HomeMy WebLinkAboutCC Res 5619 2007-10-22
RESOLUTION NUMBER 5619
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEAL BEACH APPROVING AMENDMENTS TO THE
CLASSIFICATION PLAN UPDATING THE CLASSIFICATION
SPECIFICATION OF THE POSITIONS OF COMMUNITY
SERVICES OFFICER II AND III TO INCLUDE DUTIES
RELATING TO JAIL OPERATIONS
WHEREAS, the City Council gave direction to staff to resume service of the jail as a
City operated service on September 24, 2007; and
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WHEREAS, amendments are needed through City Council action to the Classification
Plan to amend the classification specification of the positions of
Community Services Officer II and III to include duties of the jail
operations.
NOW, THEREFORE, the City Council of the City of Seal Beach hereby resolves:
Section I. The Classification Plan is hereby amended to include the duties of jail
operations to the positions of Community Services Officer II and III.
Section 2. Except as provided for in Section I, there are no other corrections,
changes or amendments.
, - .'-....
PASSED, APPROVED AND ADOP'fED by the City Council of Seal Beach, at a regular
meeting held on the 22nd day of. <:>clhber , 2007 by the following vote:
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AYES: CO~Cri.MEMBEt~~ (ff1'U4.r~h )JJ.nJu._ I
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NOES: COUNc~iF ~I
ABSENT: COUNCILMEMBERS ~kn,.,
ABSTAIN: COUNCILMEMBERS ~J
_-~L-~
Mayor
ATTEST:
l<,~ ~.1
~~ Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
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I, Linda Devine, City Clerk for the City of Seal Beach, California, do hereby certify that
the foregoing resolution is the original copy of Resolution Number 5619 on file in the
office of the City Clerk, passed, approved and adopted by the City Council of the City of
Seal Beach at a regular meeting held on the 22nd day of October, 2007.
~h~
Cit Clerk
CITY OF SEAL BEACH
FULL FLEX CAFETERIA PLAN
SECTION 125
PLAN DOCUMENT
CITY OF SEAL BEACH
TABLE OF CONTENTS
STATEMENT OF PURPOSE ............................................................................... 1
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ARTICLE
Paae
I. DEFINITIONS
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1.1 Administrator .................................................................................. 2
1.2 Anniversary Date ...........................................................................2
1.3 Benefits ..........................................................................................2
1 .4 City.................................................................................................. 2
1.5 Code .............................................................................................. 2
1.6 Compensation................................................................................. 2
1. 7 Council............................................................................................ 2
1.8 Dependent ......................................................................................2
1.9 Dependent Premiums ..................................................................... 2
1.10 Effective Date.................................................................................. 2
1.11 Election Periods .............................................................................. 2
1.12 Eligible Employee ...........................................................................2
1.13 Employee ........................................................................................ 3
1.14 Employer.........................................................................................3
1.15 Flex Dollars ..................................................................................... 3
1.16 Highly Compensated Employee...................................................... 3
1.17 Insurance Company........................................................................ 3
1.18 Optional Benefit Coverages ............................................................ 3
1.19 Participant ....................................................................................... 3
1.20 Period of Coverage ......................................................................... 3
1.21 Plan................................................................................................. 3
1.22 Plan Administrator...........................................................................3
1.23 Plan Year ........................................................................................ 3
1.24 Salary Reduction............................................................................. 3
II. ELIGIBILITY AND PARTICIPATION
2.1 Eligibility ..........................................................................................4
2.2 Entry Date .......................................................................................4
2.3 Employee Election .......................................................................... 4
2.4 Election Periods ..............................................................................4
2.5 Termination of Participation ............................................................ 5
2.6 Termination of Employment ............................................................5
III. OPTIONAL BENEFIT COVERAGES
3.1 Coverage Options ........................................................................... 6
3.2 Description of Optional Benefit Coverages ..................................... 6
3.3 Election of Optional Benefit Coverages in Lieu of Cash.................. 6
I IV. ELECTIONS
4.1 Election Procedure..........................................................................7
4.2 Full Flex Cafeteria Election Forms .................................................. 7
4.3 Initial Elections ................................................................................7
4.4 Failure to Return Election Forms .................................................... 8
4.5 Irrevocable Nature of Salary Reduction Selected ........................... 8
4.6 Status Change: Ability to Change Elections.................................... 9
4.7 Consistency Rules ........................................................................11
4.8 Changes by Administrator............................................................. 11
4.9 Adjustment of Compensation Reductions ..................................... 11
4.10 Maximum Elective Contributions................................................... 12
4.11 Cessation of Required Contributions............................................. 12
4.12 Coordination with FMLA................................................................ 12
V. FLEX DOLLARS AND ADDITIONAL CASH BENEFITS
5.1 Flex Dollars ................................................................................... 13
5.2 Allocation of Flex Dollars............................................................... 13 I
5.3 Waiver of Coverage Cash Option ................................................. 13
VI. NON-DISCRIMINATION
6.1 Intent.......... ................................................................................... 14
6.2 Reduction of Benefits and/or Contribution..................................... 14
6.3 Treatment of Contribution Reductions........................................... 14
VII. ADMINISTRATION
7.1 Appointment of Administrator........................................................ 15
7.2 Duties of the Administrator............................................................ 15
7.3 Reports and Records .................................................................... 16
7.4 Fiduciary Responsibilities.............................................................. 16
7.5 Administrator Limitations............................................................... 16
VIII. AMENDMENT AND TERMINATION OF THE PLAN
8.1 Amendment................................................................................... 17
8.2 Termination ................................................................................... 17
8.3 Rights of Participants .................................................................... 17
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IX. MISCELLANEOUS
9.1 Indemnification .............................................................................. 18
9.2 Tax Treatment of Plan................................................................... 18
9.3 Third Party Actions........................................................................ 18
9.4 Funding ......................................................................................... 18
9.5 No Effect on Other Employee Considerations............................... 18
9.6 Titles and Headings ...................................................................... 18
9.7 Gender and Number .....................................................................19
9.8 Amendrnents in Writing................................................................. 19
9.9 Separate Provisions ...................................................................... 19
9.10 Plan Number ................................................................................. 19
9.11 City Information ............................................................................. 19
9.12 Service of Legal Process .............................................................. 19
X. APPENDIX A - OPTIONAL BENEFIT COVERAGES ............................. 20
XI. APPENDIX B - FLEX-DOLLAR ALLOWANCE ..................................... 21
XII. EXECUTION PAGE.................................................................................22
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STATEMENT OF PURPOSE
This plan document amends and restates the City of Seal Beach Section 125
Plan originally effective September 1, 1990. The purpose of this Plan is to
provide Participants with a choice between cash and optional benefit coverages.
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This Plan is intended to qualify as a "Cafeteria Plan" under Section 125 of the
Internal Revenue Code of 1986, as amended, and is to be interpreted in a
manner consistent with the requirements of Section 125.
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ARTICLE I
DEFINITIONS
Whenever used here in, the following terms have the following meaning unless a
different meaning is clearly required by the context:
1.1 Administrator: The Administrator shall be the third party the Plan
Administrator appoints to perform all or some of its duties under the Plan.
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1.2 Anniversary Date: The annual recurrence of the first day of the Plan Year.
1.3 Benefits: Benefits shall mean any benefit provided by the City of which a
Participant may choose to participate in.
1.4 Citv: City shall mean the City of Seal Beach.
1.5 Code: Code shall mean the Internal Revenue Code of 1986, as amended,
and all regulations issued thereafter, and replacements from time to time.
1 .6 Comoensation: Compensation shall mean total remuneration received by
a Participant, including but not limited to wages, salary, overtime,
bonuses, commissions, any other payment which is not an advance, loan
or expense reimbursement. Each Participanfs compensation shall be
determined prior to taking into account Participant's Salary Reduction
Contributions under the Plan.
1.7 Council: Council shall mean members of the City Council of the City of I
Seal Beach, as constituted from time to time.
1.8 Deoendent: Dependent shall mean the Participant's spouse, dependent
child, or qualifying relative of the employee as defined under Section 152
of the Code, as amended from time to time, that is eligible to participate in
the City's health plans.
1.9 Deoendent Premiums: Dependent premiums shall mean the amount of
premium charged for dependent coverage under the City's group
insurance plans.
1.10 Effective Date: Effective date shall mean the date that this Plan becomes
effective, which is January 1, 2008.
1.11 Election Periods: Election periods shall mean the period of time as
determined in the Plan in which a Participant or employee may enter,
change, or terminate from the Plan. The Initial Election Period shall be the
thirty (30) days after the date of hire to complete the necessary forms to
elect the benefits desired within the Plan. This Initial Election Period may
be extended by the Administrator, at its sole discretion upon written notice
to employees. The annual election period shall be the period of time I
coinciding with the CalPERS medical open enrollment period, time during
which an eligible employee may make an election pursuant to Section 3.3.
1.12 Eliaible Emolovee: Eligible employee shall mean an employee who has
satisfied the eligibility requirements under the Plan and the City's
Personnel Rules and Regulations. Independent contractors and part-time
employees shall not be deemed eligible employees.
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1.13 Emolovee: Employee shall mean a person employed by the Employer
under comrnon law rules applicable in determining employer/employee
relationships. Independent contractors shall not be deemed employees.
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1.14 Emolover: Employer shall mean the City of Seal Beach.
1.15 "Flex Dollars": Flex Dollars shall mean benefit dollars provided to a
participant by his or her Ernployer, which may be applied towards the cost
of Optional Benefit Coverage as described in Appendix A.
1.16 Hiahlv Comoensated Emolovee: Highly Compensated Employee means
any employee who is either: (1) an officer; (2) receiving compensation
above the Section 414 limit for the applicable year; (3) receiving
compensation above the Section 414 limit for the applicable year and in
the highest 20% of all employees; (4) a spouse or dependent of a highly
compensated employee; or (5) meeting any other definition under Section
414(q) of the Code.
1.17 Insurance Comoanv: Insurance company, or insurance carrier, or insurer
shall mean any insurance company that underwrites and has a contract
with the City for a benefit under this Plan.
1.18 Ootional Benefit Coveraaes: Optional Benefit Coverages are coverages
available to the Participant under the Plan.
1.19 Particioant: Participant is any eligible employee who elects to participate
in the plan.
1.20 Period of Coveraae: Period of Coverage shall mean a Plan Year.
I 1.21 Plan: Plan shall mean the City's Section 125 Plan.
1 .22 Plan Administrator: The Plan Administrator shall be the City of Seal Beach
or the individual the City may appoint to act on its behalf.
1.23 Plan Year: Plan Year means the period beginning January 1 and ending
December 31. All Plan Years shall begin on January 1 and end on
December 31, unless otherwise changed by the City or the Administrator.
1 .24 Salary Reduction Contributions: Salary reduction contributions shall mean
the amount that each Participant has authorized the City to reduce his or
her compensation in order for it to be contributed to the Plan to provide the
benefits selected by Participants. The amount of Salary Reduction
Contributions shall be designated on the Election Form.
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ARTICLE II
ELIGIBILITY AND PARTICIPATION
2.1 Eliaibilitv:
All employees shall become eligible to become a Participant under the I
Plan upon sati~fying the following requirements of Subsections (A) and (B)
below:
(A) Emolovment Status:
Those eligible to participate in the Plan are full time employees as
defined in the City of Seal Beach Position Classification Plan,
incorporated herein by reference. Part-time employees and
independent contractors shall not be deemed eligible employees.
(B) Service Conditions:
An employee will becorne a Participant on the first day of the month
following thirty days of employment.
2.2 Entrv Date:
The date a Participant satisfies eligibility provisions as defined in Section
2.1(B).
2.3 Emolovee Election:
All eligible employees may then elect, during the appropriate Election
Period, to become a Participant by completing the City of Seal Beach Full
Flex Cafeteria Plan Election Form, the "Form". This form designates
whether the employee desires to elect the benefits of the Plan.
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2.4 Election Periods:
(A) Initial Election Period:
All eligible employees have a thirty (30) day election period to
select plans offered by the City; and a thirty (30) day election period
after their date of hire to make an election under one of the plans
offered by the City. Employees must complete the necessary forms
to elect the benefits that they desire within the Plan. This Initial
Election Period may be extended by the Administrator, at its sole
discretion, upon written notice to employees.
(B) Annual Election Periods: After the Initial Election Period,
Participants may elect to change, modify, decrease, or increase
their benefits or participation in the Plan during only one Election I
Period, which shall be the period of time coinciding with the
CalPERS medical open enrollment period, which immediately
precedes the Anniversary Date of the Plan. Participants must
complete an election Form as described in Section 2.3 above, to
have changes become effective in the new Plan Year.
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2.5 Termination of Particioation:
A Participant shall remain a Participant in the Plan until the occurrence of
one or more of the following:
(A) Participant ceases to be eligible to participate in Plan;
(B) Participant's employment is terminated;
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(C) Participant's death;
(0) The termination of this Plan;
(E) Participant elects not to participate under subsection 4.4(0).
2.6 Termination of Emolovment:
If a Participant's employment terminates, all contributions to the Plan shall
cease upon the termination date, the Participant shall no longer be
considered a Participant effective on the date of termination.
However, a former Participant may still be eligible for certain benefits in
accordance with the terms of the City's medical, dental, vision and other
insurance plan for which premiums have been paid on the former
Participant's behalf. The continuation of any benefits is governed solely
by the terms and provisions of the City's group insurance plans and
applicable law.
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ARTICLE III
OPTIONAL BENEFIT COVERAGES
3.1 Coveraae ootions: Each Participant may choose under this Plan to
receive his or her compensation in cash, and any additional cash benefits I
to the extent available under Article V, or to have a portion of it applied by
the City toward the cost of the Optional Benefit Coverages available to the
Participant. Notwithstanding anything herein to the contrary, Optional
Benefit Coverages shall be limited to coverages and benefits available
under the plans identified in Appendix A.
3.2 Descriotion of Ootional Benefit Coveraaes: While the election of one or
more of the Optional Benefit Coverages may be made under this Plan, the
coverages and benefits thereunder will be provided not by this Plan but by
the plans identified in Appendix A, the requirements for participating in
such plans, and the other terms and conditions of coverage and benefits
under such plans are set forth from time to time in the plans identified in
Appendix A, and in any group insurance contracts and prepaid health plan
contracts that constitute (or are incorporated by reference in) those plans.
The benefit descriptions in such plans, as in effect from time to time, are
hereby incorporated by reference into this Plan.
3.3 Election of Ootional Benefit Coveraaes in Lieu of Cash: A Participant may
elect under this Plan to receive one or more of the Optional Benefit
Coverages described in Section 3.2, to the extent available to the
Participant under the applicable plans identified on Appendix A, in
accordance with the procedures described in Sections 4.1, 4.2 and 4.3.
(A) If a Participant elects coverage for a Period of Coverage under a
plan identified on Appendix A, and jf the Participant is required
under such plan to pay a share of the cost of such coverage, such
share shall be paid by the Participant. Payment shall first be from
the Participant's Flex Dollars, as provided in Section 5.2, and
second by means of a reduction in the Participant's compensation
for the Period of Coverage for the balance of the cost of each
coverage elected.
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(B) If any employee elects coverage for a Period of Coverage under a
Flexible Spending Arrangement identified on Appendix A 2., the
employee's contribution to the Arrangements shall first come from
the Participant's Flex Dollars, when applicable, if Flex Dollars are
not available, the employee's compensation for the Period of
Coverage will be reduced by such amount as the employee elects
(subject to the limitations of that Plans), and the amount equal to
the reduction in compensation will be credited to the appropriate
reimbursement account in accordance with the applicable Flexible
Spending Arrangements identified on Appendix A numeral 2.
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ARTICLE IV
ELECTIONS
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4.1 Election Procedure: Prior to the commencement of each Period of
Coverage, the Administrator shall provide an Election Form to each
Participant and to each other individual who is expected to become a
Participant at the beginning of the applicable Period of Coverage. The
Election Form shall be effective as the first day of the Period of Coverage.
Each Participant who desires to elect an Optional Benefit Coverage
available for the Period of Coverage shall so specify on the appropriate
Election Form, and insurance carrier or vendor forms and agrees to a
reduction in his or her compensation, when applicable.
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(A) The amount of the reduction in the Participant's compensation for
the Period of Coverage for coverage under a plan identified as an
Optional Benefit Coverage on Appendix A shall equal the
Participant's share of the cost of such coverage, reduced by the
amounts paid from the Participant's Flex Dollars under Section 5.2
(B) The amount of the reduction in the Participant's compensation for
the Period of Coverage for coverage elected by the Participant
under a Flexible Spending Arrangement identified on Appendix A
numeral 2. shall be the coverage amount elected by the Participant,
subject to the limitations of such Plans. The Participant's election
shall equal the Participant's share of the cost of such coverage,
reduced by the amounts paid from the Participant's Flex Dollars
under Section 5.2
(C) The amount of contributions shall change according to the schedule
of premiums for the City's group benefits. A Participant's election
under the City's full flex cafeteria plan could automatically increase
or decrease, depending upon the change in premiums of that
particular benefit offered by the City, or increase or decrease
depending upon the amount of the Participant's required
contribution for benefits.
Each Election Form must be completed and returned to the Administrator
on or before such date as the Administrator shall specify, which date shall
be no later than the beginning of the first pay period for which the
participant's benefit coverage will become effective.
4.2
Full Flex Cafeteria Election Forms:
Each Participant shall complete a Full Flex Cafeteria Plan Election Form,
the "Election Form" at the Initial Election Period. In all following years, if a
Participant desires to change the amount of the election, enroll in the
Plan, or terminate from the Plan, a new Election Form must be completed
within thirty (30) days before the Anniversary date of the Plan. This period
of time shall be known as the Annual Election Period.
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4.3
Initial Elections:
(A) An eligible employee, as defined in Sections 1.12 and 2.1 of this
Plan, who is not a Participant prior to the effective date of the Plan,
has thirty (30) days from the effective date of this Plan to elect their
desired benefits for the Current Plan Year. Such election is made
by completing the Election Form and other necessary forms as
deemed by the Administrator. The Administrator may choose to
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extend this period, at its sole discretion, in order to assist the City's
employees in detennining whether to participate in this Plan.
(B) The initial election shall adhere to the Plan Year.
4.4 Failure to Return Election Forms:
(A) A new Participant's failure to return a completed Election Form
under Section 4.1, 4.2, and 4.3 to the Administrator on or before the
specified due date for the Period of Coverage in which he or she
becomes a Participant with respect to the benefits available for that
Period of Coverage shall be deemed to have waived to participate
in the City's medical plan and any Optional Benefit Coverage for
the duration of the Plan Year and elected to receive compensation
as taxable income as described in Appendix B, as long the
Participant can furnish the Plan Administrator with proof of
coverage.
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(B) An existing Participant's failure to return a completed Election Form
to the Administrator relating to coverage under a plan identified as
an Optional Benefit Coverage on Appendix A 1. on or before the
specified due date for any subsequent Period of Coverage shall be
deemed to constitute (1) a re-election of the same coverage or
coverages, if any, under such plans as were in effect just prior to
the end of the preceding Period of Coverage (to the extent such
coverage remains available as an Optional Benefit Coverage under
the Plan), and (2) an agreernent to a reduction in the Participant's
compensation for the subsequent Period of Coverage equal to the
Participant share of each such coverage for the Period of
Coverage, reduced by the amounts paid from the Participant's Flex
Dollars under Section 5.2.
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(C) An existing Participant's failure to return a completed election form
to the Administrator under Section 4.1, 4.2, and 4.3 relating to
coverage under a Flexible Spending Arrangement Plan identified
on Appendix A2. on or before the specified due date for any Period
of Coverage shall be deemed to constitute (1) a waiver to
participate under such plans as were in effect just prior to the end
of the preceding Period of Coverage, and (2) the renouncement to
a reduction in the Participant's compensation for the subsequent
Period of Coverage equal to the Participant share of each such
coverage for the Period of Coverage.
(D) Participants may voluntarily terminate their participation in the Plan,
but only during an Annual Election Period. If a Participant elects
not to participate for the Plan Year applicable for the Annual
Election Period, then that Participant cannot elect to reenter the
Plan until the next Annual Election Period, unless a Status Change
as described in Sections 4.5. and 4.6 occurs or there is a mid-plan
year change in the benefits offered through this Plan.
4.5 Irrevocable Nature of Salarv Reduction Selected:
(A) A Participant's election of benefit coverage and the amount of
salary reduction contributions shall be irrevocable during the Plan
Year, unless a Participant has experience a status a change as
described in this section or Section 4.6.
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(B) Participants can change, modify, decrease or increase their
elections under the Election Form, only if a Status Change as
defined in Section 4.6 has occurred, a change has occurred in the
City's group benefits offered to its employees, or a change has
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occurred in the amount of contribution for the plan's benefits as
required by the City during the Plan Year. If such a change has
occurred, then the Participant must submit to the Administrator a
completed new Election Form in order to have the change be
effective at the beginning of the following payroll period.
(C) The Employer and/or the Administrator cannot change any amount
in the Election Form selected by each Participant during the Plan
Year, unless a termination has occurred as defined under Section
2.5 or 2.6 of this Plan, or a Status Change has occurred, or a
change has occurred in the City's group benefits offered to its
employees, or a change has occurred in the amount of contribution
for the plan's benefits as required by the City.
4.6 Status Chance: Ability to Chance Elections
(A) A Participant's election made under the Plan (including an election
made through inaction under Section 4.4, shall be irrevocable by
the Participant during the Period of Coverage except as otherwise
provided in Section 4.5, subsections and 1 through 6 below. A
Participant may revoke an election in writing for the balance of the
Period of Coverage and, if desired, file a new election in writing if,
under the facts and circumstances, a change in status occurs, and
the requested revocation and new election satisfies the applicable
consistency requirements in Section 4.7.
Application for such change must be made within thirty (30) days of the
actual event. For this purpose, a change in status includes the following
events:
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1. Lecal Marital Status. Events that change a Participant's
legal marital status, including marriage, death of spouse,
divorce, legal separation, or annulment.
2. Number of Deoendents: Events that change the
Participants number of Dependents (as defined in Code
Section 152), including birth, adoption, placement for
adoption (as defined in Regulations under Code Section
9801), or death of a dependent.
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3. Emolovment Status. Any of the following events that
change the employment status of the employee,
employee's spouse, or the employee's dependent: a
termination or commencement of employment; a strike or
lockout; a commencement of or return from an unpaid
leave of absence; and a change in worksite. In addition,
if the eligibility conditions of the full flex cafeteria plan or
other employee benefit plan of the employer of the
employee, spouse or dependent depend on the
employment status of that individual and there is a
change in that individual's employment status with the
consequence that the individual becomes (or ceases to
be) eligible under the plan, then that change constitutes a
change of employment under this paragraph.
4. Recuirements for Unmarried Deoendents: An event that
causes a Participant's dependent to satisfy or cease to
satisfy the requirements for coverage due to attainment
of age, student status, or any similar circumstance as
provided in any accident or health plan identified in
Appendix A under which the Participant received
coverage.
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5. Residence or Worksite. A change in the place of
residence or work of the Participant, or the Participant's
spouse, or the Participant's dependent.
6. Enrollment in Health Coveraae. A significant change in
the health coverage of the Participant or the Participant's
spouse attributable to the spouse's employment, and
such other events that the Administrator determines will I
permit the revocation of an election (and, if applicable,
the filing of a new election) during a Period of Coverage
under regulations and rulings of the Internal Revenue
Service.
(8) In order to revoke an election or file a new election under this
subsection, a Participant must submit an Election Form within thirty
(30) days of the change in status.
(C) In the case of coverage under a plan identified in Appendix A, a
Participant may revoke an Election Form for the balance of the
Period of Coverage and file a new Election Form in writing that
corresponds with the special enrollment rights provided in Code
Section 9801 (f), whether or not the change in election is permitted
under Section 4.6.
(0) In the case of a judgement, decree or order resulting from a
divorce, legal separation, annulment, or change in legal custody
(including a Qualified Medical Ch Id Support Order) that requires
accident or health coverage for a Participant's child, a Participant
may change his or her election (1) to provide coverage for the child
under a health plan identified in Appendix A, if the order so I
requires, or (2) to cancel coverage under a health plan identified in
Appendix A, for the Participant's child if such order requires the
Participant's former spouse to provide coverage.
(E) In the case of coverage under a health plan identified in Appendix
A, a Participant may revoke an Election Form for the balance of the
Period of Coverage and file a new Election Form in writing to
effectively cancel such health plan coverage for the Participant
and/or the Participant's spouse or dependent to the extent that
such individual become entitled to coverage under Part A or Part 8
of Title XVIII of the Social Security Act (Medicare) or Title XIX of the
Social Security Act (Medicaid), other than coverage consisting
solely of benefits under Section 1928 of the Social Security Act (the
program for distribution of pediatric vaccines). In addition, if an
employee, spouse or dependent who has been entitled to such
coverage under Medicare, Medicaid, or a state program under the
State Children Health Insurance Program (SCHIP) loses eligibility
for such coverage, the full flex cafeteria plan may permit the
employee to make a prospective election to commence or increase
coverage of that employee. spouse, or dependent under the health
plan. A Participant may not revoke his election if he becomes I
eligible for SCHIP coverage during the year.
(F) In the case of coverage under a health plan identified in Appendix
A 1., which is provided by an independent third-party provider, if:
1. The Participant's share of the cost of such coverage
significantly increases or decreases as a result of a
significant cost increase or decrease by the independent
third-party provider, the Administrator may permit all
Participants electing such coverage for the Period of
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Coverage, to revoke their elections for the balance of the
Period of Coverage, and to complete a new Election Form,
provided that similar coverage is elected under a health plan
identified in Appendix A 1., for the balance of the Period of
Coverage. In the event that similar coverage is not available
to the Participant, the Participant may revoke his election for
the remainder of the Plan Year.
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2.
Such coverage ceases or is significantly curtailed, the
Administrator may permit all Participants electing such
coverage for the Period of Coverage, to revoke their
elections for the balance of the Period of Coverage, and to
complete a new Election Form, provided that similar
coverage is elected under a health plan identified in
Appendix A1., for the balance of the Period of Coverage. In
the event that similar coverage is not available to the
Participant, the Participant may revoke his election for the
remainder of the Plan Year.
(G) Any revocation and new election under this Section 4.6 shall be
effective at such time as the Administrator shall prescribe, but not
earlier than the first pay period beginning after the revocation and
new election, unless otherwise required by law.
4.7
Consistencv Rules:
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A Participant's requested written revocation and new election will be
consistent with a change in status described in Section 4.6 if, and only if,
(1) the change in status results in the Participant, or the Participant's
spouse or dependent, gaining or losing eligibility for accident or health
coverage under either the Plan or a plan of the spouse's or dependent's
employer, and (2) the election change corresponds with that gain or loss
of coverage.
Notwithstanding anything in this Section 4.7 to the contrary, if the
Participant, or the Participant's spouse or dependent, becomes eligible for
continuation coverage under a health plan identified in Appendix A as
provided in Code Section 4980B or any similar state law, the Participant
may elect to reduce his or her compensation under the Plan in order to
pay for the continuation coverage.
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4.8 Chances bv Administrator: If the Administrator determines, before or
during any year, that the Plan may fail to satisfy for such year any
nondiscrimination or other requirement imposed by the Code or any
limitation on benefits provided to the Highly Compensated Employees, the
Administrator shall take such action as the Administrator deems
appropriate, under rules uniformly applicable to similarly situated
Participants, to assure compliance with such requirement or limitation.
Such action may include, without limitation, a modification of elections by
Highly Compensated Employees (as defined by the Code for purposes of
the nondiscrimination requirement in question) without the consent of such
Employees.
4.9 Adiustment of Comoensation Reductions: If the cost of Optional Benefit
Coverages provided by an independent third-party provider under a
medical, dental plan or vision plan identified in Appendix A 1., increases or
decreases during a Period of Coverage, a corresponding change shall be
made in the Election Form of all Participants receiving such coverage in
an amount to be determined by the Administrator.
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4.10 Maximum elective contributions: The maximum amount of elective
contributions under the Plan for any Participant shall be the total cost to
the Participant for the Period of Coverage of the most expensive Optional
Benefit Coverages that any Participant could elect.
4.11 Cessation of reauired contributions: Nothing in this Plan shall prevent the
cessation of coverage or benefits under any plan identified on Appendix A,
in accordance with the terms of such plan, on account of a Participant's
failure to pay the Participant's share of the cost of such coverage or I
benefits, through compensation reduction or otherwise.
4.12 Coordination with FMLA: Notwithstanding any other provision of this Plan,
the Administrator may (a) permit a Participant to revoke (and subsequently
reinstate) his or her election of one or more Optional Benefit Coverages
under the Plan, and (b) adjust a Participant's cornpensation reduction as a
result of a revocation or reinstatement to the extent the Administrator
deems necessary or appropriate to assure the Plan's compliance with the
provisions of the Family and Medical Leave Act of 1993 and any
regulations pertaining thereto.
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ARTICLE V
FLEX DOLLARS AND ADDITIONAL CASH BENEFITS
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5.1 Flex Dollars: A Participant will be eligible to receive Flex Dollars if, and to
the extent that, the City has elected to provide Flex Dollars under the Plan.
Prior to the commencement of each Period of Coverage the City shall
determine the amount of Flex Dollars available to each such Participant in
accordance with the rules and procedures adopted by the City and by the
Plan Administrator, which shall not discriminate in favor of Highly
Compensated Employees. The Administrator shall notify such Participant
in writing of the amount of Flex Dollars available to him or her for the
Period of Coverage (or for the balance of the Period of Coverage).
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5.2 Allocation of Flex Dollars: Any Flex Dollars available to a Participant
under this Article V shall be applied proportionately each pay period
toward the cost of the Optional Benefit Coverages elected by the
Participant. If for any Period of Coverage the cost of the Optional Benefit
Coverages elected by the participant exceeds the Participant's Flex
Dollars, then the Participant's compensation shall be reduced
proportionately each pay period in the amount of the excess, and an
amount equal to the compensation reduction shall be contributed by the
Employer to cover the remaining cost of the Optional Benefit Coverages
elected by the Participant. However, if for any Period of Coverage the
cost of the Optional Benefit Coverages elected by the Participant is less
than the Participant's Flex Dollars, then the Participant shall receive the
value of any Flex Dollars not allocated to Optional Benefit Coverage and
divert them to the plans described on Appendix A.
5.3 Waiver of Coveraae Cash Ootion: A Participant who has elected to waive
coverage as described in Section 4.4.(A) or who has affirmatively elected
to waive medical coverage under the City's medical plan identified in
Appendix A shall be deemed to have elected the Waiver of Coverage
Cash Option. Under this Option the Employer will increase such
Participant's cash compensation as a taxable refund of contributions, for
each pay period during which the Participant does not have in effect any
medical coverage or has elected any Optional Benefit Coverage.
Determination of the waiver amount available to Participants, and the
manner in which it is paid, shall be made in accordance with the rules and
procedure adopted by the Employer and by the Administrator, which shall
not discriminate in favor of Highly Compensated Employees. The
Administrator shall notify such Participant in writing of the waiver amount
available to him or her for the Period of Coverage (or for the balance of
the Period of Coverage) under this Option. An eligible Participant may
elect the Waiver of Coverage Cash Option in writing in such form and
manner as the Administrator shall prescribe, at the same time or times
that the Participant is permitted to elect Optional Benefit Coverages under
Article IV. Such election shall be irrevocable during each Period of
Coverage to the same extent as an election of Optional Benefit Coverages
identified in Appendix A.
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ARTICLE VI
NON-DISCRIMINATION
6.1 Intent:
It is the intent of this Plan not to discriminate between any classes of I
employees or create such an action in part or whole of this Plan document
that is in violation of Code Section 125 and Treasury regulations. The
Administrator shall avoid all discretionary acts that could be deemed to be
discriminatory under any applicable Code section or law.
6.2 Reduction of Benefits and/or Contributions:
The Administrator may reduce, modify, change or reject the benefits or
amounts of contribution of any Participant of the Plan if the Administrator
deems it necessary to make certain this Plan does not discriminate in
favor of Highly Compensated Employees as defined in Code Section 125
and any other applicable Code section or law.
6.3 Treatment of Contributions:
Contributions that exceed the value of benefits under the Plan and
contributions that violate the nondiscrimination rules shall be retumed to
the Participant in the form of taxable income.
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7.1
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ARTICLE VII
ADMINISTRATION
Appointment of the Plan Administrator:
The Council shall designate the Plan Administrator of the Plan. Such
designation of the Plan Administrator will be for the full term of the Plan
Year, unless otherwise noted by Council. The name, address, and phone
number of the Plan Administrator of the Plan will be:
City Manager
City of Seal Beach
211 8th Street
Seal Beach, California 90740
Phone #: (562) 431-2527
The Plan Administrator shall be responsible for the complete management
of the Plan, and to undertake any action necessary to preserve the
benefits of the Participants of the Plan.
7.2 Duties of the Plan Administrator:
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The Plan Administrator shall have all necessary power to carry out the full
administration and management of the Plan. The Plan Administrator's
powers shall include, but are not limited to:
(A)
(B)
(C)
(D)
(E)
(F)
(G)
(H)
(I)
(J)
(K)
(L)
(M)
(N)
(0)
To interpret the provisions of the Plan;
To enforce all provisions of the Plan;
To make changes in the Plan when necessary;
To decide all questions of eligibility;
To decide all questions of benefits;
To decide the proper management of benefit claims;
To obtain from every employee the necessary forms and
documents that allow participation in the Plan;
To obtain from every Participant the necessary forms and
documents that allow either continued participation or termination in
the Plan;
To contract with any and all insurance companies or other suppliers
to provide benefits under the Plan;
To notify each Participant in writing of any amendment of the Plan,
of any proposed amendment of the Plan, of the termination of any
benefit of the Plan, and of the termination of the Plan;
To provide guidance for employees and Participants as to
questions of participation, benefits, or personal objectives in
connection with the Plan;
To appoint an Administrator, agents, consultants and professionals
to assist in administering the Plan and completing necessary
documentation and reportings;
To avoid discrimination under the Plan;
To pay for any administrative costs of the Plan;
To do any other acts as deemed necessary to administer and
manage the plan for the benefit of its Participants.
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7.3 Reoorts and Records:
The Plan Administrator shall keep complete books, reports and records of
all activities under the Plan. The records of the Plan shall be open for
inspection during normal business hours, to the City and to each
Participant, of only that Participant's individual participation records. The
Plan Administrator or the Administrator shall prepare and submit to the
City an annual report containing material, which the Administrator deems
necessary under Sections 125 and 129 or any other section of the Code.
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7.4 Fiduciary Resoonsibilities:
The Plan Administrator shall conduct its duties of the Plan as a fiduciary
for the Participants and their beneficiaries. The Administrator must
exercise proper judgement and diligence in carrying out any action and in
any capacity as Plan Administrator. The Administrator shall act according
to the Plan and the administrative duties contained herein, and such
actions must be for the benefit of the Participants or potential Participants
of the Plan.
7.5 Administrator Limitations:
The Plan Administrator is not responsible for the actual administration of
group insurance plans supplied by insurance carriers, as such plans shall
be governed by the terms of each such plan.
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8.1
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8.2
ARTICLE VIII
AMENDMENT AND TERMINATION OF THE PLAN
Amendment:
The Plan Administrator can amend the Plan by providing written notice to
all Participants and potential Participants of the change or pending
change. Such amendment of the Plan shall not affect the rights of a
Participant pertaining to all clauses contained in this Plan, or change any
benefit of the Participant if such benefit has not been subsequently
changed by a carrier or the City, or change any right under the City's
group insurance plan.
Termination:
The City expects that this Plan will be maintained indefinitely, however,
continuance is not guaranteed. The City reserves the right to terminate
the Plan at any time with advance notice to Participants. Upon
termination, no further contributions will be made.
8.3 Riahts of ParticiDants:
If the Plan is terminated, the rights of Participants to receive benefits and
reimbursements under the City's group insurance plan for conditions prior
to termination are not affected in any manner.
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ARTICLE IX
MISCELLANEOUS
..
9.1 Indemnification:
The City agrees to indemnify the Plan Administrator, and any employee of I
the City acting as the Plan Administrator, an assistant to the Plan
Administrator, or agent of the Plan Administrator, its employees, or any
other person who performs duties of the Plan, referred to as the Plan
Administrator, to the fullest extent permitted by law against any and all
liabilities, claims, expenses, and damages stemming from the actions or
omissions of any such person in connection with administering the Plan
for the benefit of its Participants, as long as such actions and omissions
were at the time in good faith and carried forth with proper diligence and
care.
9.2 Tax Treatment of the Plan:
The City specifically makes no claim as to the tax treatment of the Plan,
the qualification of the Plan as a taxable or tax-exempt entity, tax
deductions of contributions, or any other assurance of future tax
treatments.
9.3 Third Party Actions:
The City shall not be directly responsible for any action taken by any
insurance carrier who offers benefits to the City, nor shall it be responsible I
to make payments to any Participant if the insurance carrier fails to do so.
9.4 Fundina:
All contributions to the Plan do not have to be placed in trust accounts or
specified for certain benefits, nor is it required that the City or
Administrator maintain separate accounts for any or all Participants with
regard to their contributions. The assets of the Plan will be considered as
general assets of the City to be used to timely pay for the benefits
selected.
9.5 No Effect on Other Emolovee Considerations:
Participation in this Plan by any employee of the City should not be
construed as anything but participation in one particular benefit offered by
the City. Participation in the Plan does not bind the City to any contractual
obligation or employment obligation with the employee, other than to the
terms of the Plan documents.
9.6 Titles and Headinas:
The title and headings within this document are for simplification or I
reference only, and are not intended to be complete in any definition or
meaning of the actual plan. The entire text of this document shall govern
rather than any specific title or heading.
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9.7 Gender and Number:
Wherever any words are used in the masculine, feminine or neuter
gender, they shall be interpreted to be applicable to all cases where they
would apply. Wherever used in this document, the singular shall mean the
plural and the plural shall mean the singular except where context requires
otherwise.
I 9.8 Amendments in Writina:
Any and all amendments to this Plan, qualifications of the Plan, and
interpretations of the Plan, need to be in writing in order to be valid.
9.9 Seoarate Provisions:
If any provision of this Plan is deemed invalid or unenforceable, then only
its validity or enforceability shall be questioned or changed, and it will not
affect in any manner any other provision of the Plan or the Plan itself.
9.10 Plan Nurnber:
The Plan Number shall be 502.
9.11 Citv Information:
The name, address, phone number, and employer identification number of
the City is:
City of Seal Beach
211 8th Street
Seal Beach, California 90740
I Phone #: (562) 431-2527
EIN# 95-6000794
9.12 Service of Leaal Process:
The name, address, and phone number of the agent for service of legal
process is:
Quinn Barrow, City Attorney
Richard, Watson, and Gershon
355 S. Grand Avenue, 40th Floor
Los Angeles, CA 90071
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APPENDIX A
OPTIONAL BENEFIT COVERAGES
Optional Benefit Coverages shall consist of the coverages(s) available to a
Participant under the following Plan (s) maintained by the City:
1. Optional Benefit Coverages - Health Care Coverage
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(A)
(B)
(C)
(D)
Medical Plan through the California Public Employees' Retirement
System
City of Seal Beach Dental Plan
City of Seal Beach Vision Plan
City of Seal Beach Voluntary Plans
2. Optional Benefit Coverages- Flexible Spending Accounts
The following Flexible Spending Arrangement Account Plan(s) will be
maintained by the City and made available to Participants under this
Appendix, subject to the terms of such plans:
(A) The City of Seal Beach Health Care Spending Account Plan, as
amended from time to time and attached hereto as Enclosure 1.
(B) The City of Seal Beach Dependent Care Spending Account Plan,
as amended from time to time, and attached hereto as Enclosure 1.
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APPENDIX B
FLEX-DOLLAR ALLOWANCE
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Flex Dollar Allowance Effective July 1 , 2008:
SEAL BEACH MUNICIPAL EMPLOYEES
With Medical Coverage Total Monthly .
. ___ 00___ 00 .______n.n 00....00___00___00. . ___.___..........___ ___!;~ploy~.~~~~flt .
EIT)P'!~y'ee. Q!).IY...nnn______n ___ 00 ." . ____________00___00 n___.___....~~5Q:.QQ__ 00
E~p'!~y'ee !:'.1.l,!~.Q.~~.___n______n. . ___.............. ___._________~85Q:.QQ
E~p'!~yee. ~1.l,!~.I~<?.~r..~ore . . ___m,.,.'n..___n ___00______ ~11.0Q:.QQ .
If employee waives medical coverage (cash $31000
bac.~.~p.tIon), .. on___ . 00___ ______00___00 ___ .. ..... ... 00 ______. .. 00 00 _________m
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EXECUTION PAGE
IN WITNESS WHEREOF, the City has caused this Plan to be signed by David N.
Carmany. City Manaaer as of the 22nd day of October , 2007.
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CITY OF SEAL BEACH
BY:
~,.
o
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