DATE: September 1, 2020
TO: Board of Supervisors
SUBMITTED BY: Paul Nerland, Director of Human Resources
SUBJECT: Amendments to the Cafeteria Plan for the Employees of County of Fresno
RECOMMENDED ACTION(S):
TITLE
Adopt a Resolution amending the Cafeteria Plan for the Employees of County of Fresno to implement changes due to updated Federal regulations and Internal Revenue Service Notice 2020-29
REPORT
There is no increase in Net County Coast associated with the recommended action. Adoption of the proposed resolution will amend the Cafeteria Plan for the Employees of County of Fresno (the "Plan") to extend health and daycare claims deadlines, extend COBRA election deadlines, and extend the deadline to incur eligible expenses. This item is countywide.
ALTERNATIVE ACTION(S):
Your Board may choose not to extend the deadline to incur eligible expenses, known as the Grace Period. The other provisions in the resolution are required under the Code of Federal Regulations.
FISCAL IMPACT:
There is no Net County Cost associated with the recommended action.
DISCUSSION:
The County has offered health and dependent care flexible spending accounts to participating employees since 1988. Flexible Spending Accounts allow employees to set aside tax-free funds that can be used for healthcare and childcare expenses. Contributions reduce the base upon which an employee's Federal, State, Social Security, and Medicare taxes are calculated, thereby reducing the amount of taxes paid by the employee and reducing the Social Security and Medicare taxes paid by the County. For Plan Year 2020, there are currently 1,751 employees enrolled in a health care flexible spending account with over $2.3 million in annual elections; there are 108 employees enrolled in a dependent daycare flexible spending account with over $280,000 in annual elections. The Plan was most recently amended and restated November 17, 2015.
Due to the ongoing COVID-19 Public Health Emergency, regulations have been...
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