From
Lisa Norris, Human Resources Director
Title
Amendments to the City of Grand Prairie Section 125 Plan Document required by the Federal Government effective January 1, 2013 resultant from the Health Care Reform Act.
Presenter
Lisa Norris, Human Resources Director
Recommended Action
Approve
Analysis
The Section 125 Plan Document is required for employers when we offer a selection of benefits, plans and coverage from which employees may choose (referred to as a "Cafeteria Plan") on a pre-tax basis. Below are the amendments necessary for 2013 resultant from changes required by the Health Care Reform Act.
1. Page one shows the effective date of the plan document as January 1, 2013.
2. Page 3, section 1.3, reflects the date this plan document was amended to January 1, 2013.
3. The maximum amount allowed to be contributed by an employee on a pre-tax basis to the Flexible Spending Account during a plan year has been reduced by the federal government to $2,500 effective January 1, 2013. The City used to allow up to $10,000 to be set aside by an employee over the course of a plan year, January 1 to December 31 annually. This change is noted on page 15.
These are the only changes for the document. It was previously approved by a Benefits Attorney for content and compliance. Due to these minor changes, no attorney review was necessary on this amendment.
This document amends and fully replaces any prior Section 125 Plan Amendment approve by City Council.
Financial Consideration
No financial impact.