City of Fresno – OTC Amendment
FOURTH AMENDMENT TO CITY OF FRESNO FLEXIBLE BENEFITS PLAN TO
ALLOW HEALTH FSA COST-OF-LIVING INCREASES
ARTICLE I
PREAMBLE
1.1 Adoption and E ffective Date of A mendment. The City of Fresno adopts this Amendment to the City of Fresno Flexible Benefits Plan (Plan) to reflect changes in certain provisions of the Internal Revenue Service Code 125. The sponsor intends this Amendment as good faith compliance with the requirements of these changes. This Amendment shall be effective on or after the date the City of Fresno elects in Article II below.
1.2 Supersession of Inconsistent Provisions; Capitalized Terms. This Amendment shall supersede the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this Amendment. For this Amendment, the capitalized terms in Article III below shall have the same meaning set forth in the Plan, unless context clearly requires otherwise.
1.3 Construction. Except as otherwise provided in this Amendment, any reference to "Section" in this Amendment refers only to sections within this Amendment and is not a reference to the Plan. The Article and Section numbering in this Amendment is solely for purposes of this Amendment, and does not relate to any Plan article, section, or other numbering designations.
ARTICLE II
ELECTIONS
2.1 Effective Date. The effective date of the provisions in this Amendment to the Plan is June 30, 2024.
ARTICLE III
PROVISIONS
3.1 Carryover. A Participant in the Health Flexible Spending Account may roll over unused amounts in the Health Flexible Spending Account remaining at the end of the Plan Year to the subsequent Plan Year, up to the statutory amount under Code Section 125(i), as adjusted for increases in the cost -of-living. The cost-of-living adjustment in effect for a calendar year applies to any Plan Year beginning with or within such calendar year. Amounts carried over do not affect the maximum amount of S alary Reduction contributions for the Plan Year to which they are carried over. Unused amounts are those remaining after expenses have been reimbursed during the runout period. These amounts may not be cashed out or converted to any other taxable or City of Fresno – OTC Amendment
nontaxable benefit. Amounts in excess will be forfeited. The Plan is allowed, but not required, to treat claims as being paid first from the current year amounts, then from the carryover amounts.
(a) If an Employee does not re-enroll in the subsequent Plan Year, the minimum carryover amount is $100.
3.2 Maximum Limit for Health Flexible Spending Account. Notwithstanding any provision contained in this Health Flexible Spending Account to the contrary, the maximum Amount of Salary Reductions that may be allocated to the Health Flexible Spending Account by a Participant in or on Account of any Plan Year is the statutory amount under Code Section 125(i), as adjusted for increases in the cost-of-living. This adjustment applies to any Plan Year beginning with or within such calendar year. The dollar increase in effect on January 1 of any calendar year shall be effective for the Plan Year beginning with or within such calendar year.
This amendment has been executed this _____day of ___________________, 2024.
City of Fresno
By:____________________________
Signature
City of Fresno – OTC Amendment
CERTIFICATE OF ADOPTING RESOLUTION
The undersigned authorized representative of City of Fresno (the Employer) hereby certifies that the following resolutions were duly adopted by Employer on _________________, 2024, and that such resolutions have not been modified or rescinded as of the date hereof;
RESOLVED, that the Amendment to the City of Fresno Flexible Benefits Plan (the Amendment) is hereby approved and adopted, and that an authorized representative of the Employer is hereby authorized and directed to execute and deliver to the Administrator of the Plan one or more counterparts of the amendment.
The undersigned further certifies that attached hereto is a copy of the Amendment approved and adopted in the foregoing resolution.
Date:
Signed:
[print name/title]
City of Fresno – OTC Amendment
SUMMARY OF MATERIAL MODIFICATIONS
CITY OF FRESNO
I
INTRODUCTION
This is a Summary of Material Modifications regarding the City of Fresno Flexible Benefits Plan (Plan). This is merely a summary of the most important changes to the Plan and information contained in the Summary Plan Description (SPD) previously provided to you.
It supplements and amends that SPD so you should retain a copy of this document with your copy of the SPD. If you have any questions, contact the Administrator. If there is any discrepancy between the terms of the Plan, as modified, and this Summary of Material Modifications, the provisions of the Plan will control. This Summary is effective starting for the Plan Year July 1, 2024.
II
SUMMARY OF CHANGES
Carryover.
A Participant in the Health Flexible Spending Account may roll over unused amounts in the Health Flexible Spending Account remaining at the end of the Plan Year to the subsequent Plan Year, up to the statutory amount under Code Section 125(i), as adjusted for increases in the cost-of-living. The cost-of-living adjustment in effect for a calendar year applies to any Plan Year beginning with or within such calendar year. Amounts carried over do not affect the maximum amount of salary redirection contributions for the Plan Year to which they are carried over. Unused amounts are those remaining after expenses have been reimbursed during the runout period. These amounts may not be cashed out or converted to any other taxable or nontaxable benefit. Amounts in excess will be forfeited. The Plan is allowed, but not required, to treat claims as being paid first from the current year amounts, then from the carryover amounts.
(a) If an employee does not re-enroll in the subsequent plan year, the minimum carryover amount is $100.
Maximum Limit for Health Flexible Spending Account.
Notwithstanding any provision contained in this Health Flexible Spending Account to the contrary, the maximum amount of salary reductions that may be allocated to the Health Flexible Spending Account by a Participant in or on account of any Plan Year is the statutory amount under Code Section 125(i), as adjusted for increases in the cost-of-living.
This adjustment applies to any Plan Year beginning with or within such calendar year. The dollar increase in effect on January 1 of any calendar year shall be effective for the Plan Year beginning with or within such calendar year.