R2005-128 AMENDING FLEXIBLE BENEFITS PLAN ADOPTION AGREEMENT

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t n RESOLUTION NO. R2005-128 RESOLUTION AMENDING FLEXIBLE BENEFITS PLAN ADOPTION AGREEMENT SECTION 125 CAFETERIA PLANS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DECATUR, ILLINOIS: Section l. That Article III Salary Redirection 3.1 of the City of Decatur's Flexible Benefits Plan Adoption Agreement, approved by the City Council of the City of Decatur, Illinois, on February 17, 1992, be, and is hereby, modified and amended so that, as modified and amended, said Article III Salary Redirection 3.1 shall read as follovs, effective January l, 2006: 3.1 SALARY REDIRECTION Benefits under the Plan shall be financed by Salary Redirections sufficient to support Benefits that a Participant has elected hereunder and to pay the Participant's Premium Expenses. The salary administration program of the Employer shall be revised to allow each Participant to agree to reduce his pay during a Plan Year by an amount deternuned necessary to purchase the elected Benefit. The amount of such Salary Redirection shall be specified in the Salary Redirection Agreement and shall be applicable for a Plan Year. Notwithstanding the above, for new Participants, the Salary Redirection Agreement shall only be applicable from the first day of the pay period following the Employee's entry date up to and including the last day of the Plan year. However, in no event shall a Participant's Salary Redirection exceed $4,500 per Plan year for medical expenses. These contributions shall be converted to Cafeteria Plan Benefit Dollars and allocated to the funds or accounts established under the Plan pursuant to the Participants' elections made under Article V. Section 2. That Article VI Forfeitures 6.3 of the City of Decatur's Fle�ble Benefits Plan Adoption Agreement, approved by the City Council of the City of Decatur, Illinois, on February 17, 1992, be, and is hereby, modified and amended so that, as modified and amended, said Article VI. Forfeitures 6.3 shall read as follows, effective January 1, 2006: 6.3 FORFEITURES The amount in the Health Care Reimbursement Fund as of the end of any Plan Year (and after the processing of all claims for such Plan year pursuant to Section 6.6 hereo fl may be used for claims incurred prior to March 16th of the subsequent Plan Year. Thereafter, any amount remauung shall be forfeited and credited to the benefit plan surplus. In such event, the Participant shall have no further claim to such amount for any reason, subject to Section 8.2 Section 3. That Article VI, Health Care Reimbursement Plan Claims 6.6(b) approved by the City Council of the City of Decatur, Illinois, on February 17, 1992, be, and is hereby,