HomeMy WebLinkAboutCC RES 06-035RESOLUTION NO. 06-35
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA AMENDING RESOLUTION NO. 99-60,
ADOPTING PROVISIONS CONTAINED IN THE ATTACHED FLEX
CREDITS AMENDMENT DOCUMENT "EXHIBIT A".
WHEREAS, the City of Palm Desert has met and conferred in good faith with the
Palm Desert Employees Organization (PDEO) in accordance with the Meyers-Milias-
Brown Act and the City employer - employee relations Resolution No. 81-89; and
WHEREAS, the City of Palm Desert has reached agreement with the employees
represented by the Palm Desert Employees Organization, for the period July 1, 2001
through June 30, 2006.
WHEREAS, the modification to the Cities Cafeteria Benefit Program "EXHIBIT A"
has been agreed to between the Palm Desert Employees Organization and the City of
Palm Desert.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Palm
Desert, Califomia, adopt the attached amendment to its cafeteria plan document in
accordance with the Internal Revenue Code Section 125.
PASSED, APPROVED AND ADOPTED by the City Council this 9th day of
March, 2006, by the following vote to wit:
AYES: BENSON, CRITES, KELLY, SPIEGEL, and FERGUSON
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
.._150,6USON, Mayor
ATTEST:
.C'
RACHELLE D. KLASSEN, City Clerk
City of Palm Desert, California
RESOLUTION NO. 06-35
ffiIBIT A
CITY OF PALM DESERT
FLEX CREDITS ADDENDUM
DEFINITIONS
1.211 Flex Credits or "Nonelective Contribution(s)"— Those dollar amounts which an Employee
may allocate to obtain benefits.
1.212 Flex Plan Credit Allocation Worksheet — An agreement between an Employee and the
Employer under which the Employer reduces the Employee's current salary and the Employer
contributes the amount of the reduction to the plan on behalf of the Employee, as a before -tax
contribution.
The Flex Plan Credit Allocation Worksheet will be in a form which permits the Employer to reduce the
Employee's current salary and contribute the amount of the reduction to the Plan on behalf of the
Employee. The Flex Plan Credit Allocation Worksheet will apply only to the amounts of the
Employee's pay that have not been actually or constructively received as of the date the worksheet is
completed. Any amounts so elected will not become currently available to the Employee. The
amount of the salary reduction elected by the Employee will be deemed to be an Employer
contribution for purposes of the Code.
ELECTION OF BENEFITS
1.213 The benefits available under the Plan for a give Plan Year are as listed pn the Plan Sponsor's
"Flex Plan Schedule of Mandatory And Optional Benefits" form which is prepared by the Plan
Sponsor prior to the beginning of each Plan Year. Each Employee who elects to participate
completes his elections for a Plan Year on a Flex Plan Credit Allocation Worksheet form.
The maximum Flex Credits will be determined at the discretion of the Plan Sponsor prior to the
commencement of each Plan Year and will be uniformly applicable to all Employees. All such
amounts will be subject to review and final approval by the City's Council members. The Employer
reserves the right to reduce the amount of the Employee's Flex Plan Credit Allocation Worksheet in
order to assure compliance with the requirements of the Internal Revenue Code for favorable tax
treatment.
NOTE: If a Employee enrolls other than at the beginning of a new Plan Year, his Flex Plan Credit
Allocation Worksheet election maximums will be prorated based on the number of months he is
actually participating in the Plan.
BENEFITS
1.214 To the Extent allowed by the Plan Sponsor's "Flex Plan Schedule of Monthly Credits By
Family Size" for a given Plan Year, an Employee may apply his Flex Credits toward any of the
benefits listed in the Plan Document.
Flex Credits will be used for premium payments for coverage during the Plan Year under the
Employer's welfare benefit plans (i.e., medical, dental, and vision coverages). Premium payments
will be made directly by the Employer to the plan(s). Benefits will be payable pursuant to the terms of
the respective coverages (policies, etc.).
NOTE: Only the costs of coverages of such type which the Plan Sponsor offers pursuant to this Plan
will be eligible for this benefit.
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