HomeMy WebLinkAbout15.E.4. Flexible Spending Account Plan Amendment-Res. No. 5984
CITY OF SHAKOPEE IS/f. ~
Memorandum CONSENT
TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Marilyn Remer, Payroll/Benefits Coordinator
SUBJECT: Flexible Spending Account Plan Amendment
DATE: November 25, 2003
, INTRODUCTION AND BACKGROUND:
The Internal Revenue Service (IRS) recently ruled in IRS Revenue Ruling 2003-102 that over-
the-counter drug costs are now eligible for reimbursement under Health Care Flexible Spending
Account (FSA) Plans. In addition, Acclaim Benefits has set a minimum reimbursement. The
City's Plan must be amended to include the appropriate language effective January 1, 2004.
Resolution No. 5984 amends the City of Shakopee Flexible Spending Plan accordingly.
ACTION REQUESTED:
Offer Resolution No. 5984, AN AMENDMENT TO THE CITY OF SHAKOPEE FLEXIBLE
SPENDING ACCOUNT PLAN ADOPTED BY RESULTIONNO. 3315 and move its adoption.
RESOLUTION NO. 5984
AN AMENDMENT TO THE CITY OF SHAKOPEE FLEXIBLE SPENDING ACCOUNT
PLAN ADOPTED BY RESOLUTION NO. 3315
WHEREAS, the City of Shakopee (the "Employer") provides employees with an
opportunity to pay for certain employee welfare benefits on a pre-tax basis through the above
mentioned Plan (the "Plan"); and
WHEREAS, the Employer considers it desirable and in the best interests of the Plan to
make the following amendment to the Plan;
NOW, THEREFORE, pursuant to the authority reserved in the Plan to allow
amendments to the Plan, the Plan is amended as follows:
Effective January 1, 2004, the provisions of the Plan referencing the eligibility of certain
health care expenses shall be amended to include over-the-counter drugs. This
amendment to the Plan is intended to comply with Revenue ruling 2003-102 issued
September 3, 2003.
Effective January 1, 2004, Acclaim Benefits will enact a reimbursement minimum. This
minimum is subject to change at the discretion of the Plan and/or Acclaim Benefits.
BE IT FURTHER RESOLVED, that appropriate officers of the City of Shakopee are
hereby authorized and directed to execute and deliver all documents necessary for the proper
implementation of the Amendment to the Plan to ensure that the Amendments are hereby
approved and in effect by the above stated dates.
Adopted in session of the City Council of the City of
Shakopee, Minnesota held this day of, 2003.
Mayor of the City of Shakopee
ATTEST:
City Clerk