HomeMy WebLinkAbout052-2020DocuSign Envelope ID: C7BE658E-7545-4ED4-A6F3-EA8284784A7A
RESOLUTION NO. 52-2020
APPROVING AMENDMENTS TO THE TOWN'S HEALTH CARE
AND DEPENDENT CARE REIMBURSEMENT PLANS
WHEREAS, the Town of Danville offers its employees Health Care and Dependent
Care Reimbursement Plans pursuant to Section 125 of the Internal Revenue Code,
which allow employees to set aside portions of their salary to pay for medical and
dependent care on a pre-tax basis; and
WHEREAS, in response to the COVID-19 Pandemic, the Internal Revenue Service has
authorized employers with such Plans to make one-time amendments to allow
participating employees to adjust their contributions and expenditures for 2020; and
WHEREAS, the Town Council wishes to adopt such amendments to assist the Town's
employees; now, therefore, be it
RESOLVED, that the Danville Town Council hereby approves the amendments to the
Town's Health Care and Dependent Care Reimbursement Plans as provided in Exhibit
1, which is incorporated into this Resolution.
APPROVED by the Danville Town Council at a special meeting on July 7, 2020 by the
following vote:
AYES: Arnerich, Blackwell, Morgan, Stepper, Storer
NOES: None
ABSTAINED: None
ABSENT: None
APPROVED AS TO FORM:
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CITY ATTORNEY CITY CLERK
DocuSign Envelope ID: C7BE658E-7545-4ED4-A6F3-EA8284784A7A
AMENDMENTS TO TOWN OF DANVILLE
HEALTH CARE REIMBURSEMENT PLAN
The Town of Danville Health Care Reimbursement Plan (as amended and restated
effective January 1, 2006) is hereby amended as follows pursuant to Section 9.2 of the
Plan:
Section 1.10 Grace Period. With respect to a Member who is a Member in the Plan on
December 31 of any Plan Year beginning with the 2006 Plan Year, the fifteenth day of
the third calendar month after the end of the immediately preceding year. For the 2019
Plan year only, the grace period shall be extended to December 31, 2020, as provided for
in IRS Notice 2020-29.
Section 3.5 Irrevocability of Election by the Member.
(c) COVID-10 Permitted Changes for 2020. Pursuant to IRS Notice 2020-29,
Members may make the following elections to be effective only for Plan Year 2020:
(i) Any Member who elected to participate in the Plan for Plan Year
2020 at an amount less than the Plan maximum may increase their Contributions to the
maximum.
(ii) Any member who elected to participate in the Plan for Plan Year
2020 may prospectively reduce their Contributions for the remainder of the Plan Year,
provided however, that any such reduction must take into account any Medical
Expenses already reimbursed from the Plan.
EXHIBIT 1
DocuSign Envelope ID: C7BE658E-7545-4ED4-A6F3-EA8284784A7A
AMENDMENTS TO TOWN OF DANVILLE
DEPENDENT CARE REIMBURSEMENT PLAN
The Town of Danville Dependent Care Reimbursement Plan (as amended and restated
effective January 1, 2006) is hereby amended as follows pursuant to Section 8.2 of the
Plan:
Section 1.12 Grace Period. With respect to a Member who is a Member in the Plan on
December 31 of any Plan Year beginning with the 2006 Plan Year, the fifteenth day of
the third calendar month after the end of the immediately preceding year. For the 2019
Plan year only, the grace period shall be extended to December 31, 2020, as provided for
in IRS Notice 2020-29.
Section 3.5 Irrevocability of Election by the Member.
(e) COVID-10 Permitted Changes for 2020. Pursuant to IRS Notice 2020-29,
Members may make the following elections to be effective only for Plan Year 2020:
(i) Any Member who elected to participate in the Plan for Plan Year
2020 at an amount less than the Plan maximum may increase their Contributions to the
maximum.
(ii) Any member who elected to participate in the Plan for Plan Year
2020 may prospectively reduce their Contributions for the remainder of the Plan Year,
provided however, that any such reduction must take into account any Dependent Care
Expenses already reimbursed from the Plan.
EXHIBIT 1