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RESOLUTION NO. 2014-225 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE CITY OF CHULA VISTA CAFETERIA BENEFITS PLAN FOR 2015
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
The Internal Revenue Code requires that the Section 125 Cafeteria Benefits Plan offered by the City to its employees be in a written document and that the document be formally adopted by the City Council on or before the first day of the plan year. Adoption by resolution of the attached plan document fulfills the City's obligation for the 2015 plan year.
ENVIRONMENTAL REVIEW
Staff has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that this proposed activity is not a "Project" as defined under section 15378 of the State CEQA Guidelines because if will not result in a physical change to the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the action proposed is not subject to CEQA.
BOARD/COMMISSION RECOMMENDATION
Not applicable.
DISCUSSION
In June 1998, the City established its first Section 125 Cafeteria Benefits Plan. In compliance with Internal Revenue Code ?125(d) the City Council annually adopts a written plan document prior to the first day of the plan year. The first day of the City's plan year is January 1, 2015.
This Plan Document lays out how the City offers eligible employees the choice between cash and certain nontaxable benefits (such as health insurance), thereby allowing employees to pay for the benefits they choose on a pre-tax basis.
The specific health plans offered and their structure are not part of this Cafeteria Plan Document. They are included in what is known as the Summary Plan Document that was given to eligible employees as part of their open enrollment materials to assist them in making their benefit choices. The plans offered and their structure are determined af...
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