate the new
vision insurance.
Budget Impact
This action has no budgetary impact.
Relationship to Vision
This is_a housekeeping item. (F)
Requested Action
The Council is asked to approve the attached amendment to the City's Section 125
Cafeteria Plan, for the purpose of incorporating the new new vision insurance
benefit.
Attachments: Amendment to Section 125 Plan -- Vision Insurance
AMENDMENT TO
CITY OF SHAKOPEE
SECTION 125 CAFETERIA PLAN
BY THIS AGREEMENT, City of Shakopee Section 125 Cafeteria Plan (herein referred to as the "Plan") is
hereby amended as follows, effective as of January 1, 2015, except as otherwise provided herein:
1. Benefits. Article IV is hereby amended by adding the following Section(s):
VISION INSURANCE BENEFIT
(a) Coverage for Participant and/or Dependents. Each Participant may elect to be
covered under the Employer's vision Insurance Contract. In addition, the Participant may elect either
individual or family coverage.
(b) Employer selects contracts. The Employer may select suitable vision Insurance
Contracts for use in providing this vision insurance benefit, which policies will provide uniform benefits for
all Participants electing this Benefit.
(c) Contract incorporated by reference. The rights and conditions with respect to the
benefits payable from such vision Insurance Contract shall be determined therefrom, and such vision
Insurance Contract shall be incorporated herein by reference.
This Amendment has been executed this day of ,
City of Shakopee
By
EMPLOYER
ADOPTING RESOLUTION
The undersigned authorized representative of City of Shakopee (the Employer) hereby certifies that the
following resolution was duly adopted by the Employer on , and that such
resolution has not been modified or rescinded as of the date hereof:
RESOLVED, that the Amendment, which provides for the addition of"vision"as a benefit under
the Plan, presented to this meeting is hereby approved and adopted and that an authorized
representative of the Employer is hereby authorized and directed to execute and deliver to the Plan
Administrator the amendment.
The undersigned further certifies that attached hereto as Exhibit A is a true copy of the
Amendment to City of Shakopee Section 125 Cafeteria Plan approved and adopted in the foregoing
resolution.
Date:
Signed:
[print name/title]
AMENDMENT TO
CITY OF SHAKOPEE
SECTION 125 CAFETERIA PLAN
SUMMARY OF
MATERIAL MODIFICATIONS
I
INTRODUCTION
This is a Summary of Material Modifications regarding the City of Shakopee Section 125 Cafeteria Plan
("Plan"). Unless stated otherwise, the modifications described in this summary are effective as of January 1,
2015. This is merely a summary of the most important changes to the Plan and information contained in the
Summary Plan Description previously provided to you. It supplements and amends that SPD so you should retain
a copy of this document with your copy of the Summary Plan Description. If you have any questions, contact the
Administrator. If there is any discrepancy between the terms of the Plan, as modified, and this Summary of
Material Modifications, the provisions of the Plan will control.
II
SUMMARY OF CHANGES
1. Premium Payments
Under our Plan, you can now choose to pay premiums for:
-- Our vision insurance plan.