05-266 Resolution No. 05-266
RESOLUTION
AUTHORIZING EXECUTION OF AN AMENDMENT TO THE CITY OF ELGIN
FLEX HRA PLAN
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that
Olufemi Folarin,City Manager,be and is hereby authorized and directed to execute an Amendment
to the City of Elgin FlexHRA Plan on behalf of the City of Elgin regarding the health reimbursement
account plan, a copy of which is attached hereto and made a part hereof by reference.
s/Ed Schock
Ed Schock,Mayor
Presented: September 14, 2005
Adopted: September 14, 2005
Omnibus Vote: Yeas: 6 Nays: 0
Attest:
s/Dolonna Mecum
Dolonna Mecum, City Clerk
AMENDMENT TO THE
CITY OF ELGIN
FlexHRA PLAN
This Amendment to the City of Elgin FlexHRA Plan is adopted by CITY OF ELGIN
(the"Employer"),effective as of the date set forth herein.
WHEREAS, the Employer desires to amend the Plan's definition of Eligibility
Requirements and the Plan's definition of Covered Expenses;
NOW, THEREFORE, effective August I"' 2005, the definitions regarding Eligibility
Requirements and Covered Expenses in the Plan are replaced with the following definitions:
Sections 9.01 and 9.02 of the Summary Plan Description relating to ELIGIBILITY
REQUIREMENTS are hereby amended to read as follows:
The following employees are eligible to participate:
• Those full-time or permanent part-time(20 hours week)employees who opt out
of the City of Elgin's health plan during the open enrollment period for the
health plan.
The following employees are not eligible to participate:
• Same eligibility requirements as underlying health plan.
Sections 9.01 and 9.02 of the Summary Plan Description relating to COVERED EXPENSES are
hereby amended to read as follows:
All 213(d)Eligible Expenses,including Over-The-Counter Drugs,are reimbursable
under the HRA Plan. Either Explanations of Benefits or third-party
receipts/statements will suffice for substantiation of claims. Rollover of unused
funds is allowed.
If a participant who is covered by this HRA is also enrolled in the Plan Sponsor's
Health Flexible Spending Account,the Health FSA will pay first.
IN WITNESS WHEREOF, and as evidence of the adoption of the amendments set forth herein,
the undersigned officer of City of Elgin has executed this Amendment to the Plan, this 14thday
of Se mber.2005.
City Igin
By:
u e To ari
Title: City ager
s
> = C it of Elgin 111 Agenda Item No. -
.� • Y 9
August 19, 2005 oil "
TO: Mayor and Members of the City Council FINANCIALLY STABLE CI RNMENT
EFFIC LENT SERVICES,RVICM
AND OUAUTV IN FRASTRUCTLRE
FROM: Olufemi Folarin, City Manager If_V_/4r"
Gail Cohen, Human Resources and Purchasing Director
SUBJECT: Amendment to Health Reimbursement Account Plan Document
PURPOSE
The purpose of this memorandum is to provide the Mayor and members of the City Council with
information to approve adoption of changes to the City's Health Reimbursement Account Plan.
RECOMMENDATION
It is recommended that the City Council approve the recommended changes to the City of Elgin
Health Reimbursement Account Plan.
BACKGROUND
At its March 9, 2005 meeting, the City Council approved a health reimbursement account plan
whereby employees with alternative sources of health insurance could decline the City's health
insurance and, in exchange, receive an annual total of$2,000, paid in biweekly increments, into a
health reimbursement account (HRA). The purpose of the attached amendment is to provide
clarification regarding who is eligible to participate in the HRA and what expenses are
reimbursable under the plan. The amendments do not change or affect the eligibility of any
employee currently taking advantage of the HRA program; the changes are more of a
housekeeping nature. All HRA participants will receive written notice of the amendment once
approved by Council.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
None
op,nNANCIAL IMPACT
There is no financial impact to the City by adopting the recommended amendment.
r
Amendment to Health Reimbursement Account Plan Document
�. August 19, 2005
Page 2
GAL IMPACT
None
ALTERNATIVES
1. Adopt the amendment as recommended.
2. Do not adopt the amendment.
Respectfully submitted for Council consideration.
GAC
Attachment