4.6. SR 11-02-2020
Request for Action
To Item Number
Mayor and City Council 4.6
Agenda Section Meeting Date Prepared by
Consent November 2, 2020 Lauren Wipper, Human Resources Manager
Item Description Reviewed by
Amend and Restate the City’s Flexible Benefits Cal Portner, City Administrator
Plan
Reviewed by
Action Requested
Approve, by motion, a resolution amending and restating the city’s Flexible Benefits Plan effective January 1,
2020.
Background/Discussion
In October and November of 2019 employees made their elections for their 2020 Flexible Benefits Plan. These
elections are irrevocable unless the employee experiences a life event.
While employees were able to stop making contributions to their Dependent Care Expense Reimbursement due to
daycares closing which created a significant change in the cost of coverage, some employees were left with
balances in their accounts. Flexible Benefits for daycare do not have an annual rollover, so all funds must be spent
or lost.
The only option available to alleviate some of that loss is to add a Grace Period which will allow employees to
submit 2021 expenses incurred from January 1 to March 15 to apply to the 2020 funds. Adding a Grace Period
requires an amendment to the city’s benefit plan.
Financial Impact
There is no financial impact.
Mission/Policy/Goal
N/A
Attachments
Resolution amending and restating the city’s Flexible Benefits Plan effective January 1, 2020.
Amendment to the City of Elk River Flexible Benefits Plan
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity.
Updated: August 2020
City of Elk River
City Council
Resolution 20-____
A Resolution of the City Council of the City of Elk River to Amend and
Restate the City’s Flexible Benefits Plan
WHEREAS, the City of Elk River previously adopted the City of Elk River Flexible
Benefits Plan (“Plan”) on June 6, 1988, to permit eligible Employees to elect to receive a
portion of their compensation as regular taxable income or as nontaxable payment of the
Employee’s premiums for Employer-sponsored insurance and for reimbursement of the
Employee’s Health Care Expenses and Dependent Care Expenses; and
WHEREAS, the Plan has continued in force at all times since its effective date; and
WHEREAS, the most recent revision and restatement of the Plan was January 1, 2014;
and
WHEREAS, The City of Elk River desires to amend and restate the Plan to incorporate a
Grace Period provision for Plan Year 2020.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk
River, Minnesota, as follows: The City of Elk River Flexible Benefits Plan be amended and
restated effective January 1, 2020.
Passed and adopted this 2nd day of November 2020.
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk
AMENDMENT TO
CITY OF ELK RIVER FLEXIBLE BENEFITS PLAN
BY THIS AMENDMENT, the City of Elk River Flexible Benefits Plan (herein referred to as the “Plan”) is
hereby amended as follows:
1. AUTHORITY AND SCOPE. This Amendment is being made pursuant to the Plan sponsor’s general
authority to amend and modify the Plan.
2. WORDS AND PHRASES. The words and phrases used in this Amendment are intended to have the same
meaning as the same defined terms used in the Plan.
3. GRACE PERIOD UNDER DEPENDENT CARE EXPENSE REIMBURSEMENT. The Plan is hereby
amended, effective January 1, 2020, to provide a grace period for the Dependent Care Expense
Reimbursement for the Plan Year 2020.
4. SUPERSEDING EFFECT. The provisions contained herein shall apply notwithstanding any language in
the Plan to the contrary.
IN WITNESS WHEREOF, this Amendment has been executed this 2nd day of November 2020.
City of Elk River
By
Its Mayor
By
Its City Clerk