CC RES 2003-087RESOLUTION NO. 2003-87
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES AMENDING THE HEALTH CARE REIMBURSEMENT PLAN WITH
CONEXIS CAFETERIA PLAN SERVICES FOR CERTAIN PRETAX PAYROLL
DEDUCTIONS FOR HEALTH AND DEPENDENT CARE EXPENSES.
Whereas the City of Rancho Palos Verdes adopted an agreement with Conexis
dated July 1, 1997 and entitled City of Rancho Palos Verdes Section 125 Cafeteria Plan
(Flexible Spending Account (FSA)); and
Whereas, because of IRS Revenue Ruling 2003 -102, the City of Rancho Palos
Verdes now desires to amend the Section 125 Cafeteria Plan (Flexible Spending
Account (FSA)) definition of "Eligible Medical Expenses" effective as of September 3,
2003, to include certain over - the - counter drugs incurred by the City's employees or
eligible dependents as described in the Amendment to the Plan, attached hereto as
Exhibit A.
NOW, THEREFORE, The City Council of the City of Rancho Palos Verdes does
resolve, determine and order as follows:
Section I: That the City Council authorizes the City Manager to sign said
Amendment to the City of Rancho Palos Verdes Flexible Benefits Plan in light of
aforementioned IRS Revenue Ruling 2003 -102, which permits the reimbursement of
certain over the counter drugs.
Section 2: That the City Clerk shall certify to the passage and adoption of this
Resolution and enter it the same in the book of original Resolutions of said City.
Attest:
PASSED, APPROVED and ADOPTED N OC OBE 1, 2003.
City Clerk
State of California )
County of Los Angeles )ss
City of Rancho Palos Verdes )
Mayor
I, Jo Purcell, City Clerk of the City of Rancho Palos Verdes, hereby certify that the
above Resolution No. 2003 -87 was duly and regularly passed and adopted by the said
City Council at a regular meeting thereof held on October 2A, 2003.
City Clerk
RESOLUTION NO. 2003-87 - EXHIBIT A
AMENDMENT TO THE
CITY OF RANCHO PALOS VERDES
SECTION 125 CAFETERIA FLEXIBLE BENEFITS PLAN
This Amendment to the City of Rancho Palos Verdes Section 125 Cafeteria Plan
(Health Care Reimbursement Plan FSA); is adopted by CITY OF RANCHO PALOS
VERDES (the "Employer "), effective as of the date set forth herein.
WHEREAS, the Employer desires to amend Plan's definition of "Eligible Medical
Expenses" in light of IRS Revenue Ruling 2003 -102, which permits the reimbursement of certain
over the counter drugs.
NOW, THEREFORE, effective September 3, 2003, the definition of "Eligible Medical
Expenses" in the Plan is replaced with the following definition:
"Eligible Medical Expenses" means those expenses incurred by the Employee, or the
Employee's Spouse or Dependents, after the date of the Employee's participation in the Health
FSA and during the Plan Year to the extent that the expense satisfies the conditions set forth in
the Summary Plan Description and are for "medical care" as defined by Code Section 213(d).
For purposes of this Plan, the following expenses are not considered "Eligible Medical
Expenses" even if they otherwise constitute "medical care" under Code Section 213(d):
(i) Expenses for qualified long term care services (as defined in Code § 77026); and
(ii) Expenses for health insurance premiums
For purposes of this Plan, an expense is "incurred" when the Participant or Beneficiary is
furnished the medical care or services giving rise to the claimed expense, regardless of when
the expense is paid.
IN WITNESS WHEREOF, and as evidence of the adoption of the amendments set forth
herein, the undersigned officer of City of Rancho Palos Verdes has executed this Amendment to
the Plan, this 21st day of October 2003.
City of Rancho Palos Verdes
Title: Assistant City Manager
Resolution No. 2003 -87
Exhibit A