HomeMy WebLinkAbout~Master - Amendment to Flexible Spending Plan RESOLUTION NO. 08-503
RESOLUTION APPROVING AMENDMENT TO
FLEXIBLE SPENDING PLAN TO ALLOW FOR
A GRACE PERIOD
FOR THE CITY OF AMES
WHEREAS, the Council previously adopted a Flexible Spending Plan document enabling
each benefit-eligible City employee to set aside a portion of his/her earnings paying for qualified
expenses,such as health insurance premiums,as well as medical and dependent care expenses;and,
WHEREAS,money deducted from an employee's pay into a Flexible Spending Account is
not subject to payroll taxes, resulting in substantial payroll tax savings; and,
WHEREAS,in May 2005,the IRS issued a Notice which allowed employers to adopt a grace
period of up to 2-1/2 months after a plan year for participants in Flexible Spending Accounts(FSAs)
to use these funds that were unused during the plan year; and,
WHEREAS, implementation of this change requires that the city's Flexible Spending Plan
document be amended to allow for the additional grace period, which provides for an improved
benefit to Plan participants without additional cost to the City.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the amendment to the Flexible Spending Plan to allow for a 2-1/2 month grace period at the end
of the plan year in which to incur claims is hereby approved.
ADOPTED THIS 9`' day of December, 2008.
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Popken
Seconded by: Rice
Voting aye: Doll, Goodman, Larson, Mahayni, Popken, Rice
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 9"day of December, 2008.