HomeMy WebLinkAbout~Master - Changes to Health Care Flexible Spending Account Plan RESOLUTION NO. 14-598
RESOLUTION APPROVING CHANGES TO THE HEALTH CARE FLEXIBLE
SPENDING ACCOUNT PLAN
WITH WELLMARK BLUE CROSS BLUE SHIELD OF IOWA
FOR THE CITY OF AMES,IOWA
WHEREAS, a Flexible Spending Account, as provided to benefit-eligible City of Ames
employees, allows an employee to set aside a portion of his or her earnings to pay for qualified
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; and,
WHEREAS,the IRS has increased the Health Care FSA allowable maximum election from
$2,500 to $2,550, effective January 1, 2015, and the City of Ames will be implementing the
increased election with the Council's approval; and,
WHEREAS, the City would also like to convert from a grace period option to a carryover
provision which allows participants to carry over up to$500 of the available balance in the 2015 plan
year to the 2016 plan year; and,
WHEREAS,the City's 2014 plan allows a 120-day grace period so that claimants can incur
and submit claims through the following March 15; and,
WHEREAS, an entity cannot elect both the $500 carryover option and the 120-day grace
period option.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the aforementioned changes to the City of Ames Health Care Flexible Spending Account Plan
are hereby approved.
ADOPTED THIS 25th day of November, 2014.
Diane R. Voss, City Clerk Ann H. Campbell, Mayorif
Introduced by: Nelson
Seconded by: Goodman
Voting aye: Betcher, Corrieri, Gartin, Goodman,Nelson, Orazem
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 25th day of November, 2014.