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HomeMy Public PortalAbout1985_02_27_O004The Town of Leesburg in Virginia ORDINANCE NO. AN ORDINANCE: PRESENTED February 27, 1985 85-0-4 ADOPTED February 27, 1985 AMENDING SECTION 12.1-49.2 OF THE TOWN CODE REGARDING THE EMPLOYEE OPTIONAL BENEFITS PROGRAM WHEREAS, in 1982 the Leesburg Town Council adopted an optional benefits program for the employees of the town; and WHEREAS, recent regulations promulgated by the Internal Revenue Service re- quire adjustments in the structure of the adopted optional benefits program; and WHEREAS, these adjustments will not require additional funds: THEREFORE, ORDAINED by the Council of the Town of Leesburg in Virginia as follows: SECTION I. Article 17, Employee Benefits, of Chapter 12.1 of t'he Town Code, Section 12.1-49.2 thereof, is repealed and a revised Section 12.1-49.2 is adopted to read as follows: Section 12.1-49.2 Employee Optional Benefit Program. (a) Ail full-time employees are eligible to participate in an optional bene- fit program which is hereby established. Subject to annual appropriations the amount available for each employee shall be $500. The plan will be administered by the town manager under the following policies: (1) The plan will be administered on a fiscal year basis. New employees are eligible to participate in this program following six months of service. (2) Prior to the beginning of the fiscal year, each employee shall select his or her optional benefits for the ensuing year from those available. The optional benefits selected cannot be changed during the fiscal year unless the employee has had a change in family status such as marriage, divorce, death of immediate family member, birth or adoption of a child or a change in the employement of spouse. (3) Employees may select from both non-taxable and taxable benefits annually. No part of any unused optional benefit may be carried over to subsequent fiscal years. -2- EMPLOYEE OPTIONAL BENEFITS PROGRAM (b) (4) Benefits shall be paid twice per fiscal year on December 31 and June 30 based on requests for reimbursement to be received by the Department of Finance no later than December 15 and June 15, respectively. Employees electing to use the benefit for dependent or family group health/ major medical premiums payments will have the pro rata amount of the premium applied to the biweekly payroll deduction for hospitalization/major medical insurance. Requests :for reimburse- ment must include documentation supporting the costs to be reimbursed. This documentation will include paid receipts, cancelled checks and/or other evidence to support the claim as approved by the town manager. Employees are authorized to select any of the following benefits in any combination up to a maximum amount of $500. Ail benefits under the heading of "non-taxable" will not be subject to federal and state income taxes or social security withholding. Benefits under the heading "taxable" are subject to federal and state income taxes and social se- curity withholding. NON-TAXABLE BENEFITS (1) (2) Group life insurance. Additional amounts of group life insurance may be selected in $10,000 increments up to $40,000 exclusive of the $10,000 of insurance available to all full-time employees. Spouse or dependent health care insurance. Coverage up to $500 of the total annual premium for family or dependent hospitalization/ major medical coverage under the town's group plan may be selected. (3) Medical expense reimbu~sement:~ EmpIsyeesmay elect to receive reimbursements for medical expenses incurred by immediate family members not covered in whole or in part by payments under the town's major medical/hospitalization group plan. These expenses include the professional services of a physician, dentist, ophthalmologist, psychiatrist, optician, psychologist, family counselor, chiropractor, any prescribed or required diagnostic examination, prescribed drugs or medical, ophthalmological or dental devices or applicances. -3- EMPLOYEE OPTIONAL BENEFITS PROGRAM (4) Life insurance. Additional amounts of group life insurance may be selected in increments of $10,000 for coverages ex- ceeding $50,000. (5) Health club memberships. Employees may elect to seek reimbu~ement for individual memberships to health, fitness and/or swim clubs whose purpose is to promote physical fit- ness. Examples of eligible activities include swimming pool memberships, aerobic and/or weight training programs. Speci- fically excluded are dues and membership fees for country clubs, golf courses, tennis and other racket sports. Employees selecting taxable benefits shall have an obligation to report the value of this benefit on their income tax return and to pay all applicable federal and state income taxes as appropriate. SECTION II. Ail prior ordinances and resolutions in conflict are hereby repealed. SECTION III. This ordinance shall be in effect upon its passage. PASSED this 27th day of February , 1985. ~harles ~. Williams, Vice-Mayor Town of Leesburg ATTEST: Clerk of Council ' '