1998-009 ResolutionCity of Southlake, Texas
RESOLUTION NO. 98-9
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE TEXAS, ADOPTING AMENDMENT #2 TO THE CITY OF
SOUTHLAKE'S FLEXIBLE EMPLOYEE BENEFITS PLAN,
DEPENDENT CARE ASSISTANCE PLAN, AND MEDICAL CARE
REIMBURSEMENT; AND AUTHORIZING AND DIRECTING THE
CITY MANAGER TO EXECUTE SAID DOCUMENTS AND SUCH
OTHER INSTRUMENTS AS MAY BE REQUIRED IN ORDER TO
MAKE SAID PLANS EFFECTIVE ACCORDING TO THEIR TERMS.
WHEREAS, City of Southlake (the "City") has previously adopted and is presently
maintaining the City of Southlake Flexible Employee Benefit Plan, Medical Care
Reimbursement Plan, and Dependent Care Assistance Plan (the "Plan") as amended from time
to time and regulations promulgated thereunder; and
WHEREAS, Article VII of the Flexible Employee Benefit Plan, Article V of the
Medical Care Reimbursement Plan, and Article V of the Dependent Care Reimbursement Plan
permits the City to amend the Plans from time to time, and the City deems it necessary to
amend the Flexible Employee Benefit Plan, Medical Care Reimbursement Plan, and
Dependent Care Assistance Plan in order to make certain changes to the Plan to conform to the
Family and Medical Leave Act of 1993 ("FMLA"), the Uniformed Services Employment and
Reemployment Rights Act of 1994 ("USERRA"), and the Small Business Job Protection Act
of 1996 ("SBJPA"):
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, THAT:
Section 1: The above premises are found to be true and correct and incorporated into the body
of this resolution as if copied in their entirety.
Section 2: That City of Southlake hereby adopts Amendment #2 to the Flexible Employee
Benefit Plan, Amendment #2 to the Medical Care Reimbursement Plan, and Amendment #2 to
the Dependent Care Assistance Plan.
RESOLUTION NO. 98-9
Page 2.
Section 3: This resolution shall become effective after its passage and adoption by the City
Council.
PASSED AND APPROVED THIS THE p DAY OF , 1998.
I
A tacy, Mayor
ATTEST:
oS0V
7 F
S. y
Sandra L. LeGrand, City Secretary = :il
JAI?
4
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AMENDMENT 112
TO THE CITY OF SOUTHLAKE
DEPENDENT CARE ASSISTANCE PLAN
WHEREAS, City of Southlake ("Employer") has previously adopted and is presently
maintaining the City of Southlake Dependent Care Assistance Plan ("Plan"), as amended from time
to time; and
WHEREAS, the Plan reserves to the Employer the right to amend the Plan from time to time
and the Employer deems it necessary to amend the Plan to provide for certain revisions necessary
under the Family and Medical Leave Act of 1993 ("FMLA"), the Uniformed Services Employment
and Reemployment Rights Act of 1994 ("USERRA"), and the Small Business Job Protection Act
of 1996 ("SBJPA") to the extent such Acts apply to the Plan or to qualified benefits offered through
the Plan:
NOW, THEREFORE, the City of Southlake Dependent Care Assistance Plan is amended
in the following particulars as of the effective date or dates specified herein:
Section 1.15 - Leased Emnlovee shall be amended effective for Plan Years commencing
after December 31, 1996 to read as follows:
Section 1.15 - Leased Emnlovee means any person (other than an Employee of the
Employer) who pursuant to an agreement between the Employer and another entity ("leasing
organization") has performed services for the Employer (or for the Employer and related
persons determined in accordance with Code Section 414(n)(6)) on a substantially full time
basis for a period of at least one year, and such services are performed under primary
direction or control by the Employer. A Leased Employee shall not be considered an
Employee of the Employer.
IN WITNESS WHEREOF, City of Southlake hA caused this Amendment to be executed
by its duly authorized officers on this the AD Day of , 199T .
City ofSo 1 e
BY: _
Signature 1
Cu riZ1SE. RAW<
Name Printed
Title Pr' ted
AMENDMENT 92
TO THE CITY OF SOUTHLAKE
FLEXIBLE EMPLOYEE BENEFIT PLAN
WHEREAS, City of Southlake ("Employer") has previously adopted and is presently
maintaining the City of Southlake Flexible Employee Benefit Plan ("Plan"), as amended from time
to time; and
WHEREAS, the Plan reserves to the Employer the right to amend the Plan from time to time
and the Employer deems it necessary to amend the Plan to provide for certain revisions necessary
under the Family and Medical Leave Act of 1993 ("FMLA"), the Uniformed Services Employment
and Reemployment Rights Act of 1994 ("USERRA"), and the Small Business Job Protection Act
of 1996 ("SBJPA") to the extent such Acts apply to the Plan or to qualified benefits offered through
the Plan:
NOW, THEREFORE, the City of Southlake Flexible Employee Benefit Plan is amended
n the following particulars as of the effective date or dates specified herein:
ARTICLE I, DEFINITIONS, shall be amended to add Section 1.25 effective as of the date
of enactment of the Family and Medical Leave Act of 1993:
Section 1.25 - FMLA means the Family and Medical Leave Act of 1993 (P.L. 103-
3), as amended from time to time which shall apply to eligibility and continuation of
coverage for Qualified Benefits offered under the Plan which are subject to the provisions
of the FMLA and regulations promulgated thereunder.
ARTICLE I, DEFINITIONS, shall be amended to add Section 1.26 effective as of the date
of enactment of the Uniformed Services Employment and Reemployment Rights Act of 1994:
Section 1.26 - USERRA means the Uniformed Services Employment and
Reemployment Rights Act of 1994 (P.L. 103-353), as amended from time to time which
shall apply to eligibility and continuation of coverage for Qualified Benefits offered under
the Plan which are subject to the provisions of the USERRA and regulations promulgated
thereunder.
Section 1.15 - Leased Emnlovee shall be amended effective for Plan Years commencing
after December' -3 1, 1996 to read as follows:
Section 1.15 - Leased Emnlovee means any person (other than an Employee of the
Employer) who pursuant to an agreement between the Employer and another entity ("leasing
organization") has performed services for the Employer (or for the Employer and related
persons determined in accordance with Code Section 414(n)(6)) on a substantially full time
basis for a period of at least one year, and such services are performed under primary
direction or control by the Employer. A Leased Employee shall not be considered an
Employee of the Employer.
Section 1.22 - Oualified Benefit shall be amended effective for Plan Years commencing
after December 31, 1996 to read as follows:
Section 1.22 - Oualified Benefit means (i) optional benefits described in Section
3.01 offered to a Participant under the Plan the value or cost of which, with the application
of Section 125(a) of the Code, is not includable in the gross income of the Participant by
reason of an express provision of the Code; and (ii) any other benefit including cash which
may be permitted from time to time as a Qualified Benefit (whether or not excludable from
gross income of the Participant) under Section 125 of the Code and applicable regulations.
Notwithstanding the immediately preceding paragraph to the contrary, the term
Qualified Benefit shall not include any of the following:
a) Qualified scholarships under Section 117 of the Code;
b) Educational assistance programs under Section 127 of the Code;
c) Certain fringe benefits under Section 132 of the Code;
d) Meals or lodging furnished for the convenience of an Employee under
Section 119 of the Code; and
e) Any product which is advertised, marketed, or offered as long-term care
insurance.
Section 2.02 - Termination of Particination shall be amended as of the effective date of
the application of FMLA and USERRA to Qualified Benefits offered under the Plan as follows:
Section 2.02 - Termination of Participation: A Participant will cease participation
in the Plan as of the earliest of (i) the date of termination of the Participant's employment
with the Employer, except to the extent continuation of coverage for certified Qualified
Benefits subject to FMLA and USERRA may be elected by the Participant or is required in
accordance with FMLA or USERRA; (ii) the date on which the Participant ceases to be
eligible to participate hereunder; or (iii) the date of termination of the Plan.
Section 2.03 - Continuation of Coverage shall be amended as of the effective -date of the
application of FMLA and USERRA to Qualified Benefits offered under the Plan to read as follows:
Section 2.03 - Continuation of Coverage/FMLA/USERRA: Notwithstanding any
provision to the contrary contained in this Plan, in the event the Employer is required by
4980B of the Code, FMLA, or USERRA, or any regulations promulgated thereunder to
provide continuation of coverage under any Qualified Benefit upon the occurrence of an
event described under such laws which would otherwise result in loss of coverage, then to
the extent any Qualified Benefit available for selection under the Plan is subject to such
continuation of coverage rules, no provision herein shall operate to deny a continuation of
l
coverage option with regard to such benefit. Such continuation of coverage option shall be
offered in such manner and to such person or persons as required under such laws. A person
who elects to receive such continuation coverage shall be required to pay the cost thereof,
with the amount of such cost and the method of payment thereof being determined in a
manner consistent with the applicable requirements of such law.
IN WITNESS WHEREOF, City of Southlake has caused this Amendment to be executed
by its duly authorized officers on this the Day of , 199.
City of Southlake
BY:
Signature
Name Printed
Title Printed
AMENDMENT #2
TO THE CITY OF SOUTHLAKE
MEDICAL CARE REIMBURSEMENT PLAN
WHEREAS, City of Southlake ("Employer") has previously adopted and is presently
maintaining the City of Southlake Medical Care Reimbursement Plan ("Plan"), as amended from
time to time; and
WHEREAS, the Plan reserves to the Employer the right to amend the Plan from time to time
and the Employer deems it necessary to amend the Plan to provide for certain revisions necessary
under the Family and Medical Leave Act of 1993 ("FMLA"), the Uniformed Services Employment
and Reemployment Rights Act of 1994 ("USERRA"), and the Small Business Job Protection Act
of 1996 ("SBJPA") to the extent such Acts apply to the Plan or to qualified benefits offered through
the Plan:
NOW, THEREFORE, the City of Southlake Medical Care Reimbursement Plan is amended
in the following particulars as of the effective date or dates specified herein:
ARTICLE I, DEFINITIONS shall be amended to add Section 1.23 effective as of the
date of enactment of the Family and Medical Leave Act of 1993:
Section 1.23 - FMLA means the Family and Medical Leave Act of 1993 (P.L.
103-3), as amended from time to time which shall apply to eligibility and continuation of
coverage for Qualified Benefits offered under the Plan which are subject to the provisions
of the FMLA and regulations promulgated thereunder.
ARTICLE I, DEFINITIONS shall be amended to add Section 1.24 effective as of the
date of enactment of the Uniformed Services Employment and Reemployment Rights Act of
1994:
Section 1.24 - USERRA means the Uniformed Scrvices Employment and
Reemployment Rights Act of 1994 (P.L. 103-353), as amended from time to time which
shall apply to eligibility for and continuation of coverage for Qualified Benefits offered
under the Plan which are subject to the provisions of the USERRA and regulations
promulgated thereunder.
Section 1.12 - Leased Employee shall be amended effective for Plan Years commencing
after December 31, 1996 to read as follows:
Section 1.12 - Leased Emnlovee means any person (other than an Employee of
the Employer) who pursuant to an agreement between the Employer and another entity
leasing organization") has performed services for the Employer (or for the Employer
and related persons determined in accordance with Code Section 414(n)(6)) on a
substantially full time basis for a period of at least one year, and such services are
performed under primary direction or control by the Employer. A Leased Employee shall
not be considered an Employee of the Employer.
Section 2.03 - Termination of Participation shali be amended as of the effective.date of
the application of FMLA and USERRA to coverage under the Plan to read as follows:
Section 2.03 - Termination of Participation: A Participant will cease
participation in the Plan as of the earliest of (i) the date of termination of the Participant's
employment with the Employer, except to the extent continuation of coverage for
certified Qualified Benefits subject to FMLA and USERRA may be elected by the
Participant or is required in :.xordance with FMLA or USERRA; (ii) the date on which
the Participant ceases to be eligible to participate hereunder; or (iii) the date of
termination of the Plan.
Section 2.04 - Continuation of Covera -,e shall be amended as of the effective date of the
application of FMLA and USERRA to Qualified Benefits offered under the Plan to read as
follows:
Section 2.04 - Continuation of Coveraoe/FMLA/USERRA: Notwithstanding
any provision to the contrary contained in this Plan, in the event the Employer is required
b-,- 4980B of the Code, FMLA, or USERRA, or any regulations promulgated thereunder
to provide continuation of coverage under any Qualified Benefit upon the occurrence of
an event described under such laws which would otherwise result in loss of coverage,
then to the extent any Qualified Benefit available for selection under the Plan is subject to
such continuation of coverage rules, no provision herein shall operate to deny a
continuation of coverage option with regard to such benefit. Such continuation of
coverage option shall be offered in such manner and to such person or persons as required
under such laws. A person who elects to receive such continuation coverage shall be
required to pay the cost thereof, with the amount of such cost and the method of payment
thereof being determined in a manner consistent with the applicable requirements of such
law.
Section 3.04 - Leave of Absence/Termination. of Employment shall '-be amended
effective as of the date of application. of FMLA and USERRA to the Plan to add subparagraphs
c) and (d) to read as follows:
c) FMLA Coverage: Notwithstanding provisions to the contrary herein, a
Participant taking FMLA leave shall be permitted to (i) continue under the Plan;
or (ii) revoke an existing election under the Plan for the remaining period of
coverage. A Participant upon return from FMLA leave shall be permitted to
reenter the Plan at the election of the Participant.
If the Participant elects to continue health coverage during FMLA leave,
the Participant may elect to pay contributions during the FMLA leave either (i) in
advance of the commencement of the FMLA leave. (ii) during the term of the
FMLA leave on the same schedule as payments would be made if the Participant
were not on leave, or (iii) under any other system voluntarily agreed to by the
Participant and the Employer that is not inconsistent with applicable regulations.
Payments made by a Participant may be either by way of payroll deduction
through Salary Conversion Dollars from taxable payments due to the Participant
from the Employer or through after-tax payments.
Regardless of the payment option selected for continued coverage under
the Plan, the full amount of elected covera:e, less any prior reimbursement must
be available to the Participant at all times including the FMLA period. If a
Participant's coverage under the Plan terminates while the Participant is on FMLA
leave, the Employee is not entitled to receive reimbursement for claims incurred
during the period when the coverage is terminated. If such Employee
subsequently elects to be reinstated in the Plan upon return from FMLA leave for
the remainder of the Plan Year, the Employee may not retroactively elect
coverage for claims incurred during the period when coverage was terminated. If
an Employee elects to be reinstated in the Plan upon return from FMLA leave,
such Participant's coverage for the remainder of the Plan Year is equal to the
Participant's election for the twelve (12) month period of coverage (or such
shorter period if the election was for a period of less than twelve (12) months)
prorated for the period during which no contributions were paid and reduced by
prior reimbursement for the period of coverage.
d) USERRA Coverage: Notwithstanding any provisions to the contrary contained
herein, to the extent USERRA applies to coverage and benefits provided under the
Plan during such period as the Participant is absent from employment with the
Employer by reason of service in the uniformed services, a Participant's right to
reenter the Plan where coverage was terminated by reason of service in the
uniformed services shall the determined in accordance with USERRA and
regulations promulgated thereunder.
IN WITNESS WHEREOF, City of Southlake has cause his Amendment to be
executed by its duly authorized officers on this the 10—Day of '1991.
City of S thlake
BY: _
Signature
r, Lk .4 ki Li
Name Printed
Ct*44-1 Mana3ey—
Title Print4d
City of Southlake, Texas
January 16, 1998
TO: Curtis E. Hawk, City Manager
FROM: Lauren Safranek, Director of Human Resources
SUBJECT: Resolution No. 98-9, Adopting Amendment No. 2 To The City Of
Southlake Flexible Employee Benefit Plan
Flex Corp, the City's administrator for the 125 flexible benefits plan, has forwarded
amendments to the City's 125 plan documents. The IRS has determined that all plan
documents must include language that addresses the Family Medical Leave Act of 1993
FMLA), the Uniformed Services Employment and Reemployment Rights Act of 1994
USERRA) and the Small Business Job Protection Act of 1996 (SBJPA). Basically,
these amendments address coverage for qualified benefits offered under the plan that
are subject to the' provisions of FMLA and USERRA and their regulations.
Furthermore, these amendments state that leased employees are not considered
employees of the City when determining the requirements of the SBJPA. City Council
must approve the attached resolution to adopt these amendments.
Please place this item on the January 20, 1998, City Council agenda for consideration.
Please feel free to call me at ext. 836 with any questions you may have.
LDS