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Home My WebLink AboutTC Res 1995-01-04 (3) ,,- , ' RESOLUTION NO. J2ll A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TIBURONAUTHORIZING ADOPTION OF A CAFETERIA DEPENDENT CARE/MEDICAL REIMBURSEMENT PLAN FOR ALL EMPWYEES WHEREAS, the Town Council of the Town of Tiburon, a municipal <:orporation organized under the laws of the State of California, (hereinafter "Town") wishes to authorize the adoption of a Cafeteria Dependent Carel Medical Reimbursement Plan for the benefit of the Town's employees; and WHEREAS, this Plan is intended to comply with the provisions of Sections 79, 105, 106, 125, and 129 of the Internal Revenue Code of 1954, as amended. NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Tiburon that: r 1. Effective February 1, 1995, each eligible employee of the Town shall have the option,in accordance with the following provisions of this Plan, to receive from the . Town, in lieu of an equal amount of said employee's then current salary or wages, reimbursement for dependent care/medical care expenses. Eligible dependent care/medical care expenses shall be those incurred on or after 12:01 a.m., February 1, 1995, by or for such eligible employee, his/her spouse and any dependent child (within the meaning of Section 152 of the Internal Revenue Code of 1954, as amended) of such employee; provided, however, that in no event shall the amount of dependent care/medical care expenses allowed to any such eligible employee (including spouse and dependent children) exceed $30,000 in any one calendar year ($5,000 dependent care/maximum). 2. The term "eligible employee" as used herein. shall mean each full-time employee of the Town as of February 1, 1995, and each new employee of the Town after such employee has been in the employ of the Town for ninety (90) days, but as to each such new employee only as to medical care expenses incurred from and after the date he/she had become an eligible employee. [r 3. "Employment Related Dependent Care Expense" means an "employment-related expense," as defined in Section 21(b) of the Internal Revenue Code. As of the date hereof, this means an amount paid for expenses of a Participant for household services or for the care of a Qualifying Individual, to the extent that such expenses are incurred to enable the Participant to be gainfully employed, within the meaning of Section 21(b) (2) of the Code, for any period for which there are one (1) or more Qualifying Individuals with respect to such -- Participant; provided, however, that (1) if such amounts are paid for expenses incurred outside the Participant's household they shall constitute Employment Related Dependent Care Expenses only if incurred for a Qualifying Individual who is a Dependent under the age of thirteen (13) for whom the Participant is entitled to an exemption under Section 151(e) of the Code or for a Qualifying Individual who regularly spends at least eight (8) hours per day in the Participant's household; and (2) if the expense is incurred outside the Participant's home at a facility that provides care for more than six (6) individuals who do not regularly reside at the facility, the facility must comply with all applicable state and local laws and regulations, including licensing requirements, if any; and (3) that Employment Related Dependent Care Expenses of a Participant shall not include expenses paid or incurred for service provided by (i) a child of such Participant who is under the age of nineteen (19) or (ii) an individual who is a Dependent of such Participant or such Participant's spouse. l f-- L 4. The term "medical care expenses," as used herein, means, (i) amounts paid for the diagnosis, cure, mitigation, treatment or prevention of disease, including, but not limited to, hospital and nursing services, and laboratory, surgical, dental and other diagnostic and healing services, or for the purpose of affecting any structure or function of the body, including, but not limited to, such items as eye glasses, orthopedic shoes, braces and similar items or for transportation primarily for and essential to the foregoing, and (ii) contributions paid for any group medical plan which the Town may adopt or for any other medical insurance plan which any eligible employee of the Town may otherwise personally pay. Notwithstanding anything herein to the contrary, however, the term "medical care expenses "shall not include any such expenses otherwise reimbursed by insurance or any other Plan carried by the employee or other Plans through the Town. Medical reimbursement payments under this Plan shall not include payments for permanent injury or loss of a bodily function nor shall it include wages or payments in lieu of wages during a period of illness or injury. 5. To receive reimbursement pursuant to this Plan, an eligible employee shall present to the Town satisfactory proof of such medical care expenses and thereby makes an affirmative election to receive said reimbursement for medical care expenses in lieu of salary or wages owing or to be owed said eligible employee of an amount equal to said reimbursement. Reimbursement for any medical care expenses shall be made either by direct payment by the Town of such medical care expenses or by reimbursement to such eligible employee for such medical care expenses, the gross salary or wages owing or to be owed such eligible employee shall be reduced by an amount equal to said reimbursement. If l 6. If any claim for reimbursement by an employee under this Plan is wholly or partially denied, notice of denial shall be promptly given to the employee setting forth (i) the specific reason or reasons for denial of the claim, (ii) a specific reference to the pertinent provisions of this Plan upon which the denial is based, (Hi) a description of any additional material or information necessary for the r- l employee to perfect the claim, if applicable, along with an explanation why such material or information is necessary, and (iv) an explanation of the review procedure under this Plan. Within 120 !lays after an employee's receipt of a denial of a claim under this Plan, or such later time as takes into account special circumstances, such employee shall file a written request with the Town Council that it conduct a review of such denial. The Town Council shall deliver a written decision of the claim within 60 days after receipt of such employee's request for review. Such decision shall set forth specific reasons for the decision and specific references to the provisions of this Plan upon which the decision is based. 7. Each eligible employee of the Town shall be given a copy of this Plan upon first becoming eligible. 8. This Plan shall remain in effect until amended or revoked by the Town Council, and written notice of any such amendment or revocation shall be promptly given to eligible employees. r L 9. This Plan is for the exclusive benefit of eligible employees of the Town and for their eligible family members. It is intended that this Plan shall be a plan qualified within the meaning of Sections 105 and 125 of the Internal Revenue Code of 1954, as amended, and the Town Manager and Finance Director of the Town are authorized and directed to take any and all actions and so any and all things necessary or appropriate to fully effectuate the provisions and intentions of this Plan. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Tiburon on January 4. 1995 by the following vote: AYES: COUNCILMEMBERS: Ginalski, Thayer, Nygren, Wolf, Thompson NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None ANDREWTHOMPS~ Town of Tiburon ATTEST: r- LERK