HomeMy Public PortalAboutResolution No. 436-14 09-16-2014ACTION TAKEN AND RESOLUTION ADOPTED BY CONSENT
,,,, OF THE BOARD OF DIRECTORS OF
City of Richland Hills
Resolution 436-14
The undersigned, being all of the members of the Board of Directors of City of
Richland Hills (the "Employer"), hereby adopt the following Resolution by
unanimous consent and direct that this Consent Resolution be entered in the
minute books of the Employer.
WHEREAS, the Employer previously adopted a Code Section 125 plan, also known
as the Cafeteria Plan, (the "Plan");
WHEREAS, effective immediately, Internal Revenue Service Notice 2013-71 (the
"Notice") modified the "use-or-lose" rule for health flexible spending arrangements
(FSAs) to allow, at the plan sponsor's option, employees participating in health
FSAs to carry over up to five hundred dollars ($500.00) of unused amounts
remaining at year-end; and
WHEREAS, effective [10/01/2013] the Employer desires to amend the Plan as set
forth in the attached Amendment and Summary of Material Modifications to make
changes to allow employees a carryover of up to $500.00 to the flexible spending
account, consistent with the requirements set forth in the Notice.
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors has hereby
reviewed the attached Amendment and Summary of Material Modifications and
does hereby approve the adoption of the Amendment as set forth therein;
BE IT FURTHER RESOLVED that the officers of the Employer are authorized and
directed to take any and all action as may be necessary to effectuate this
Resolution.
PASSED AND APPROVED ON THIS THE 16TH DAY OF SEPTEMBER, 2014.
Mayor, Bill
ATTEST:
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City Secretary, C by Bourg
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SUMMARY OF MATERIAL MODIFICATIONS TO THE
SECTION 125 PLAN
This document summarizes important changes to your Section 125 Plan) (the
"Plan"). If you have any questions regarding the changes outlined in this Summary
of Material Modifications ("SMM"), you should contact alt Bentley Yates. Keep a copy
of this SMM with your Summary Plan Description for future reference.
Changes to "Use-or-Lose" Rule for Health Flexible Spending Arrangements
("FBAs")
Effective immediately, and for all future tax years after [10/01/2013], employees
will be allowed to carry over up to $500 of unused FSA amounts for qualified
medical expenses incurred during the following year.
In order to take advantage of the carry over, the Plan is required to eliminate the Grace Period
provision that allowed employees to use remaining FSA amounts to pay for expenses incurred
during the two and half months after the end of the plan year.
~, FIRST AMENDMENT TO THE
City of Richland Hills
CAFETERIA PLAN
THIS AMENDMENT TO THE CITY OF RICHLAND HILLS CAFETERIA PLAN (the
"Plan") is adopted by City of Richland Hills, effective as of the dates set forth
herein.
NOW, THEREFORE, effective as set forth below, the Plan is amended as follows:
A. Effective [ 10/ O 1 / 2013], pursuant to Internal Revenue Service Notice
2013-71, Article IV A is hereby amended to remove the Grace Period
option as outlined in Sections 4.OlA and 4.02A and allow Participants to
carry over up to five hundred dollars ($500.00) of unused Health FSA
amounts at the end of the Plan Year to their Health FSA balance for the
subsequent Plan Year. For avoidance of doubt, the carryover of up to
$500.00 does not impact the subsequent maximum Health FSA
Participant Salary Reduction amount set by the IRS.
City of Richland Hills
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Title: Mayor, Bill Agan
Date: September 16, 2014