89-592 WHITE - CITV CLERK
PINK - FINANC�E G I TY O A I NT PA U L Council
GANARV - DEPARTMENT � 1 � �
BLUE - MAVOR Flle NO. —���
C n 'l esolution ���
Presented By
�-�
��/Referred To C mittee: Date ��4 �
Out of Committee By Date
WHEREAS, The City of Saint Paul provi es certain health and welfare benefit
programs to its employees; and
WHEREAS, These health and welfare ben fi programs are contributed to by both the City
and the employees; and
WHEREAS, The City desires to offer th se health and welfare benefit programs in a manner
beneficial to both the City and its employ es and
WFIEREAS, The Federal government has e ta lished certain laws and corresponding regulations
governing the provision of such health and we fare benefits;
NOW, THEREFORE, BE IT RESOLVED, The a ta hed City of Saint Paul Cafeteria Plan is adopted
as one of the City's formal plans through hi h to provide such health and welfare programs;
and
BE IT FURTHER RESOLVED, The City oi S �n Paul Cafeteria Plan may be considered by the
Administration for implementation but can nl be implemented through the labor negotiation
process for employees represented by barga ni g units and by Council Resolution for employees
not represented by bargaining units; and
BE IT FURTHER RESOLVED, It is the int nt of the City oL Saint Paul that its Cafeteria
Plan comply with the Internal Revenue Servi ce Code, Section 125, and all other applicable
laws and regulations, and
BE, IT FURTHER RESOLVED, The City of S in Paul Cafeteria Plan will be altered to reflect
compliance with all applicable laws and re ul tions as stated and through the process established
in the attached Cafeteria Plan document.
COUNCILMEN Requested by Department of:
Yeas Nays
� Dii[l�rid `
nz Finance & Mana e
N ;a Goswitz In Favo �
s e�bei Long q�
S "e" Retttnan _ Against By
T esco Scheib�l
� O° Sonnen j� '
Adopted by Coun��lsOn Date �"R 2 7 Form A proved by Cit rney
Certified Passe o cil Sec ry BY �
gy.
A►pproved by , �o�: n APR 2 8 1 Appr e by Mayor for Su is n t �uncil i
By
�UBttSt�ID M AY - 6 1989
- ` ,(',��'1-�'9�,
DEPARTMENT/OFFICEICOUNCIL DATE INITIATE � � ^O �
Finance/Risk Management Division 3/10/ GREEN SHEET NO. �
OONTACT PERSON 6 PFIONE INITIAU DATE INITYAUDATE
DEPARTMENT DIRECTOR �(YTY COUNCIL
Ron J. Guilfoile 292-6240 N�� CITYAITORNEY � R1K
MUST BE ON OOUNqI AOENDA BY(DATE) ROU7N10 BUDOET DIRECTOR ���.�j.��S DIR.
MAYOR(OR AS�BT
TOTAL A►OF Sl�it�lATUI�PAGES (CLIP ALL IONS FOR SIGNATUR� 1 Q
�cnoN�cuESr�:
�EPqRT�F���DIF�E
Approval of "City of Saint Paul Cafeteria Pl n Document"� qNA�Nr aF FiNA�R
��� EMENT g �E
/ ERVI
RECOMMENDATIONS:Approvs W or Rsject(R) COUNCIL M RCH IONAL
_PLANNINO COAAMIS810N _GVIL BERVICE COMMIS810N ��Y� � �QR� RECEI
_qB COMMITTEE _ �
_STAFF _ COMM
—o����«,RT — AR 1 31989 ��� f;�a� 1 o i��a���s o�F
SUPPORTS WHICFI COUNqL 08JECTIVET �� IC
OF CE OF
INff1AT1N(i PROBLEM,18SUE,OPPORTUNITY(Who,Wh�t,When,Where,Wh�: A I'�'EN�-�,., �'
N�, VI"J-
The City has initiated a cafeteria style en fit program or ce'3'�����r������� The
cafeteria ro ram has been ��� S ��tract
p g provided to t se employees through the bargaining u
process. The attached cafeteria plan doc me t is a requirement for the City to have on file
in order to offer cafeteria style benefi .
ADVANTAOES IF APPROVED:
If approved, the City will comply with t e lan Document requirement of IRS Code 125 and
� Section 89 of the 1986 Tax Reform Act. he Plan Document allows for full implementation
of all elements of a cafeteria style or le ible benefit style benefit program including
the child care expense account.
DISADVANTAOES IF APPROVED:
None
DISADVANTAOEB IF NOT APPROVED:
The City and its employees will not be bl to take advantage of certain provisions of
the Tax Code as it relates to use of pr -t x dollars. The City will not be able to maintain
its current cafeteria program, implemen t e child care expense account program, or expand
its benefit program in areas beneficial to the City and the employees.
TOTAL AMOUNT OF TRANSACTION = N A cosT�REVENUe auDC�E�(q�oNE) YES NO
��Np gp�� N A ACTIVITY NUMBER N/A
FlNANCIAL INFORMATION:(EXPWN)
. . ���=��
9. Ordinance $9-227 - amending Chapt r 6 of the Laid over to 5/1
Administrative Code pertaining to si ning of
contracts, deeds, bonds and check b providing
notification to Councit prior to ig atures on
proposed contracts when not subje t o competitive
bidding. (Referred from Council eb uary 14, laid
over Apr i 1 3) ------- -----------
10. R� tion 89-592 - approving th Ci y of St. Paul Approved
Ca�"'eteria P l an Document. (Refer d ran Counc i l
\.\ A�'f`1`..�) �
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. ... -...._ ._ . _ .._:..._ --. _. ._ _ .. .. . _ _ _. .. ... __.. . .._... .,__ ... . . ... . _ . ,...s... ..�_ ,� ,�
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CITY OF SAINT PAUL _ , ;�"�,,;
;iii�raairi � '—
OFFICE OF TAE CITY COIINCIL .
Committee Report - � �
Finance. Manaaement. & Personnel Committee
APRIL 17, 1989
1. Approvai of minutes of Aprit 3 meeting. Approved
2. Discussion of 1990 Budget Goals and Policies. Laid over to 5/1
3. Discussion of Capital Allocation Poticy financing Laid over to 5/l
changes. �
' 4.� Resolution 89-518 - amending the 1989 budget by adding Approved substitute #-
�1 % ��..
_ $54,000 to the Financing and Spending Plans for Police resolution
Speciai Projects-Nationai Reining Horse Derby.
(Referred from Council March 28)
�: Resolution 89-593 - amending the 1989 budget by adding Approved
adding $14,953 to the Financing and Spending Ptans
for Parks and Recreation Supply and Maintenance
grass cutting, snow removal , litter pickup and other
exterior tasks. (Referred from Council April 6)
6. Resolution 89-594 - amending the 1989 budget by Approved
adding $2,334 to the Financing and Spending Plans
for Parks and Recreation Supply and Maintenance
snow removal . (Referred from Councii April 6)
7. Resolution 89-508 - supporting C.F. 88-223 adopted Approved
February 16, 1988, and not purchasing investments
issued by U.S. companies that have operations in
Northern Ireland as identified by the Investor
Responsibility Research Center. (Referred from
Council March 23)
8. Resolution 89-567 - authorizing the Mayor to submit Approved as amended
the CDBG Year XV Statement of Community Objectives
and Projected Use of Funds to HUD. (Referred from
Council Aprii 4)
(continued) _
CTTY HALL SEVENTH FLOOR SAINT PAUL, MINNESOTA 55102
s�o ae
a , .
DEX
PA E
,� ARTICLE 1 PREAMBLE 1
ARTICLE 2 DEFI1vITIONS 2
Section 2.01 Account 2
Section 2.02 Affiliated Ent 2
Section 2.03 Board 2
Section 2.04 Committee 2
Section 2.05 Code 2
Section 2.06 Employer 2
Section 2.07 Compensatio 2
Section 2.08 Employee 2
Section 2.09 Em loyers 2
Section 2.10 Hig�ly Compe sa d Member 2
Section 2.11 Medical Plan 3
Section 2.12 Member 3
Section 2.13 Nonelective C ntr butions 3
Section 2.14 Period of Cov ag 3
Section 2.15 Plan 3
Section 2.16 Plan Year 3
Section 2.17 Reimburseme A ount 3
Section 2.18 Reimburseme C ntributions 3
ARTICLE 3 ELIGIBILITY REQ R MENTS 4
� Section 3.01 Eligibility 4
Section 3.02 Enrollment an M mbership 4
ARTICLE 4 CONTRIBUTIONS 5
Section 4.01 Insurance Cont ibu ions 5
Section 4.02 Reimbursemen Co tributions 5
Section 4.03 Pay Reduction nd ayroll Withholding 5
Section 4.04 Nonelective Co tri utions 5
ARTICLE 5 ELECTTONS 6
Section 5.01 In General 6
Section 5.02 Contributions a d enefits 6
Section 5.03 Period of Cover e 6
Section 5.04 Fractional Perio s 6
Section 5.05 Timing of Electi ns 6
Section 5.06 Changes of Elec ion 6
Section 5.07 Medical Plans 6
ARTICLE 6 BENEFITS 7
Section 6.01 Benefits Availab 7
Section 6.02 Medical Plan Be efi s 7
Section 6.03 Disability Plan B ne its 7
Section 6.04 Life Insurance Pl n enefits 7
„� Section 6.05 Medical F�rpense Re mbursement Bene�ts 7
Section 6.06 Dependent Care ei bursement Benefits 7
Section 6.07 Cash Bene�ts 7
. ' . � .
ARTICLE 7 LIMITATIONS ON E FITS 8
Section 7.01 Coverage 8
� Section 7.02 Amount of Be e s 8
Section 7.03 Forfeitures 8
Section 7.04 Insurance Pla s 8
ARTICLE 8 MEDICAL EXPEN IMBURSEMENT PROGRAM 9
Section 8.01 In General 9
Section 8.02 Definitions 9
Section 8.03 Eligibility, Enr 11 ent and Termination 9
Section 8.04 Covered Expe se 10
Section 8.05 Reduction of en fits 10
Section 8.06 Other Provisio s 10
ARTICLE 9 DEPENDENT C IMBURSEMENT PROGRAM 11
Section 9.01 In General 11
Section 9.02 Defmitions 11
Section 9.03 Eligibility, Enr 11 ent and Termination 11
Section 9.04 Covered Expe es 11
Section 9.05 Reduction of n its 11
Section 9.06 Further Limita io 12
Section 9.07 Prohibition of e in Payments 12
Section 9.08 Services Outsi t e Household 12
Section 9.09 Annual Re�ort to embers 13
Section 9.10 Other Provisio s 13
• ARTICLE 10 CLAIMS FOR BENE 14
Section 10.01 Claims for Rei bu sement Benefits 14
Section 10.02 Prior Payment n cessary 14
Section 10.03 Claim Substant ti n 14
Section 10.04 Time Limit on lai ing Benefits 14
Section 10.05 Medical Plans 14
ARTICLE 11 POST-TERMINATIO P TICIPATION 15
Section 11.01 Termination of a icipation on Account of Death 15
Section 11.02 Determination f neficiary 15
Section 11.03 Other Terminat on 15
Section 11.04 Medical Plans 15
ARTICLE 12 NONDISCRIMINATI N 16
Section 12.01 Reduction of C ntr butions and Benefits 16
Section 12.02 Prohibition of 'sc mination 16
ARTTCLE 13 ACCOUNTS 17
Section 13.01 Accounts 17
Section 13.02 Contributions d 17
Section 13.03 Benefits Provide 17
• Section 13.04 Assignment of B ne its 17
ARTICLE 14 ADMINISTRATION F E PLAN 18
Section 14.01 Composition o th Committee 18
� Section 14.02 Conduct of Co ttee Business 18
Section 14.03 Records and R p of the Committee 18
Section 14.04 Administrative Po ers and Duties 18
Section 14.05 Fiduciary Duti s 19
Section 14.06 Allocation or el gation of Duties and Responsibilities 19
Section 14.07 Procedure for 1 cation/Delegation of Fiduciary Duties 19
Section 14.08 Claims Proce e 20
Section 14.09 Medical and the Benefit Plans 20
ARTICLE 15 AMENDMENT RMINATION 21
Section 15.01 Amendment P n 21
Section 15.02 Termination f P an 21
Section 15.03 Preservation f ghts 21
ARTICLE 16 MISCELLANEOU 22
Section 16.01 Facility of Pa t 22
Section 16.02 Lost Payee 22
Section 16.03 Funding 22
Section 16.04 Indemnificat n 22
Section 16.05 Titles and H ad' g 23
Section 16.06 Number 23
Section 16.07 Applicable w 23
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CITY OF SAINT A CAFETERIA PLAN
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TI LE 1
P LE
The purpose of this Plan is to p rm t Members to choose among fringe benefits
available to be purchased on their behal by he Employers. This Plan is intended to be a
cafeteria plan as defined in section 125(d of e Code.
The provisions of this Plan shall b e ctive as of January 1, 1989.
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CLE 2
D TION
.
Each word and phrase defined ' is Article 2 shall have the following meaning
whenever such word or phrase is capit liz d and used herein unless a different meaning is
clearly required by the conteart of the P n.
Section 2.01. Account• The ' di idual account established on the books of the
Employers under Section 13.01 in the a of each Member for the purpose of accounting
for contributions allocated to and ben rts aid for a Member.
Section 2.02. Affiliated Entitv Th City or any bargaining unit thereof that is part
of(a) a member of the employer,wi n t e meaning of Code section 414(b), that includes
the City; (b) under common control, it n the meaning of Code section 414(c), with the
City; or (c) a member of an affiliate se ice group, within the meaning of Code section
414(m), that includes the City.
Section 2.03. Board• The Bo rd hall consist of the Mayor of Saint Paul and the
Saint Paul City Council. The Mayor s all be the Chairperson of the Board.
Section 2.04. Committee. Saint Paul Employee Benefits Committee as
described in Section 14.01.
Section 2.05. Code• The Inte al Revenue Code of 1954, as amended from time to
• time.
i n 2.�,�. Employer. City f int Paul.
Section 2.07. Compensation. A ember's basic pay, including bonuses, overtime
and commissions, as determined by he ommittee, for personal services rendered in the
course of employment with any affil' te entity and contributions under Sections 4.01 and
4.02 on a Member's behalf.
Section 2.08. Em l�oyee. An pe son employed by an affiliated entity who is eligible
for benefits under a Medical Pla b t excluding any person covered by a collective
bargaining agreement, unless cover e nder this Plan is provided for under the collective
bargaining agreement.
Section 2.09. Em�loyers. y iliated Entity which shall ratify and adopt this
Plan in a manner satisfactory to the o rd.
Section 2.10. Hi hl m e s t d Memb r. A member who is:
(a) Paid more than $50,00 ;
(b) Among the highest pa d 0% of all employees of the employer (other than
non-members who a art-time or seasonal employees, or excludable
collective bargaining n n-resident alien employees, as provided in section
• 105(h)(3)(B) and (5)( ) o the Code);
(c) Otherwise treated as h ghl compensated under section 125 of the Code; or
2
(d) A spouse or dependent ( th' the meaning of Code section 152) of one of the
above.
� Section 2.11. Medical Plan. plan of the City other than this Plan which
provides medical care benefits (includ' d ntal care benefits) for employees generally.
Section 2.12. Mem er. Any E pl yee who has become eligible to participate in
the Plan in accordance with Section 3.0 an who has not ceased to be an Employee.
Section 2.13. Non le tiv ri tions. The contributions made pursuant to
Section 4.04.
Section 2.14. P ri f v r e Plan Year, except that it may be a fraction
of a Plan Year as provided in Section 5. 4.
Section 2.15. Plan• The Saint Pa 1 feteria Plan, as set forth herein.
Section 2.16. Plan Year. The cal nd r year.
Section 2.17. R im r men A n . The subaccounts of a Member's Account
established under Section 13.01 for n ibutions and payments for Reimbursement
Benefits.
Section 2.18. R im r men n i i n . Contributions made under Section
4.02 for Reimbursement Benefits.
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CLE 3
LI IBILI REMENTS
•
Section 3.01. Eli i ili . Any e pl ee employed by an Employer shall become a
Member as of the later of January 1, 1 89 r the date of the Employee's coverage under
the Plan through the adoption of the Pl b the Employee's employing entity.
Section 3.02. Enr llm n n m r hi . The Committee shall notify in writing
each Employee who becomes a Membe o the Plan and shall e3cplain the rights, privileges
and duties of a Member of the Plan. E ch Member may elect to participate as of the date
on which he or she becomes eligible i a rdance with Section 3.01 by completing and
delivering to the Committee a salary r du tion agreement, a bene�ciary designation form
and an election of benefits form on the o s provided therefore by the Committee.
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TI LE 4
U1'I N
•
Section 4.01. In r n n ri uti n For any Plan Year, each Member may elect
to have contributed to his or her Accoun a ecified amount of his or her Compensation
for such Plan Year to pay for benefits de a Medical Plan, a Disability Plan or a Life
Insurance Plan. The amount of such con ib tions shall be determined in accordance with
such Plan.
Section 4.02. Reim ur m n n ri i n . For any Plan Year, in addition to the
contributions in Section 4.01, each Mem er ay elect to have contributed to his or her
Account a specified amount of his or r ompensation for such Plan Year up to a
malrimum of$5,000.00 to be used to fund ei bursement Benefits.
Section. 4.03. P R i n n r 11 Wi hh 1 in . A Member's pay for a Plan
Year shall be reduced by the amount of t e ntributions which he or she elects for such
Plan Year under Sections 4.01 and 4.02. ntributions shall be made only by way of
payroll withholding which shall be made d in a Member's applicable Period of Coverage.
Section 4.04. N n 1 iv n ri i . For any Plan Year, the Employers may
make further contributions to the Plan on eh lf of Members. Any such contributions shall
be made only on a nondiscriminatory basis.
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TICLE 5
E E ON
.
�ection 5.01. In General. El ti s of contributions and benefits shall be made at
the time, in the manner and subject to he conditions specified by the Committee which
shall prescribe uniform and nondiscr' in tory rules for such elections.
Section 5.02. n ri i ns enefi . Members must elect both the amount of
Reimbursement Contributions and h w uch of the Reimbursement Contributions as well
as Nonelective Contributions allocat d t their Accounts shall be allocated to each benefit
for an elected Period of Coverage. C ntributions allocated to a particular benefit may
never be used for any other benefit.
Section 5.03. P ri f v r Except as provided in Sections 5.04 and 5.06, any
Member electing contributions and be efits must make an irrevocable election for an
entire Period of Coverage.
Section 5.04. Fr i n 1 P ri s Members who become eligible to participate in
the middle of a Period of Coverage ma elect to participate for a period lasting until the .
end of the current Period of Cover ge. In such cases, the interval commencing the day
after their elections are made and nd ng at the end of the current Period of Coverage
shall be deemed to be their Period f verage. Such Members must elect to participate
• no later than 30 days after becomin eli ible to do so or within such other time limit as the
Committee may prescribe.
Section 5.05. Timin f El ti s. Elections of contributions and benefits for a
Period of Coverage shall be made p ior to such Period of Coverage, provided that where a
Member commences or recomme ce participation in the middle of the Period of
Coverage, he or she shall make elec ion prior to commencement of participation.
Section 5.06. h n of El cti n . Elections of contributions and/or benefits may
be changed in the middle of a Per od of Coverage on account of and consistent with a
change in family status because of a riage, divorce, death of a spouse or dependent or
other decrease in the number of a e ber's dependents, birth or adoption of a child or
other increase in the number of a M mber's dependents, or change in the employment
status of the employee or spouse. f ilure to elect shall be considered an election and a
change from or to a zero amoun of contributions shall be considered a change of an
election. Changes in elections s 11 nly be effective as to contributions and bene�ts
following the effective date of such ha ges.
Section 5.07. M i 1 Pl n E ections of contributions under Section 4.01 shall be
subject to the rules governing electi ns of bene�ts under a Member's Medical Plan.
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a � ' . � .
TI LE 6
B FIT
•
Section 6.01. Benefits Available. ub ect to Article 10, Members may elect one or
more of the following benefits:
(a) Medical Plan Benefits.
(b) Disability Plan Benefits.
(c) Life Insurance Plan Benefits.
(d) Dependent Care Reimburse ent Benefits.
(e) Medical Expense Reimburse en $enefits.
(f� Cash.
Section 6.02. M ' Pl n B n fi . ontributions under Section 4.01 may be used
to purchase benefits under a Medical Pla w ich shall be governed by the terms of such
Plan.
Section 6.03. Dis bili Pl n B n i Contributions under Section 4.01 may be
used to purchase benefits under a Disabili an which shall be governed by the terms of
such Plan.
Section 6.04. Lif Ins r n Pl n n fi . Contributions under Section 4.01 may
be used to purchase benefits under a Life ns rance Plan which shall be governed by the
• terms of such Plan.
Section 6.05. M i 1 ns R im ur eme B n fi s. The Employers have
adopted a Medical Expense Reimbursem t rogram set forth in Article 8 designed to
qualify as a nontaxable employee benefit u de Code Section 105(b). Members may elect
bene�ts under such Program subject to all f e requirements and restrictions contained
in that Program.
Section 6.06. D n n C r R m rs men B n fit . The Employers have
adopted a Dependent Care Reimburseme t rogram set forth in Article 9 designed to
qualify as a nonta3cable employee benefit u de Code section 129(a). Members may elect
benefits under such Program subject to all f t e requirements and restrictions contained
in that Program.
Section 6.07. Cash Benefits. Cas b nefits are represented by the m�imum
permissible Reimbursement Contributions nd he amount of such Contributions elected
by a Member.
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CLE 7
LIMITATI N N BE FIT
•
Section 7.01. v ra . Amo nts for a particular Reimbursement Benefit may
only be paid for expenses incurred dur' g t e Period of Coverage elected for such Benefit
and only from contributions made fo s ch Benefit during such Period of Coverage.
Expenses shall be considered incurred he the medical or dependent care is provided or,
in the case of insured bene�ts, during e eriod of insurance coverage, and not when the
Member is formally billed, charged for r ys the expenses.
Section 7.02. Amo n f e fi . The maximum amount of Reimbursement
Benefits payable for a Plan Year s 11 e $5,000.00 plus the amount of Nonelective
Contributions allocated to a Member' A count. The same maximum shall apply to any
single Reimbursement Benefit. ddition, amounts payable for a particular
Reimbursement Benefit may not exce d t e balance of the Member's subaccount for such
Benefit less amount necessary to pay uc Member's accrued claims for such Benefit. If
claims for amounts in excess of such b la e are made at any time, such claims may be paid
when and if further Reimbursement o N nelective Contributions allocable to such Benefit
are made during the applicable Perio of overage.
Section 7.03. Forfeitures. ounts remaining in a Reimbursement Benefit
• subaccount shall be forfeited after p nt of all timely presented claims for the Benefit
for expenses incurred during the appl' ab e Period of Coverage.
Section 7.04. Ins r n Plan . overage and limitations for a Member's Benefit
Plan shall be set forth in the Member s B nefit Plan.
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CLE 8
MEDI AL EXPEN E MB EMENT PR RAM
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Section 8.01. In General. Mem rs vered by this Program may submit claims for
the reimbursement of a Member's cove ed edical F.xpense from contributions allocated
to the Member's subaccount for medical e nse Reimbursement Benefits.
Section 8.02. Definitions. Fo p oses of this Article, the following special
definitions shall apply:
(a) "B n fi " means Medica pense Reimbursement Benefits under this
Program.
(b) "Depen nt" means a depe de t as defined in the Member's Medical and/or
Dental Plan or a child who as ceased to be an eligible dependent because of
attaining the maximum age li it under the Medical and/or Dental Plan but
who is still a dependent as d fi d by the Code.
(c) "Hi hl m en ted m er" means a Member who is a highly
compensated individual w i among the highest paid 20 percent of all
Employees of the Employe (o er than non-Members who are part-time or
seasonal Employees, or exc ud ble collective bargaining or nonresident alien
employees as provided in s cti n 105(h)(3)(B) and (5)(C) of the Code); or
• otherwise treated as a highl c mpensated individual under section 105(h) of
the Code.
(d) "Medical Expenses" means a ounts not compensated for by insurance or
otherwise which are paid r ncurred by or on behalf of a Member, a
Member's spouse or a Me be s Dependents and incurred for the following
items to the extent they are v ed by section 213(d) of the Code:
(1) The diagnosis, cure, 'tig tion, treatment, or prevention of disease, or
for the purpose of affe in any structure or function of the body.
(2) For transportation pri ar' y for and essential to medical care referred to
in (1).
(3) For insurance (includi a ounts paid as premiums under part B of title
XVII of the Social S cu iry Act, relating to supplementary medical
insurance for the aged co ering medical care referred to in (1) and (2)
other than any insura ce that is paid for under any other employee
benefit plan maintaine by the Employers.
Section 8.03. Eli i ili Enr 1 t nd T rmin i n. All Members of the
Cafeteria Plan shall be eligible to recei b nefits under this Program. Enrollment and
• termination of participation under the a teria Plan shall constitute enrollment and
termination of participation under this pr gr m.
Section 8.04. Covered Ex�enses. e rogram shall only cover Medical Expenses
incurred during the Period of Coverage t e ember has elected for Benefits, and only
• from contributions made for Bene�ts und t 's Program during such Period of Coverage.
Expenses shall be considered incurred whe t medical care is provided and not when the
Member is formally billed, charged or pays the F�penses.
Section 8.05. R i n f B n fi . e Committee may reduce the amount of
Benefits payable to a Member to the exte th Committee deems necessary to assure that
the Program does not discriminate in fav r o Highly Compensated Members in violation
of Code section 105(h) or any other appl ca e provision of law. Any such reduction of
Benefits shall be made by the Committe o a reasonable and nondiscriminatory basis.
Contributions which may not be paid ou b cause of benefit reduction imposed by this
Section 8.05 shall be forfeited.
Section 8.06. Other Provisions. O he matters concerning contributions, elections,
benefits, claims, and the like shall be go rn d by the general provisions of the Cafeteria
Plan.
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LE 9
DEPEND NT ARE I E PR RAM
•
�ection 9.01. In General. Memb rs overed by this Program may submit claims for
the reimbursement of a Member's cove ed dependent care Fxpenses from contributions
allocated to the Member's subaccount fo D pendent Care Reimbursement Benefits.
Section 9.02. Definitions. Fo p oses of this Article, the following special
defmitions shall apply:
(a) "Benefits"means Reimbur m nt Benefits for Expenses under this Program.
(b) "De�endent�� means
(1) a dependent (as defin d i Code section 152) of an Employee (A)who is
under the age of 15 d ith respect to whom the Employee is entitled
to a deduction under C e section 151(e); or (B) who is physically or
mentally incapable of car ng for himself or herself; or
(2) the spouse of an E pl yee, if such spouse is physically or mentally
incapable of caring f h' self or herself.
(c) "Earned Income" means rn d income as defined in section 32(c)(2) of the
Code, excluding any a ou ts paid or incurred by the Employers for
dependent care assistance o a Member.
, (d) "F.a�enses" means amoun p id or incurred by or on behalf of a Member for
household services or for he re of a Dependent, either inside or outside of
the Member's home, sub ct to the limitations in Section 9.09, in order to
enable the Member to be ga fully employed for any period for which he or
she has a Dependent.
(e) "Hi hl m ns m r" means a Member who is (as determined
under the provisions of s cti n 129 of the Code) among the top 20% of the
payroll or a dependent of n
Section 9.03. Eli i ili En 11 n n T rmin tion. All Members of the
Cafeteria Plan shall be eligible to re eiv benefits under this Program. Enrollment and
termination of participation under t e feteria Plan shall constitute enrollment and
termination of participation under thi Pr gram.
�ection 9.04. v r n e Program shall only cover Expenses incurred
during the Period of Coverage the me ber has elected for Benefits, and only from
contributions made during the Per' d of Coverage for Benefits under this Program.
Expenses shall be considered incurre w en the dependent care is provided and not when
the Member is formally billed, charge f or pays the Fxpenses.
� Section 9.05. R ti n f n i s The Committee may reduce the amount of
benefits payable to a Member to the xt nt the Committee deems necessary to assure that
11
the Program does not discriminate in fa or f Highly Compensated Members in violation
of Code section 129 or any other appl ca le provision of law. Any such reduction of
` benefits shall be made by the Commit e n a reasonable and nondiscriminatory basis.
Contributions which may not be paid o t ecause of benefit reductions imposed by this
Section 9.05 will be forfeited.
Section 9.06. F h r Li i i e amount of benefits for a Member during
any year shall not exceed:
(a) in the case of a Member o s not married at the close of such year, the
Earned Income of such Me be for such year; or
(b) in the case of a Member wh is arried at the close of such year, the lesser of:
(1) the Earned income of uc Member for such year; or
(2) the Earned Income of he pouse of such Member for such year.
For purposes of paragraph (b)(2), if t e ember's spouse is a full-time student at an
educational institution or physically or en lly incapable of caring for himself or herself,
each spouse shall be deemed to be gain lly mployed and to have Earned Income of$200
per month, if the Member has only one ep ndent, and $400 per month if the Member has
two or more Dependents. In the case f ny husband and wife, the preceding sentence
shall apply with respect to only one spou e f r any one month.
Section 9.07. Pr hi i i n f i P n . No Benefits shall be paid to a
• Member during any taxable year of such e ber for Expenses paid to an individual:
(a) with respect to whom, for c taxable year, a deduction is allowable under
Code section 151(e) (relati t personal exemptions for dependents) to such
Member or his or her spous ; o
(b) who is a child of such mem r ithin the meaning of Code section 151(e)(3))
under the age of 19 at the cl se f such taxable year.
Section 9.08. rvi ide h H s h ld.
(a) Degendent Care Centers. e efits shall not be paid for services provided
outside a Member's househ ld by a facility that provides care for more than
six individuals other than in ivi uals who reside at the facility, and receives a
fee, payment or grant for pr vi ng services for any of the individuals, unless:
(1) such facility complies it all applicable laws and regulations of a state
or unit of local govern e t, and
(2) the requirements of se tio 9.08(b) are met.
(b) Certain dependents. Ben fit shall not be paid for services outside a
Member's household unless he ervices are provided for the care of
(1) a Dependent within th m aning of section 9.02(b)(1); or
�, (2) any other Dependent h regularly spends at least eight hours each day
in the Member's hous ol .
2
Section 9.09. Ann 1 R r . The Committee shall furnish to each
Member on whose behalf Benefits are p id, n or before January 31 of each year, a written
� statement showing the amounts paid by he Employers in providing Bene�ts on behalf of
such Member during the previous calend r ar.
Section 9.10. Other Provisions. th r matters conceming contributions, elections,
benefits, claims, and the like shall be g e ed by the general provisions of the Cafeteria
Plan.
i
� .
13
AR IC E 10
LAIM BE FIT
•
Section 10.01. 1 im for R im r nt B n i . Claims for Reimbursement
Benefits totaling at least $100.00 may be a e at any time. Claims for Reimbursement
Benefits totaling less than $100.00 may be m e at the end of each calendar quarter, or at
any other time in the event of a final cla ollowing termination of participation. The
Committee may, in its discretion,waive or lt r these requirements.
Section 10.02. Pri r P nt n . Members need not actually make
payment for reimbursable expenses befo e ing reimbursed for them under the Plan.
However, the Committee may require er ication that expenses have been properly
incurred.
Section 10.03. 1 im t n i i n. The Committee shall require a Member to
substantiate claims for Reimbursement B ne its under the Plan. For items covered by a
Medical Plan, but not paid by such Plan ca se of deductibles, copayments or maximum
limits, such substantiation shall include th lanation of Benefits form provided by such
Plan. All claims for medical expenses sh 1 b substantiated by copies of bills, receipts or
canceled checks. Claims for dependent e enses shall be substantiated by a Member's
certification that such expenses have b en properly incurred. Where necessary and
� appropriate, the Committee may in its di re ion waive such requirements but in so doing
shall always act in a uniform and nondiscr' ' tory manner.
Section 10.04. Tim Limi n 1 i in B n i . Claims for Reimbursement
Benefits shall only be paid if presented w hi time limits which shall be prescribed by the
Committee.
Section 10.05. Medical Plans. C ai s under a Member's Medical Plan shall be
governed by the terms of such Plan.
�
1
AR C 11
P T-TERNIINA PARTI PATI N
•
Section 11.01. Termin ion of P i i i n n A n f De h. Upon the death
of any Member or former Member who ha a alance in his or her Account, a beneficiary
of the Member may elect to continue to cl im eimbursement Benefits under a Member's
Account in the same manner as the Membe c ld have. Disposition of the account will be
governed by the provisions of Section 11.0 a if the beneficiary were a Member who had
terminated participation for reasons other a death.
Section 11.02. D rmin ti n f fi i . In the event of the death of a
member a beneficiary or beneficiaries sha 1 b determined to succeed to his or her rights
under the Plan. The beneficiary shall be th mber's spouse and/or all dependents.
Section 11.03. Other Termination. ember who has terminated employment for
reasons other than death may no longer h ve ntributions made to the Plan on his or her
behalf, but may continue to receive benefi u der the Plan for claims made for the Period
of Coverage in which termination occurs' ch claims may include claims for e�enses
incurred after retirement but prior to the nd of the Period of Coverage. The Committee
shall prescribe the time limitation within hi h claims must be submitted. Such time limit
may be shorter than the remainder of th M mber's Period of Coverage. Members may
• also continue to submit claims for Peri ds of Coverage prior to the Period in which
termination occurs subject to time limitati ns imposed by the Committee.
Section 11.04. Medical Plans. P st- ermination participation in a Medical Plan
shall be governed by the terms of such Pl .
•
15
TICLE 12
N I CRIMINATIO
•
Section 12.01. R u i n ntri i n n B n fi . The Committee may
reject any election and reduce the o nt of contributions or nontaxable benefits to the
extent the Committee deems neces a to assure that the Plan does not discriminate in
favor of Highly Compensated Me be in violation of Code section 125 or any other
applicable provision of law or to pre en taxation of key employees under the provisions of
section 125(b)(2) of the Code. Any eje ion of elections or any reduction of contributions
or benefits shall be made by the C ittee on a reasonable and nondiscriminatory basis.
Contributions which may not be p 'd ut because of bene�t reductions imposed by this
Section 12.01 shall be forfeited.
Section 12.02. Pr hi i i n f i rimin i n. Any discretionary acts to be taken
under the terms and provisions of t is lan by the Committee or by the Employers shall be
uniform in their nature and applica ion to all those similarly situated, and no discretionary
acts shall be taken that would be d' cri inatory under the provisions of the Code relating
to cafeteria plans, medical reimbur m nt plans or dependent care assistance plans as such
provisions now exist or may from t' e time be amended.
�
�
16
AR L 13
A
�
�ction 13.01. Accounts• A separate Ac unt shall be maintained for each Member
to reflect the amount of contributions on h s o her behalf under Article 4 and the cost of
all benefits paid to the Member or on th Member's behalf under the Plan with
subaccounts for each of the possible Reimb rs ent Benefits.
Section 13.02. i i n M . C ntributions on behalf of a member shall be
credited to the Account and appropriate su a unt of such Member.
Section 13.03 Benefits Provided. e st of benefits provided to a Member shall
� be charged to the Account and appropriat su account of such Member.
Section 13.04. i n f B n fi Any interest in a Member's Account may
not be assigned, transferred or alienated in ny manner whatsoever by any Member or
beneficiary.
�
�
17
AR C E 14
ADMI TRA F THE PLAN
s
Section 14.01. m i i n f h mitt . The administration of the Plan, as
provided herein, including the payment o al benefits to Members or their beneficiaries,
shall be the responsibility of the Saint Pa E ployee Benefits Committee, which shall be
the administrator of the Plan. In additio , t e Committee shall consist of the following
employees: the Personnel Director, the b Relations Manager, the Risk Manager, the
Employee Benefits Administrator, the hi f Accountant, the Risk Analyst, and an
Assistant City Attorney who will be app nt d by the Chairperson of the Board. In the
event of a vacancy in any of these position , t e Chairperson of the Board shall appoint an
employee to serve as an interim Commit ee Member. Committee Members shall serve
without compensation, unless otherwise d e ined by the Board.
Section 14.02. n f m it B in . The Committee shall elect its
Chairperson who shall be a member of t e ommittee and a Secretary who may or may
not be a member of the Committee. It s 1 ppoint such subcommittees as it shall deem
necessary and appropriate. The Commi tee shall conduct its business according to the
provisions of this Article 14 and shall hol re lar meetings in any convenient location. A
majority of all of the members of the o mittee shall have power to act, and the
• concurrence or dissent of any member ma be y telephone,wire, cablegram or letter.
Section 14.3. R r n R f mmi . The Committee shall keep
such written records as it shall deem nec ssa or proper, which records shall be open to
inspection by the Company. The Commit e hall prepare and submit to the Employer an
annual report which shall include such in ation as the Committee deems necessary or
advisable.
Section 14.04. A minis r tive P rs n D i . 1fie Committee shall have the
power to take all actions required to car ou the provisions of the Plan and shall further
have the following powers and duties, whi h s all be exercised in a manner consistent with
the provisions of the Plan:
(a) to construe and interpret th p ovisions of the Plan, and make rules and
regulations under the Plan to e xtent deemed advisable by the Committee;
(b) to decide all questions as to e 'gi ility to become a Member in the Plan and as
to the rights of Members und t Plan;
(c) to file or cause to be filed al such annual reports, returns, schedules,
descriptions, financial statem nts and other statements as may be required by
federal or state statute, agen , o authority;
S (d) to obtain from the Affiliated Co panies and employees such information as
shall be necessary to the prop r a ministration of the Plan;
1
(e) to determine the amount, an er, and time of payment of benefits hereunder;
(fl to contract with such insur carriers or other suppliers as may be necessary
� to provide for benefits; �
(g) to communicate to any ins e or other contract supplier of benefits under this
Plan in writing all informa on required to carry out the provisions of the Plan;
(h) to notify the Members of t e lan in writing of any amendment or termination
of the Plan, or of a change in ny benefits available under the Plan;
(i) to prescribe such forms a m y be required for Employees to make elections
under this Plan; and
(j) to do such other acts as it ee s reasonably required to administer the Plan in
accordance with its provis n or as may be provided for or required by law.
Section 14.05. Fi i D i . The Committee and any other fiduciary shall
discharge their duties solely in the inte est of Members and their beneficiaries and:
(a) for the exclusive purp e f providing benefits to Members and their
beneficiaries and defrayi r sonable expenses of administering the Plan;
(b) with the care, prudence, d iligence under the circumstances then prevailing
that a prudent man acti g i a like capacity and familiar with such matters
would use in the condu o an enterprise of a like character and with like
aims;
� (c) to the extent a fiduciary oss sses and exercises investment responsibilities, by
diversifying investments a to minimize the risk of large losses, unless under
the circumstances it is cl 1 prudent not to do so; and
(d) in accordance with the d cu ents and instruments governing the Plan.
Section 14.06. All i n r 1 i n f D i n R n i iliti . In
furtherance of their duties and res ns bilities under the Plan, the Committee and the
Board may, subject always to the req ire ents of Section 14.05,
(a) employ agents to carry o t nfiduciary responsibilities;
(b) employ agents to car o t fiduciary responsibilities (other than trustee
responsibilities;
(c) consult with counsel,w y be of counsel to the Employer; and
(d) provide for the alloca ion of fiduciary responsibilities (other than trustee
responsibilities) among Co mittee members, in the case of the Committee,
and among members of he Board, in the case of the Board.
Section 14.07. Pr r f r t All i r D 1 i n f Fi i D i .
Any action in subsections (b) or (d) f S ction 14.06 may be taken by the Committee or the
Board only in accordance with the f llo ing procedure:
�
19
(a) such action shall be taken y a majority of the Committee or the Board, as the
case may be, in a resoluti n pproved by a majority of such Committee or
� Board;
(b) the vote cast by each me be of the Committee or the Board for or against
the adoption of such res lut n shall be recorded and made a part of the
written record of the Com itt e's or Boards proceedings; and
(c) any delegation of fiduci esponsibilities or any allocation of fiduciary
responsibilities among m m ers of the Committee or the Board may be
modified or rescinded b t Committee or the Board according the the
procedure set forth in sub ect ons (a) and (b) of this Section 14.07.
�ection 14.08. 1 im Pr r The Committee shall establish a reasonable
claims procedure.
Section 14.09. M i 1 n r n fi 1 n . Plans shall be administered by the
administrators of such Plans and all cl i for benefits under such Plans shall be governed
by the terms of such Plans.
•
•
20
CLE 15
NDME D TERMI ATI
�
Section 15.01. Am n nt f The Committee may amend,with the approval
of the Board, any or all provisions of t is lan at any time by written instrument identified
as an amendment of the Plan effective s a specified date.
Section 15.02. T in i n f Pl . This Plan may be terminated in whole or in
part at any time by the Board.
Section 15.03. Pr rv i n of i . Termination or amendment of the Plan shall
not affect the rights of any Memb r n his or her account or the right to claim
reimbursement for e�enses incurred ri to such termination or amendment as the case
may be to the extent such amount i p able under the terms of the Plan prior to the
effective date of such termination or a e dment.
�
�
21
CLE 16
MI
�
�ection 16.01. F ili f Pa nt. If the Committee deems any person entitled to
receive any amount under the provisi ns f this Plan incapable of receiving or disbursing
the same by reason of minority, illness or firmity, mental incompetency, or incapaciry of
any kind, the Committee may, in its is retion, take any one or more of the following
actions:
(a) apply such amount directl f the comfort, support and maintenance of such
person;
(b) reimburse any person for ny such support theretofore supplied to the person
entitled to receive any suc p yment; or
(c) pay such amount to a le 1 presentative or guardian or any other persons
selected by the Commit ee to disburse it for such comfort, support and
maintenance, including th ut limitation, any relative who had undertaken,
wholly or partially, th e pense of such person's comfort, care and
maintenance, or any insti ti n in whose care or custody the person entitled to
the amount may be. e ommittee may, in its discretion, deposit any
amount due to a minor t hi or her credit in any savings or commercial bank
� of the Committee's choi .
Section 16.02. Lost Pavee. y amount due and payable to a Member or
beneficiary shall be forfeited if the C m ittee after reasonable effort is unable to locate
the Member or beneficiary to who pa ent is due. Such forfeited amounts shall be
applied towards contributions to the la . However, any such forfeited amount will be
reinstated through a special contribut' n o the Plan by the Employers and become payable
if a claim is made by the Member or e ficiary. The Committee shall prescribe uniform
and nondiscriminatory rules for carryi g ut this provision.
Section 16.03. Funding; The bl' ations of the Employers under this Plan may be,
but need not be, funded through con rib tions to a trust or otherwise. Nothing contained
in the Plan shall give a Member any r ht title or interest in any properry of the Employer.
�ection 16.04. Im m�ifi i . o the extent permitted by law, the Employer shall
indemnify and hold harmless the C m ittee, Members, any Employee, and any other
person or persons who whom the E lo ers or the Committee have delegated fiduciary or
other duties under the Plan, agains an and all claims, losses, damages, expenses, and
liabilities arising from any act or fail e o act that constitutes or is alleged to constitute a
breach of such person's responsibilit es connection with the Plan under any law, unless
� the same is determined to be due to gr s negligence, willful misconduct, or willful failure
to act.
22
Section 16.05. Ti 1 n H . The titles and headings of Articles and
Sections of this instrument are placed er 'n for convenience of reference only, and in the
� case of any conflicts, the text of this i st ment, rather than the titles or headings, shall
control.
Section 16.06. N m r. Wher er sed herein, the singular shall include the plural
and the plural shall include the singula , e ept where the context requires otherwise.
Section 16.07. A li bl La . e provisions of this Plan shall be construed
according to the laws of the State of in esota, except as superseded by Federal law, and
in accordance with the Code. The Pl s intended to be a cafeteria plan under section
125(d) of the code containing a medi 1 e ense reimbursement plan under section 105(h)
of the Code and a dependent care ass sta ce program under section 129 of the Code, and
shall be construed accordingly.
IN WITNFSS WHEREOF, t ty of Saint Paul, by action of their Board, has
caused this instrument to be execut b their o�cers thereunto duly authorized, this
day of , 19 , effective January 1, 19
TY OF SAINT PAUL
�
By:
ATTEST:
�
23