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AGENDA ITEM <br />Prepared By: RJO Reviewed By: A. Carlson Approved By: <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />1. Purpose: To adopt a new Flexible Spending Plan (Section 125 Cafeteria Plan) that incorporates all <br />legislative requirements and identifies Medsurity as the new plan administrator. <br /> <br />2. Background: In order to provide employees flexibility in their health insurance decisions, the City <br />adopted a Flexible Spending Plan in 1991. The plan has been amended over the years as changes in <br />legislation have required updates. Earlier this year the Council approved a transition from Further to <br />Medsurity as the administrator of both our Health Reimbursement Arrangement (VEBA) and Flexible <br />Spending Accounts. As part of the transition, Medsurity has drafted a new Flexible Spending Plan that <br />meets all legal requirements and identifies Medsurity as the Administrator. <br /> <br />In addition, there are a few benefit changes that have been incorporated into the plan. The first is <br />increasing the Medical Spending Account maximum from $1,800 to the IRS maximum of $2,850. <br />Another is the addition of a voluntary vision plan. Neither of these employee benefit increases will result <br />in additional costs to the City. <br /> <br />3. Staff Recommendation: Staff recommends approval the attached resolution to adopting a new <br />Flexible Spending Plan administered by Medsurity to replace City’s original 1991 Flexible Spending <br />Plan. <br /> <br />COUNCIL ACTION REQUESTED <br />Motion to approve a Resolution No. 7295. <br /> <br /> <br />Exhibits <br />A. Resolution <br />B. Flexible Spending Plan <br /> <br />Item No.: 6 Date: October 10, 2022 <br />Item Description: Adopt New Flexible Spending Plan – Resolution No. 7295 <br />Presenter: Ron Olson, <br />Finance Director <br />Agenda <br />Section: <br />Consent Agenda