RESOLUTION NO. 2023-__________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ADOPTING THE CITY OF CHULA VISTA
CAFETERIA BENEFITS PLAN FOR 2024
WHEREAS, the Internal Revenue Code requires that the Section 125 Cafeteria Benefits Plan offered by the City to its employees be in a written document and that the document be formally adopted by the City Council on or before the first day of the plan year; and
WHEREAS, in June 1998, the City established its first Section 125 Cafeteria Benefits Pla n; and
WHEREAS, in compliance with Internal Revenue Code §125(d) the City Council annually adopts a written plan document prior to the first day of the plan year; and
WHEREAS, the first day of the City’s next plan year is January 1, 2024; and
WHEREAS, this Plan Document lays out how the City offers eligible employees the choice between cash and certain nontaxable benefits (such as health insurance), thereby allowing employees to pay for the benefits they choose on a pre-tax basis; and
WHEREAS, the specific health plans offered and their structure are not part of this Cafeteria Plan Document; and
WHEREAS, they are included in what is known as the Summary Plan Document that was given to eligible employees as part of their open enrollment materials to ass ist them in making their benefit choices; and
WHEREAS, the plans offered and their structure are determined after our broker, Marsh and McLennan Agency, extensively markets and negotiates with providers to provide coverage comparable to the prior year whi le keeping the increase in costs to the City and its benefited employees to a minimum; and
WHEREAS, all employee groups are advised of the offers and the plan structures that will provide the least increase in premium costs; and
WHEREAS, u nder current cafeteria plan regulations having an approved written plan is critical; and
WHEREAS, without a written plan or if the written plan does not comply with applicable requirements regarding content and timing of adoption, then the plan is not a cafeteria plan and employees’ elections will be taxable; and
WHEREAS, t he City has timed its open enrollment period for 2024 to comply with these regulations and to meet provider cutoff deadlines for enrollment to ensure employees are covered without interruption; and
Resolution No. 2023-__________
WHEREAS, the City’s Plan includes the following required information: description of available benefits, participation rules, election procedures, manner of contributions, maximum amount of contributions, the plan year, and the plans provisions for com plying with flexible spending arrangements (FSAs).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it does hereby adopt the City of Chula Vista Cafeteria Benefits Plan for 20 24, in the form presented, with such minor modifications as may be approved by the City Manager, in consultation with the City Attorney.
Presented by Approved as to form by
Courtney Chase Jill D.S. Maland
Deputy City Manager Lounsbery Ferguson Altona & Peak Acting City Attorney