DATE: November 7, 2023
TO: Board of Supervisors
SUBMITTED BY: Hollis Magill, Director of Human Resources
SUBJECT: Amend and Restate the Cafeteria Plan for the Employees of County of Fresno
RECOMMENDED ACTION(S):
TITLE
Adopt a Resolution amending and restating the Cafeteria Plan for the Employees of County of Fresno.
REPORT
There is no increase in Net County Cost associated with the recommended action. Your Board's adoption of the proposed resolution will amend the Cafeteria Plan for the Employees of County of Fresno (the "Cafeteria Plan") to 1) incorporate into the Cafeteria Plan, Board of Supervisors' Resolution Nos. 20-280 and 21-090; 2) add language to allow the County to offer a Health Savings Account (HSA) to its employees; and 3) update language related to forfeited Flexible Spending Account (FSA) contributions under the Cafeteria Plan.
Outside expert legal counsel has recommended that the County incorporate Board Resolution Nos. 20-280 and 21-090 into the Cafeteria Plan, in the event that the Cafeteria Plan is reviewed or audited by the IRS.
The proposed Cafeteria Plan language will allow the County to offer an HSA to its employees in compliance with applicable law and regulations, pursuant to guidance from outside expert legal counsel.
The proposed Cafeteria Plan language removes time constraints on the use of use forfeited FSA contributions (referred to as "forfeitures" in the Cafeteria Plan) to defray the cost of Cafeteria Plan expenses and further defines Reasonable Administrative Expenses related to the Cafeteria Plan.
This item is countywide.
ALTERNATIVE ACTION(S):
The alternative to the recommended action is to direct staff to revise the proposed resolution as it relates to forfeitures, by either removing or revising the proposed language. If the proposed language is removed, the County would have less flexibility to use forfeitures from prior years to defray the cost of Cafeteria Plan expenses. However, the County will not lose these for...
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