R-06-07
RESOLUTION NO. R-06-07
AUTHORIZING ESTABLISHlVI:ENT OF GRACE PERIOD
FOR FLEXIBLE SPENDING ACCOUNTS (FSA)
V\TFl.:EREAS, the City of Fairfax (Plan Sponsor) provides Flexible Spending Accounts
(FSA) for all "VV""orkers through Ceridian. Benefits Services Inc. (Contract Administrator); a.n..d
VVHEREAS. the City of Fairfax has previously established a cafeteria plan vvithin the
meaning of Section 125 of the Intemal Revenue Code, as amended from time to time". to
provide certain benefits to employees of the City of Fairfax; and
V\TI-IEREAS, the City of Fairfax has determined that: it: is desirable to amend the
cafeteria plan an..d may do so according to Section 1 1 _ 1 of the Plarl.
NOVV. THEREFORE. BE IT RESOLVED. that the Plan be and hereby is amended
effective as of1\l1arch 14".2006 as provided in the attached motion to the City of Fairfax
Flexible Benefit Plan attached hereto.
Adopted this 14th day oflVlarch 2006
~~~-l~~
l\I'[ayor
ATTEST:
~~
C1ty Clerk
VOTE:
Councilvvoman Cross
Councilman Greenfield
Councilvvoman Lyon
Councilman Rasmussen
Councilman Silverthome
Councilmember VVint:er
Aye
Aye
Aye
Aye
Aye
Aye
AMENDMENT # 1
to the
City of Fairfax Flexible Benefit Plan
The City of Fairfax Flexible Benefit Plan (the "Plan") is amended in the following respects
effective March 14,2006.
1. Article 2.1 (x) is amended by adding the following sentence after the first existing
sentence:
The Period of Coverage with respect to the Health Care Expense Account or a Dependent
Care Assistance Account shall also include a period (the "Grace Period") of two months and
fifteen days following the end of the Plan Year.
2. Article 6.5 is amended by adding a new section (t), as follows:
If a Participant elects a Health Care Expense Account for the Plan Year during which a Grace
Period falls, Health Care Expense AccOlmt claims incurred during a Grace Period shall be
initially paid from the Health Care Expense Account established for the Plan Year in which
the expense was incurred. Such claims shall, however, be reallocated to the Health Care
Expense Account established for the prior Plan Year after the time period for submitting
claims for the prior Plan Year under Section 6.5(c) has expired, to the extent of any balance in
the Health Care Expense Account established for the prior Plan Year.
If a Participant does not elect a Health Care Expense Account for the Plan Year during which
a Grace Period falls, Health Care Expense Account claims incurred during a Grace Period
shall be paid from the Health Care Expense Account for the prior Plan Year.
3. Article 7.5 is amended by adding a new section (g), as follows:
If a Participant elects a Dependent Care Assistance Account for the Plan Year during which a
Grace Period falls, Dependent Care Assistance Account expenses incUlTed during a Grace
Period shall be initially paid from the expense account established for the Plan Year in which
the expense was incurred. Such claims shall, however, be reallocated to the expense account
established for the prior Plan Year after the time period for submitting claims for the prior
Plan Year under Section 7 .5( d) has expired, to the extent of any balance in the Dependent
Care Assistance Account established for the prior Plan Year.
If a Participant does not elect a Dependent Care Assistance Account for the Plan Year during
which a Grace Period falls, Dependent Care Assistance Account claims incurred during a
Grace Period shall be paid from the Dependent Care Assistance Account for the prior Plan
Year.