R-693 - 07/08/1997 - PERSONNEL - Resolutions Supporting Documents OE OF Gq*
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CFCDUMITI
VILLAGE OF OAK BROOK
1200 OAK BROOD ROAD
OAK BROOD , ILLINOIS 00521 - 2255
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PHONE: 630 991-iL`L L
MEMORANDUM FA X: 6 i 0 99 c S'e I'
DATE:
July 2, 1997
TO: Village President and Board of Trustees
FROM: Michael A. Crotty,Assistant to Village Man age4"' j
SUBMCT: Section 125 Flexible Benefits Plan
RECOMMENDATION: (1) That the Village Board adopt a resolution approving
an Internal Revenue Code Section 125 flexible benefits plan for the Village,and
authorize the Village Manager to sign the plan document and flexible benefits claims
administration agreement with Health Plan Management,Inc.
(2) That the Village Board adopt a resolution that allows contributions to a flexible
benefits account to be counted as income for IMRF purposes.
On June 24, 1997, the Village Board approved a number of amendments to the Village of Oak
Brook Health and Dental Plan, including the implementation of an Internal Revenue Code Section
125 flexible benefits plan. This plan enables employees to tax shelter contributions to premiums,
qualified unreimbursed medical expenses and qualified child care/dependent care expenses.
Implementation of the Section 125 flexible benefits plan is accomplished under a separate plan
document that can be adopted by resolution. Because we had not yet received the plan document
from our third part administrator, we indicated that we would bring it to the Board in July. Now
that we have the document, it is appropriate that the Board adopt the plan document by resolution
at this time, and authhorize the Village Manager to sign a flexible benefits claims administration
agreement kith our current third part administrator.
Staff also recommends the adoption of a related resolution that permits :he Village to report
contributions made to a Section 125 account as income for IMRF purposes. While making
contributions to a Section 125 account allows the participant to tax shelter income that Will be uses
for qualified medical expenses, contributions are not automatically counted as income for IMRF
purposes. In order to allow participants to take advantage of the tax benefits of Section 125
without reducing their income for pension purposes. the Village Board would need to pass the
attached resolution.
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Ayes: 6 - Trustees Bartecki, Caleel, Kenny, McInerney, Savino
and Shumate.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
2 ON 97-AG-IS-EX 9' A RESOLUTION
APPROVIN T AND MITTdf)RT?6'y('J N E � T1rTO OF THE ES.`S'-A--IS-EXI-
_E R-693
_VII)IAGE OF OAK BROOK EL XIRr Rt~i�t��r�rc rsT �,.�: APPROVING Ati%n
AUTHORIZING
On June 24, 1997,the Village Board approved a number of EXECUTION OF THE
VOB amendments to the Village of Oak Brook Health and Dental Plan, BEN FLEXIBLE
amendments
including the implementation of an Internal Revenue Code Section BENEFITS PLAv
125 flexible benefits plan. This plan enables employees to tax shelter
contributions to premiums, qualified unreimbursed medical expenses
and qualified child care/dependent care expenses.
Implementation of the Section 125 flexible benefits plan is
accomplished under a separate plan document. Since staff had not yet
received the plan document from the Village's third party
administrator,it was indicated that it would be brought to the Board
in July.
Motion by Trustee Bartecki, seconded by Trustee Savino,to pass
Resolution 97-AG-IS-EXI-R-693,"A Resolution Approving And
Authorizing Execution Of The Village Of Oak Brook Flexible
Benefits Plan",and waive the full reading thereof.and authorize the
Village Manager to sign the plan document and flexible benefits
claims administration agreement Mth Health Plan Management, Inc.
ROLL CALL VOTE:
Ayes: 6 - Trustees Bartecki, Caleel. Kenny, McInerney, Savino
and Shumate.
Nays: 0 - None.
Absent: 0 - None. N-lotion carried.
3. ESOLUTION 97-IMRF-R-694 A FSOI,UTIGN T
IN CL N ATION PAID ITN'�FR 1N I\tT RNAI RES.97-j'_`'.
RFVENt .OnF SFr' r R-694
1 \ 1_L 2 L A NIRF L.A RNINS'L5: INCLUDE Co�!:-ENNsA-
TION PAID P.TER
The resolution permits the Village to report contributions made to a IRS CODE S'%.ION
Section 125 account as income for I`IRF purposes. 125 AS
EARN I\GS
Motion by Trustee Bartecki, seconded ^ti Trustee Caleel, to pass
Resolution 97-I-MRF-R-694, "A Resolution To Include Compensation
Paid Under An Internal Revenue Cod: Section I25 Plan As IMRF
VILLAGE OF OAK BROOK Minutes 4 of S July S, 1997 �
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